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Corporate Codes of Conduct: Can They Help Cambodian Workers?
by Phil Robertson
July 28-29, 1998
Upon arrival & registration, each participant should complete a
brief survey - five questions on unions and experience.
9:00-9:15 a.m.
- Who Am I? Introduction of Trainer.
- The Ground Rules for the Training; Schedule; Expectations
- Introductions & election of a timekeeper
- Objectives & Expected Results of the Training
- Create understanding about what CORPORATE CODES OF CONDUCTs
Are: how they can help & what their limitations are.
- Create understanding of the structure of the international
garment industry
- Develop practical strategies to help Cambodian garment workers
get respect for their rights through forming unions, working with
external groups, and "two ends" tactics.
9:15-10 a.m.
- Questions & small group work - Where Do These Garments Go?
(15 minutes)
- What do you make at the factory?
- Where do you think the product you make goes? Who uses it?
- How do you think people learn about what you make?
- At what kind of store or market do you think the product you
make is sold? What is that store or market like?
- What makes them decide to buy your product instead of another,
similar product?
- What do you think those people buying your product would say
if you could tell them about the way you are treated by your employer?
- How much power do you think the company that buys your product
has in your factory?
- Presentation of results of small group work by each group. (15 minutes)
- PSR use of Vanity Fair advertisement photos for garments &
photos of mall shopping centers. Answer the WIFM question for employers
-- Why do they want to do this? Primarily because consumers don't
want to buy goods made in exploitative conditions (money) and retail
companies are worried about looking bad (loss of face). They spend
hundreds of millions of dollars to make themselves look good through
advertisements, and the last thing they want to do is to look bad.
And some are simply responding to public pressure campaigns.
10:00-10:15 COFFEE BREAK
10:15-11:00 a.m.
Lecture: What is a Corporate Code of Conduct? What Do They Contain?
- A CORPORATE CODES OF CONDUCT is a written statement of policy adopted
voluntarily by a company (usually in US or Europe) which states that
the contractors and sub-contractors with whom they do business must
meet certain legal and ethical standards. (Distribute list of Codes
of Conduct by Industry or Association and following codes of conduct:
GAP, Nike, Wal-Mart Stores, Sara Lee Knit Products, Phillips-Van Heusen).
- A core principle to remember throughout is that CORPORATE CODES
OF CONDUCT are voluntary, i.e. it was the company that thought them
up, created them, and determines how the CORPORATE CODES OF CONDUCT
will (or will not) be implemented. The Code belongs to the company
that adopted it…not to the workers, or the contractors. An "agreement"
or a "pledge" is the best terminology. Draw picture of the
dog (company), the chickens in the chicken coop (workers) and the
farmer with a stick (overseas advocates & unions) - the chickens
need to be organized and need to be talking to the farmer, who will
hit the dog as necessary.
- The other core principle to remember is that no CORPORATE CODES
OF CONDUCT is the same as another, just like no company is the exact
same as any other. This goes for the terms of CORPORATE CODES OF CONDUCT
and also the way a company will deal with a complaint that their CORPORATE
CODES OF CONDUCT is being violated.
- Also, watch the wording. English is a tricky language, there are
many variations of meaning. There is a difference between "must"
and "shall" vs. "should" and "encourages".
Watch the slippery words like "reasonable" - Wal-Mart's
ideas of "reasonable employee work hours" is probably a
good different from your idea. Wal-Mart "favors" contractors
who work people less than 60 hours.
- However, with that said most Codes will include some or all of these
- you just have to do the research.
- Compliance with all local laws on wages, overtime, and benefits.
Usually the word "prevailing industry standards" or
local laws are used. This means that any time you can uncover
forced overtime, or failure to provide holiday leave as provided
by the Cambodian Labor Law (hold the law up), you've probably
got a violation of a CORPORATE CODES OF CONDUCT. This also means
factory owners need to pay overtime wages following the law. Most
CORPORATE CODES OF CONDUCT will say OT is okay, but will "encourage"
that it not be over 60 hours a week and that at least one day
in seven should be a holiday.
