1 joint initiative for corporate accountability and workers rights training seminar turkey 2006...

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Joint Initiative for Corporate

Accountability and Workers Rights

Training Seminar Turkey 2006

Module 1

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Why are we here?

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

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Why are we here?

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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

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Contents: Module 1• 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

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Contents: Module 2

• Jo-In project in Turkey – how it works

• Using complaints systems to address workplace violations

• Imaginary scenarios to practice using these systems

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How’s it work?

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

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Testing our “reporting skills”

• 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.

Getting to know one another

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The context in which we work

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

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• Freedom of association and the right to collective bargaining

• No forced labor

• No discrimination

• No child labor

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Are universal human rights recognized by almost all countries worldwide.

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Are included in a host of international agreements, including:

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Recognized by more than 170 countries

• UN Human Rights Declaration (1948)

• ILO’s Declaration of Fundamental Principles and Rights at Work (1998)

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Are reconfirmed in various international agreements:• UN Covenants

• ILO Conventions

• European Union Charter

• OECD Guidelines

• Regional human rights conventions

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Drafted and agreed by the international community over decades

(e.g. European Convention on Human Rights – Turkey is a member)

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ILO - The UN agency devoted to the world of work

The fundamentals:

• ILO Conventions are the primary international agreements codifying labor standards

• ILO Conventions are treaties

• Conventions focus on government responsibility.

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In this context, the government of Turkey bears an international responsibility to ensure that workers rights are respected within its national boundaries.

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This model of government enforcement of worker rights has been challenged in recent decades

GlobalizationGlobalization

Challenges

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• Transportation and communication costs are cheaper

• Trade barriers (tariffs, quotas) are on the decline

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In today’s global economy, more goods and capital are moving across national boundaries than ever before

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• 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

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Workers, management, and governments are in competition to keep jobs and production from moving away.

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• 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

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There is a call for international structures to bolster governments in upholding international labor standards

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Include:

• Building international organizations that take a standardized approach to enforcing worker rights

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• 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

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• 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

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The 6 organizations in Jo-In

Responses to challenges

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What are various stakeholders* doing to respond to the international call for fair working conditions in today’s global economy?

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• Workers

• Governments

• Factories

• Major retailers, brands, etc

• Trade Unions

• NGOs (non-governmental organizations)

E.g.: Consumers – learn about poor workplace conditions internationally from the news media. They seek goods that are not made in sweatshops.

* Stakeholder = any individual or group affected by a particular entity/activity

Responses to challenges

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Key terms

A brief review of some of the more specialized terms used in discussions about Code

implementation.

Stakeholder – Interested Party: Any individual or group that is affected by an entity or activity, in this case, the operations of an enterprise.

For example:

Term used in

this training

Term used in

this training

Alternative

terms follow

All definitions are in

the training

workbook

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Key terms – Actors

Workers are key stakeholders in discussions about

workplace conditions.

Who are some other important stakeholders?

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Stakeholder – Interested Party: Any individual or group that is affected by an entity or activity, in this case, the operations of an enterprise.

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Example: Most of the six organizations in Jo-In are MSIs.

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).

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For example:• In this project, Gap Inc. is referred to as a brand, a sourcing company to Factory X.

Brand – sourcing company – buyer – retailer: Companies that buy goods through contracts with manufacturers.

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.

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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.

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Subcontractor: A company hired 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.

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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.

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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.

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Key terms – Activities

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.

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Key terms - Activities

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.

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Key terms

Complaint – appeal – charges that the Code standards of a given organization are not being respected.

A complaints mechanism is 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

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“Th

e 6”

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Design the ideal, imaginary organization working to improve workplace conditions internationally. Imagine together:

“Th

e 6”

Small group activity

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

You have 20 minutes. Be prepared to report the reasons for your choices.

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Who are “the 6”?

• General approach

• Members and governance

• Codes

• Approaches to social auditing

• Disclosure/reporting

In this section we review the 6 organizations’

We look at the many things they have in common and some of the key differences

“Th

e 6”

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“The 6” members of Jo-In are:

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

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What the 6 have in common“T

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6”

Their purpose is to raise standards worldwide, rather

than target any given country

They all work internationally to improve workplace conditions

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What the 6 have in common

• 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

“Th

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A birds-eye view

…and who’s involved in steering the organizations.

