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Page 2 of 3 Detail on workers rights WagesWilliam Lamb said it thought it was paying a living wage in its wholly owned factory in Laos, and gave us figures to suggest it was paying more than three times the minimum wage in Laos. As for its third-party suppliers:
We continue to work with factories to ensure compliance with local labour laws & payment rates. It is not within our jurisdiction to question why payment rates over & above these amounts are not made & one must also be mindful that our prices need to remain competitive. One practical way in which we have attempted to address this issue is by assisting a major supplier of ours to improve the efficiency of their labour utilisation.
Freedom of AssociationWilliam Lamb said that most of its sourcing is from countries such as China and Vietnam where free trade unions are prohibited by law. It continued:
We have extended our work by assisting with the establishment of a workers committee within one of our major Chinese suppliers & have had several breakthroughs in getting workers rights & grievances highlighted.
It couldn’t give us more information, such as whether these committees were democratically elected or not.
Monitoring and verificationIn this area, William Lamb said that,
[w]e are obliged to use nominated 3rd party auditors by certain customers & licensors who we then work with to correct non-compliant aspects. We are also working with several major high street customers who have adopted a more holistic approach...
At our meeting, it told us that it didn’t believe audits in themselves were effective, but didn’t have any plans to involve local trade unions and NGOs in the process.
Our conclusionSuppliers often outline the twin constraints placed on them by their clients - to meet ethical criteria but also to keep their prices competitive - and although it is a multinational company, William Lamb is no exception. It is encouraging that its wholly-owned factory apparently pays so much more than the minimum wage, but a rationale to compare this to workers’ needs is necessary to regard this as a living wage. William Lamb should have more influence over wages at its own suppliers than it makes out, but if price is as much an obstacle as it suggests, its clients - many of them profiled in this report - should also create the space to allow it to raise wages.
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Last Updated ( Thursday, 13 September 2007 )
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