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

Other activities outside the workshop

Meeting with the Nicaraguan Minister of Labour Wilfredo Navarro

Following the workshop a group of participants met with the Nicaraguan Minister of Labour. The Minister was informed about the workshop and given information about ETI. He commented that since he had been in post he had taken seriously issues concerning the export processing industry. Last year he signed MEC's Ethical Code that was drawn up by women workers in the export processing zone in Managua. The Minister has shown his intent to ensure it is respected. He also said he had been promoting the code in meetings with other Central American Labour Ministers.

Visit to the Free Trade Zone "Las Mercedes"

A group of participants visited "Las Mercedes" Free Trade Zone and in particular a shoe factory within the zone. They also visited the nursery which accommodates a small percentage of workers' children and the Labour Ministry's office inside the zone which deals with report of non compliance with labour legislation.

Meeting with Nicaraguan NGOs and Trade Unions

A meeting was organised with representatives of Nicaraguan NGOs and trade unions who had not attended the workshop. A report on the workshop was given and a presentation about ETI.

Those present showed a lot of interest in knowing more about ETI and the possibilities of workers participating in this initiative. Finally, it was decided that there should be more co-ordination in the future between trade unions and NGOs with the objective of putting forward proposals and discussing strategies on how to improve the monitoring and verification that is already taking place in the region.

Woman worker in a
shoe factory in the Nicaraguan
free trade zone "Las Mercedes"
visited by workshop participants.


Appendices

Appendix I The Central America Women's Network
Appendix II Women Working Worldwide
Appendix III The Ethical Trading Initiative
Appendix IV Strategic problems with certification in the light of the 25

"Social Responsibility" 8000 (SA 8000) standard . Ronald Kopke,
Professor of Sociology at Bielefeld University of Applied Sciences, Germany -
Co-ordinator of research into codes of conduct and monitoring in Central America.

Appendix V The Salvadoran experience of independent monitoring 27
Carolina Quinteros, Former member of the Independent Monitoring Group of
El Salvador and currently a masters student at the University of Costa Rica.

Appendix VI What Should and Shouldn't Be in Codes of Conduct? 30
Lynda Yanz, Coordinator of Maquila Solidarity Network

Appendix I
The Central America Women's Network , Jane Turner

CAWN is a small organisation that was founded in 1991 by a group of women working in different Central America solidarity organisations. Its principle aim is to promote an exchange of experience between Central American and British women and promote the development of solidarity links.

In 1995 CAWN initiated the Maquila (term used to describe the export processing industry in Central America) project which focused on building links with groups of women in Central America who are working in the area of labour rights in the maquila ; raising awareness in the UK of the working conditions in the export processing zones of Central America; promoting the development of links between women's organisation and trade unions in the UK and in Central America and campaigning to defend women's labour rights in the free trade zones.

CAWN is a member of the Labour Behind the Label Network, which is the British branch of the European Clean Clothes Campaign campaigning for improved conditions in the garment industry.

Both CAWN and WWW are NGOs, which form part of the ETI. Its principal aim is to improve working conditions in the South, through the application of codes of conduct along the supply chain of British companies, along with good practice in the monitoring and verification of such codes of conduct.

A weakness in the ETI so far has been the lack of consultation with the South and the lack of participation by Southern men and women in the negotiation processes which are taking place in the North. As far as we are concerned it is absolutely imperative that women workers are involved in the monitoring process as without their views the process becomes relatively meaningless.

CAWN agreed to co-ordinate the consultations and training of women workers in Central America as we believe it is extremely important that they have the opportunity to express their points of view to the ETI. CAWN serves as a channel to make these views known in the North. CAWN considers that despite their limitations company codes of conduct could be a useful negotiating tool to improve working conditions in the South but only if the workers are aware of codes and are involved in the process.

