REPORT ON THE CENTRAL AMERICA REGIONAL WORKSHOP:
"ETHICAL TRADING AND CODES OF CONDUCT"
3 - 5 May 1999, Las Mercedes Hotel, Managua, Nicaragua.

The national workshops were held during the first few months of 1999 in each of the participating countries. These activities involved mainly women working in the export processing industry.

The majority of women workers had never heard of codes of conduct therefore, were unaware if the company employing them had signed a code. They also had little knowledge of their rights under national labour legislation.

In the few cases where workers knew that their factory had a code of conduct, it had often not been translated into Spanish and/or it was just pinned up on the wall with no explanation of its purpose. In the case of the Dominican Republic, FUTRAZONA pointed out that there was resistance by the companies to make copies of the codes available to workers when requested.

Workers were unaware of how the export processing industry functions and the links with consumers in the North. They were also unaware of solidarity links that could be established to support workers defend their rights in the South. This is a problem when it comes to looking for ways to ensure the effective application of codes of conduct.

Workers are very worried that any action they take to defend their rights will lead to dismissal or that the companies will leave the country. Nevertheless they were very interested in learning about codes of conduct and their potential to defend their rights. They would also like this information to be made available to all workers.

Mexican women maquila workers who participated in the codes of conduct consultation, Tijuana, Mexico

Women workers believe a code of conduct should address the following :

• A living wage
• Protection and respect for pregnant women
• Non-discrimination on basis of sex, age, race, etc
• Equal pay for equal work
• Banning of physical and psychological violence and sexual harassment
• Occupational health and social security rights
• Freedom of association, the right to collective bargaining and defence of labour rights and human rights
• Banning of enforced overtime
• Normal working day should not exceed eight hours
• Regulation of intensity of the workload to ensure no harm to mental or physical well being
• The banning of wage docking for work that has already been carried out
• Employment of children to be regulated by national norms or principles
• Respect for homeworkers
• Assurance of a dignified working environment.

It is important that the code of conduct is visible and accessible to all employees in the factory.

Workers were of the opinion that codes of conduct are very similar to national labour laws and that codes should not replace national legislation but instead incorporate provisions to ensure national labour legislation is adhered to. The codes should include areas of law that are often ignored or forgotten and that are of particular importance to women.

The workshop participants emphasised the importance of workers organising themselves. In the case of Guatemala it was felt that workers need to organise and learn about their labour rights and company codes of conduct. Workers organisations should fight to see that these rights are met and seek support from other workers, trade unions, women's organisations, international solidarity groups, etc. The Guatemala report points out:
"Codes of conduct could bring benefits to workers if we are organised. If we are not organised we cannot meet to discuss the conditions in the factory or talk about codes of conduct."
The workshop participants mentioned that for the codes to be complied with, governments should be involved and pressured into resolving the workers' demands and force the companies to respect national labour laws.

The search for allies within civil society was also an important discussion point. Allies refers to women's organisations, trade unions, human rights organisations, individuals, overseas organisations, the public, etc.
In one of the Nicaraguan workshops it was emphasised: "Public and international support is vital in achieving change in this sector, but it is important to link that to, and consult with, the real actors and agents of change: the women working in the factories."

The participants from several countries agreed that they supported campaigns demanding action from transnational companies to ensure compliance with codes, however, it was emphasised that they are not in favour of any action that causes factory closure, resulting in job losses.

If codes of conduct are to be put into practice and work effectively it was felt that workers must participate in ensuring that they are adhered to. The participants from Costa Rica felt that they themselves should act vigilantly where their rights were concerned and do the necessary inspections and investigations, since workers are the party with greatest interest in codes of conduct being applied.

Monitoring of codes should be done by local organisations who have knowledge of the living and working conditions in country. They should also be independent from the company and be endorsed by civil society. Such organisations should have credibility in the area of supporting workers' rights and have the trust of the workers themselves. Any monitoring activity should aim to ensure that workers' rights are respected, and therefore, worker consultation is crucial in monitoring and verification. The workers should feel able to completely trust monitors. Finally, the monitors should carry out the process with absolute transparency vis-a-vis the workers and civil society.

Since there are very few trade unions in the export processing industry in Central America, the existence of a trade union cannot be a requisite for monitoring codes of conduct. It was suggested that perhaps there could be an employees committee that interacts with the monitoring team.

There was a general disagreement with the concept of any monitoring, verification or certification without the participation of organisations who were trusted by workers and civil society, and who can guarantee that workers'are consulted. Much emphasis was placed on companies not imposing monitors who do not have the support of the workers.

A general concern was expressed over the private social audits being carried out in Central America and the Caribbean, as it is unknown what form they take, which factories are being visited, what the extent of worker participation is, or what the results are.

Two discussion points for the future were highlighted: through which mechanisms should external monitors be selected, so that they have the backing of civil society, and what procedures should be used to ensure that monitoring takes workers' opinions into account.

A lot of emphasis was placed on the fact that there is a need for more initiatives and proposals from organisations in the South. There is also a need to influence and improve the monitoring and verification by private auditing companies that is currently taking place in the region. There is a need to look for ways in which civil society and workers can actively participate and influence this process.

One important point still outstanding concerning external monitoring is who pays for it. On the one hand some women were distrustful of monitoring financed directly by the factory or by a transnational company, on the other hand some mentioned that transparency in the process and the credibility of the monitors is key.

The following was suggested to help women workers learn about and monitor the use codes of conduct:

• Training in codes of conduct
• Analysis of successful experiences of the use of such codes
• Mass publicity campaigns
• Mass distribution of information
• Advice and advocacy
• Training in negotiating techniques
• Strengthening ties with other organisations within the country who are supportive of women working in the export processing industry
• More research into monitoring processes
• Greater flow of information both intra regional and with supportive organisations in the North.