Every year in April, we highlight development in our supply chain to show where we contribute to improvement. And this year is no different.
The latest addition to our Living Wage Program is Chennai Management Services in India. With our solid foundation, dedication, and long-term collaboration with other suppliers, it wasn't too difficult for us to start the program with our new leather jacket supplier.
Chennai Management Services is a supplier with high ethical standards, and they never hesitate to improve the situation for the workers. The management of the supplier has shown great interest and willingness to pursue the project since the beginning and engaged early on as test pilots of Fair Wear Foundation's "Fair price app," a tool that enables more transparent product costing.
In 2021, we developed a transparent product costing to see how purchasing prices related to minimum wages and the living wage benchmark. The results enabled us to pay our share of living wages, and all 239 employees at the unit got an additional INR 1935 each.
We are fully aware that the amount is not enough to make it a full living wage, but at least it is a step in the right direction. And during a ceremony on International Women's Day, the women at Chennai received their first payment. Mr. R. Sundararaman, Manager, Technical Services at Chennai, told us that they were overwhelmed when they received their payments and couldn't believe it had happened. Also, the initiative has served as motivation, improved productivity, and increased self-confidence for the workers.
At Chennai management Services, 73% are female, which means we see a need for training and education about gender equality. And Chennai has enrolled in anti-violence and harassment training. We appreciate each supplier involved in our garment production and love seeing how our efforts make a difference for the individual worker as well as the workplace.
By raising wages, Mr. R. Sundararaman says the workers want to come to work because they know how their presence can reduce some financial stress and allow them to spend money on their own well-being, which can ultimately improve the quality of their families' lives.
By including Chennai in the Living Wage Program, we proudly announce that we now pay our share of living wages at all our main suppliers' facilities in India.