ETI Annual Review 2005-2006

by company codes company by trade ethical ethical trade activities trade ethical

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ow. A long time ago it was very different, there were there different, very was it ago time long A ow.

This year we helped promote systemic change to workers’ conditions by playing a key n rights.

rotective equipment. You almost don’t see sickness see don’t almost You equipment. rotective p

role within alliances: to develop shared approaches to code implementation; to help workers’ supporting of – beneﬁts business

ommunicates the imperative – and the and – imperative the ommunicates This year we started to shift our focus to sourcing countries. There is overwhelming c

We’re not allowed to work without personal without work to allowed not We’re

assessment process process assessment forge a national strategy for the garment industry in Bangladesh; and to stamp out review. this of reverse the

is aimed at staff in buying companies and companies buying in staff at aimed is

and encouraged their participation in the in participation their encouraged and evidence that supporting local multi-stakeholder initiatives and helping suppliers on given is members current of list A

ear’s poster (on the reverse of this review) review) this of reverse the (on poster ear’s

abuses of migrant workers in the UK food industry. y

losing meetings of workplace inspections workplace of meetings losing c P

understand the importance of workers’ rights and how they can beneﬁt are key This companies. supplier to distributed were O

representatives to attend opening and opening attend to representatives T

tandards. Nearly 3,000 copies of the poster poster the of copies 3,000 Nearly tandards.

s : in Haiti to promote freedom of association. of freedom promote to Haiti in invited trade union and workers’ and union trade invited Boots

to achieving sustainable improvements to workers’ lives. I

This year, ETI played a key role within a wider alliance, the MFA K A

Developing shared approaches to codes labour international towards working

orked with a supplier a with orked Co. & Strauss evi w L R

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Forum, to help build the strategy, and convened and chaired a committees safety and health of N

There is a pressing need to improve suppliers’ understanding of the of beneﬁts the about poster a creating R

ith workers to explain its provisions provisions its explain to workers ith here three suppliers shared their experience their shared suppliers three here w

group of companies committed to supporting it. Already, all the w O

ethical trade and ETI to their suppliers by suppliers their to ETI and trade ethical B

standards they are asked to comply with, a situation complicated Tackling homeworkers’ conditions Promoting fair treatment of workers involved. activities

notice boards and organised meetings meetings organised and boards notice held a seminar in China in seminar a held

companies involved have agreed to use the JO-IN Code with their Group Pentland I Last year we helped our members explain members our helped we year Last S

by the use of different codes. This year we continued to work different the of ﬂavour a O

Bangladeshi suppliers. Homeworkers play a vital role in the global economy yet are among Our members tell us that supervisors are often responsible for workplace on languages local in Code

company's ethical trade performance performance trade ethical company's of their combined efforts and efforts combined their of |

jointly with ﬁve other workers’ rights initiatives from the EU and

osted the ETI Base ETI the osted Retail o-operative p C A the most marginalised and vulnerable of workers. In July 2006, violations of workers’ rights – particularly discrimination and I

employees to seek their views on the on views their seek to employees N

the USA to develop a shared approach to implementing labour I extent the of indication good a

Find out more at: www.mfa-forum.net ETI members together with Indian suppliers and partners, ﬁnalised harassment. We believe encouraging them to understand the O

aising poster with 600 of its suppliers suppliers its of 600 with poster aising its all to questionnaires nonymised r a

codes and so provide clarity for suppliers. provides ETI to reports annual

draft guidelines to show how the ETI Base Code can be applied importance of their own rights and those of others will support

shared ETI’s 2005 awareness- 2005 ETI’s shared Sainsbury’s mandatory, sent Hosiery Madison Analysing corporate members’ corporate Analysing I

The Joint Initiative on Corporate Accountability and Workers’ Protecting migrant workers in the UK food industry to homeworkers. Recognising that a collective approach offers suppliers in their efforts to comply with labour codes. I

the most sustainable and credible way of driving up standards, we Rights (JO-IN) focuses on the Turkish garment industry, where In 2002, ETI convened a unique cross-industry alliance, the ACTION IN COMPANIES MEMBER ETI also helped the same group establish a national body, the National This year we joined forces with the South Africa-based Wine and we have agreed a draft common code and protocol for factory Temporary Labour Working Group (TLWG), to lobby the

