Checking Up on Labour Rights: A basic assessment tool for the labour policies and practices of international companies

7/27/2019 Checking Up on Labour Rights: A basic assessment tool for the labour policies and practices of international companies

1/16

Checking upon labour rightsA basic assessment tool for

the labour policies and practicesof international companiesWritten by Sarah Rennie


2/16

illustrations: Antony Kraus


3/163

Checking up on labour rightsA basic assessment tool for the labour policiesand practices of international companies

Background

The United Nations (UN) Framework for Businessand Human Rights states that all businesses have aresponsibility to respect the human rights of individualsand of the communities impacted by their businessoperations. As part of this responsibility, businessesmust ensure that the women and men employed intheir workplaces and supply chains can access theirbasic employment rights. These rights are contained inInternational Labour Organisation (ILO) and UN humanrights conventions, and include the right to form unionsand engage in collective bargaining, the right to safeand decent working conditions and the right to adecent wage. International businesses, whose supplychains traverse diverse countries, cultures and legaljurisdictions, need robust systems in place in order touphold these obligations.

Oxfam has prepared this tool in order to help companies(and particularly companies with multinational supplychains) assess their current policies and practices inrelation to workers rights. The tool highlights some ofthe most important elements of responsible labour policyand practice. The tool does not, however, provide a modelcode of conduct, nor does it provide comprehensiveguidelines around how to deal with specific labourproblems across complex and diverse supply chains.To access more indepth information you will find a listof resources at the end of this document.

How companies should use the checklist

The checklist allows you to respond to each indicatordepending on whether you have a policy on the issue,the extent to which that policy is implemented andwhether that implementation has been independentlyverified. This checklist is only useful if it is used honestly;ideally responses to each of the criteria should besupported by credible evidence, including independentaudit reports and external reports on company practices.A rigorous assessment process should actively involveworkers and their representatives from within yourcompanys supply chain, as well as independent labourexperts with local or sectoral experience. Such anassessment may help your company to identify urgentlabour issues and provides a good starting point forinclusive dialogue with other supply chain stakeholders.

As mentioned above, this checklist does not contain allthe answers, but it will help your company to identifysome of the key issues that need to be addressed toensure it can uphold the human rights of women andmen employed in its supply chain.


4/164

Issue Why it matters Company Policy/Procedure

Policy exists,implementation

in progress(verified in X%of suppliers/supply chain)

Policy exists,no systematic

implementation

No policy exists,no systematic

implementation

S u p p l y c h a i n t r a n s p a r e n c y

Transparency is acrucial first stepin ensuring thatworkers rights areupheld. Without keyinformation, suchas the names andlocations of suppliers,it is very difficult forindependent partiesto verify supply chain

labour conditions.Similarly, withoutinformation aboutcompany codes ofconduct and locallabour laws, it isdifficult for workersto understand andprotect their rights.Information sharingis a prerequisiteto healthy, fairand transparent

Your company publishes its labourrights policies and code of conduct for

suppliers, based on the InternationalLabour Organisation (ILO) and core humanrights conventions (see list at the end ofthis document).

Workers in your companys supply chain are

made aware of any code of conduct and canaccess it in their own language.

Your company publishes information abouthow it deals with worker grievances.

Your company publishes and regularly updatesthe names and addresses of its first andsecond tier supplier factories/entities.Your company records and publishesinformation about workers including: the number of workers in the supply chain, the percentage of workers who are employed

on short term contracts rather than aspermanent employees, the number of female workers in the

supply chain, measures taken to ensure womens access

to employment/positions throughout supplychain including senior positions.

Your company publishes the results ofits supply chain audits, including gaps inimplementation of your code of conductand any commitments to address them.


5/165





implementation


implementation

G r i e v a n c e m e c h a n i s m s

Workers need to haveaccess to a complaintsmechanism whichallows them to safelyand confidentiallyreport on any violationsat their workplace.Effective and timelyresponse to suchcomplaints is crucialto demonstrating acommitment to upholdworkers rights. Byshowing suppliers thatthe company is seriousabout workers rights,an effective complaintsmechanism can alsodeter future violations.

