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Patagonia Shifts Living Wage Strategy After 2025 Goal Falls Short

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Patagonia Shifts Living Wage Strategy After 2025 Goal Falls Short

Patagonia is changing course on living wages after a decade-long effort failed to bring all workers in its supply chain up to its 2025 target.

The outdoor apparel company has joined ACT, or Action, Collaboration, Transformation, an agreement between global brands and IndustriALL Global Union that seeks to raise wages across garment, textile and footwear supply chains through collective bargaining, responsible purchasing practices and industrywide action.

Patagonia set a goal in 2015 for all workers making its products to earn a living wage by 2025. But the company now says its experience has underscored the limits of trying to close wage gaps one supplier at a time.

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“No single brand can solve this problem alone,” Patagonia said in announcing its ACT membership. Wage levels, the company said, are also shaped by national wage policies, brands’ purchasing practices, competitive pressures, worker representation and the systems available for collective bargaining.

Patagonia’s own latest published figures illustrate how far the company had left to go. Based on 2023 data covering factories employing more than 65,000 workers in its supply chain, the company said roughly one-third were paying a living wage. Another third were paying at least 80 percent of a living wage, while the remainder were paying at least 50 percent. All of the factories were paying above their respective legal minimum wages.

Patagonia defines a living wage as compensation for a standard workweek sufficient to provide a worker and their family with a decent standard of living, including food, housing, health care, education, transportation, clothing and other essential needs.


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