Joint Initiative for Corporate Accountability and Workers Rights

1. Joint Initiative for Corporate Accountability and Workers Rights Training Seminar Turkey 2006 Module 1

2. Why are we here? Introduction Purpose of this seminar • To inform local stakeholders about Jo-In and its 6 member organizations • To encourage effective use of these systems to improve workplace conditions

3. Why are we here? What the seminar provides • Overview of the 6 international organizations that founded the Joint Initiative (Jo-In) • Guidance for using complaints mechanisms • Information about the Jo-In project in Turkey Introduction

4. Contents: Module 1 Introduction • The global context • Specialized terminology used in this field • The 6 organizations • Membership and governance • Approaches • Code contents • Auditing and remediation • Disclosure and public reporting

5. Contents: Module 2 Introduction • Jo-In project in Turkey – how it works • Using complaints systems to address workplace violations • Imaginary scenarios to practice using these systems

6. How’s it work? Introduction Seminar ground rules • Participate in two full days of seminar • Respect each others’ views • Respect time limits (including breaks!) • Questions are welcome • Share your experiences • There are no wrong answers

7. Testing our “reporting skills” Getting to know one another Introduction • Find someone you do not already know. Take 7 minutes to exchange information with them regarding the following: • Name, organizational affiliation • Where the person is from • What they seek to learn in this seminar • A single fact they already know about one of the six organizations covered in this training • Introduce that person to the group in less than one minute.

8. The context in which we work Global Context In this section, we briefly review: • International worker rights • How international standards were developed • International legal framework for enforcement • Challenges posed by globalization • Innovative responses to globalization to support worker rights

9. Basic worker rights Global Context • Freedom of association and the right to collective bargaining • No forced labor • No discrimination • No child labor Are universal human rights recognized by almost all countries worldwide.

10. Basic worker rights Global Context Are included in a host of international agreements, including: UN Human Rights Declaration (1948) ILO’s Declaration of Fundamental Principles and Rights at Work (1998) Recognized by more than 170 countries

11. Are reconfirmed in various international agreements: Basic worker rights Global Context • UN Covenants • ILO Conventions • European Union Charter • OECD Guidelines • Regional human rights conventions (e.g. European Convention on Human Rights – Turkey is a member) Drafted and agreed by the international community over decades

12. ILO - The UN agency devoted to the world of work International Labor Organization Global Context The fundamentals: • ILO Conventions are the primary international agreements codifying labor standards • ILO Conventions are treaties • Conventions focus on government responsibility. In this context, the government of Turkey bears an international responsibility to ensure that workers rights are respected within its national boundaries.

13. Challenges This model of government enforcement of worker rights has been challenged in recent decades Global Context Globalization

14. Globalization Global Context • Transportation and communication costs are cheaper • Trade barriers (tariffs, quotas) are on the decline In today’s global economy, more goods and capital are moving across national boundaries than ever before

15. In today’s global economy Global Context • Toys, apparel, and footwear are made in workplaces around the world • Abundance of workers in many parts of the world • Often companies can opt to change where they produce in order to lower production costs Workers, management, and governments are in competition to keep jobs and production from moving away.

16. In today’s global economy Global Context • There are incentives to compete based on lower labor costs • Government regulation is more complicated with supply chains reaching across national boundaries • Nonetheless, the importance of government enforcement is no less real in today’s global economy There is a call for international structures to bolster governments in upholding international labor standards

17. Responses to challenges Global Context Include: • Building international organizations that take a standardized approach to enforcing worker rights Using market forces, such as consumer demands for “sweatshop free” clothes, to ensure that goods are produced in fair conditions Each of the 6 organizations participating in Jo-In seek to take one or both of these approaches to support the enforcement of worker rights around the world

18. Clean Clothes Campaign Ethical Trading Initiative Fair Labor Association Fair Wear Foundation Social Accountability International Workers Rights Consortium Respond to challenges in global economy. But DO NOT seek to replace government Responses to challenges Global Context The 6 organizations in Jo-In