Appendix II

Women Working Worldwide , Jessica Mock

Who is Women Working Worldwide?
WWW is a very small organisation based in Manchester which works with women workers groups, mainly in Asia but also in Central America and the UK. WWW was founded 15 years ago and began out of a concern for women workers in export production, and the lack of awareness in Europe.

Women Working Worldwide aims to facilitate information exchange, raise awareness in Europe of how products are made and to use this awareness to campaign for the rights of women workers. This work also includes putting pressure on companies.

Why we are doing work on Codes
Campaigning in North America and Europe has made consumers more aware of workers conditions and they reacted by putting pressure on companies as a result companies in these countries are adopting codes of conduct for their supply chains. The problem is that companies adopting codes is not enough as this could just be a public relations exercise. There is a need to ensure that codes are implemented and this has led to thinking around monitoring and finally the ETI.

The Ethical Trading Initiative has been set up by a group of NGOs, trade unions and companies in order to properly implement codes.

However, as yet workers know very little about codes or how they could be used to improve their conditions. They also need to be involved in monitoring codes. What workers think should be fed into the ETI to influence them. This is why WWW initiated the codes of conduct project.

How we see codes in a wider context
Women Working Worldwide does not necessarily see codes of conduct as the answer to workers problems. There are many issues we need to think about. For example we are looking at the relationship between codes and trade union activity and between codes and governmental legislation.

Appendix III

George Tarvit, OXFAM UK
Ethical Trading Initiative

OXFAM is an NGO which supports a variety of projects aimed at improving living conditions in poor countries. OXFAM has a special interest in co-operating in activities in support of the promotion of labour rights in the Central American maquilas. It is part of the ETI.

The ETI was set up in 1996 as a result of campaigns organised by various British NGOs on the theme of human rights and codes of conduct. These campaigns put pressure on major retailers and British brands to take greater responsibility for the working conditions throughout their production chain, developing codes of conduct based on norms established by the ILO, and through independent monitoring, ensuring that these codes are implemented. These campaigns succeeded in getting codes of conduct on the negotiating agenda and persuade various companies to commit themselves to addressing these themes.

In May 1997 one of Britains most important supermarket chains, J. Sainsbury suggested and supported joint meetings between NGOs and other companies interested in codes of conduct. Since these meetings it has been concluded that there is a need for these codes and their monitoring. Thus the Ethical Trading Initiative was established. Trade unions became involved in the project later that same year. DFID agreed to finance part of this initiative for a period of three years. Companies are meeting the remainder of the budget and NGOs involved. The ETI was officially launched in December 1997 and began its work in January 1998.

In its first year, most of the ETI's work has concentrated on agreeing the membership criteria and, to this end, has created its own codes and principles. These criteria were approved in November 1998. At the same time the ETI has begun to develop pilot projects and seminars, including Southern consultation exercises. One of these took place in September 1998 with the participation of several Central American organisations including MEC.

Objectives of the ETI:
The ETI is an alliance of companies, NGOs and union organisations committed to working together to identify and promote good practice in the implementation of the codes in the workplace, including monitoring and independent verification of compliance with the measures contained within these codes.

The ETI endeavours to understand the best way of putting the codes into practice and improve working conditions, trying out and evaluating the different ways of monitoring a particular code. The ETI is neither a certification nor a social audit. Rather, it is interested in identifying the main problems of monitoring the codes and in promoting effective solutions for different industries in different parts of the world.

The ETI programme: Pilot projects:

The first three projects have centred on clothing factories in China, horticulture in Zimbabwe and wine production in South Africa. Each of these projects includes four or five companies and involves the suppliers, unions and local NGOs. In China the focus was on different types of monitoring the project in each company, (NGOs and unions, people from the academic world, internal monitoring, SA8000). The wine production project centred on the suppliers, local NGOs and unions to develop a viable monitoring system and plans for corrective action. Each pilot project also involves advisors who evaluate the social impact of the work being carried out.

The different projects will report their findings to the ETI members and to other relevant parties outside the ETI itself, in mid 1999. The results will be the focus of discussions during the next ETI conference.

