Using brand leverage to defend workers’ rightsStrengths, weaknesses & challenges

MFA+3: Labour rights in a changing garment industry San Pedro Sula, Honduras

October 1st, 2008

Assumptions: Codes alone won’t protect workers’ rights Provisions weaker than ILO norms Monitoring seldom accurate or effective Workers left out of the process

However… Codes: public commitment to worker rights Acknowledgement of shared responsibility Admission of weakness: vulnerability of

brand reputation Tool to hold companies accountable Gradual upgrading of code standards

reinforcing ILO norms

Why use brand leverage? Companies will respond if brand reputation

threatened Sometimes more responsive & effective

than governments Compliance staff often committed to

labour rights Independent investigations, public reports

can be tools for workers’ struggles*

When to use brand leverage? Responsive brands are major customers Codes based on ILO norms Violations well documented Brands have experience/influence to

achieve remediation Brand/supplier relationship stable Credible threat of damage to brand

When does brand leverage work? Workers committed to strategy* Complements, doesn’t substitute, for other

strategies Ability to mobilize if engagement fails Economic/political timing is right** Factory owner committed to business***

Lessons learned: Brands more sensitive/responsive to

media-friendly issues* Less willing to touch issues where profits

involved** Some will pressure on freedom of

association*** Some willing to speak out for better

government regulation****

Positive lesson:

Under right circumstances, combining worker organizing, government lobbying, brand leverage, and local/international mobilization can achieve victories and set precedents…

Negative lessons: Worker victories often temporary Unionized factories are closed, production

shifted elsewhere In periods of restructuring, organizing

more difficult, brand leverage less effective

Examples include: Vaqueros Navarra in Mexico Gina Form Bra in Thailand Chong Won in the Philippines

Challenges: How to pressure less brand-sensitive

companies?* How to address increasing power of Asian

manufacturers? How to get companies to deal with

systemic issues?**

Conclusions: Growing number of companies now accept

responsibility, but… Company monitoring is expensive &

ineffective Few improvements at factory level Most organizing victories short-lived Global competition driving standards down

Reasons for optimism: Leading brands willing to discuss systemic

issues, collaborate with Unions & NGOs Willing to support improved regulation Some discount chains & manufacturers

joining the discussion Increased knowledge and experience of

NGOs & Unions