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SAP 2.60/WP.110
By Jean-Paul Sajhau
As noted earlier, few European enterprises in the textile or footwear sectors have for the time being taken any structured ethical approach at the individual level leading them to adopt a code of conduct. There are of course examples of codes such as that of the Mondial International which coordinates purchases by the C&A group. Mondial International has drawn up a fairly detailed code based on the United States model, but which has the originality of establishing an independent monitoring process (a summary of this code is given below, presented as in the previous sample in the form of a synoptic table (table XIII)).
However, at the European level, initiatives in this sphere have mainly come from the trade unions (with a prominent role played by the European Trade Union Committee on Textiles: Textiles, Clothing and Leather (ETUC-TCL)), employers' associations (at the European and/or national level in some Member States of the European Union) and the Commission of the European Communities.
At the EU level, France presented in February 1995 (during its presidency) a proposed social charter to promote basic social rights in multilateral trade relations. Within the Commission of the European Communities, the question of codes of ethics in the TCF sector has been the subject of a tripartite debate within the framework of the textiles/apparel sectoral "social dialogue" (under the responsibility of the DGV). During the May 1996 Session of the "social dialogue", the General Secretary of the ETUC-TCL European Trade Union Committee recalled the joint action by the CSE and a number of non-governmental organizations to contact enterprises and urge them to adopt codes of conduct.
The CSE/THE also began negotiations in 1996 with EURATEX, the European Apparel and Textile Organization,4 with a view to the establishment of a code of conduct applicable to European producers of textiles and clothing. In this connection, it should be recalled that in May 1993 European employers and trade unions had already signed a Charter of fundamental principles of global trade for textiles and apparel (the so-called Textile/Apparel Magna Carta). This Charter, which has also been endorsed by non-European employers' associations, established the principles of fair international textile trade, including a commitment by the co-signatories to respect human rights at work (table XIV below summarizes the principles of the Magna Carta).
This Magna Carta, which in the opinion of the trade unions has remained in part a dead letter because of the weakness of its application and supervision machinery, was however the first agreement of this kind at the European level (extended to the co-signatories) and it is still a point of reference in the negotiations under way because of its explicit references to the various aspects of workers' rights.
Other specific achievements include an agreement recently concluded between the ETUC-TCL and the European Confederation of the Footwear Industry (CEC) on the signature of a "charter on child labour for the footwear sector" (signed on 13 February 1997; summarized in table XV).
Furthermore, the Union of Textile Industries (UIT) of France adopted in 1995 a code of ethics in which participating enterprises undertake to respect, within the framework of international trade, fundamental ILO standards (freedom of association; child labour; forced labour; respect of national labour legislation and occupational safety and health standards (see table XVI)). In the same way, the German Textile Confederation (Gesamttexil) established in 1994 a Social Guide (table XVII) which establishes a number of rules to be respected in international trade concerning respect for the environment and labour standards.
These two initiatives, negotiated with representative trade unions, reflected a determination to implement at the national level the principles contained in the Magna Carta.
Table XIII. Code of conduct of Mondial International applicable to C&A suppliers
| Keywords | The C&A code of conduct for the supply of merchandise |
| Child labour | Exploitation of child labour or the exploitation of any other vulnerable group -- for example, illegal immigrants -- is absolutely unacceptable. |
| Forced labour | C&A will not tolerate the use of forced labour. |
| Coercion | C&A will not tolerate the use of physical or mental abuse. |
| Wages and remuneration | -- Comparable to local standards.
-- In accordance with national legislation. -- In accordance with the principle of fair and honest dealings. |
| Safety and health | The working environment must be safe and healthy. |
| Legal requirements | -- In accordance with national legislation.
-- Respect of intellectual property rights. -- Respect of humanitarian law. |
| Environment | C&A will assist its suppliers in their efforts to meet their obligations to preserve the environment. |
| Application
Communication |
Suppliers must provide C&A with all information on their production, the use of subcontractors or other intermediaries. |
| Control | Verification of the application of the code of conduct in the working environment on a daily basis through:
-- information systems; -- on-the-spot inspections; -- unannounced plant visits. |
| Training | C&A will ensure that all employees concerned are informed and understand these standards and obligations. |
| Independent monitoring of application | Carried out by an external audit: SOCAM (Service Organization for Compliance Audit Management) an independent organization for the detection and prevention of exploitation, dealing with matters concerning:
-- the environment; -- health; -- safety; (with a subsidiary company located in Singapore responsible for Asia). |
| Updating | The code of conduct must be regularly updated. All employees and suppliers of C&A are invited to contribute to this process. |
| Sanctions in the event
of violations |
-- Termination of trade relations (including the cancellation of current orders).
-- Other appropriate measures (the right to take whatever other actions are appropriate and possible). |
Table XIV. Charter of fundamental principles of global trade for textiles and apparel (Textile/Apparel Magna Carta)
| Keywords | Conditions for fair trade |
| Provisions relating to the respect of human rights | -- Freedom of association.
-- Freedom of organization and collective bargaining. -- Respect of the minimum age for the employment of children (without further details). -- Prohibition of forced labour. -- Elimination of any kind of discrimination in employment based on race, colour, sex, religion, political opinion, social origin or nationality. -- Minimum standards regulating working time, wages, health and safety. -- Prevention of occupational accidents and diseases. -- Compensation in the event of occupational accidents or diseases. |
| Environment | A positive global approach to environmental problems should be promoted with a view to eliminating unfair comparative advantages. |
| Principle of reciprocity | The opening up of markets on a reciprocal basis is necessary.
