Nov 2003 - Shree Jee Fire Follow-up: Some Progress, but More Pressure Needed

Shree Jee Fire Follow-up: Some Progress, but More Pressure Needed

Nov 2003

As reported in the Clean Clothes newsletter, May 2002, Indian shoe factory Shree Jee International was devastated by a fire which killed 44 workers. At the time of the fire, all seven windows were closed and heavily secured with wire mesh and both doors were locked. Numerous laws, as well as health and safety regulations, had been breached. After more than one year of campaigning for the UK companies sourcing at the factory to take responsibility for working conditions, some companies have responded to CCC calls for action.

However, more pressure is needed to push these companies to develop and implement policies and procedures that support compliance with good labor standards where their goods are produced.

Both the International Secretariat and the UK CCC (Labour Behind the Label) have been in correspondence with the UK companies that produced their shoes at Shree Jee to discuss their role in taking responsibility for the tragic events and how to ensure that this does not happen again at any workplaces throughout their supply networks. The following is an update on how key companies sourcing at Shree Jee have responded, and follow up action you can take.

Recommended action:

Please write to:

Stylo plc
The Peacock Group, and the
International Shoe Agency

Stylo plc

Stylo plc (which owns Barratts, one of the brands produced at Shree Jee) informed the UK CCC in June 2003 that

it "welcomes a constructive approach and is in the course of refining its corporate social responsibility statement and practice," and
"is aware in general of the Ethical Trading Initiative, and [will] take particular note of our recommendation [to join ETI]".
While the CCC welcomes Stylo plc's more constructive approach, it appears that more pressure is needed to ensure that this translates into concrete action.

Recommended action: please write to
J.M. Yates
Company Secretary
Stylo Barratts Shoes Ltd
Stylo House
Harrogate Road
Apperley Bridge
Bradford BD10 0NW

and urge Stylo plc to:

ensure that its new corporate responsibility statement should be at least equal to the CCC model code/the base code of the Ethical Trading Initiative (ETI),
formulate procedures for implementing these new policies, which take into account the importance of partnership with suppliers (and in this case importers) if progress is to be made,
ensure that its purchasing policies - in particular pricing and delivery times - are compatible with implementing its new standards,
establish procedures for monitoring and verification of working conditions, taking into account the importance of involving relevant local organizations (ex. human rights groups, trade unions), and
become a member of the ETI where it can develop, in collaboration with other members, effective ways to implement and monitor standards and have them verified.

The Peacock Group

The Peacock Group responded in February 2003 that:

because Shree Jee and the Indian government have paid a large amount of compensation to the survivors and dependents of the victims,
because factory audits and ethical sourcing audits are carried out to ensure that working conditions meet sourcing policy requirements, and
because where there are problems, "it is made clear they must be corrected or further business may not be placed with that factory,"

Peacocks now considers the matter closed. The CCC does not agree.

Recommended action: please write to
George Cruickshanks
Quality Assurance Manager
Peacock's Stores Ltd
Atlantic House
Tyndall Street
Cardiff CF10 4PS

and point out that

the last report that the CCC has seen on the subject of compensation suggests that compensation may not have been paid to all who are entitled to it and employment may not have been provided to all who were promised work by the authorities (the CCC is investigating this matter),
the implementation and internal monitoring procedures that Peacocks describes are inadequate and have proved ineffective. It is therefore likely, unless Peacocks takes seriously the improvement of both, that at least some of its goods will continue to be produced in sub-standard conditions, and
therefore, in the light of the above, this matter cannot be considered closed.

Ask that Peacocks agree to meet with the UK CCC (Labour Behind the Label) to discuss issues generally relating to implementation and internal monitoring of labor standards.

International Shoe Agency

After a year of unsuccessfully trying to communicate with the International Shoe Agency (ISA), the import agency that placed (don't know, will check) the Peacock and Barratt's orders with Shree Jee, the UK CCC organized a protest at the ISA's London office. Trade union experts from India, as well as representatives from the CCC International Secretariat, South Asia Solidarity, No Sweat, and GMB London participated in the demonstration, which coincided with the first anniversary of the Shree Jee fire. This action delivered a strong message to ISA, and as a result they agreed to meet with the UK CCC in June.

In the course of this meeting, ISA expressed a commitment to upgrading its policies and practices. The UK CCC:

recommended that ISA look immediately into how it can best ensure that national legislation is upheld by its suppliers,
shared contacts with ISA to facilitate establishing the partnerships needed to improve the enforcement of labor standards,
suggested that ISA get in touch with the Ethical Trading Initiative (ETI) to better understand how ETI members approach improving labor standards in their supply chains, and
recommended the formulation of precise standards, based on ILO conventions and including the right to a living wage and to freedom of association, to form an integral part of contracts with suppliers.

Recommended action: please write to
Stephen Corbett
Finance Director
International Shoe Agency
29-35 Rathbone Street
London W1T 1NJ

and

congratulate ISA on the more constructive approach it is now taking,
ask for details of how ISA proposes to improve implementation of national labor laws, stressing the importance of progress through partnership with suppliers,
ask for details of how ISA proposes to monitor the implementation of national labor laws, stressing the importance of involving relevant local organizations (ex. human rights groups, trade unions),
urge ISA to formulate sourcing guidelines which are at least equal to the CCC model code/base code of the Ethical Trading Initiative, and
urge ISA to consider membership of the Ethical Trading Initiative where it could evolve, in collaboration with other members, effective ways to implement and monitor standards and to have them verified.