Main differences arise in approaches taken to implement Codes…

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General approaches“T

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• CCC

• ETI

• FLA

• FWF

• SAI

• WRC

Raises public awareness about worker rights

through general appeals

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.

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Those with brand members

Organization

Number of companies

Examples of member companies

Ethical Trading Initiative (ETI) 37

Gap, Marks & SpencerASDA, Chiquita, Levi & Strauss, Mothercare, Next, Pentland Group, Sainsbury’s, Tesco, Body Shop, Boots, WH Smith.

Fair Labor Association (FLA)

28 adidas, Nike, Patagonia, PumaEddie Bauer, H&M, Liz Claiborne, Nordstrom, PVH, Reebok

> 1000 licensees

Top of the World, Zephyr GrafX -- companies producing goods bearing the logo of FLA university members.

Fair Wear Foundation (FWF)

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Hess NaturExpresso, Faithful, Falcon International, Gsus, JSI-O’Neill, Mervin Marxx, Pama International

Social Accountability International (SAI)

12 GapCutter & Buck, Dole, Eileen Fisher, Timberland, Toys R Us.

763 certified

factories

Yeşim and Topkapi are Turkey’s 2 certified apparel factories. See workbook for more.

Those without brand membersClean Clothes Campaign (CCC)

0 Has been engaged in pilot projects involving brands.

Workers Rights Consortium (WRC) 0

No brand membership. List of relevant university licensees (i.e. those producing for member universities) is provided online.

“Th

e 6”

Company membership

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Organization

Members Decision-makers Income/Funding

Clean Clothes Campaign (CCC)

NGOs, trade unions

Each national CCC coalition has its own Board, which contributes to the direction of the international CCC through regular regional meetings.

Grants from governments, non-profits and foundations

Ethical Trading Initiative (ETI)

Companies, trade unions, NGOs

10-person Board: 3 NGOs; 3 trade unions; 3 companies; 1 chair.

Company membership fees; government grants

Fair Labor Association (FLA)

Companies, universities, NGOs

16-person Board: 6 companies; 6 NGOs; 3 universities; 1 chair.

Company membership fees; university membership fees; foundation grants

Fair Wear Foundation(FWF)

Companies, trade unions, NGOs

10-person Board: 4 business associations; 2 trade unions; 2 NGOs; 1 chair.

Company membership fees; trade union fees; grants from non-profits.

Social Accountability International(SAI)

Companies, trade unions, NGOs, government

7-person Board, advised by Advisory Board. Both have equal representation between business and non-business representatives.

Company membership fees; training; auditor accreditation fees; foundation grants

Workers Rights Consortium(WRC)

Universities, trade unions, NGOs

15-person Board: 5 universities; 5 NGOs; 5 labor rights experts.

University membership fees; foundation and government grants

Members & decision-making“T

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6”

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Members and decision-making

• 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

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Highlights

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Industry focus

Only apparel

• CCC

• FWF

• WRC

“Th

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The initiatives are distinguished by the industries where they work. While 3 specialize in apparel, 3 also work in other industries.

Apparel and other industries

• ETI

• FLA

• SAI

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• Advisory boards and caucuses

• Training and capacity building

• Projects in different countries

• Informal and formal consultations

• Third party complaints mechanisms

Ways local stakeholders are involved“T

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6”

At a glance

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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?

“The 6”Group discussion

“Th

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“The 6”The six organizations in Jo-In

Codes and Social Auditing

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• 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

Codes of Conduct C

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es 6 organizations – 6 codes

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• 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”)

Basic code provisionsC

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• 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)*

Basic code provisionsC

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es Additional provisions

*The codes that do not contain a separate provision covering

inhuman treatment or harassment and abuse fold these under

health and safety provisions.

