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Living Wages

Living Wages

A living wage is the minimum amount of income required to meet a person’s basic needs. AJP standards require that employers must either 1) pay employees living wages, calculated for the local conditions; or 2) meet several conditions:

  • show the farm’s accounting to employees in order to explain why they can’t afford to pay livings wages yet;
  • negotiate wages with employees;
  • work with employees to develop a plan to raise revenues and lower costs, in order to achieve living wages;
  • raise wages when profits increase;
  • pay the highest paid employee not more than 8x the lowest paid employee.

The same requirement applies to wholesale buyers, who must either 1) pay suppliers a price that covers the actual cost of production, including living wages for all employees and owners; or 2) buyers must document their inability to pay a fair price by sharing their financial records and negotiate a price in good faith.

For guidance on how to improve your business’s bottom line while offering better working conditions and compensation, see our article on Strategies to get fair compensation for workers and owners.