KMD Brands Commitment to Fair Compensation

KMD Brands recognises a living wage as an essential aspect of decent work. We are committed to taking meaningful action by both ensuring a living wage within our own workforce and promoting fair wages within our supply chain.

A living wage is remuneration that enables workers and their families to meet their basic needs. It is a human right and an enabling right embedded in the Universal Declaration of Human Rights (article 23 and 25). Living wages advance Sustainable Development Goals 1 (No Poverty), 5 (Gender Equality), 8 (Decent Work and Economic Growth) and 10 (Reduced Inequalities) and contribute materially to the achievement of several other Goals. The Global Living Wage Coalition defines a living wage as “the remuneration received for a standard workweek by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, health care, transportation, clothing, and other essential needs including provision for unexpected events.”

A living wage is not the same as a minimum wage. Minimum wages do not always allow for a decent standard of living.

KMD Brands Workforce

We are committed to paying workers in our own operations a living wage.

In 2023, KMD Brands committed to paying New Zealand-based employees no less than the effective Living Wage at 1 April, 2023. This decision meant KMD Brands fulfilled a commitment made in 2021 to pay New Zealand employees a Living Wage by 2024 - a year earlier than planned. A readjustment will be considered in early 2024 in response to the new Living Wage (NZ) (effective 1 September, 2023).

100% of permanent Oboz employees based in Montana are also paid a living wage.

In FY23, we revised the wage structure of our factory workers in our Onsmooth wetsuit factory in Thailand. This provided a lift in salaries to align with the Anker living wage methodology, resulting in an increased standard of living for employees and their families, widespread positivity and staff retention.

During FY24, KMD Brands intends to undertake a living wage gap analysis within our key operating regions, subject to the availability of reliable living wage benchmark data.

Gender-based pay gap calculations have also been undertaken for some parts of our workforce. The methodology and robustness of this analysis will be improved in FY24 to allow for a long-term plan to address any gaps that may be identified.

As we make progress within our direct operations, we will leverage this experience to further promote a living wage for workers within our supply chain. We will also publicly report on our progress via our Annual Integrated Report.

Supply Chain

We are committed to taking meaningful action on living wages within our supply chain. We recognise that addressing low wages is part of our responsibility to protect and respect human rights.

1.       Identify risk and prioritise actions

In FY24, we are focused on identifying where in our supply chain the risk of wage gaps is greatest. We also continue to consider low wages as part of our approach to human rights due diligence.

We are focusing on our branded product supply chain across five countries. These countries cover over 90% of KMD Branded product sourced.

We are currently collecting wage data to assess the gap between current basic pay and recognised living wage benchmarks within supplier workplaces across these five countries. This work is supported through use of the Fair Labor Association’s fair compensation tools.

Once data is collected, we will develop an engagement plan with priority suppliers. Leverage and risk will be considered. We will publicly report on our findings and planned actions at the end of FY24.

2.       Internal engagement

We will continue to build awareness and capacity within our internal teams regarding responsible procurement, and work together to identify opportunities to support suppliers.

3.       External engagement

Supporting social dialogue is important in understanding the root causes of low wage and promoting the payment of living wages. KMD Brands promotes the fundamental rights of freedom of association and collective bargaining in our Supplier Code of Conduct. In FY23 we started consultation with both supplier management and workers’ representative committees on fair compensation and will continue this in FY24. Our 2023 Annual Integrated Report outlines how we are prioritising worker dialogue and transparent channels for workers to share information, identify issues and foster cooperation.

In FY24, we will also investigate opportunities for collaboration with industry peers and other relevant organisations to drive wider impact.