Homeworkers’ Group, whose initial mandate will be to co-ordinate Agricultural Industry Ethical Trade Association (WIETA) to develop a ww.ethicaltrade.org/d/impactreport w hen we cr we hen ate and lead alliances of the organisations that that organisations the of alliances lead and ate w

assessments. Pilot factory assessments are due to start by e Government to introduce statutory licensing for temporary labour I

action in Uttar Pradesh's fabric embellishment industry. Inspired by training course for supervisors in the agricultural sector. WIETA is a

December 2006. The next stage of the project will be working providers (‘gangmasters’) and to create a voluntary code to help impact our of magnitude the demonstrates industry food at:

the co-operation and vision of all involved, we helped to establish multi-stakeholder body which was born out of an ETI experimental beneﬁt? really workers do practice:

with brands, suppliers and other stakeholders to explore the improve labour practices ahead of licensing. Our goal of licensing UK the in workers migrant 600,000 some for protection trade activities on workers in in workers on activities trade

clear terms of reference and a structure for the Group, and project. Now fully independent, it monitors and seeks to improve labour of code ETI The

most effective methods of improving labour practices in the legal new bring help to work Our clear. is forward way The

ind out more about the impact of our members’ ethical members’ our of impact the about more out ind was realised in October 2006 when the Gangmaster Licensing Act F

encouraged brands and retailers sourcing from India to participate. conditions in the South African wine and agricultural sector. A group * key areas of trade union rights, working hours and wages. came into effect and it became an offence for labour providers to

of ETI members is now working with WIETA to develop the course,

greater scale. scale. greater

UK food and agriculture to operate without a valid licence. The National Homeworkers’ Group is the ﬁrst of its kind to a

Chair

I Find out more at: www.jo-in.org which aims to educate farm supervisors on their rights and build Roberts Alan

promote and guide responsible corporate action on homeworking. on and more, much do to all us challenge ﬁndings IDS’ forts,

OSTER POWER OSTER

In early 2006 we steered the TLWG’s engagement with policy their supervisory skills. The ultimate goals are to improve workers’ P ractices to ease the pressure on suppliers. But despite their despite But suppliers. on pressure the ease to ractices It is currently establishing a local multi-stakeholder group in Bareilly, p

makers over the extent of the Act’s coverage, and after weeks of experiences of supervision and to provide training material that ETI Forging a national strategy for change in Bangladesh Uttar Pradesh, which will tackle the conditions of up to 100,000 purchasing their modify to how investigating are members

intensive lobbying, gained agreement from the Government that members can adapt for use in other locations across the globe. suppliers and local initiatives local and suppliers

Bangladesh potentially faces huge job losses in its garment industry local homeworkers. We urge all retailers and brands sourcing from some that encouraged also am I ).

it will provide comprehensive protection for workers across the

Going global: supporting global: Going

homeworkers in India, and other organisations working with Indian (see smallholders and homeworkers as a result of the phase-out of the Multi-Fibre Arrangement (MFA). workers. for improvements

entire food industry. We also helped labour providers prepare for

homeworkers, to get involved in this groundbreaking work. workers, migrant example for – chains supply of margins the

In 2005, stakeholders agreed to develop a strategy to mitigate large-scale long-term, about bring to

licensing. The TLWG carried out 465 audits of labour providers globe. the across people poor of millions for life

such as developing joint approaches to reaching workers at at workers reaching to approaches joint developing as such

in company supply chains. chains. supply company in

its worst effects and improve productivity by driving up labour partnership in working by achieved have

nto using the power of partnerships to help improve working improve help to partnerships of power the using nto

and, as the conditions for licensing are heavily based on the i

I am heartened that our members are tackling pressing issues pressing tackling are members our that heartened am I

mote workers’ rights rights workers’ mote initiatives that pr that initiatives o

standards as a means of enhancing international competitiveness. – alike (NGOs) organisations governmental

policy, to scale up our work and to channel greater resources greater channel to and work our up scale to policy, TLWG’s voluntary code, the overwhelming majority of these labour equity. and security freedom, of

source ethically and we support other support we and ethically source

ompanies, trade unions and non- and unions trade ompanies, Success will depend on the continued support of all those involved c