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• Wages

• Hours of work

• Freedom of association

Content of code provisionsC

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es Main divergence

Partially explains why the Jo-In project focuses on

implementation of these 3 code provisions

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• 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


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es Wages

“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

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• 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


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es Hours of workHours 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

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• All codes – right to form/join trade unions of their choice; bargain collectively

• ETI and CCC - “open” or “positive” attitude

• FLA, SAI, WRC – against company interference (“neutral” attitude)

• ETI, FWF, SAI – provision of parallel means where prohibited by law (China).


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es Freedom of association2. Freedom of Association and the Right to Collective Bargaining Are Respected

2.1 Workers, without distinction, have the right to join or form trade unions of their own choosing and to bargain collectively.

2.2 The employer adopts an open attitude towards the activities of trade unions and their organisational activities.

2.3 Workers representatives are not discriminated against and have access to carry out their representative functions in the workplace. -- ETI Base Code

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Considering ways in which the codes differ, what approach would you recommend taking in the development of a Common Code?

Would you opt to adopt one of the 6 codes? Would you adopt the highest standards across the codes? Would you start by trying to develop an entirely new code?


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We will review the contents of the Jo-In draft Code in Module 2

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Social auditing – what’s it involve?S

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“WRC investigations”

“SAI – SA8000 auditing”

“FWF external verification”

“FLA independent external monitoring”

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What is the purpose of social auditing? What are some common observations about the ways that auditing is carried out today? What are your thoughts about how to make it effective?

Later in the seminar, compare whether your views correspond with approaches taken by these organizations.

Social auditing Group discussion

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Social auditing – monitoring – verification – investigations

Those who do it

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FLA “Independent external monitoring” in 3-5% of supply chains/year. Requires member companies to conduct internal audits of their entire supply chains by their 3rd year of membership.

FWF “External verification” in 10% of facilities/3 years. Member companies also supposed to conduct internal audits covering all supplier facilities by 3rd year (like FLA).

SAI “SA8000 audits” in facilities seeking SA8000 certification. Member companies may also conduct SA8000 audits in selected sourcing facilities.

WRC “Investigations” of factories producing university-licensed goods. Unlike others, WRC investigations are initiated without any company approval. The onsite approach also differs significantly.

Those who don’tCCC

ETI

Neither conducts social auditing of supply chains.

But both have undertaken research and pilot projects to ascertain good practice in social auditing.

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• Preparation• Background information collected (e.g. number of workers,

languages spoken, etc.)• Consultations with trade unions (local & national, NGOs,

labor experts)

• Interviews• Workers • Factory managers• Trade union and/or worker representatives• Supervisors

• Onsite audit • Records review (personnel records, hours, wages)• Facility inspection (health and safety, hygiene, etc.)

What it entailsA general overview

An audit typically takes 2-6 days, depending on factory size and

which of the 3 organizations’ audit methodologies is used.

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representative of FLA, FWF, and SAI than WRC, which takes a slightly different approach.

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What it entailsHow methods differ

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• WRC in-depth, off-site interviews with workers and local experts.

• WRC spans weeks or months

• FLA, WRC always unannounced visits

• FWF, WRC worker interviews conducted off-site SAI and FLA recommend it whenever possible

• SA8000 certification involves several audits pre-audit visits; certification audit; later surveillance

SAI recommends it for surveillance audits

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Who conducts the work?S

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• FLA monitors = 16 groups accredited by FLA for specified countries.

• FWF verification teams = 3 people teams selected and trained by FWF for work in a single country.

• SA8000 certification bodies = 13 groups trained and accredited by SAI, mostly to work globally.

• WRC investigative teams = members of local labor groups, academics, WRC staff member.

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What follows Remediation - corrective action

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• FLA and FWF – corrective action plan established by factory and brand, with MSI staff guidance.

• SAI – facility designs and implements corrective action plan after approval by SA8000 auditor.

• WRC – recommends remedial action. Investigation continues until violation resolved.

Evidence of corrective action is required by all to be able to move forward.

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What follows Remediation - corrective action

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Root cause analysis:

For example:

Inadequate planning

Short lead times Forced overtime

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What follows Follow-up visits

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• FLA conducts follow-up visits where serious violations occurred.