19. Responses to challenges Group Discussion Global Context What are various stakeholders* doing to respond to the international call for fair working conditions in today’s global economy? E.g.: Consumers – learn about poor workplace conditions internationally from the news media. They seek goods that are not made in sweatshops. Major retailers, brands, etc Trade Unions Workers Governments Factories NGOs (non-governmental organizations) * Stakeholder = any individual or group affected by a particular entity/activity

20. Key terms Terms A brief review of some of the more specialized terms used in discussions about Code implementation. For example: Alternative terms follow Term used in this training Stakeholder – Interested Party: Any individual or group that is affected by an entity or activity, in this case, the operations of an enterprise. All definitions are in the training workbook

21. Key terms – Actors Terms Stakeholder – Interested Party: Any individual or group that is affected by an entity or activity, in this case, the operations of an enterprise. Workers are key stakeholders in discussions about workplace conditions. Who are some other important stakeholders?

22. Key terms – Actors Terms MSI – Multi-stakeholder Initiative: A project or organization that brings together various stakeholders (e.g. companies, trade unions, and/or NGOs) to address specific issues (e.g. effective implementation of Codes of Conduct). Example: Most of the six organizations in Jo-In are MSIs.

23. Key terms – Actors Terms Brand – sourcing company – buyer – retailer: Companies that buy goods through contracts with manufacturers. For example: • In this project, Gap Inc. is referred to as a brand, a sourcing company to Factory X. A brand (a sourcing company or retailer) may own one or more “brand names” (a word or name used by a company to identify its goods). For example: • Gap Inc. is associated with several brand names – Gap, Old Navy, Banana Republic. • Marks & Spencer is a retailer associated with brand names, such as Blue Harbour or Autograph.

24. Key terms – Actors Terms Facility – manufacturer – supplier – vendor – contractor: In this project, the term “facility” is used for any company that produces apparel through a contract with a sourcing company. Example: There are approximately 6 facilities participating in this pilot project. Note: The term “workplace” is often used interchangeably with “facility.” In this project, however, “workplace” has a broader meaning, covering home-based and other subcontracted work.

25. Key terms – Actors Terms Subcontractor: A companyhired by the manufacturer/facility to carry out part of production. In the context of this project, subcontractors can be identified if they do not have a contract with the brand.

26. Key terms – Actors Terms Licensee: A company that is licensed to produce goods bearing another company’s (or university’s) brand name or logo through a contract with that company/university. Example: Zephyr GrafX is licensed to produce goods that bear Columbia University’s name & logo.

27. Key terms – Actors Terms NGO– non-governmental organization: Organizations that are not part of the government nor companies (for-profit organizations). Used in this context for local or international organizations that are not trade unions but promote workers’ rights in some way.

28. Key terms – Activities Terms Social auditing – monitoring – verification: Activities undertaken to assess workplace conditions of a given facility. These terms may also be used to describe a broader set of activities undertaken to assess a company’s (usually a brand’s) adherence to defined social standards in its supply chain.

29. Key terms - Activities Terms Remediation– corrective action: Action taken to correct non-compliance with a labor standard. A corrective action plan is the program of action drawn up to resolve the code violation. Remediation strategies are a main focus of the Turkey project and will be addressed later in the seminar.

30. Key terms Terms Complaint – appeal – chargesthatthe Code standardsof a given organization are not being respected. A complaints mechanismis the system through which a complaint is received and processed. Each of the six organizations has its own system for complaints and appeals, which will be reviewed in the second module. See workbook for other terms and definitions

31. “The 6”

32. Small group activity “The 6” • The organization’s approach -- rate the importance of the following activities (1-4) • Building the capacity of local actors in the countries where the organization works • Experimental projects that establish best practice for Code implementation • Auditing workplace conditions and company practices • Reporting on factory/brand performance • The countries where it focuses its work and where it is based • Who it is composed of (i.e. stakeholder groups) • Identify challenges you imagine encountering in trying to establish this organization (e.g. balancing different interests, prioritizing work, funding, etc.) • Name the organization Design the ideal, imaginary organization working to improve workplace conditions internationally. Imagine together: You have 20 minutes. Be prepared to report the reasons for your choices.

