Fair Labor Solutions

To find out more about Fair Labor Solutions, go to our website here; http://www.fairlaborsolutions.com/

Sunday, September 9, 2012

Join my Webinar



 Here is a link to a webinar I am hosting about labor compliance. It is on Thursday, Sept. 20th 2012
 
Time: 8 am Pacific | 11 am Eastern
 
Please join me if you can.



Key discussion points:

  • How to increase supplier involvement and ownership
  • Setting up audit scope: social and fair labor, environmental, workplace health and safety
  • Developing management system assessments to understand root cause
  • Managing Vendor Compliance program
  • Building an approach for Sustainability
  • Brand Collaboration to share results

Monday, July 23, 2012

Recent Olympic merchandise claims.

In a recent report, The Daily Telegraph discovered that machinists were working up to 10 hours a day, six days a week, to produce the official Olympics merchandise that thousands of fans will buy in stores throughout Britain.

Living in squalid conditions, workers said they earned a basic salary of $61 (£40) a month for working eight hours a day, six days a week, plus a $5 allowance for health care. They said they could take their wages up to $120 (£78) by increasing their hours to 10 per day.
Adidas insisted on Friday that workers at the factory made an average of $130 a month, and would get a pay rise later this year, along with other garment industry workers.

A spokesman for Adidas confirmed that the Phnom Penh factory produced Olympic "fanwear" but denied that the workers' pay and conditions were in breach of the organising committee's standards.
"Adidas is confident we comply with all Locog standards. Workers at the factory earn an average of $130 a month, which is well above the minimum wage," he said.

A Locog spokesman said: "We understand that the Shen Zhou factory is part of the International Labour Organisation labour rights programme, which means that it is inspected."

In this case, Locog are correct. The daily Telegraph is correct and Adidas are also correct. So what is the issue?

Well, if you go into the ILO/better Work web site, you will see that the above hours of work and overtime claims are legal. Adidas is working in a factory that meets the ILO core conventions.

However, they also have statistics such as these;
  • 97% of factories audited in the last 6 months are out of compliance with overtime restrictions.
  • During  the  reporting  period, garment  factories  experienced  27  strikes  involving  36,053 workers. This represents approximately a doubling of the number of strikes and the number of  workers involved as compared to the last reporting period.
Couple this with the reports of late about workers fainting in factories, clearly all is not well.

Take a good look at the better factories report, especially if you are working in Cambodia. It makes good reading.

Thursday, June 28, 2012

Sourcing practices at odds with compliance goals

This story from the Financial Times gives a bit more information about Nike's assertion that their business practices can exacerbate a factory's ability to meet compliance goals.

http://www.ft.com/cms/s/0/d609cf9e-a434-11e1-84b1-00144feabdc0.html#axzz1z67lVImy

If Brands are really interested in making improvements to working conditions in their supply chain, they need to take a long hard look at their own sourcing practices.
Maybe if I say this long enough and loud enough, someone might take notice.

Wednesday, June 6, 2012

1000 workers riot in Foxconn factory.


I was having dinner last night with a good friend who's opinions I value. He said that I come across in this blog as a bit of an Apple hater and that I should tone it down.  If anyone else thinks this then I apologize. Apple is no worse than any other US brand making in China. My goal here is not to vilify Apple so much, rather it is to point out some obvious inadequacies in their Labor Compliance process.

Unless they focus on Root Causes, and Yes, that might mean taking a good look at their business practices, the improvements they say they will make will not happen anytime soon.
In a a recent article about 1000 workers in a Foxconn factory rioting, workers said the improvements promised are not happening. Whilst the reason for the riot was not labor related, tensions between management and workers remain high.

Here's a report from the Guardian outling recent investigations from SACOM, an NGO in Hong Kong

http://www.guardian.co.uk/technology/2012/may/30/foxconn-abuses-despite-apple-reforms?newsfeed=true

I reiterate that unless Apple, or any other company engaged in Labor Compliance understands the probable impact that their business practices and sourcing decisions have on a factory's ability to meet their compliance objectives, they will fail to deliver on their promises.
Regards
Wally

Wednesday, May 30, 2012

Labor unrest continues in China and Cambodia.

