Matalan

Download Matalan's submission (pdf)

Responded to survey: yes

MSI involvement: no [what's this?]

Grade 2: Acknowledges that minimum and industry benchmark wages are not sufficient standards, but no real efforts to apply living wage. [what's this?]

Summary

The first time it has responded, Matalan has a very simplistic, superficial approach to ethics in general, although it promises more work on living wages.

Position on living wages

"The previous report states that Matalan do not accept the principles of a living wage...I can categorically state that this is untrue...I am sure you will agree, for want of a better cliché, 'actions speak louder than words'."

Work so far on living wages

Matalan states three factors in its work with suppliers that can be seen as improving wages:

• Steps to improve efficiency at suppliers, especially where workers are earning piece rates.

• Although minimum wages may not be sufficient, it says, it will “provide the tools and support” for suppliers to train workers and help them move into higher-paying positions.

• “The Matalan Socially Responsible Trading Policy already covers the issue of our suppliers paying living wages. However, from the date of this submission, this will be included within both the supplier set up and Vendor appraisal processes. These processes are always discussed and agreed with any potential supplier prior to product being produced for sale in Matalan stores.”

Plans on living wages

Over the next 12 months the Matalan auditing team will conduct further assessment of living wages. Once this information is gathered, we will be in a better position to take the necessary action to implement any changes needed across our entire supplier base. In addition to this, an investigation into the use of homeworkers will be conducted...This investigation will give definite foundations for an annual review into the patterns of home worker/casual labour use, against fashion trends.

Other significant information

The Matalan code of conduct still does not mention freedom of association and collective bargaining.

Our comments

Good to see Matalan finally participating in our survey, and integrating living wage considerations a bit more into its processes and plans. Despite this it is clear that Matalan is a long way behind, both in the living wage discussion and in its approach to ethics generally.

Its ethical checks are performed as part of quality control audits and appear to be very superficial. For example, in describing its procedures, it states that, “as soon as the factory reaches an acceptable level of ethical, safety and quality standard then buyers will be given the go-ahead to place orders.” If this were the case and its ethical checks were effective, Matalan would have a very small production base!

Because of this, it is hard to have much confidence in Matalan's planned study of living wages. One solution to this: Matalan should join a multi-stakeholder initiative so that it can learn from companies who have advanced a long way beyond this simplistic approach.

We also note that Matalan continues to omit freedom of association from its code of conduct, and has been accused more than once by suppliers' organisations of making unilateral cuts to its payments for products, which is likely to have a detrimental effect on workers' rights.