Your suppliers have a grievance handlingsystem in place. Your company also maintainsits own grievance mechanism so that whenproblems are not addressed by a particularsupplier, workers can report violations oftheir rights/the company code of conductdirectly to your company. Best practice is toprovide a variety of ways to report complaints,for example, via a hotline, SMS or email.Workers should have the option to submittheir complaints on an anonymous basis.

Grievances submitted are consistentlyinvestigated and resolved in a timely manner(eg worker receives acknowledgement withinone week, matter investigated within twoweeks and remedial action is developedwithin three weeks).

Workers are aware of the grievance procedureand can access it in their native language.

Workers representatives are consulted onappropriate grievance procedures and areincluded in the remediation of grievances.

An internal employee suggestion systemis established in supply chain, eg througha collection box, appointed person orcontact number.

A special grievance procedure is in placefor cases of sexual harassment, includingreferral to specially appointed womenor womens committees.


6/166





implementation


implementation

V e r i f i c a t i o n o f w o r k i n g c o n d i t i o n s

Voluminous auditingdoes not necessarilytranslate to concreteimprovements insupply chain workingconditions, but smartand strategic audits,that engage withlocal workers andtheir representatives,can deliver helpfulresults and effectiverecommendations.

Supplier implementation of your companys

code of conduct, international labourstandards and local labour laws is regularlychecked by an independent and crediblethird party.

Auditing incorporates confidential, offsiteinterviews with workers, including femaleworkers, so they can speak honestly and

openly about working conditions. Femaleworkers should have the opportunity to beinterviewed separately, by female auditors,to ensure they feel comfortable in speakingabout all issues.

Auditors have a comprehensive understandingof applicable international labour standards,your companys code of conduct, locallabour laws, and compliance risks specificto the local area.

A system exists for risk assessing

suppliers to identify where indepthassessments are needed.

Wherever possible auditing practices shouldinvolve workers organisations and/or locallabour NGOs. Worker representatives shouldbe involved in preparing audits and followingup on implementation of recommendations.

They should also be regularly consulted onknown risks and issues, proposed remediationfor specific and systematic issues in thesupply chain. The results of investigations andremedial action should also be shared wi ththese organisations.


7/167





implementation


implementation

P u r c h a s i n g p r a c t i c e s t h a t s u p p o r t w o r k e r s

r i g h t s

Even the mostcomprehensive labourpolicies are unlikelyto succeed unlessthey are supportedby real action andconcrete changes inpurchasing behaviour.Companies mustdemonstrate that theywill actively prioritiseand reward suppliersand contractors whorespect and upholdworkers rights.

Your companys CSR or compliance departmentand the department responsible forprocurement or contracting communicatefrequently and work together to ensurethat your companys commercial behavioursupports human rights compliance.

Standard contracts include a clausestating that the supplier must complywith your companys supply chain policy,standards and any other relevant labourrights agreements.

Labour rights performance is takeninto account in making all purchasing/sourcing decisions.

Attitude and ability in addressing labourstandards is considered when selectingsuppliers. Factories/ plantations or otherworkplaces where democratic unions operateare preferred.

Lead times for orders from suppliers arereasonable, take into consideration existinghuman resources and do not result in forcedovertime or undue pressure for workersto undertake overtime.

Progress on implementation of labourstandards is rewarded through commitmentsto longterm sourcing relationships orother incentives.

Your company has a strategy to assistsuppliers who are failing to uphold workersrights. When a violation is exposed, yourcompany works constructively towardsaddressing noncompliance rather thansimply withdrawing orders (cut and run).


8/168





implementation


implementation

W o r k e r s i n s u p p l y c h a i n a r e p a i d a l i v i n g w a g e

In many countriesthe minimum wage isconsidered a poverty

wage. This meansthat even thoughsomeone might beworking full time everyweek on the minimumwage, they are stillnot earning enoughto lift themselves outof poverty.

