Alexander Turecki

Alexander Turecki evaluates the FLA’s draft Fair Compensation Plan.  In sum, he concludes that the while the plan incorporates “some innovative ideas, some new and some used, the plan has some flaws and could use improvement in terms of accountability, timeline, and other aspects”. The plan is based on the assumption that brands will buy into the idea that increased wages will lead to increased productivity, innovation, and worker retention. This is questionable, he argues, as brands have been reactive rather than proactive generally (e.g., Rana Plaza). The plan does not have a detailed disclosure methodology,in order to pressure its brands. There is still no idea of how an “accountability mechanism will work” with regard to fair compensation. The timeline for its introduction is vague and imprecise. The plan has some innovative aspects, such as the use of mobile technology to gather compensation data from workers, closing the information gap on what workers are truly getting paid. The wage ladder is also a useful tool, but the FLA needs to identify clear goals on progression up the ladder, and the ladder itself could incorporate one or two aspects available in the FWF ladder, notably the gender composition of the workforce, the parsimony of the steps in the ladder and the reliance on fewer but more relevant wage benchmarks.