Living Wage | ACER ESG
Living wage is the income earned by an employee during legitimate hours of work that is sufficient to support the basic necessities of life in a decent manner. In recent years, Acer has attached great importance to the standard of living wages for its employees and has asked its suppliers and contractors to make efforts to achieve the standard of living wages for their employees. A good living wage not only reduces the risk of labor problems, but also attracts and retains talent, increases worker productivity, and customer satisfaction, thereby promoting long-term company growth.
Acer Commitment and Adoption of Methodology
Although 100% of Acer employees are currently paid above the local living wage standard, we conduct annual reviews to ensure that everyone is paid above the living wage standard.
We are committed that at least 75% of our Tier 1 suppliers pay the wage at the local living wage level by 2025, and at least 80% of them by 2030.
We are committed to ensuring that at least 70% of our contractors will pay the wage at the local standard living wage level by 2025, and at least 80% by 2030.
Adoption of Methodology
Regarding the methodology for estimating a living wage, we took the following two steps with reference to Anker's methodology（Note: Anker Methodology for Estimating a Living Wage）：
The first step is to survey the (decent) cost of living of employees and families in a given area, which is the standard living wage.
To determine whether we are paying wages (excluding overtime, bonuses and benefits) above or below the standard, and to request improvements from entities whose average wages are below the living wage standard (such as Acer's regional offices, contractors or suppliers).
Living wages of the three major groups
In February 2023, we conducted a living wage survey of Acer's top three operating regions, including Taiwan, China, and the U.S. The survey showed that the average living wage of employees in these three regions was above the norm.
In January 2023, we conducted a formal living wage survey of contractors worldwide. Of the 24 contracting companies surveyed globally, 19 (79%) had a living wage above the norm. For contractors that are currently below the living wage standard, we have requested remedial measures, including a commitment to pay a living wage that meets the standard and a plan for improvement. Acer will take proactive action to monitor these contracting units and measure the effectiveness of their improvements.
From late 2022 to early 2023, we conducted a formal living wage survey of Tier 1 suppliers. The survey results show that 13 of the 16 providers surveyed, or 81%, offer a living wage above the norm. For suppliers that are currently pay the wage below average, we have taken the following remedial measures:
Require all suppliers to commit to paying an appropriate living wage to cover the basic costs of a modest (but decent) living, and require those below the average to initiate improvement programs. Acer conducts annual reviews and provides the necessary care and counseling assistance.
Suppliers are required to improve productivity,profitability, and quality in order to increase compensation; suppliers are required to regularly check whether living wages are being met with reference to living wage standards, price increases,and employee feedback. Acer will conduct annual reviews on an annual basis.