Appendix IV

Strategic problems with certification in the light of the "Social Responsibility 8000 (SA 8000) standard
Ronald Kopke: Professor of Sociology at Bielefeld University of Applied Sciences, Germany -Co-ordinator of research into codes of conduct and monitoring in Central America.

SA 8000 was put forward by CEPAA (Council of Economic Priorities Accreditation Agency). This is a profit making organisation registered in the USA.

On 15 October 1997 CEPAA announced a "Global Standard for Auditing and Certification" for all branches of industry and service sectors in every country of the world (except agricultural and housework which are excluded).

SA 8000 is based on a number of social responsibility norms, ie, a code of priority rights. It refers to ILO conventions, the UN Convention on Child Labour and the Universal Declaration of Human Rights.

Unlike other codes this one refers to salaries that should cover basic needs and not only a minimum salary. It also enshrines the right to free association and collective bargaining.

The objective of SA8000 is to find a measurable uniform standard or norm, that can by verified. A clear and comprehensible definition would, without doubt, solve the problem of the tangle of existing codes. It is a positive initiative, however, there are still concerns about the SA 8000:

The CEPAA accredits organisations that can carry out audits within the terms of SA 8000. In theory they could be NGOs but in practice they are large private auditing companies. There are twenty-six members on the SA 8000 council. Of those twenty-six most are profit making businesses.

Transnationals have to contract members accredited by SA 8000 to do their audits. Thus they have the power to define who will or will not be responsible for such a job. Some organisations such as the Asian Monitor Research Center have called this the privatisation of labour rights.

In theory NGOs or trade unions can play the role of providers of information or as intermediaries between the suppliers and the certificators. But this model is still deficient from the Southern workers' point of view. I would like show you the example of a German transnational.:

We are talking about the Spiegel Corporation Consortium. It is an import company in the Americas and belongs to Otto and Eddie Bauer. Currently all Spiegel shares are owned by Otto of Germany. It is the sixth largest transnational company in the world of clothing manufacture. Today Eddie Bauer and Otto is just one empire in the hands of Germans.

After the scandal of the Mandarin maquila in El Salvador in 1995, negotiations took place between the Clean Clothes Campaign in Germany and Otto, since Eddie Bauer was involved in production in Mandarin. However, last year Otto said quite clearly that it was in a pilot phase of SA 8000 and did not see the need for signing any agreements with the Clean Clothes Campaign or making commitments to any other organisation. The investigations were done and to this day nothing is known about the form the audit took or how many interviews were conducted in the factories studied.

The problem is that the auditing team from the certifying company decides how many factories to visit and how many interviews to do. The whole process from the beginning to the final certification remains in their hands. The Asian Monitor Research Center says that the auditing staff qualified in the methods and terms of the CEPAA is not sufficiently trained to detect labour rights abuses. This was a finding made by the Center in interviews with participants in CEPAA training workshops.

The SA 8000 council would like to involve agencies such as Trans Fair, which is one of the most famous ethical trading companies in Germany, set up by the Ebert Foundation of the Social Democratic Party. Also the representatives from the big trade union confederations in the Clean Clothes Campaign are coming closer and closer to the idea of product certification in line with SA 8000.

Probably, the key motive for some European unions is that it is much more convenient for them to have an institutionalised certification than an open monitoring process in which NGOs participate and where the trade unions' role would need to be redefined within an open discussion process. In this way the certification would remain exclusively in the hands of "professionals", while the work within the companies would remain exclusively trade union terrain.

Enormous problems exist with the huge amount of certifications still outstanding relating to the 131 countries which are producing for the USA market alone. The certifying companies have a capacity a thousand times greater than our NGOs.

We have no illusions about the capacity of Southern NGOs given the inequality of economic power. But I still think the actors in the South could play an important role in the certification process, especially in the areas where they are strongest. In the case of MEC it is clear where their strength lies - it is the link between all the factories in the country, and the women workers themselves that make up the Movement. A recently published report on the Las Mercedes free trade zone in Nicaragua is clear proof of the strength of an NGO like MEC.