Instruments: -- tariff reductions; -- progressive dismantling of non-tariff barriers. |
| Legal requirements | Need for internationally recognized rules rigorously applied. |
| Application
Preventive measures |
-- The Charter would be promoted by its signatories in their relations with the respective public authorities and during bilateral and multilateral international negotiations.
-- These principles should be used in the GATT Uruguay Round (under negotiation at the time of the signing of the Charter). -- Introduction of measures to prevent circumvention of rules governing country of origin. |
| Control | -- A system of safeguard mechanisms.
-- Specific provisions for dealing effectively with the problems caused by trade-distorting practices; -- Establishment of a system of verification and enforcement of these rules and principles. |
| Sanctions in the event
of violations |
Authorize the countries and/or enterprises adversely affected to take appropriate compensatory measures rapidly. |
Note on table XIV: The Textiles/Apparel Magna Carta was signed on 28 May 1993 by the groups representing the interests of the sectoral producers and trade unions of 12 Member States of the European Community as well as by a number of employers' associations and trade unions of Austria, Switzerland, Sweden, Finland, Norway, Czech Republic, Slovak Republic, Canada, Japan, Mexico, Jamaica and the United States. The signatories of the Charter stated that they were convinced that its application would help improve significantly the world trade of textiles and apparel, which should be based on fair practice in line with the criteria of equity and reciprocity.
Table XV. Child labour: A charter by European social partners in the footwear industry
| Keywords | Content of charter |
| Reference texts | -- ILO Minimum Age Convention, 1973 (No. 138)
-- European Council Directive (COM94/33 of 22 June 1994) -- ILO Report on child labour (1992) |
| Child labour | Enterprises may not employ children either directly or indirectly. Child defined as follows:
-- Under the age of 15; or -- Under the age of compulsory schooling Enterprises must support the development of apprenticeship programmes designed to promote the training of young workers |
| Non-discrimination | To employ workers in accordance with their skills rather than on the basis of their race, sex or religious belief |
| Application | -- The social partners undertake individually and collectively, through a sectoral social dialogue at all levels (European, national, regional, local and enterprise), to ensure the application of this Charter
-- Calls on the European Commission and the member States to ensure that the Charter is applied in enterprises |
Note on table XV: Meeting within the framework of the sectoral social dialogue of the Commission of the European Communities, the European Confederation of the Footwear Industry (CEC) and the European Trade Union Committee on Textiles, Clothing and Leather (ETUC-TCL) examined the problems of child labour in this sector, which have worsened not only in Third World countries, but also in some European countries. This discussion resulted in the adoption of the Charter on Child Labour which is based on a European Directive of the Council of the Commission as well as on relevant texts and work by the ILO on this subject.
Table XVI. Code of Ethics of the Union of Textile Industries (UIT)
| Keywords |
|
| Basic principles | To work towards free and fair world trade |
| Objective | -- Opening up of all global markets
-- Elimination of all forms of international piracy: -- fraud; counterfeiting -- Active protection of the environment -- Protection of human rights |
| Freedom of association | Prohibition of any discrimination against employees because of their membership in a trade union |
| Child labour | Prohibited
Child: -- Under the age of 14; or -- Under the age of compulsory schooling |
| Forced or prison labour | Prohibited |
| Working conditions | Enterprises which offer their employees acceptable working conditions as regards in particular occupational safety and health and which respect laws in force concerning labour legislation |
| Application | To include a minimal social clause in international trade agreements |
| Sanctions in the event of violation | -- To refuse membership in the occupational organization of an enterprise which does not respect this commitment
-- Council the membership of an enterprise which violates the rule. |
Table XVII. Social guide proposed by GESAMTTEXIL German Textile Confederation: Guidelines)
| Keywords | Content of the guide |
|
| Objective | Free and just competition in global textile trade |
|
| Legal reference instruments | --
-- -- |
Multilateral agreements on the environment and social standards
International (inter-state) agreement on the protection of the environment (to be established) ILO Conventions on child labour and forced labour |
| Legal requirements | --
-- |
Compliance of enterprises with minimum social and environmental standards
A recommendation should be drawn up within the framework of the European Union for an international code of conduct which should be presented to the WTO as a basis for discussion |
| Corrective measures | --
-- |
Sanctions (not specified)
Preferential treatment |
Note on table XVII: The "Social guide" of the German Textile Confederation, which was drawn up by GESAMTTEXIL in 1994, is a proposal aimed at facilitating the application of the Magna Carta in the context of the WTO.
As can be seen from the above, there is no lack of initiatives at the European level to promote a certain kind of ethics in international trade relations in the TCF sectors. However, unlike the situation in the United States, where it is individual enterprises which establish and apply codes of good conduct, in Europe there has been emphasis on an overall approach, often based on the establishment of rules common to one or more countries. What seems to be missing, at least for the moment, is the individual commitment of enterprises to apply a genuinely voluntary policy of social ethics.
4 EURATEX was established in 1994: it groups together two former employers' associations: the European Clothing Association (ECLA) and the European Largest Textile and Apparel Companies (ELTAC). The Coordination Committee of the Textile Industries in the European Economic Community (COMITEXTIL), which defended the interests of European employers in the Uruguay Round of the GATT, was also integrated into EURATEX which continues its lobbying activity with the WTO.