Lidl GB is addressing wage disparities amongst banana plantation workers through an analysis tool which the discount supermarket claims is an industry first.

The tool has been developed in partnership with IDH, a not-for-profit organisation, and calculates the premium to be paid by Lidl to close its proportion of the living wage gap for individual workers.

Using the tool, suppliers can develop an action plan to close wage gaps and use supply chain data to conduct regular analysis and annual adjustments.

Suppliers are trained on the tool and once supply chain data has been validated, can choose their preferred method of payment to workers, such as increased salaries, bonuses, or vouchers for local services like supermarkets.

The initiative was successfully trialled in Germany and comes a year after Lidl GB committed to closing the wage gap across its banana supply chain, which Lidl said it will meet ahead of its 2027 target.

Lidl added that it will share its learnings with producers and suppliers, whilst also providing other supermarkets with access to the tool so they can adopt similar practices to standardise the mechanism.

“Through the introduction of this innovative tool, we are not only fulfilling our obligations as a responsible retailer but also setting new and ambitious standards across the industry,” said Richard Bourns, chief commercial officer at Lidl GB. “It sets a precedent for ethical sourcing, but most importantly, helps ensure fair wages for workers on banana plantations.”

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