Kmart has addressed the issue of fair wages in its supply chain.

The discount department store has issued a statement on its sourcing policy, following the release of an Oxfam video campaign ahead of Christmas.

"We believe that everyone touched by our business should be treated fairly and with respect, whether they shop with us, work for us, or work for a supplier in a factory making our products," the company said.

"In some of the countries from which we source our products, factory workers are not paid a wage that is fair or meets their basic needs. This is why we are working with our partners to achieve a living wage for factory workers.

"Simply paying higher prices, however, will not result in factory workers receiving a higher wage. The only way to do this is by working in partnership with other retailers, trade unions, suppliers, workers and national governments.

"This is why in 2015 we joined other global retailers and brands to collectively work with unions and workers through the ‘Action, Collaboration, Transformation’ (ACT) initiative, which aims to implement a sustainable solution to achieving a living wage.

"This month, ACT will release its commitments on purchasing practices after thorough consultation with unions, suppliers and businesses. As part of our commitment to ACT and living wage, we intend to set a public target for implementation of the purchasing commitment in February 2019.

"This is a complex issue but we believe strongly that by working collaboratively we can achieve a positive outcome."

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