ToR for Living Wages Study 2025

Terms of Reference (ToR) - Living Wages Study 2025

1.   About PFC

Plastic for Change is a fair trade-certified B2B plastic recycling company. The platform sources plastic waste from a network of over 5,000 waste collectors, providing global markets with a consistent supply of high-quality recycled plastic.

This ethically sourced plastic is supplied to leading consumer brands as an alternative to virgin plastics for packaging. By using this recycled material, brands can build a transparent and responsible supply chain while enhancing their market share through authentic cause marketing.

The Social Additionality (SA) division of Plastics For Change is dedicated to improving the dignity and quality of life for informal waste collectors and scrap workers across India. To achieve this, PFC SA undertakes various initiatives focused on social and financial inclusion, education, skill development, healthcare, nutrition, housing, business development, and awareness.

Plastics For Change acknowledges the critical role these workers play in environmental sustainability, recycling, and the circular economy, and continually strives to enhance their capacity in line with fair trade practices.

2.   Objective of the living wage study

The main objective of the living wage study is to scientifically determine and develop standards for living wages that align with International Labour Organization (ILO) guidelines, specifically for waste collectors and scrap shop workers.

This study aims to narrow the scope by focusing on the ILO's definition of a living wage, ensuring that the wages calculated provide workers with the means to afford a decent standard of living, including basic needs such as housing, food, healthcare, education, and social security, while taking into account local economic conditions and labor market dynamics.

3.   Scope of work

• Location Visits: The consultant will visit all specified study locations to assess the income and living wage conditions of waste collectors and scrap shop workers.
• Target Population: The scope will be limited to waste collectors and scrap shop workers within and outside the PFC supply chain. This allows for comparison and ensures a focused analysis.
• Demographic Overview: Provide an overview of waste collectors and scrap shop workers across PFC locations, including demographics and socio-economic conditions.
• Contextualizing Living Wages: Evaluate living wages within the Indian context with a special focus on the needs and living conditions of waste collectors and scrap shop workers, considering factors such as food, housing, health, education, and emergency expenditures.
• Impact of SDF and SA Interventions: Evaluate the specific impact of Stakeholder Development Fund (SDF) and other Social Accountability (SA) interventions, such as health, education, Livelihood and training and awareness programs, on the overall well-being and development of stakeholders. This should be done in a quantifiable way to measure their effectiveness on improving the lives of workers.

Study Methodology:

• Design the study with clear data collection methods, sample sizes, and a robust analytical framework.
• Define the sample size for the study, including a recommended percentage (e.g., 20%) of total stakeholders within and outside the PFC supply chain.
• Define the living wage calculation methodology, following the ILO framework and considering both PFC and non-PFC workers.
• Current Living Wage Conditions: Assess the existing wage conditions, including the value of living wages in workers' lives, their utilization patterns, and the real cost of providing a decent standard of living for a worker and their family.

Earnings Overview:

• Analyze the current earnings of waste collectors and scrap shop workers, detailing the various job types and income associated with each.
• Provide a comparison of earnings within and outside the PFC supply chain.
• Living Wage vs. Minimum Wage: Explore the difference between living wages and minimum wages, explaining how the former better addresses the needs of workers in this sector.
• Clear Outcome: Determine the shortfall or increase in income of waste collectors and scrap shop workers against living wage standards. Quantify this in percentage terms.
• Reason for Shortfall or Increase: Investigate and analyze the specific reasons for any shortfall or increase in income. This includes economic, social, and employment factors affecting earnings.
• Recommendations: Provide targeted recommendations to address income shortfalls or increases. These recommendations should be specific and actionable, focusing on practical measures to adjust wages or improve earnings, based on the findings of the study. The aim is to provide clear, feasible steps to bridge any identified income gaps and align wages with living wage standards.

4.   Deliverables

A detailed study report with executive summary.

A presentation based on the findings and the recommendations. 

5.   Study locations: Chennai, Pondicherry, Mangalore, Kumta, Mysore Vizag and Kolkata.

6.   Timeline

25 days from the date of signing the consultancy agreement. This study should start by 15^th February and End by March 2025.

7.   Consultancy Fees

As per industry standards

8.   Ask from the consultants:

Submit the proposal which includes Research Methodology and Tools to be used and consultancy Fees.

IMPORTANT: This proposal should not be more than 2 pages. (Calibri font size 12). Any proposals outside this guideline will be disqualified.

Please submit your proposal to Sasikumar@plasticsforchange.com

Last date of submission: 5^th February 2025.

Tags Recycling and Waste Management Others