There are various suggestions as to the role of Southern actors. Some of these points are a result of discussions between women in MEC and Nicaraguan trade unionists:

1. The process of certification of the codes of conduct is too complicated and in some cases lacks transparency. Therefore it should be demanded that transnational companies in the process of certification or in a pilot phase of a social audit, and indeed any organisation which is proposing to have codes of conduct, informs the public of the results and the terms of certification.
2. We would like to underline the fact that national legislation is fundamentally good but there needs to be a big improvement in its application and monitoring by labour ministries.
3. Any initiative on codes of conduct, which takes place in Central America, should take into account power relationships and the real certification processes which are already under way.
4. Gender has not been sufficiently taken into account in terms of compiling with codes of conduct.
5.A clearer definition is needed of the role of Southern NGOs and trade unions in this process.

Appendix V


The Salvadoran experience of independent monitoring
Carolina Quinteros, Former member of the Independent Monitoring Group of El Salvador and currently a masters student at the University of Costa Rica.

In 1995 there was severe labour unrest in the Mandarin International factory in El Salvador. The recently formed Mandarin International Workers Company Union (SETMI), (set up after frustrated attempts in previous years) led these protests. In this context the company began to fire people and pressure everyone to denounce their colleagues, until all the trade unionists had lost their jobs. About three hundred people were sacked.

After the mass exodus from the factory, the Mandarin situation made the headlines in the national press and caught the attention of international media. This led to solidarity campaigns and denouncements, both inside and outside the country. These campaigns were directed at Mandarin International as principal supplier and at Gap Inc. Mandarin and Gap had become an international concern. Eventually, after a lot of pressure, Gap and Mandarin conceded to negotiations.

After several months of negotiation, 22 May 1996 finally saw the signing of an agreement, unique at that time in El Salvador. The management of the Mandarin International factory, representatives of the recently formed ATEMISA (Mandarin International Workers Association), representatives from SETMI and the recently formed Independent Monitoring Group of El Salvador, agreed to put an end to over a year of intense labour conflict through compliance with the following three points:

1. Re-instatement of the members of the SETMI leadership
2. Re-instatement of those who had left Mandarin during the conflict which began in 1995 and first three months of 1996
3. Establishment of independent monitoring in the factory, with the objective of ensuring that both the national law and Gap's code of conduct are complied with.

GMIES (the Independent Monitoring Group of El Salvador) were responsible for monitoring in the factory. This group the UCA's Human Rights Institute (IDHUCA), Centre for labour Studies (CENTRA), the Legal Office of the Archbishop of San Salvador.

To date the factory is reported to have complied with the accords. The union leadership was able to return to Mandarin and later achieved the reinstatement of seventy-five people who left in 1995. SETMI managed to reactivate the union, which had fallen by the wayside. The factory experienced a notable increase in its output, employed more staff, and there has been no complaints of non-compliance with either national law or Gap's code of conduct. According to a questionnaire completed by the women working in the factory, about 85% think that conditions in Mandarin are better than in other maquilas, and the rest, 15% think they are the same. There were no cases saying that the situation was worse.

So far no violations have been found in Mandarin either of national law or Gap's code of conduct. In terms of the ages of the staff who are employed, payment of the minimum salary, length of the working day, enrolment of social security and treatment of the workers. The women report that they receive the salary laid down by the law, overtime is not obligatory, access to toilets is unrestricted, permission to consult Social Security is not denied and they state that they are well treated by the supervisors and management. In addition, Mandarin offers some benefits to its workers. There is a clinic on the premises, it has a shop and they offer personal loans to their employees through a fund established specifically for that purpose.

Among other important agreements that have been reached with the company Mandarin no longer demands the results of pregnancy tests from women who join the company and there are regulations to ensure that people are not sacked for union activity.

