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When told that it is checked that workers should get at least the minimum wage set by the government, which they all do, she said that if they think this wage is enough they should all try to live on this amount for a month and decide if it is OK.”

 
Clean up fashion report | Print |  E-mail
Article Index
Clean up fashion report
Introduction
The workers´ perspective
What the companies say
Conclusion
What we want
Let´s Clean Up Fashion
References
 

Conclusion

In compiling this update, we noticed that many companies were fixated by the grades we had awarded them last year.  Indeed, it was clear that many of the representatives we met with had only read the company profiles from last year’s report, and not the background sections that preceded them.  This is a real shame, as it suggests that, although they claim to be interested in what we have to say, many companies are actually only interested in managing any criticism we might make of them.

The only measure that really matters is wages and working conditions on the ground, and on that count all companies are failing.  But in this update we have looked at each company’s direction of travel.  Retailers that are relatively new to ethical trading, like Primark or Arcadia Group, have the opportunity to learn from others’ past mistakes, but they can’t be expected to have as sophisticated a programme in place within a year as a company that has been doing ethical trade for ten years.  That’s why we have reserved our strongest words of criticism not only for companies with no apparent engagement, but also for companies that have supposedly been committed to a living wage since they signed up to the ETI code of conduct in 1999, yet still have nothing to show for it.25

The worst offenders

These brands make no meaningful information available to suggest that they have engaged with the living wage or other labour rights issues, and continue not to respond to our inquiries about their policies and practices.  They deserve the most severe criticism and consumer scepticism.  They are: Bhs, Diesel, House of Fraser, Matalan, MK One, Moss Bross, Mothercare, Peacocks/Bon Marche, River Island, Rohan Designs, Ted Baker.

Example: Matalan

Matalan did not respond to our enquiries in 2006 or 2007, despite repeated requests.  Matalan’s website displays a code of conduct that claims to be based on the ETI base code, yet it has omitted key provisions on freedom of association and collective bargaining.  With no information on how the code is monitored and implemented, we have to assume that it isn’t.  LBL recently approached Matalan about one of its Indian suppliers, a factory which workers say has a long history of workers’ rights violations. All Matalan did was tell us that it believed the company to “be a well run business” and that it, “didn’t feel it appropriate to interfere with them.” 


Nothing to show

Unlike the previous group, these brands did respond to our enquiries, but their responses did not come close to dealing with the issues we raised.  They are not members of any multi-stakeholder initiative, such as the ETI, and this shows from their lack of understanding of more advanced subjects such as the living wage.  Their ethical trading programmes seem to be largely a paper exercise.  They are:  French Connection, Laura Ashley, Mosaic Fashions (Oasis etc).

Example: French Connection

For two years in a row, French Connection has responded, but failed to say what it was doing about a living wage, freedom of association, or monitoring and verification in any depth.  In 2006, it excused itself by saying that it was planning to, “develop our monitoring policies and processes.”  In 2007 it had apparently made no progress whatsoever.

 

The new starters

These brands are relatively new to the ethical trading game (in itself a cause for criticism), and as such are playing catch-up.  They accepted that they were not able to give us what we want this year, but there was very much a sense of ‘come back to us next year and we will have something to show’.  The important question is how ambitious they are: will they simply emulate the failed procedures of the bulk of the industry, or will they pull off something special?  They are: Arcadia, Jigsaw, Primark.

Example: Jigsaw

The Jigsaw group was heavily criticised in our 2006 report, because it seemed to have little understanding of the problems faced by workers and the questions we had asked.  This year, Jigsaw has taken the criticism on board, and told us of its plans to put together an ethical trading programme, which will include worker training in the bulk of its supplier base, as well as a living wage study with a commitment to implement it.

 

Disappointingly slow

These brands were the most frustrating. With a long experience of working on ethical trading, we would have expected them to be much further ahead, yet they didn’t seem particularly concerned about the slow pace of progress, or else they seemed to think that things were going pretty OK in their supply chains.  In some cases, they took exception to our criticism last year, but this only confirms our feeling that these brands were in denial.  They need a reality check, and they need to move much faster.  They are: Debenhams, George at Asda, H&M, John Lewis, Levi’s, M&S, Monsoon, Pentland, Sainsbury’s, Tesco, TK Maxx, Zara.

Example: Levi Strauss & Co

Levi’s is the only company to move significantly backwards this year: it turned its back on the idea of a living wage, and as a result was suspended from - and then left - the ETI.  Levi’s makes much play of being the first fashion company to adopt a code of conduct, yet this is precisely why we are so disappointed: surely Levi’s would be at the forefront of the next big challenge, implementing the living wage, not turning its back completely on the concept.

 

Going up a gear?

These brands are not new to ethical trading, and like the ‘business as usual’ crowd they should really have more to show by now than they do.  But like the ‘new starters’, they admit that they need to do more: open about the problems in their supply chains, they acknowledge that they have not done as well as they could have done in the past.  The proof of the pudding is of course in the eating, and with more resources going into their ethical trading efforts, we will wait to see whether this means more of the same, or something fresh and exciting next year.  They are: Gap, New Look, Next.

Example: Next

Next is unique among all the companies we spoke in having what appears to be a genuine plan to implement the living wage in its supply chains.  It has undertaken a study of living wages across the countries from which it sources, and appears to accept from this research that a significant increase in wages is needed.  It admitted at the time of meeting that it didn’t actually know how it would use the data once it was gathered, but the fact that it is gathering this data moves it much closer to implementation than most brands and retailers.  Clearly we’ll be more comfortable once Next has worked out its next steps, but we’re pleased that it didn’t hide behind any of the trite excuses made by other brands.

 



Last Updated ( Friday, 14 September 2007 )
 

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