Before, he who shouted most codes. with comply to ability suppliers’

his gives us new confidence to engage with government on government with engage to confidence new us gives his T providers improved to a level where they satisfied the licensing conditions in work and discrimination

nd guidance for companies seeking to seeking companies for guidance nd a

in the sector: government, manufacturers, civil society and – constituents its and ETI that impact

times and prices negotiated with suppliers – are undermining are – suppliers with negotiated prices and times

greement grant of £2.35 million over the next ﬁve years. years. ﬁve next the over million £2.35 of grant greement A

requirements of the newly-created Gangmaster Licensing Authority. was the best. Now, he who shouts and exploitation from free are workers

review). We also provide practical tools practical provide also We review).

companies sourcing from Bangladesh. growing the celebrates also but members, critically, company purchasing practices – for example, lead example, for – practices purchasing company critically,

evelopment (DFID) awarded us a Partnership Programme Partnership a us awarded (DFID) evelopment D

I is not here. all where world a of vision a share Code (see the poster on the reverse of this of reverse the on poster the (see Code

at the performance of individual company individual of performance the at

ontract workers, have yet to see any concrete beneﬁt. And beneﬁt. concrete any see to yet have workers, ontract Find out more at: www.ethicaltrade.org/d/tlwg2006 c n May 2006 the UK Department for International for Department UK the 2006 May n I small campaigning organisations, we organisations, campaigning small

” the ﬁrst, vital step is to adopt the ETI Base ETI the adopt to is step vital ﬁrst, the workers’ lives. This annual review looks looks review annual This lives. workers’ ome of the most vulnerable workers, such as migrant and migrant as such workers, vulnerable most the of ome S

” to charities international and unions

FARM MANAGER “

workers in their supply chains. W chains. supply their in workers e believe e re starting to make a real difference to difference real a make to starting re a ut that the pace and scale of change is slow and uneven. and slow is change of scale and pace the that ut “ b

street fashion chains, from global trade global from chains, fashion street

COSTA RICA impact… our of magnitude

should go about improving conditions for conditions improving about go should upply chains, and their combined efforts combined their and chains, upply s codes – particularly in health and safety and working hours – hours working and safety and health in particularly – codes

QUOTED IN THE ETI IMPACT ASSESSMENT high and supermarkets to companies

the UK food industr food UK the y demonstrates the demonstrates y

nvolved in defining how global companies global how defining in nvolved i o driving sustained improvements in their in improvements sustained driving o t The IDS study revealed that many workers are benefiting from benefiting are workers many that revealed study IDS The a unique alliance. From niche coffee niche From alliance. unique a

rotection for some 600,000 workers in workers 600,000 some for rotection p ogether we tackle the tough questions tough the tackle we ogether T ETI member companies are committed committed are companies member ETI The Ethical Trading Initiative (ETI) is is (ETI) Initiative Trading Ethical The

ABOUT THE ETI HOMEWORKER GUIDELINES (IDS). Studies Development f

ur work to help bring new legal new bring help to work ur O

t A hrough collective action collective hrough bout us bout was carried out by the Institute the by out carried was The ETI Impact Assessment Impact ETI The

If retailers and brands sourcing We have been successful in winning Supplier companies will beneﬁt *