33. Who are “the 6”? “The 6” In this section we review the 6 organizations’ • General approach • Members and governance • Codes • Approaches to social auditing • Disclosure/reporting We look at the many things they have in common and some of the key differences

34. “The 6” members of Jo-In are: “The 6” Clean Clothes Campaign (CCC) - Netherlands Ethical Trading Initiative (ETI) – England Fair Labor Association (FLA) – USA Fair Wear Foundation (FWF) - Netherlands Social Accountability International (SAI) – USA Workers Rights Consortium (WRC) – USA

35. What the 6 have in common “The 6” They all work internationally to improve workplace conditions Their purpose is to raise standards worldwide, rather than target any given country

36. What the 6 have in common “The 6” A birds-eye view • Founded between 1991-2000 in response to changes in global economy • All have a stated mission to improve workplace conditions around the world • All have drafted and adopted Codes of Conduct to achieve this goal • Want to cooperate in order to learn and become more effective in their work Main differences arise in approaches taken to implement Codes… …and who’s involved in steering the organizations.

37. General approaches “The 6” Raises public awareness about worker rights through general appeals CCC ETI FLA FWF SAI WRC Learning good practice through pilot projects and forums Verifying brand compliance with standards Certifies facilities that implement SA8000; supports brands compliance efforts Investigates conditions in factories producing university-licensed apparel Over time, the organizations have increasingly taken on similar activities.

38. Company membership Those withbrand members “The 6” Those withoutbrand members

39. Members & decision-making “The 6”

40. Members and decision-making “The 6” Highlights • All 6 have NGO membership • FLA and WRC have university members • Non-company members make up at least half of all 6 organizations’ Boards • CCC and WRC have no company members • FLA does not have trade union involvement in decision-making structures

41. Industry focus “The 6” The initiatives are distinguished by the industries where they work. While 3 specialize in apparel, 3 also work in other industries. Only apparel • CCC • FWF • WRC Apparel and other industries • ETI • FLA • SAI

42. Ways local stakeholders are involved “The 6” At a glance Advisory boards and caucuses Training and capacity building Projects in different countries Informal and formal consultations Third party complaints mechanisms

43. “The 6” “The 6” Group discussion Have you been involved in any of these or other activities with any one of the 6? Which activity? How did the activity correspond to the organization’s mission and approach?

44. “The 6”The six organizations in Jo-In Codes and Social Auditing

45. Codes of Conduct Codes 6 organizations – 6 codes CCC – Code of Labour Practices ETI – Base Code FLA – Workplace Code of Conduct FWF – Code of Labour Practices SAI – SA8000 Standard WRC – Model Code of Conduct

46. Basic code provisions Codes What they all cover • Freedom of association • Collective bargaining • No forced labor • No child labor • No discrimination • Occupational health and safety • Hours of work • Wage provisions (from “minimum” to “dignified living wage”)

47. Basic code provisions Codes Additional provisions A legal employment relationship (CCC, ETI, FWF) Women’s rights (WRC) Management systems (SAI) No inhumane treatment (ETI)* No harassment or abuse (FLA, SAI, WRC)* *The codes that do not contain a separate provision covering inhuman treatment or harassment and abuse fold these under health and safety provisions.

48. Content of code provisions Codes Main divergence Wages Hours of work Freedom of association Partially explains why the Jo-In project focuses on implementation of these 3 code provisions

49. Content of code provisions Wages Codes “Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income.” -- FWF Code of Labour Practice • CCC, ETI, FWF, SAI codes have similar living wage texts • WRC code - “dignified living wage” -- may differ from a “basic needs” wage • FLA code - “minimum wage” or “prevailing industry wage” whichever is higher

50. Content of code provisions Hours of work Codes Hours of work shall comply with applicable laws and industry standards. In any event, workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off for every 7 day period. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a premium rate. -- CCC’s Code of Labour Practice CCC, ETI, FWF, SAI codes have similar text WRC code - overtime must be voluntary, but no maximum (e.g. 60 hours) for overtime FLA code - more than 60 hours allowed in peak periods; does not state overtime must be voluntary