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NEWSLETTER 14, JULY 2001
The European Parliament Hearing:
Phoning adidas, but no one picks up
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The
Resolution of the European Parliament (EP) on Standards for European
Enterprises in developing countries, also known as the Howitt Resolution,
was adopted in January 1999. This resolution calls on the European
Commission to, among other things, establish a model code of conduct
for European businesses when operating abroad, and establish a European
Monitoring Platform. Until these things are set up, the resolution
calls for annual hearings to be held in the Euro Parliament and
special rapporteurs to be appointed to report on the good and bad
practices of European multinational organizations (MNOs).
European Parliamentary Hearing
In November 2000, the first hearing in relation to this resolution
was organised by the Commission of Development and Cooperation.
Adidas and Nestlé were invited to participate.
Wereldsolidariteit, a Belgium organization that is a member of
the Flemish-speaking Belgian CCC, was notoriously present, with
members wearing T-shirts that said: "A living wage cleans
clothes" (leefbaar loon maakt kleren schoon). These shirts
were also worn by the Belgian soccer team AA Gent. Wereldsolidariteit
wanted to present adidas with the more than 50,000 signatures
and photos that were collected from supporters demanding a living
wage. Adidas hadn't come to Belgium in May 2000 to accept these
signatures, and again failed to show up.
Both adidas and Nestlé refused to attend the EP hearing
-- unfortunate, but not totally unexpected. Instead, the companies
sent their auditors. This was met by a lot of criticism from members
of the European Parliament, who noticed that companies always
managed to make it to the Parliament to lobby for their interests,
but when the European Parliament has questions for them they don't
show up. The spokesperson for Verite, a social auditing company
which was sent by adidas, then made the hilarious gesture of giving
the phone number of the adidas public relations person who could
be reached to answer questions. When this number was dialled,
there was, of course, no answer.
The hearing included presentations by NGOs and researchers on
the behavior of Nestlé and Adidas in developing countries.
Regarding adidas there were reports by Rainy Hutabarat, a researcher
in Indonesia. She reported that her research into labour conditions
in a factory that produces for adidas turned up forced overtime,
a wage well below the legal minimum, and physical and verbal abuse
of workers. After reporting this to adidas, there were some small
improvements. On the whole, concluded Hutabarat, codes of conduct
have not led to meaningful change. The minimum wage should be
replaced by a living wage, she said, so that workers are no longer
forced to work overtime. Workers at factories supplying adidas
should be educated on the adidas code of conduct and involved
in its monitoring, which should be done on an institutional basis
in close cooperation's with NGOs and trade unions, she said.
Ratna Sapari from the Institute for Social History in Amsterdam
highlighted the weaknesses of legal frameworks in Indonesia. She
stressed the importance of outside intervention to protect workers
who remain in a weak position. According to her, Northern governments
should endorse binding measures to regulate the behavior of transnational
corporations. After questions and remarks by members of the European
Parliament, chairmen Joaquim Miranda concluded the morning with
the remark that voluntary commitments were clearly not sufficient
for companies to implement social standards.
Follow up
Not much has happened since the hearing took place. In February
2001, the CCC wrote a letter to Miranda, chairman of the Euro
Parliament's Development Committee, and to the members of the
committee to inquire about new developments in implementation
of the resolution. When the campaign received no reply, Miranda
was contacted again. According to him, nothing has happened so
far. In early May the Commission will have a meeting where the
Howitt resolution will be discussed. Howitt himself would like
to have a hearing in 2001, but it's not clear yet on which sectors.
The CCC feels it would be a good idea to organize another hearing
on a garment or sports shoe company, because the company that
was invited for the 2000 hearing did not show up.
Meanwhile though the CCC is concerned about the implementation
of the resolution. Although there has been a hearing there still
hasn't been any rapporteur appointed, and there has been no action
taken to implement the other parts of the resolution. The CCC
will be lobbying both the European Parliament and the European
Commission to implement the resolution. Keep an eye on the CCC
website for updates on this campaign. At the moment the campaign
is considering which European companies to recommend that the
Development Committee invite to the next hearings. Please contact
the CCC in Amsterdam with any suggestions.