D riving change change riving

from Bangladesh put their collective stronger legal protection for UK migrant Developed as part of the ETI experimental project, these from involvement with the National workers. on practice labour of codes of impact the of date

draft guidelines show companies, trade unions, NGOs to study independent comprehensive most the of ﬁndings

weight behind these initiatives, they will workers because the Temporary Labour the received also have we framework, reporting annual Homeworkers’ Group as contractors industries. or countries whole to endemic are that issues

and governments how the ETI Base Code can be applied

help improve the lives of the workers who make their products. their make who workers the of lives the improve help

companies reported to us using our new, more searching more new, our using us to reported companies

help sustain the livelihoods of up to 20 Working Group was such an effective to homeworkers everywhere. will be working with homeworkers to labour on action joint similar drive and catalyse to ability

m ember companies’ ethical trade practices. Not only have only Not practices. trade ethical companies’ ember

). This review shows clear evidence of our growing our of evidence clear shows review This ). change

“ “ “ to others with partnership in work to – responsibility a as well as

million people who directly or indirectly alliance. ETI played the key role in improve productivity and quality our into insights unprecedented had have we year This

widespread change (see (see change widespread

We invite companies with homeworkers in their supply for alliances strategic Creating

At ETI we believe that retailers and brands have a huge potential – potential huge a have brands and retailers that believe we ETI At

C depend on the garment sector as a vital facilitating this. alongside labour standards. message hair’s chains to test the guidelines and give us feedback: and rapid about bring to power the have collectively

source of income. ” ” I

JACK DROMEY, DEPUTY GENERAL SECRETARY www.ethicaltrade.org/d/homeworkerguide ARVIND MISRA

MAGGIE BURNS ” TRANSPORT AND GENERAL WORKERS’ UNION (UK) INDIAN SUPPLIER Why partnerships hold the key to success to key the hold partnerships Why ETI NGO BOARD MEMBER partnership of power The

Joint action to support trade union rights Developing practical tools for business ETI Board members Corporate representatives One of the great strengths of our alliance is the weight we can bring to Retailers and brands increasingly recognise that ethical trade is a core business Lakshmi Bhatia Gap Inc. Rob Brown Boots bear to resolve complaints brought to us from trade unions and NGOs in issue. But how do they actually put it into practice? This year we launched and sourcing countries. By brokering negotiations between member companies, Louise Nicholls Marks & Spencer promoted two major new resources for those starting out in ethical trade as Sarah Barlow (Monsoon Accessorize until July 2006, then co-opted) factory management and trade unions, we have helped resolve major well as more experienced practitioners. breaches of trade union rights in several factories. These are two examples Trade union representatives from this year. James Howard International Confederation The ETI Training Programme – ETI TRAINING COURSE MODULES of Free Trade Unions (ICFTU) skills development in ethical trade Neil Kearney International Textile, I Building a coalition to protect union rights: Helping promote mature industrial relations: An introduction to ethical trading and ETI Garment and Leather Workers’ The new ETI Training Programme, I Fortune Garments, Cambodia Interstoff Clothing Ltd. Bangladesh Developing and implementing an ethical trading policy Federation (ITGLWF) developed through a unique partnership I Managing change in the supply chain In November 2005 we were alerted to allegations of serious In December 2005 the Interstoff Clothing Ltd. Worker Union with the Co-operative College, was I Interfacing with internal and external stakeholders Ron Oswald International Union of Food Workers (IUF) interference with trade union rights at this Cambodian factory. and the Bangladesh Independent Garment Workers’ Union launched in February 2006. Each Simon Steyne Trades Union Congress (TUC) In response, we brought member companies sourcing from Federation (BIGUF) asked us to help resolve their grievances module distils the combined knowledge Find out more about these courses as well as in-house Fortune Garments to meet with workers, intermediary with the Interstoff factory management. This centred around of our members, not only of the theory training opportunities at: NGO representatives suppliers, factory management and International Textile, the dismissal and harassment of trade union officials and of ethical trade but also of what works Garment and Leather Workers’ Federation affiliates to verify members. After several months of negotiation brokered in practice. I www.ethicaltrade.org/d/training Maggie Burns Women Working Worldwide the allegations and to seek a solution to the crisis. In May by ETI, the Interstoff Clothing Ltd. Worker Union and factory So far over 100 companies, trade union Sharon McClenaghan Christian Aid 2006, months of hard work put in by our members, their management signed an agreement to work together and non-profit organisations have Peter Williams National Group on Homeworking intermediary suppliers and ITGLWF affiliates in Cambodia – to create a mature system of industrial relations at gained knowledge of the basic principles The course was an excellent and Homeworkers Worldwide not to mention the workers and management at Fortune Interstoff, including: of ethical trade, learned how to develop an ethical trade strategy, combination of theory and practice Garments – resulted in an agreement by management to: Alan Roberts Chair I training of managers and supervisors got to grips with challenging issues like getting supplier buy-in, and C which we have already applied to O V

