Towards a Sustainable Living Wage
The living wage is a long-term problem that requires long-term solutions. In many countries, government-set minimum wages are too low to guarantee workers and their families have enough to meet their basic needs.
A Living Wage, Not a Minimum Wage
We are proud to provide a living wage for every Sanofian, and have adopted the methodology established by the Fair Wage Network.
As a global healthcare company, our purpose is to improve lives. We have the power to do that not only through the medicines we create and manufacture, but through the culture we generate and the example we set.
The Fair Wage Network partners with companies to evolve their approach to employees and suppliers, understanding that the complexities of every sector and company are different. Their multi-dimensional standard includes elements like social dialogue and paying wages that don’t require people to work excessive hours to meet the basic needs of their families.
As Daniel Vaughan-Whitehead, Co-Founder and Chair of the Fair Wage Network, explained: “There are quite a lot of institutions and tools for setting wages, such as the legal minimum wage and wage bargaining. The problem is these institutions can be weakened or insufficiently developed. When the legal minimum wage becomes a political compromise, it can fall below what workers and their families really need."
Implementing a living wage fosters better health and well-being among employees and contributes positively to local economies. It can also significantly enhance employee productivity, reduce turnover rates and absenteeism, and improve overall performance.
The living wage is a global issue with far-reaching effects:
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Some countries haven’t adjusted their minimum wage in decades. Others do it only every several years.
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When parents don’t earn a living wage, the risk of child labor increases.
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In many countries, minimum wage is well below the average Living Wage; overall, the gap between minimum and living wages has increased significantly in recent years.
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The International Labor Organization (ILO) agrees that decent wages are central to economic and social development and to advance social justice.
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Sanofi has fully met its Living Wage commitments globally and is advocating for the Living Wage among its suppliers.
Effecting a living wage across all Sanofi countries meant overcoming challenges such as navigating significant economic disparities and cost of living variations across different regions, while dealing with diverse and complex legal and regulatory environments. Additionally, cultural expectations and perceptions of fair wages vary widely.
Sometimes the living wage isn’t well understood and can appear as a threat to existing institutions. It's really the opposite: it can represent a lever in wage bargaining.
Daniel Vaughan-Whitehead
Founder and Chair, Fair Wage Network
Wolfgang Laux, Director representing the employees on the board of directors of Sanofi, explained: “The biggest challenge in living wage is defining it and agreeing what you want to do. This is actually a huge task involving a lot of people, weighing a lot of different models. Including employees in this process kept the conversation grounded and human, making sure we all had sight of the view from the other side of the fence. It's also not a simple, one-time job to implement a consistent and effective living wage policy across all locations.”
What’s Next for Living Wage at Sanofi?
As a Living Wage employer, we set an example we believe others should follow. We see living wage as a commitment that extends beyond our own employees and will continue to advocate for it with key suppliers.
As Wolfgang says, “In an industry that is working well, we should be a model. The work doesn’t stop here. Living wage is a global ambition and we want to see it realized across the value chain.”
Daniel added, “We need more front-runners like Sanofi. And it would be great to extend the scope of the methodology to Sanofi suppliers. By setting an example and using our influence with partners and suppliers, we know we can help drive the movement for fair wages forward.”