- Non-discrimination in hiring and firing. So if you can
prove that the factory has a policy of treating women worse than
men, or paying them less for the exact same job as a matter of
policy, you may get them here.
- No use of child labor. "Child labor" usually
means the legal age, but not less than 14 years of old. In some
cases, it's 15. Another formulation is not younger than the compulsory
age to be in school.
- No use of forced labor, physical coercion, or physical punishment .
- Freedom of association and right to organize. This is
less frequent, but when you find it, it can be used to generate
international pressure to stop the factory owner from trying to
destroy an independent union. But also look at SKLP "union-free
environment". Compare that against Reebok FOA.
- Occupational safety and health . Usually there is some
commitment that factories should provide a "safe working
environment" and/or provide "safety equipment"
exists, but these are vague. Environmental laws also folded in
here.
- Analysis of CORPORATE CODES OF CONDUCT: Usually we find the "musts"
appear when talking about child labor, forced labor, non-discrimination,
and complying with local laws. The "should" and "encourages"
comes everywhere else. Many times, there is nothing on FOA and organizing.
Let's go through the Wal-Mart code. Now compare this with the Limited.
11:15-12:00
Lecture: What's At Stake for Garment Retailers? What Does Consumer
Pressure Mean? (45 minutes)
- US imports 28% of all garments produced in the world in 1994.
- Five largest US retailers account for 48% of total retail sales
of garments in 1993.
- In 1995, the U.S. imported $34,649 million dollars - and 60.6%
was from Asia.
- Draw a diagram - the procurement network and how it works - plug
the workers' answers into that diagram. Participatory exercise to
use the answers of the participants. Use diagram from Apparel Industry
report.
- Manufacturers - contractors & subcontractors - make the
clothing, usually with someone else's cloth & design
- Merchandisers - middlemen, usually, who design and market clothing
either themselves or to larger stores
- Retailers - the end of the line - distribute garments and sell
them to the final customer
- Buying Agent - the people you see in the factory. Locate production,
qualify and inspect. Negotiate contracts with factory. The visiting
barang - how many have seen this person in your factory?
- Examples of Consumer Pressure at Work
- "No Sweat Campaign" - the Thai women in the U.S. sweatshop,
and the creation of the White House Apparel Industry Partnership.
Use Clinton quote
- The Holiday Season of Conscience & the National Labor Committee
- millions of petitions sent to President Clinton, handing in
cards when shopping demanding "no sweatshops". Show
Holiday Season of Conscience stickers.
- Burma and selective purchasing pressures - pushing the corporations
out of a state, out of 20 cities, including NYC. Mitsubishi example
of the people mover contract at the SF airport.
- Lessons
- Corporations are global, we have to think that way too. (esp.
when local government is not interested in enforcing laws, or
laws are inadequate)
- Corporations only really listen when you hit them where they
think: their wallets.
- It all starts with you - without information and organized workers
organizations to stand up, on the front line, the rest of the
links don't function. CORPORATE CODES OF CONDUCT are bets that
you all won't get organized to defend yourselves, and you won't
learn what corporations are saying to consumers in the USA &
Europe. They are a challenge to you.
- Help is closer than you think. Email & the net have brought
this information into your hands - although it is in English.
Telestra's Big Pond is exactly right…we're all swimming in
the same lake now. Use example of Apparel DOL report.
LUNCH
1:30-2:00 p.m.
Small Group Work: How Could a CORPORATE CODE OF CONDUCT be Implemented
& Enforced in Cambodia?
Questions for the Groups:
- How could information be gathered on what is taking place in the
factory?
- How can we find out which CORPORATE CODES OF CONDUCT apply to what
factory?
- How should workers be educated about their rights under the labor
law and the CORPORATE CODE OF CONDUCT?
- What role should workers and NGOs play in monitoring factory conduct?
- What role should unions play in implementing and monitoring CORPORATE
CODES OF CONDUCT?
- How much can we trust local factory owners and overseas companies
to monitor and enforce the CORPORATE CODES OF CONDUCT?
