Trade agreements as means to enhance & enforce labour regulations

Norwegian Ministry of Labour Oslo, 9th Feb 2010

Gunelie Winum, Project Manager, ETI-Norway

What is ethical trade?

• Trade which respects and promotes human rights, labour rights, development and environment in the supply chain

• Continuous improvements, not compliance guarantee

“It is an Utopian notion that poverty can be overcome without the active engagement of business”

Kofi Annan

About ETI-NorwayCooperation for trade which respects and promotes human rights, labour

rights, development and environment

• Membership, non-profit based alliance of companies, trade unions, NGOs, employers’ associations and public sector

• Open to all sectors (P.t. 117 members)

• Commitment to Declaration of Principles, including- Adopt ETI-Norway Base Code, disseminate to supply chain- Annual report on implementation progress – publicly available

Enable members to meet ethical requirements througho Capacity building both at home and in supply chaino Extensive network of local resources who can assist in improvements

ETI-Norway Base Code

• Based on UN & ILO Conventions & Recommendations• Basis: Follow national laws and regulations

1. Prevent & remediate forced labour 2. Prevent & remediate Child Labour 3. Prevent & remediate Discrimination4. Respect & promote Right to organise and Collective Bargaining 5. Promote Secure workplaces (OHS)6. Promote living wage7. Promote regular employment8. Prevent & remediate harsh treatment9. Prevent & remediate excessive working hours10. Promote & respect local communities11. Promote & respect environment

Labour rights violations – some root causes

Production management: Competing about foreign customers, insufficient knowledge of duties as employer

Workers: Little knowledge of rights as employee, weak/lacking channels for dialgoue and collective agreements (trade unions, worker committees) and collective bargaining agreements)

Western companies: Pressure on price and production time, majority is not concerned about improving conditions

Local goverments: Lack will or ability to enforce laws, weak institutional capacity to follow up, competition about foreign capital(”Governance Gap” John Ruggie, UN)

Governments role in improving labour conditions

• UN Special Representative John Ruggie– ”Protect, Respect, Remediatie”

• UK Gareth Thomas, DFID Minister - Protect the rights of people who produce the goods which trade depends on- Use trade to promote sustainable low-carbon development- Special attention to those who suffer from globalisation

• China Nike vs. AmCham China Labour Contract Law (2008)

• India GAP & other brands: Joint remediation efforts with India Ministry of Woman and Child to combat child labour

ETI Code of labour practice:

“Do workers really benefit”(Institute of Dev. Studies, University of Sussex, 2006)

Operational capacity building

• Norw Govt. Decent Work Strategy Capacity building of Labour inspectorates

- Sectors

- Regions

responsible supply chain management

www.etiskhandel.no