ETI statement regarding ActionAid's report on Asda

ActionAid has published a report highlighting the payment of poverty wages, unreasonable hours and abuse of clothing workers in Bangladesh.

All workers deserve to earn a wage they can live on, and it is deplorable that millions of workers across the world are unable to do so. Low wages mean families fall into debt, children are sent out to work instead of school, and planning for any kind of future beyond the next meal is impossible.

No-one should have to work excessive overtime. Having to work long hours on a regular basis is bad for people's physical and mental health and disrupts family life. Equally, all workers deserve to be treated with respect and dignity and should not be subject to abuse or harassment.

Given the scale of the challenge, we expect our members to work towards raising wages and improving conditions on step by step basis, over time. For us, the litmus test is whether a company can demonstrate year-on-year progress.

Asda is a longstanding and active member of ETI and is one of a very small number of UK retailers that is seriously tackling the challenge of raising wages on a sustainable basis in its supply chain. It should be applauded for these efforts, although experience tells us that there is no silver bullet to tackling these issues.

ActionAid has made serious allegations in its report. We call on it to engage constructively with Asda and other relevant stakeholders in support of any remedial action that may be required in improving conditions in the factories concerned. The first step must be to release the names of the factories to Asda so that it may fully investigate the allegations made.

As ActionAid points out, it is critical that the benefits of wages projects that rely on productivity improvements are shared equitably among the workforce. It is also vital that the representatives of legitimate workers' organisations are involved throughout the process.

No company has got it completely right yet. While there is an ongoing debate about the definition of a living wage and how it should be applied, what is clear is that the poorest-paid workers are saying that they are struggling to meet basic needs. For those at the bottom rung of the ladder, even the efforts of the most responsible retailers are not yet good enough.

At the same time, retailers alone cannot address the underlying problems that contribute to low wages. The most effective way of raising standards across the board is through collective action by all parties involved - not just retailers, but also governments, employers associations and trade unions.

As the global recession continues to hit the poorest workers in the world the hardest we are working with retailers and other relevant bodies to take urgent action to achieve widespread and sustainable increases in wages.

Over the next two years ETI is determined to raise the bar, supporting our members to take a leap forward in ethical trade, with a particular focus on taking urgent collective action to drive up wages.

-ends-

ActionAid report: The real Asda price