Ethical trade ‘quantum leap' gains support

ETI's plans to support our member companies to take a ‘quantum leap' forward in ethical trade, away from a narrow focus on auditing and corrective action, towards helping suppliers build ‘good workplaces' were last week (10 September) met with enthusiasm from a group of corporate members.

Speaking at a specially-convened meeting aimed at exploring this proposed new approach in detail, ETI Director Dan Rees explained, "Workers don't need audits. They need transparent company rules, grievance and disciplinary procedures that are consistently applied, and the opportunity to unionise if they wish to do so.

"This is a new approach to ethical trade, which demands us all to take a quantum leap forward in our thinking."

Neil Kearney, General Secretary of the International Textile, Garment and Leather Workers' Federation (ITGLWF) helped explain the rationale for the new approach.

He said, "The unintended consequence of the past decade or so of ethical trade, and its heavy focus on audits, has been to weaken the employer-employee relationship. We need to help rebuild that relationship."

Kearney also outlined ITLGWF's positive experiences of working with ETI member companies Gap Inc. and Inditex to build suppliers' ownership of ethical trade and encourage them to engage with unions, which is already having concrete business benefits.

Adil Rehman of Next outlined the company's plans to pilot an approach to building mature industrial relations with selected suppliers.

Companies present expressed support for this new approach to ethical trade, while expressing the need for practical guidance, tools and support from ETI and stakeholders in supplier countries.

Said Rees, "It's exciting to hear such positive responses from our members. We are committed to providing the necessary tools and support to help our member companies move forward with this initiative, which is a key part of our new strategy.



Colin Fenwick of the ILO's Industrial and Employment Relations Department also explained the ILO's position on freedom of association and collective bargaining and offered guidance on how companies can implement these principles in their supply chains.

ETI will shortly circulate a briefing note from this event to members.