CCC Reference Guide on Code Implementation & Verification
Section 2. Pilot projects

2.1 CCCs pilot strategy and main pilot projects >>

The Fair Wear Foundation pilot project

Industry/Sector focus: Garment industry

Dates: First pilot project started in early 2000 at the management level with three companies in the Netherlands (van Winkel Fashions, Vilenzo BV, and Cora Kemperman/Jurk BV). A second pilot at the production level started in 2001.

Who was involved?

• The Fair Wear Foundation
• Companies
• The auditors Veritas (BVQI) at Vilenzo and Van Winkel

What is the FWF?
The Dutch CCC, along with the relevant trade unions and federations, started negotiations with industry federations as early as 1994. The NGOs and the unions involved were proposing the establishment of a foundation to oversee the implementation of a code called the "Fair Wear Foundation" and to monitor/verify the signatory companies. Companies complying with the foundation's regulations would receive a trademark (company certification). The aim originally was to involve the federation of large enterprises, however by 1996 it became clear that no progress with them was forthcoming.

The federations of small and medium-sized enterprises (both producers and retailers) indicated interest, fuelled partially by the increase in demands made on their members by retailers who themselves were adopting codes (for example, C&A). They had an interest in a more centralized system with only one code. In March 1999 the foundation, the Fair Wear Foundation (Stichting Eerlijks Handels Handvest, EHH), was formally set up, initially for a 15 month project.

The Fair Wear Foundation which includes the Industry Association of the Small and Medium Sized Garment Retailers and the Industry Association of the Garment Producers, 5 companies presently involved in production country pilots and a waiting list for membership of about 20 companies; the trade unions FNV and FNV Bondgenoten and on the NGO side a.o. NOVIB, Max Havelaar, Fair Trade Association and the Consumer Union.

Pilot study's background

The aim of this audit was to test:

• to what extent companies understand and feel they can work with the management system;
• to find out to what extent social auditors can test the implementation of the management system; and
• to what extend the management system will bring the intended results

The parties agreed on a two-year pilot project to identify bottlenecks in the application of the management system, local nitty-gritty aspects of the code and the implementation of auditing procedures. Suppliers were tested in four producer countries. Besides appointing commercial audit firms, the Foundation also involved alternative auditors such as NGOs, unions, research groups, etc. in the verification process.

In May 2000 the companies were presented with the Fair Wear Management System Requirements and asked for their comments. After this a "trial audit" was done in June 2000 by Veritas (BVQI) at Vilenzo and Van Winkel

The Fair Wear Foundation is financed by companies, the FNV and government contributions. Pilot projects are also financed from EU funds.

• Website Fair Wair Foundation
  http://www.fairwear.nl/

• Overview of the FWF pilot project: Fair Wear Foundation pilot projects

• Sept. 2002, Terms of reference for Pre-study: Basic information on regional labour conditions in the Garment Industry. Fair Wear Foundation, Amsterdam.

• After an intensive consultation period in May 2002 the Fair wear Foundation published its "Principles and Policies document" that outlines its basic policies and the way it will work. According to FWF: "the document is not static, and in the future it can be reviewed again, on the basis of news and experiences and insights". It can be found at the new website of FWF: http://www.fairwear.nl

• FWF workers information sheet - During the audits that were carried out as part of the pilots in India, Indonesia, Poland and Romania special information sheets were handed out to workers to inform them about what was going on and to provide them with contact details in case they had comments after the audit.

• Information for supplier companies in the FWF pilot project - some background information about FWF and auditing.

• Dec. 2001, Report on Pre-study: Basic information on Regional Labour conditions in the Garment industry in the region of Mumbai, Prepared by ASK. PdF file (96 kb).

• May 2002, EHH Roundtable 10 May 2000: Report of Fair Wear Foundation Roundtable meeting with representatives from Ethical Trading Initiative (ETI) and the Swedish Project on Independent Verification.

• June 2001, Pilot update, Plans to start pilots in Poland, Romania, Madagascar, India and Indonesia.