The OECD guidelinesstate that whenmultinationalenterprises operate indeveloping countries,where comparable

employers may notexist, suppliers providethe best possiblewages, benefits andconditions of work.These must be at aminimum adequateto satisfy the basicneeds of the workersand their families. Thisbenchmark is alsoreferred to as a livingwage a standardworking week wage(without overtime)which is enough fora worker and theirfamily to meet theirbasic needs andmake savings forthe future.

Workers receive a wage for a regular workingweek (without overtime) which is enoughfor a family to meet its basic needs andmake savings for the future. The process fordetermining this wage should be discussedand agreed with local unions and labour

organisations.

Workers receive full payments and legalbenefits; no part is withheld for any paymentof goods and services made obligatory bythe employer.


9/169





implementation


implementation

F r e e d o m f r o m f o r c e d l a b o u r

Efforts to universallyabolish slavery spanback for thousandsof years yet aroundthe world millions ofpeople are still forcedto toil in hazardousand degrading jobs.Companies must bevigilant to ensure thattheir supply chains arefree from all forms offorced labour.

Employment is freely chosen andadequately compensated.

Overtime is freely chosen, recognised andcompensated in accordance with the law.

Your company has policies to protect migrantworkers, who are more vulnerable to forcedlabour and other exploitation. Specificallyemployers should not retain possessionor control of workers identification andother documents like passports, identitypapers, work permits, and other personallegal documents. Employers should not userecruitment agencies that require workers topay recruitment and/or employment fees.


10/16


11/1611





implementation


implementation

F r e e d o m o f a s s o c i a t i o n a n d c o l l e c t i v e b a r g a i n i n g

Freedom of associationis a core labour right.It protects the abilityof workers to cometogether, organise,collectively negotiateand bargain for betterwages and conditions.Without this freedomit is very difficult forworkers to articulatetheir concerns andneeds. Companies whowish to constructivelyengage with workers,understand theirperspectives anddevelop mature andproductive employmentrelationships, mustuphold this right.

Workers making your companys productsenjoy freedom of association and the rightto collective bargaining.

Workers are able to join the union oftheir choice.

Workers and their representatives are givenopportunities to develop knowledge abouttheir rights including training in theirown language on their labour rights underlocal law, international standards and yourcompanys own Code.

When deciding which supplier/company andregion/country to source from, your companyconsiders freedom of association andprioritises companies and regions that respectand uphold freedom of association and theright to organise.

If or when operations take place in regionswhere there are legal restrictions on theformation of trade unions, your companyfacilitates parallel means of dialogueand bargaining.

Your company keeps records of thepercentage of workers in its supply chaincovered by collective bargaining agreements.


12/1612





implementation


implementation

F r e e d o m f r o m d i s c r i m i n a t i o n

Freedom fromdiscrimination is acore labour right.Discrimination is bothmorally unacceptableand illegal on numerousgrounds includingethnicity, race, gender,nationality, religion,political affiliation,sexuality and tradeunion membership.

See also: grievancemechanism, page 11.

Workers are free from discrimination of anykind (gender, race, ethnicity, religion etc)whether in employment or opportunity,including wages, working conditions, andsocial benefits.

Female workers receive all maternityentitlements and protection in line withnational law and practice. Maternity leavedoes not result in any discrimination, loss ofseniority or deductions of wages.

Workers, particularly women and minorities,are protected from all forms of workplaceharassment or intimidation.

Specific measures exist to identify andaddress sexual harassment

J o b

s e c u r i t y a n d p e r m a n e n t c o n t r a c t s Precarious, insecure

work does not providethe conditions andlongterm securitythat allows workersto obtain secure,sustainable livelihoodsand escape cyclesof debt and poverty.Precarious workis marked by lowwages, few benefits,a lack of collectiverepresentation, andlittle to no job security.By contrast, securework provides workerswith the means totake greater control oftheir lives and plan fortheir futures.

