Homeworkers experimental project - Ethical Trading Initiative

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ETI HOMEWORKER GUIDELINES:
recommendations for working with homeworkers.

Introduction to Project

ETI company members are increasingly aware of the presence of homeworkers in their supply chains. These are workers carrying out paid work from home, producing products or services, and often paid according to the quantity produced rather than hours worked. Homeworkers may face very poor working conditions as they are rarely protected by national labour law, formal employment status or union membership, and they can be isolated and invisible. This project was set up to provide guidance to members on how to tackle these challenges.

Work initially began by exploring the conditions of homeworkers making Christmas crackers in the UK, a case study which made some progress in generating learning on how to implement the ETI Base Code. However, following a significant reduction in the number of UK homeworkers making crackers, the case study closed in July 2004. A full report of that case study is publicly available and found below in the list of project documents, entitled ‘Report of ETI Christmas crackers work’.

The project has now moved to focus on homeworkers in the fabric embellishment industry in Northern India, where a highly active tri-partite sub-group has been working throughout 2005 in partnership with the UK group on developing guidelines to applying and implementing the ETI Base Code with Homeworkers. The first draft of these guidelines should be complete by April 2006. The recommendations for retailers and suppliers will then be tested by UK project group member companies, while the Delhi sub-group will seek to establish a ‘multi-stakeholder action agency’, ideally including government officials, contractors and homeworkers themselves, that will implement key parts of the guidelines requiring co-operation across the supply chain. This last element of the project falls within our capacity building programme and represents an exciting and unprecedented step forward in the labour rights field.

Project aims and objectives

The project aims and objectives are to:

establish how the ETI Base Code can be applied, implemented and monitored with homeworkers
learn about different approaches to tackling poor working conditions of homeworkers in supply chains
increase members’ and others understanding of the situation of homeworkers
improve the working conditions of homeworkers.

Key achievements and challenges:

Lessons learned from Christmas crackers case study:
The closure of this area of the project’s work was very disappointing for all involved – ETI Homeworker Group members, suppliers and homeworkers themselves. However, communication with suppliers and consultation with homeworkers have yielded practical lessons on how the ETI Base Code works in the homeworker context. We now have greater clarity on issues such as employment status, holiday pay and piece rates which apply to all UK homeworkers. Furthermore, lessons learned are being incorporated into the draft Guidelines on implementing the ETI Base Code with Homeworkers as well as being used in our north Indian case study.
Change in UK legislation:
The UK government decided in July 2004 to alter the piece rate system established under UK National Minimum Wage legislation (NMW). From April 2005, each worker will either have to be paid per hour worked at the NMW, or be paid a piece rate at 120%. Many stakeholders, including the ETI Homeworker Group, had lobbied the UK government to implement these changes which should have a beneficial effect on homeworkers’ pay.
Collaborative working and awareness raising:
The project has helped to raise awareness about homeworkers, their rights and the issues they face. It also clearly indicated the need for greater involvement of trade unions and the sharing of experience between trade unions and NGOs in order to protect informal economy workers. Group members participated in a fringe meeting on the issue at the Trades Union Congress (TUC) in September 2003. It also supported the launch of a campaign on homeworkers between three of our members, Oxfam, the TUC and the National Group on Homeworking in May 2004. Group members have also raised homework issues at an international labour standards conference presentation in November 2003 and at the International Textile Garment and Leather Workers’ Federation conference in October 2004.
Significant project progress in India:
A local Co-ordinator, Vinita Singh, was recruited in April 2004. A successful awareness-raising seminar was conducted with Homeworker Group company members’ suppliers in May 2004, attended by over 60 people. This led to the involvement of 13 suppliers, their sub-contractors and homeworkers as well as various other stakeholders in a piece of research conducted in summer 2004. The research explored the concerns and priorities of homeworkers as well as their current working and living environment. It also assessed current knowledge, attitudes and practices for homeworkers, employers and influencers with regard to the ETI Base Code, in order to indicate possible future actions. Seminars to feedback and consult on the research were held with suppliers, sub-contractors, unions and NGOs in Delhi in October 2004. A group of members’ local staff representatives, trade union affiliates and NGO partners of the UK project group has been established and meets regularly in Delhi.
Throughout 2005, the Delhi local group has been working in partnership with the UK group on developing guidelines to applying and implementing the ETI Base Code with Homeworkers. Throughout the first quarter of 2006, consultations will be held in India with local stakeholders including: exporters, contractors, sub-contractors and crucially, homeworkers themselves, on the draft guidelines. These consultations will inform the final version of the first draft, which we aim to have complete by April 2006.

Plans

From April 2006, the recommendations for retailers and suppliers will be tested by UK project group member companies. Concurrently, the Delhi group will seek to establish a ‘multi-stakeholder action agency’, ideally to include government officials, contractors and homeworkers themselves, that will implement key parts of the guidelines that require co-operation across the supply chain. This element of the project falls within our capacity building programme and represents an exciting and unprecedented step forward in the labour rights field.

Which ETI members are involved?

Companies:
Boots, Gap Inc, Marks & Spencer, Madison Hosiery, Monsoon/Accessorize, Next, Pentland, Sainsbury’s, The Body Shop International, WH Smith.

Trade unions:
National Union of Knitwear, Footwear and Apparel Trades, Trades Union Congress.

NGOs:
Homeworkers WorldWide, National Group on Homeworking, Oxfam GB, Traidcraft
As well as some of their suppliers, affiliates and partners in the UK and in India.

For further information contact:

Liz Kirk, Head of Projects, liz@eti.org.uk

Project documents:

ETI Homeworker guidelines: recommendations for working with homeworkers (July 2006)
UK Crackers - downloads:
- Report of ETI Christmas Crackers work
Roundtable report, July 2002

Issue:	Homeworkers	project documents
Industry/sector focus:	Jewellery, embroidery, beading
Country focus:	Northern India
Start date:	2002
Project status:	Current

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