- How can a CORPORATE CODES OF CONDUCT change the power relationship
between a factory owner and workers in Cambodia?
2:00-2:30 Presentation of small group findings.
2:30-2:45 COFFE BREAK
2:45-3:15
Lecture: Key Issues for a CORPORATE CODES OF CONDUCT- Transparency,
Monitoring & Enforcement (TME)
(1) Issue of Transparency of the code - do the workers actually know
about it? What about the sub-contractors, buying agents, etc.
a. Was there any training for sub-contractor or factory staff so
that they know that they have to comply with the CORPORATE CODES OF
CONDUCT?
b. Was the code posted in the local language in a public place for
all workers to see?
c. Were there any meetings with workers to discuss the code or educate
them about it? Were the shop stewards told about it? Was the union
told about it?
d. Are workers informed or given information on company policy/regulations
so that they can compare this against the CORPORATE CODES OF CONDUCT?
(2) Monitoring is either contractual, active, or combination of both
a. Who does the active monitoring? Who pays them, who do they report
to? "He who pays the piper calls the tune."
- internal (i.e. company auditors)
- external (i.e. buying agents or suppliers)
- outside audits (i.e. professional auditing firms hired by company)
- NGO/social/labor monitoring. Labor Unions.
b. Is monitoring for the Code itself, or is it part of the normal
quality control and delivery coordination (i.e. plays second fiddle
to business operations)?
c. Checking documents at contractors or subcontractors?
d. Interview workers in a way that guarantees confidentiality and
prevents reprisals?
e. Can information be provided to the monitors by workers or the union
in a way that the factory owner doesn't know who told? Protection
of whistle-blowers?
(3) Enforcement - what does the retailer do when they learn of a violation
of the code?
a. Closer the relationship between manufacturer and importer, the
more influence the importer has on labor conditions. So part of the
challenge for worker is to figure out what the relationship is between
your employer and purchaser of the garments.
b. Who is in charge of enforcement? Public relations department, or
someone else?
c. What sort of participation can unions and workers have in determining
what is "reasonable" and having impact on the definitions.
Because as we have seen, English is a tricky language.
(4) Types of Code documents
a. Special documents on Code, to be distributed or posted
b. Circulated letters to everybody about standards expected
c. Compliance certificates - must be signed by contractors and sent
back to company with CORPORATE CODES OF CONDUCT.
d. Contractual condition in purchase orders or letter of credit -
this is best.
3:15-3:30 Compare small group findings against this lecture.
3:30-4:15 Lecture: Unions and CORPORATE CODES OF CONDUCT.
(1) Codes of Conduct don't work unless there is a strong union to
help enforce them, because ultimately it is the workers who will be
most likely to ensure that the standards are complied with.
(2) Distribute & explain the Wal-Mart chart.
- Remember, these CORPORATE CODES OF CONDUCT are pledges by companies
that are far away, off in America or Europe. It is very easy for such
a company to send someone to come take a look in Cambodia and say
that they "checked it out". Use Sam Han example and Montgomery
Ward. Relying on government enforcement or employer compliance is
not enough by itself. The dog & the chickens.
- Also, as we have seen from the CPP and the election for the NGO
representatives to the National Election Commission, it is very possible
for people with money & power to "buy" a NGO to say
what they want. PACT & Indonesia.
- Also, who is going to protect the worker(s) after they report the
abuses of the factory owner to the representative of the CORPORATE
CODES OF CONDUCT company. That guy will report and go home to wherever
they came from: Bangkok, or Hong Kong or the US. But the union stays
in Phnom Penh and provides protection for the workers who blow the
whistle - "in unity there is strength". The union can negotiate
a real confidentiality agreement with the CORPORATE CODES OF CONDUCT
auditor.
(3) A CORPORATE CODES OF CONDUCT is not an alternative to collective
bargaining and a CORPORATE CODES OF CONDUCT is not a substitute
for a union. Ideally, a Code is a complement to a union collective
bargaining agreement, it provides a floor for standards. For instance,
the CORPORATE CODE OF CONDUCT says all factories must comply with
the law on wages - which means paying $40 a month to a garment factory
worker. But does anyone really think that $40 a month is enough
money to raise a family in Phnom Penh and send children to school?