• FWF conducts follow-up visits to all facilities to verify corrective actions.

• If a factory is certified, SAI conducts surveillance audits every 6-12 months for 3 years.

• WRC investigation is ongoing until the case is resolved.

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Who sees factory findings & remediation?Accessing the results

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Factory MSI Brand Trade

union in factory

Workers in

factory

Local Partners

Public - Website

FLA Detailed report posted in 6 months

FWF After first round of improve-ments.

General report only.

SAI May access, if needed.

Only if brand is authorized.

Usually may access.

WRC

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Social auditing, etc.Partner work

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Based on the approaches taken by “the 6,” work with the person next to you to develop a program for social auditing (or monitoring/verification/investigation)

• What is the purpose of your social auditing program? E.g. verifying brand compliance programs, factory certification, etc.

• Which issues and activities do you focus on during the process (e.g. health & safety; interviews)?

• What individuals/groups do you select to conduct the audits? Using what criteria?

• How do you approach remediation? How do you confirm that remediation has been undertaken?

• What is your policy on reporting outcomes of auditing and remediation?

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Public Reporting and disclosureWhat’s disclosed and to whom?

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Factory names disclosed

Factory conditions disclosed

Brand performance disclosed

CCC Where workers have given permission, factory names are provided.

All information accessible to public, especially workers and their representatives.

May publicly assess brands based on their supply chain performance.

ETI N/A Companies send summarized reports on conditions in their supply chains to ETI secretariat.

Company reports shared internally among ETI members. Through confidential process, members are rated and share “good practice”.

FLA FLA monitoring reports do not use factory names.

University licensees’ factory names accessed on web.

Factory conditions in independently monitored facilities are publicly disclosed on FLA website, listing only the relevant brands.

Online annual report details brand activities to improve workplace conditions. Brands are publicly evaluated when they are “accredited” after 3 years.

FWF Are only shared with workers and workplace trade union representatives.

Brief summaries of findings from FWF verification visits are covered in FWF’s annual report.

Annual report (available online) briefly reviews member brands’ compliance activities.

SAI All certified factories and their addresses accessed on SAI website.

Audit reports can be accessed by SAI staff.

Brands’ programs evaluated internally. Brands opt to publicly report summary of this evaluation or percentage of supply chain SA8000-certified.

WRC

All reports contain factory names. All factories that fall within WRC scope accessible on website database.

All findings are made public and shared with workers and their representatives.

N/A

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Public Reporting and disclosureWhat’s disclosed and to whom?

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Key points

• CCC and WRC – full public disclosure of all findings. CCC discloses factory names only upon workers’ request.

• FLA – detailed public reporting on monitored factories & brands’ programs.

• FWF – publishes summaries of brands’ performance.

• SAI – discloses names and addresses of certified facilities. Internal evaluation of brands’ performance.

• ETI – internal evaluation of brands’ performance. Most are still exploring best methods for effective public reporting.

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Today we discussed:• The global context

• Specialized terminology used in this field

• The 6 organizations • General approach • Membership• Codes • Approaches to social auditing• Disclosure/reporting

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Return to your small groups and together reflect on what was covered in Module 1. Identify which of the 6 organizations is most similar to your imaginary organization. What were the similarities? What were the differences?

Identify ways in which your imaginary organizations would benefit from cooperation with any or all of the 6. List the kind of activities your organization would like to include in a joint project with the other organization(s). Where would you propose to host the project?

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Comparison with imagined organizations

Hold onto notes from this discussion for use in Module 2.

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Module 2 will deal with 1) how the Jo-In project works, and 2) how complaints mechanisms work.

To prepare for Module 2, review what you’ve learned today and consider how you would design the Jo-In project to achieve its two main goals:

• To enhance cooperation among the 6 organizations

• To learn from each other in order to be more effective in improving workplace conditions around the world.

Independent workC

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Designing the Jo-In project

Keep in mind the similarities and differences that exist among the 6.

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www.

Thank you!

See you again at the 2nd module of this seminar

.jo-in.org

1 joint initiative for corporate accountability and workers rights training seminar turkey 2006...

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