Lidl is launching an innovative industry-first tool and new process designed to address wage disparities among plantation workers.

Following a successful trial in Lidl Germany, the mechanism is due to be rolled out next month across Lidl GB’s entire banana supply chain.

Developed in collaboration with non-profit organisation advocating for sustainable change IDH, the mechanism calculates the premium which is to be paid by the discounter to close its proportion of the living wage gap for individual workers and plantations.

The tool enables suppliers to develop an action plan to close these wage gaps, with regular analysis and annual adjustments.

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Initially, wage gaps between local living wages and actual wages paid to workers are identified by collecting and auditing supply chain data. Suppliers are then 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 comes a year after the discounter committed to closing the wage gap across its banana supply chain, something Lidl is on track to meet ahead of the national 2027 target.

Lidl will be sharing learnings with producers and suppliers, and will also provide other supermarkets with access to the tool so they can adopt similar practices to standardise the mechanism, in a bid to encourage sector-wide change.

The grocer’s chief commercial officer Richard Bourns said: “We recognise the importance of addressing wage disparities within our supply chain. 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. It sets a precedent for ethical sourcing, but most importantly, helps ensure fair wages for workers on banana plantations.”