The use of limitedduration contracts(shortterm, temporary, seasonal, daylabourand casual labour) is banned or restrictedto exceptional circumstances which aretemporary in nature. All workers have fair andpredictable pay and hours of work and accessto social protection.

Outsourcing to disguise employmentrelationships, bogus selfemployment,bogus training schemes, subcontractingand agency contracts are prohibited forall core functions.


13/1613





implementation


implementation

W o r k p l a c e H e a l t h a n d S a f e t y

All workers are entitledto a safe, healthyand humane workingenvironment. Thismeans taking proactivemeasures to counterhealth and safety risks.Prevention is alwaysbetter than cure.

Workplaces are comprehensively assessed forhealth and safety risks and adequate safetymechanisms are installed and implemented.

Information and training on the safety andhealth standards relevant to the workplaceis provided to all workers.

Procedures exist for the rapid resolutionof reported hazards.

Healthy working conditions are maintained,including adequate ventilation, safe drinkingwater and hygienic sanitation.


14/1614

Checking up on labour rightsRESOURCES

General resources

Clean Clothes Campaign,Full Package Approach to Labour Codes of Conduct , 2008.

Clean Clothes Campaign, Looking for a Quick Fix: How Weak Social Auditing is Keeping Workers in Sweatshops , 2005.

Oxfam International,Better Jobs in Better Supply Chains , 2010.

Oxfam International,Gender Equality: its your business , 2011.

Maquila Solidarity Network,What Can Your Company Do To Ensure Your Products Are Made Under Humane Conditions? , 2003.

Merk, Jeroen,From Code Compliance to Fair Purchasing Practices: Some Issues for Discussion , 2005.

UN Global Compact,Supporting Worker Empowerment Including Support for Workers Assertion of their Human Rights in the Supply Chain , 2012.

Resources on the living wage

ALaRM, Sector Specific Living Wage for Sri Lankan Apparel Industry Workers (Prepared for ALaRM by R.P.I.R. Prasanna andB. Gowthaman, 2006), available at:www.choike.org/documentos/living_wage_report_slk.pdf

TWAROITGLWF, Living wage survey for Cambodias garment industry (February 2009), available at: www.fes.or.id/fes/download/Survey_Result_Cambodia.pdf

WRC, Sample Living Wage Estimates: Indonesia and El Salvador (2005), available at:www.asiafloorwage.org/documents/Resources-onwages/Background_reading/onwage/Sample%20Living%20Wage%20Estimates.pdf

WRC, Living Wage Analysis: Dominican Republic, available at:www.workersrights.org/linkeddocs/WRC%20Living%20Wage%20Analysis%20for%20the%20Dominican%20Republic.pdf

Asia Floor Wage, Stitching Decent Wages Across Borders: The Asia Floor Wage Proposal (2009) available at:www.jwj.org/campaigns/global/tools/asia_floor_wage.pdf

International human rights standards

Human rights United Nations UniversalDeclaration of Human Rights

United Nations InternationalCovenant on Civil andPolitical Rights

United Nations InternationalCovenant on Economic, Social andCultural Rights

Business and human rights United Nations Guiding Principleson Business and Human Rights

OECD Guidelines forMultinational Enterprises

ILO Core Labour Standards

Elimination of forced labour C29 Forced LabourConvention, 1930

C105 Abolition of Forced LabourConvention, 1957

Freedom of association andcollective bargaining

C87 Freedom of Association andProtection of the Right to OrganiseConvention, 1948

C98 Right to Organiseand Collective BargainingConvention, 1949

Equality of opportunityand treatment

C100 Equal RemunerationConvention, 1951

C111 Discrimination (Employmentand Occupation) Convention,1958

Abolition of child labour C138 Minimum AgeConvention, 1973

C182 Worst Forms of Child LabourConvention, 1999


15/1615


16/16

www oxfam org au/corporateaccountability

Documents

Checking Up on Labour Rights: A basic assessment tool for the labour policies and practices of international companies