Private initiatives and CB (friends or foes?)

1. Private initiatives and CB(friends or foes?)

2. Structure • The sweatshop dynamic in the sector • The pattern of private initiatives • The ITGLWF response - Mature Systems of Industrial Relations Approach • Improvements in Working conditions? • Strategic interventions • Some considerations

3. The Sweatshop Dynamic 1 Brand-owner/Retailer Buying Department CSR Dept.

4. Typical MNC Brand/retailer supply base

5. The Sweatshop Dynamic 2 Buying Department Illegal subcontracting ? FOB = Ex factory price Lower than previous order Usually a discount on a higher volume order First Tier Contractor Subcontractor Manages by delaying wages, not paying the minimum or overtime rate, excessive overtime, tough supervision, short term contracts or by engaging a .... Sweatshop conditions Child labour Health and safety harassment

6. The Pattern of Private Initiatives CSR Dept. GRI, Global Compact, Reputation Management Code of conduct Vendor compliance officers or Trade Unions and Collective Bargaining? External auditors Join a Multi Stakeholder Initiative Balanced Scorecards, Published audit findings Involve an NGO

7. So is private effective? • Wasteful duplication of effort • Created an industry of consultants • Widespread problem of audit fraud • Yet some gains – general eradication of child labour in first tier • Health and safety improvements • Recognition of ‘root cause analysis’ • Recognition of need for a mature systems approach amongst more enlightened buyers

8. The ITGLWF Response - Promotion of mature industrial relations systems ? Rationalising the plethora of codes of conduct Acknowledging the weakness of social auditing Ruling out any significant role for an NGO Recognising the centrality of the ‘enabling rights’ of freedom of association and collective bargaining. Appreciating the primacy of the employment relationship: where the supplier, as employer, takes responsibility for those employed

9. Mature Systems of Industrial Relations • Still a blind spot with buyers and suppliers around freedom of association and collective bargaining • Happy with mature systems approach but please no trade unions • Problem of parallel means/ works committees l

10. The Parameters of Collective Bargaining in Apparel Buyer A Fob Buyer B Govt Minimum Wage Fob Buyer C Fob Emp Supplier Fob Buyer D TUs Fob Buyer E

11. Enforcement Social Dialogue An observation on the Better Work Programme Strategy ........ Labour admin & inspection Compliance needs assessment Remediation & ent upgrading Worker & supervisor education employer & union capacity building ? Enterprise Level

12. A new offensive....... • Right to unionise guarantee • Trade union access agreements

13. Some questions • Is collective bargaining conceivable with a non trade union body? Do we have any ILO jurisprudence here? • To what extent can we talk about the primacy of an employment relationship in an outsourced manufacturing supply chain? If we cannot, what implications does this have for industrial relations institutions, if any? • Do other sectors have any experience with right to unionise guarantees and access agreements?