What is independent monitoring?

Independent monitoring is an endeavour by civil society in producer countries to ensure respect for human rights, national laws and codes of conduct in the contracted company. Through this process, as well as mere observation, it is an attempt to facilitate communication, prevent conflict and work together to find alternative solutions when problems do arise.

Monitoring bodies must be truly independent from companies undergoing monitoring, respect all the actors involved and have credibility at nationally and internationally. The formation of the monitoring group should reflect the strength, respect, the representation and path of development which has developed in civil society in the field of labour and human rights.

It is not necessary for the monitoring body to be expert in every type of problem which may arise. If in a given moment technical skills are required which the monitoring group does not have they can seek advice from professionals in that area.

Given its fundamentally preventative character, the monitoring group is not limited to receiving complaints from staff. One of the objectives is to become familiar with the company beforehand and see to what extent the management comply with labour law and the code of conduct. Appropriate recommendations can then be made before a problem has time to develop.

Monitors should have the authority to collect information in various ways including both announced and unannounced visits to the factory to observe working conditions. Similarly, they should also have access to company documents relating to personnel management, and be able to carry out interviews with the workers and management. When necessary, meetings should be held outside the factory premises. Other activities could include opinion polls, bilateral meetings, and meetings bringing together the management and the workers' organisations.

It is important to note that independent monitoring should never be a substitute for the role corresponding to; contracting company or sub contracting company; the workers; trade unions; ministry of labour ;or local authorities in the host country. Neither does it have the power of decision over any action that interested parties may decide to take, and at all times there must be respect for the autonomy of such parties.

Independent monitoring cannot become the personnel management for either the contracting or sub contracting company. Neither can it, be called on in all conflict situations in the company, organise a trade union, or replace the government inspection department.

The role of a monitor is to "actively" keep watch. Although this goes beyond mere observation in terms of seeking to prevent conflicts, make necessary recommendations, facilitate communication between the different parties and draft relevant reports, it does not have the facility to decide actions to be taken by others.

Eventually, one of the parties may decide not to comply with the recommendations and act against the law, act against the code of conduct or against the progress of the monitoring process. It is then the monitor's responsibilities to report what this to the appropriate body. They would also report the incident to all relevant parties. Then if there is no response, they can pursue other avenues, that could include approaching organisations that can mobilize consumer pressure.

On the other hand the monitoring group's work is limited within the boundaries of what is contained within the code of conduct and national law. The improvement of working conditions beyond legal provisions is subject to negotiation between the workers, trade union and management of the factory. Monitors can play a mediation role if requested by the parties concerned.

The contribution this type of monitoring makes is that it offers alternative mechanisms to help ensure respect for labour rights contained in codes of conduct and national legislation. The outcome of events at Mandarin leads us to believe that, even with its limitations, this type of activity can bear fruit.'

Appendix VI


What should and shouldn't be in Codes of Conduct
Lynda Yanz, Coordinator of Maquila Solidarity Network, Canada

There is general agreement, at least among labour rights activists, if not among companies, on the importance of voluntary codes containing provisions based on core labour rights as defined in various ILO conventions concerning freedom of association and the right to bargain collectively; forced and bonded labour, child labour; and non-discrimination. There is also general agreement on the need to include additional provisions that go beyond what is currently defined as core rights on issues such as health and safety, hours of work, and wages and other forms of compensation, although there is some disagreement on how minimum wage standards should be applied in relation to the right to bargain collectively.

The ICFTU Basic Code of Labour Practice and a number of European codes also contain a provision on security of employment, which prohibits the avoidance of labour and social security obligations through labour-only contracting arrangements or apprenticeship schemes "where there is not real intent to impart skills or provide regular employment."

Very few codes contain provisions addressing the rights of home-based workers. One important exception is the Australian Code of Practice for Homeworkers, which specifically addresses the situation of homeworkers in that country. In our view, the involvement of homeworkers' organizations and their advocates in debates around codes and monitoring is crucial.

