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

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

Typical MNC Brand/retailer supply base

First Tier Contractor Subcontractor FOB = Ex factory price Lower than previous order Usually a discount on a higher volume order Buying Department 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 ? Illegal subcontracting The Sweatshop Dynamic 2

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

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

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

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

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

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

A new offensive  Right to unionise guarantee  Trade union access agreements

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?