Unions can bargain a living wage, make sure that OT is really voluntarily,
and improve working conditions.
(4) Standards in Codes of Conduct do not cover all the legitimate
concerns of workers. For instance, most do not say anything about
freedom of association and right to organize. International labor
standards like ILO conventions 87 and 98 say Cambodian workers have
the right to form unions and bargain with employers. Just relying
on a CORPORATE CODE OF CONDUCT to protect your rights means that
some of the most important labor rights are left out.
(5) But if a CORPORATE CODE OF CONDUCT does have right to organize,
this can provide space for a union to form because if an employer
tries to break it, there is another source of power in the workplace
besides the Cambodian MOL.
(6) A Code that is not seriously implemented is worse than no Code
at all. Because then it is like a "paper union". It creates
the picture, that's all.
(7) Sometimes the only way to implement is a union. The story of
Kathie Lee Gifford, Honduras and now PRC. Show Wal-Mart labels &
explain China case.
4:15-4:30 Questions on Topics of The Day & What's Up Tomorrow?
- How to find where the garment goes - find the retailer
- What parts of the Cambodian labor law need to be enforced
- International allies and global communication - how to call for
assistance in pressuring companies - the two end strategy
Second Day.
9:00-9:15
Introduction of any new participants, review of previous days training.
9:15-9:45
Lecture: How do we figure out where the shirt is going? Look at
the label, look at the shirt!
- Like everything else, the workers hold the answer in their hands
- it's the label.
- How to identify if a product is going to the U.S. or Canada. RN
#s and CA #s - show sample shirts.
- Use of the RN # to track who uses this number to import, using database
systems. Often famous labels are easily recognizable, like Gap or
Liz Claiborne. It's the unknown ones that are hard to track, and then
we have to rely on outside allies of ours to connect that label with
the store where it's being sold.
- Why a label? The Multifibre Agreement, garment quotas, and re-labelling.
Answer the question "why so many mainland Chinese manufacturers?"
And "why did the garment factories rebuild so quickly after Hun
Sen's coup last year, even after the factories were looted?"
- Other sorts of tags they may run across - show samples.
- WIFM for the American textile unions - US unions want to help Cambodian
workers get fair treatment, and also can use abuses of workers for
collective bargaining solutions.
9:45-10:15
Small Group Exercise: Brainstorm on what provisions of the labor
law garment manufacturers most frequently violate? Use labor law copies
to review against what they know are the most frequent violations.
10:15-10:30 COFFEE BREAK
10:30-10:50 Presentation of the Small Group Work
10:50-12:00 Lecture: What Can We Do Next?
- Training workers & putting together the product with the CORPORATE
CODE OF CONDUCT is the first step. Draw the diagram of information
from the local to the international.
- Building unions - why a code by itself isn't enough to protect workers.
Need to worker cohesion, workers determine issues to be raised with
employers, workers ensure real monitoring by company, MOL, or outside
evaluators.
- Training in labor investigation techniques - what human rights &
labor activists need to look for at the factory, how to get workers
separate (approach at home) from work, searching out information at
the factory.
- International allies and international communications. Basic political
theory and the school fight. Issue selection as the "cry"
to the international allies to widen the circle. Distribute labor
NGOs list.
- Information resource center as next step from training. Idea of
a CORPORATE CODE OF CONDUCT reference library at the NGOs to use when
workers come in with complaints. (how to get updates?).
- International labor solidarity - what does mean. The altruistic
side & the WIFM side. But getting it straight, clearly identifying
targets. Also the ITGLWF-TWARO.
- AFL-CIO's GSP case. How to leverage improvements with trade pressure.
Phil Robertson is a Bangkok-based labor activist and educator with
10 years of work experience in Thailand, Cambodia and Burma. He can
be contacted by e-mail at: reaproy@usa.net
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