| | NEWSLETTER 17, December 2003 Results of the Monitoring of Chinese Garment Suppliers |
The report makes public the findings of a code monitoring pilot project initiated by the Swiss Clean Clothes Campaign in collaboration with three Swiss companies: Migros, Switcher and Veillon. The pilot project was one outcome of a major Swiss CCC campaign calling on garment retailers to respect the rights of workers who make their products. The three companies reacted positively to the campaign by adopting codes of conduct and agreeing to cooperate with independent monitoring of supply factories in India and China.
China Pilot Project monitors compliance and initiates training
The China pilot project monitored working conditions and labor practices at two supplier factories, the first located near Shanghai and producing for Switcher, and the second located in Dongguan, Guangdong province and producing for both Migros and Veillon. Factory visits by two freelance social auditors were preceded by worker interviews carried out by Hong Kong-based NGOs and researchers. According to the CCC, the two and a half day factory visits were unannounced and consisted of "extensive discussions with management, inspection of the factory and dormitory, examination of written evidence and a closing meeting".
Follow-up visits verified the degree to which the suppliers were complying with the codes and assessed progress in correcting problems identified in the initial worker interviews and factory visits. The pilot project also included a series of training sessions on the Code for workers at one of the factories, with the collaboration of a local NGO.
Monitoring brings results
The follow-up visit to the Switcher supply factory found improvements in compliance with hours of work provisions and payment of minimum wage, statutory holidays and overtime pay, as well as health and safety practices and health services. The report also points to improvements in management systems and procedures needed to implement the Code. It calls for more transparent calculation of wages so workers know what they are paid for, the elimination of salary deductions for disciplinary purposes, and the use of one consistent and accurate version of the Code summary that is distributed to workers.
While the follow-up visit to the Migros and Veillon supply factory also found improvements in health and safety practices, it identified major problems with a lack of transparency and unreliability of evidence provided to auditors concerning wages and hours of work. The report notes that recommendations made in the initial visit concerning wage slips, payment of overtime, statutory holiday pay, social insurance contributions, and deductions for disciplinary reasons were not acted upon. It recommends "in-depth discussions" between the retailers and factory management "to dispel the latter's mistrust of the pilot project's visits, to acknowledge the non-conformities and to ensure in the future full transparency in order to start solving these breaches."
The report is available in English only at: www.cleanclothes.ch/d/Reports.htm
Please see the Swiss CCC website for news on forthcoming case studies, and "Challenges in China: Experiences from Two CCC Pilot Projects on Monitoring and Verification of Code Compliance", written by Nina Ascoly and Ineke Zeldenrust. The paper documents the experiences of the Swedish and Swiss pilot projects on possible methods for monitoring and verifying compliance with codes of labor standards that the campaign started to become involved in between 1998-2001. The paper can be downloaded at:
http://www.cleanclothes.org.
New ETI Workbook Published
The Ethical Trading Initiative published the first edition of their workbook, a resourceaimed at helping companies grappling with the practical challenges of ethical trade. Presented as step-by-step guidance, the workbook covers the key management issues that retailers and other sourcing companies need to address in setting up and implementing an ethical sourcing strategy or code of labor practice.
Copies can be ordered via ETI at: Cromwell House, 14 Fulwood Place, London WC1V 6HZ, UK;
tel/fax + 44 (0) 20 78 31 78 52,
or by e-mail at:
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3rd Revised Edition of "Workers' tool or PR ploy?"
The third revised edition of this guide to codes of international labor practice by Ingeborg Wick was published in March 2003. Since the publication of the first edition of this booklet in March 2001, the international debate on codes of conduct has gained further momentum. This debate is a reflection of a growing worldwide movement questioning the social impact of globalization. See the website of Südwind:
www.suedwind-institut.de,
and website of Friedrich Ebert Stiftung:
www.fes.de,
or download at:
www.cleanclothes.org/documents/Workers-tool-2003.pdf.