I compensate two workers who had been in trade union rights built practical skills in engaging with other organisations. Lord Tony Young Vice Chair E R

I the workplace. P unfairly dismissed re-instatement of four dismissed union leaders of Norwood Green H O

“ T I I open its doors to the Coalition of Cambodian re-writing of company rules, including a ” O

IAN FINLAYSON, WORLD FLOWERS Dan Rees Director :

Apparel Workers’ Democratic Union disciplinary procedure H O I I W

train all managers in human resources agreement to reinforce the company’s human A R

I D

seek support from the International Labour resources department. Membership co-ordinators D A

Organisation and other expert bodies V I E

I S accept all trade union demands over pay and conditions. The ETI workbook – a complete toolkit for companies |

The ETI workbook is an Annie Watson Trade union caucus A N

This year we published a fully expanded O Find out more about ETI’s code violations procedure and essential tool for anyone involved Peter Williams NGO caucus S and revised version of our manual on our members’ experience of using it at: ethical trade for buying companies. in ethical trade, whatever their I www.ethicaltrade.org/d/codeviolation Ethical trade – a comprehensive guide level of experience. for companies unpacks the theory of “ ” ethical trade and shows how to put it DAVID MELLER, SAINSBURY’S Our finances in 2005/06 into practice. Crammed with practical tips and insights, it delivers eleven NEW PUBLICATIONS Income £1,214,412 Workers shouldn’t have to One of ETI’s greatest strengths chapters of best practice guidance, over 50 case studies and 34 (£600,843 from member contributions and fear for their jobs or lives when is that it enables us to work directly checklists and resources in a user-friendly CD-ROM format. As well ETI Impact Assessment £613,569 from DFID and other sources) The power of partnership as showing how to get smarter at workplace inspections, the new The ETI code of labour practice: do workers they unionise to negotiate with trade unions on fundamental Expenditure £1,223,349 collectively. Building coalitions freedom of association issues. workbook contains extensive new material on: really benefit? presents the results of a study Ethical Trading Initiative Annual Review 2005/2006 “ of the impact of our members’ ethical trade “ Our thanks go to DFID for its continuing support. Full financial statements of buyers to ensure trade union This is not only a huge learning I building support for ethical trade across the company activities on workers. Published by the are available on request from the address below or from our website: rights, as ETI is doing, is key to experience – it also makes it much I working with suppliers to help them improve their practices Institute of Development Studies. decent work. easier to find solutions. I integrating ethical trade into commercial decision-making I www.ethicaltrade.org/d/impactreport I www.ethicaltrade.org/d/AR2006 I ” ” joining forces with other organisations to increase impact. ETI 2005 Conference Briefing Papers NEIL KEARNEY, GENERAL SECRETARY LAKSHMI BHATIA, DIRECTOR OF GLOBAL PARTNERSHIPS INTERNATIONAL TEXTILE, GARMENT GAP INC. Packed with company case studies, these five papers each I AND LEATHER WORKERS’ FEDERATION www.ethicaltrade.org/d/workbook tackle a critical issue in ethical trade – from unpicking tricky non-compliances to moving production responsibly. Ethical Trading Initiative Tel +44 (0)20 7404 1463 I www.ethicaltrade.org I www.ethicaltrade.org/d/briefingpapers Cromwell House Fax +44 (0)20 7831 7852 More key resources can be found at: 14 Fulwood Place Email [email protected] I www.ethicaltrade.org/z/resources London WC1V 6HZ