One of the more contentious issues concerning what should or shouldn't be included in codes of conduct is the issue of a "living wage." In the US, labour and religious organizations that were formerly members of the Apparel Industry Partnership (AIP) withdrew from the partnership at least partially over the lack of provisions for a living wage in the AIP Fair Labor Accord. They insist that if codes are to be credible, they must include provisions for a living wage.

In Canada, those of us involved the campaign for a federal task force on sweatshop practices have been ambivalent about the living wage issue. While we recognise the centrality of the wage issue in the fight to eliminate sweatshop abuses, and generally favour the inclusion of a living wage provision in codes of conduct, we are uncomfortable with the idea of Northern governmental or private sector institutions being granted the
power to define what is a living wage for Southern workers. We are even more uncomfortable with the fact that Southern labour and non-governmental organisations have not been particularly involved in this debate. We are also concerned that the living wage and how and by whom it is defined could reinforce the fears of some Southern groups that codes of conduct are at best paternalistic and at worst protectionist.

Another key issue currently under debate is how codes of conduct might protect the right of workers to organise and bargain collectively in countries where those rights are systematically denied or repressed.

The bigger question is whether codes of conduct can help create space for workers to exercise their right to organise and bargain collectively. While there is always the danger that companies will use codes of conduct to justify investment in countries with repressive regimes, repressive governments might be less likely to suppress nascent forms of democratic unionism if a sufficient number of major companies in a particular sector have adopted codes of conduct with the same or similar provisions requiring suppliers to facilitate or at least tolerate worker self- organisation.

In countries where the right to organise is enshrined in law, yet denied in practice, the issue becomes even more complicated. How would a "professional" social auditor evaluate whether the workers' right to organise is being respected in a maquiladora factory in Tijuana, Mexico, in which the workers are formally represented by an "official union" and a "protection contract" has been signed, but the workers had no say in choosing the union or negotiating the contract?

On the other hand, could the workers in Tijuana, in collaboration with US and Canadian allies, use the code complaints procedure to challenge whether their right to freedom of association is being respected, much as groups have used the NAFTA side agreements to challenge the Mexican government's failure to enforce its labour and environmental legislation?

Monitoring
There is general agreement among labour rights advocates and even some consumer products companies that internal monitoring (by company staff) of supplier compliance with codes of conduct is not adequate, and that some form of third-party external monitoring or verification is necessary for codes to have any legitimacy. There is a great deal of disagreement, however, about who are appropriate external or independent monitors or social auditors, and what their relationship should be with the companies whose suppliers' practices are being monitored.

While there are a few examples of local, independent human rights, women's and religious organisations being mandated by Northern apparel companies to carry out on-going monitoring of particular supplier factories, the more recent trend is for companies to contract "independent" organisations, individuals or private sector auditing firms to carry out verification audits of one or more supplier factories on a periodic basis.

While many labour rights advocates are opposed to private sector involvement in monitoring of codes of conduct, some labour leaders, such as Neil Kearney, are generally supportive of the SA8000 model and feel that the proper role for NGOs and unions is to consult with the professional social auditors and be prepared to challenge unjustified certifications, rather than to engage directly in monitoring.

While we and other labour rights advocacy groups would acknowledge that in most countries Southern human rights, women's and religious groups do not currently have the capacity to monitor or audit the thousands of supplier factories producing for Northern apparel companies, we are increasingly uncomfortable with the emerging model in which large private sector social auditing firms with little or no human rights experience or commitment to workers' rights are becoming the primary judges of whether codes of conduct are being adhered to.

We question whether Northern private sector auditors, even those with proper training, will have sufficient trust of Southern workers to receive their full story. Northern professionals hired by multinational consumer products companies will inevitably be seen as company representatives. While private sector auditors may be able to adequately evaluate supplier compliance with measurable standards, such as air quality, we are skeptical about their ability to judge violations of workers' right to organise or other less objectively measurable standards. At the very least, local NGOs must be given a more active role in monitoring and/or verification than merely being placed on the list of local groups to be consulted.

