Adiantes Featured as a Case Study in UNGC's Moving Business Forward Faster: 2024 Trends & Insights Report

We are proud to announce that Adiantes has been chosen as a case study for the Moving Business Forward Faster: 2024 Trends & Insights Report, specifically focusing on "Living Wage" practices. As part of this initiative, Adiantes is being recognized for our commitment to ensuring that all employees earn a wage that provides them with a decent standard of living. The initiative aims to reduce inequalities and build resilient supply chains by promoting ethical business practices globally.

Why Adiantes Set a Public Target for Living Wage

Adiantes took the bold step to publicly commit to ensuring a living wage across our workforce as part of our dedication to social responsibility and ethical manufacturing. We saw an opportunity to be a leader in Thailand’s leather goods industry, where wage disparity remains a significant issue. By setting a living wage target, we aim not only to improve the financial security of our employees but also to create long-lasting employment relationships that benefit both the workers and the company.

In the manufacturing industry, retaining skilled and experienced workers is essential. Paying a living wage enhances employee loyalty, which leads to better craftsmanship, productivity, and overall business performance. For us, this is not just about meeting a standard; it’s about creating a sustainable future for our workforce.

The Importance of Living Wage in Thailand’s Manufacturing Industry

In Thailand, the rising cost of living and persistent income inequality are challenges faced by many workers, especially in the manufacturing sector. While the government-mandated minimum wage sets a baseline, it is often insufficient to cover the true cost of living. This is why Adiantes views paying a living wage as a strategic investment—not just in our employees but in the long-term success of our business.

By offering wages that exceed the national minimum, we attract and retain skilled workers, which is crucial in the leather goods industry, where experience directly impacts product quality. Ensuring job security and fair compensation helps our employees feel valued, resulting in greater consistency in our production processes.

Stakeholder Consultation and Collaboration

Before making our Forward Faster Living Wage commitment, we consulted extensively with both internal and external stakeholders. Internally, we worked with teams across human resources, finance, and operations to ensure our approach was comprehensive and aligned with our long-term goals. Externally, we engaged with governmental bodies and labor experts to better understand the implications of adopting a living wage standard in Thailand. This collaboration allowed us to create a well-rounded, impactful strategy that benefits both our workforce and our business operations.

Leveraging External Resources

While Adiantes has yet to fully utilize UNGC’s resources in developing our living wage plan, we have drawn on insights from industry experts and labor consultants. By benchmarking against industry wage standards and reviewing salary trends, we have ensured that our compensation levels not only meet but exceed national requirements.

Looking ahead to 2025, we plan to engage more deeply with UNGC resources to further refine our living wage strategy and strengthen our commitment to fair pay practices.

Progress Toward the Living Wage Target

We are proud of the progress we have already made in achieving our living wage goals. Today, Adiantes offers wages that exceed Thailand’s minimum wage standards, ensuring our employees can live comfortably. This commitment to fair wages has also contributed to our strong employee retention rates—59% of our workforce has been with us for over 10 years, a testament to our supportive employment environment.

Furthermore, 44% of our staff are part of an aging demographic, which emphasizes the importance of providing financial security through fair wages. Our living wage strategy focuses on three key areas: ensuring all employees earn a wage that supports a decent living standard, promoting long-term employment, and safeguarding the welfare of our aging workforce.

Looking Toward the Future

At Adiantes, our commitment to providing a living wage is about more than just meeting an industry standard; it’s about creating a sustainable and fair workplace for all. We believe that ethical labor practices lead to stronger, more resilient supply chains, and we are honored to be recognized by the UN Global Compact’s Forward Faster initiative for our efforts.

As we continue to build on our living wage commitment, we look forward to sharing our progress and contributing to a global movement that promotes fairness and equality across industries.

Read the full report here