Here are two reports from this month, one in China http://www.rfa.org/english/news/china/death-05292012103808.html and one in Cambodia, see below.  Both reports are from Radio Free Asia.

Heavy handedness by factory management and local police were a factor in both protests getting out of hand. Low wages, and non payment of wages also seem to be the trigger.

Thousands Protest Garment Factory Conditions

2012-05-21
On their third straight day of protests, Cambodian workers take their demands to the government.


Some 3,000 employees of a textile factory in Cambodia’s capital of Phnom Penh gathered to demand better working conditions on Monday, in one of the largest recent strikes to hit a garment industry plagued by complaints of low wages and few protections for labor rights.
On the third day of their strike, workers from the Chinese-owned SL Garment Processing Cambodia company’s two factories in the outskirts of Phnom Penh took their protest downtown, gathering in front of the Social and Labor Ministry building in the capital.
The protesters said they were determined to continue the mass strike until they receive better working conditions, benefits, and protection of their rights.
“If we don't have a solution, what will we do next? We will struggle until we can see a solution,” one worker shouted at the protest.
The demands are not an unusual refrain in the country’s garment factories, which are the country’s largest employers and hire more than 300,000 people, mostly women.
Art Thun, president of the Coalition of Cambodian Apparel Workers' Democratic Union, said the company should address the workers’ concerns.
“They will go to negotiate right at the factory, since whether or not the factory owner agrees [to their conditions] they still need to seek a proper solution for the workers. The owner can't avoid responsibility for this matter,” he said.
The factory’s management has condemned the strike as illegal and warned protesters not to try to take over the factory buildings.
“Don’t take any action to incite or lead workers to block the entrance gates to the SL factory companies,” a member of the management company shouted to the strikers through a loudspeaker.
Strikes and protests are not uncommon at textile factories, where laborers often work long shifts for little pay.
In February, protests by two thousand workers at the Chinese-owned Manhattan Textile and Garment Corp’s factory in southeastern Cambodia’s Kampong Cham province turned violent when workers blocked a national highway and vandalized the factory.
The industry has also been rocked by nearly a dozen incidents of mass fainting in the past year. The faintings are mostly blamed on workers' poor health, bad ventilation in the workplace, or exposure to dangerous chemicals, although some factory managements have disputed this.
Reported by Uon Chhin for RFA’s Khmer service. Translated by Taing Sarada. Written in English by Rachel Vandenbrink

Monday, May 7, 2012

Apple, meet Nike.


Leonie Barrie of Juststyle has posted this news from Nike.
In it, there is a snippet of information that Apple may need to take notice of if they are to achieve their stated goal of resolving their overtime issues.

I quote, "But the company says in some areas "progress was slower than targeted," including the reduction of excessive overtime within factories. Crucially, 68% of excessive overtime incidents in 128 factories were found to be due to factors that Nike itself could influence".

68%, just in case you missed that.

So Apple, tell me again how you are going to manage this task if you are not taking a long hard look internally and addressing the  impacts of your own purchasing/sourcing practices.

Thank you Nike for bring this to their attention

Thursday, May 3, 2012

Bangladeshi workers fight back


Warning;
This report makes grim reading.

It also offers some hope that the violations detailed in the report are being taken seriously by the brands using this company.

"How did they not know this was happening?" you might reasonably ask.
Record falsification is a frequent and common problem. In this particular case, the management at both factories seem to be particularly aggressive in their use of it. Bribery and corruption of auditors by factory management are also common problems.

Read the full report here and ask yourselves, could this be happening in my supply chain. The answer is of course, it might. If you are not engaging with your factories first hand, and are not reviewing their management systems to see if they have the capability to meet compliance codes of conduct, this could well be you.