Using brand leverage to defend workers rights Strengths

Using brand leverage to defend workers’ rights Strengths, weaknesses & challenges MFA+3: Labour rights in a changing garment industry San Pedro Sula, Honduras October 1 st, 2008

Assumptions: Codes alone won’t protect workers’ rights Provisions weaker than ILO norms Monitoring seldom accurate or effective Workers left out of the process

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

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*

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

When does brand leverage work? Workers committed to strategy* Complements, doesn’t substitute, for other strategies Ability to mobilize if engagement fails Economic/political timing is right** Factory owner committed to business***

Lessons learned: Brands more sensitive/responsive to mediafriendly 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****

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

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

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? **

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

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