One option is to create NGO consortia of Northern and Southern labour rights advocacy groups and health and safety experts, and then seek accreditation under SA8000 and/or the AIP. However, the opposition of US labour and religious groups to the AIP Accord would make participation in this initiative problematic. A second option is to demand changes in one or both of those initiatives to give a greater role to Southern NGOs and labour groups in code verification. A third option is to plan for strategic challenges of particular certifications of supplier factories in countries where worker organising is a real possibility. These three options are not mutually exclusive, and different strategies could be pursued by different organisations.

Whichever strategy or strategies NGOs and labour groups adopt in relation to global monitoring, verification and certification systems, there must be more attention given to training and capacity building for Southern groups either currently involved or wishing to become involved in factory monitoring and/or verification.

Access to Information
A major question in the negotiation of codes is how much information and to whom companies should be required to disclose, such as the names and locations of supplier factories and workshops, the identity of workplaces that have been audited and the results of those audits, and the results of investigations into worker or third-party complaints. Closely associated with this issue is the question of what mechanisms and procedures are
necessary to allow workers and "interested parties" to challenge supplier certifications and accreditation's of auditors.

Codes and Labour Legislation
A major issue for labour rights advocates in both the North and the South is how voluntary codes and monitoring and verification systems impact on local labour legislation and its enforcement. This is not only an issue for Southern groups. Some groups in Canada have also been reluctant to consider the use of a voluntary code of conduct as a tool to address domestic labour rights violations, fearing that voluntary initiatives might play into
government and corporate privatisation and deregulation agendas. Even Central American NGOs that are currently involved in independent monitoring projects have expressed concerns that independent monitoring should not be seen as a substitute for government regulation.

Despite these concerns, we believe that voluntary codes and monitoring systems can potentially be used to reinforce existing legislation and encourage governments to enforce that legislation. Most recently-developed multi-company, industry-wide or multi-sector codes contain provisions requiring companies to ensure that their suppliers adhere to local labour and other appropriate legislation, as well as other provisions of the code,
and that the higher standard should prevail.

Codes, Monitoring and Union Organising
In Central America, independent monitoring initiatives linked to Northern codes of conduct have exacerbated already existing tensions between unions, women's groups and NGOs. Many Central American unions are suspicious of voluntary codes of conduct and monitoring schemes, seeing them as undermining the legitimate role of unions. This tension has been most pronounced in cases in which local NGOs are involved in long-term monitoring of a factory in which one or more unions is attempting to organise. On the other hand, the survival of unions in some of these same factories can be attributed, at least in part, to the existence of independent monitoring.

With the advent of multi-company, industry-wide and cross-sector codes and global monitoring and verification systems, the relationship between union organising, monitoring and social auditing will undoubtedly become an even more contentious issue. On the one hand, codes, monitoring, social auditing and factory certification systems could increase the democratic space for workers to organise and provide an additional channel (in addition to state mechanisms) to challenge company violations of the right to organise. On the other hand, social auditing and third party complaints procedures could offer companies a paternalistic alternative to worker self-organisation.

Whether codes and global auditing and certification systems strengthen or weaken worker organising depends a great deal on how unions and NGOs intervene in these processes. If legitimate local NGOs are mandated to play an active role in monitoring, verification or worker rights training, they will gain greater access to workers and to their workplaces. However, if these NGOs decide to participate in the monitoring or verification processes, they will also need to retain sufficient autonomy to challenge unjust factory certifications, as well as violations of the law.

If Northern and Southern labour and non-government organisations are able to co-ordinate and collaborate on third party challenges of factory certifications, where the right to organise is being violated, and/or challenges of accreditation of the auditing firm involved, such actions could help create the space for union organising to be successful.

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