Project focus:
UK (Christmas crackers)
Northern India (jewellery, embroidery, beading)

The issue

Our member companies are becoming increasingly aware of the large numbers of homeworkers in their supply chains. Homeworkers, rarely protected by national labour law or union membership, face some of the worst working conditions. Unfortunately, they also pose some of the most difficult challenges for sourcing companies aiming to meet their ethical sourcing responsibilities. They are usually at the ends of long and complex supply chains, and their large numbers and geographical dispersion mean that companies find it difficult to identify them, let alone assess and improve their conditions.

This project was set up to meet our members’ request for guidance on how to tackle these challenges, both on a generic level and with specific reference to certain UK homeworkers. Some of our members who buy Christmas crackers from UK suppliers had been alerted to payment of sub-minimum wage rates to homeworkers in South Wales, and the Homeworkers Project has been engaging with key stakeholders to address this issue.

The goal

We aim to establish how the ETI Base Code can be applied and monitored with homeworkers, to increase understanding of their situation and to document different approaches to tackling their poor working conditions.

Key achievements

• We drafted guidelines for companies on how to apply the ETI Base Code with homeworkers.
• Some corporate members translated learning gained from the project into changed policy and practice in their own companies. For example, some companies added questions about homework to the supplier assessment questionnaires used as a basis for their routine code auditing.
• The project played a part in the TUC’s plan to launch a campaign to improve the conditions of homeworkers. It also contributed to a decision by the UK government to replace existing legislation that effectively permits employers to establish piece rates which are significantly below the minimum wage.
• In response to the widespread confusion among suppliers and sourcing companies on how to calculate a fair piece rate for homeworkers, we provided training for members and their suppliers to provide practical guidance on this issue.
• In response to project activities and pressure from member companies, some of the crackers manufacturers who supply ETI members began measures to improve conditions for homeworkers. These included reviews of existing piece rates, and informing homeworkers of their right to the national minimum wage and to join unions.