Using brand leverage to defend workers

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Using brand leverage to defend workers
rightsStrengths, weaknesses challengesMFA3
Labour rights in a changing garment industry
San Pedro Sula, HondurasOctober 1st, 2008
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Assumptions

• Codes alone wont protect workers rights
• Provisions weaker than ILO norms
• Monitoring seldom accurate or effective
• Workers left out of the process

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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

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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

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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

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When does brand leverage work?

• Workers committed to strategy
• Complements, doesnt substitute, for other
  strategies
• Ability to mobilize if engagement fails
• Economic/political timing is right
• Factory owner committed to business

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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

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Positive lesson

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

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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

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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?

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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

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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