Assignment on ETI

Introduction :

ETI is a UK-based alliance of companies, trade unions and NGOs dedicated to improving the lives of workers and their families in global supply chains. It focuses on companies producing, supplying and selling goods for consumer markets. The organisation identifies and promotes responsible corporate practices that observe national and international labour laws. Recognised by almost all UK retailers, ETI has established an international reputation for combining a practical focus with a critical but balanced view of labour rights issues. ETI members must adhere to a code of labour practices based on key conventions of the International Labour Organisation and accompanied by a set of general principles.

Code of Conduct audits

In addition to operating within the highest standards of business ethics in accordance with applicable local laws, many businesses choose to go a step further. They expect their vendors to maintain these same high standards

Technical Audit and Factory Evaluation

To ensure your vendors and suppliers are able to undertake a specific order as per your requirements, we carry out technical audits at their business premise. This process establishes a manufacturer’s ability to design and produce according to your legal or normative requirements. Audits are conducted to any checklist specified. Alternatively, our experienced auditors can compile a checklist to match your requirements. 

Code of Conduct

Compliance with Laws

Suppliers and their designated manufacturing facilities (“Suppliers”) must fully comply with all applicable national and/or local laws and regulations, including but not limited to those related to labor, immigration, health and safety, and the environment.

 Voluntary Labor

All labor must be voluntary. Child, forced, bonded, prison, or indentured labor will not be tolerated. Workers must be allowed to maintain control over their identity documents. Suppliers must provide workers with rest days and must ensure the working hours are consistent with local regulations and not excessive.

  Hiring and Employment Practices

Suppliers must implement hiring practices that accurately verify workers’ legal right to work in the country and age prior to employment. All terms and conditions of employment including, but not limited to, hiring, pay, promotion, termination, and retirement must be based on an individual’s ability and willingness to do the job.

 Compensation

Suppliers must compensate all workers with wages, overtime premiums, and benefits that meet or exceed local legal standards, local industry standards, or collective agreements, whichever are higher. Suppliers are encouraged to provide wages and benefits that are sufficient to meet workers’ basic needs and provide some discretionary income for workers and their families.

 Freedom of Association and Collective Bargaining

Suppliers must respect the right of workers to choose whether to lawfully and peacefully form or join trade unions of their choosing and to bargain collectively.

 Health and Safety

Suppliers must provide workers with a safe and healthy work environment and, where applicable, safe and healthy residential facilities. Suppliers must take proactive measures to prevent workplace hazards

 Environment

Suppliers must ensure every manufacturing facility complies with national and local environmental laws, including all laws related to air emissions, water discharges, toxic substances and hazardous waste disposal. Suppliers must validate that all input materials and components were obtained from permissible harvests consistent with international treaties and protocols in addition to local laws and regulations.

 Gifts and Entertainment

Suppliers must not offer gifts or entertainment to Comapys  associates.

 Conflicts of Interest

Suppliers must not enter into transactions with Walmart associates that create a conflict of interest.

 Anti-Corruption

Suppliers must not tolerate, permit, or engage in bribery, corruption, or unethical practices whether in dealings with public officials or individuals in the private sector.

Financial Integrity Suppliers must keep accurate records of all matters related to their business w in accordance with standard accounting practices .

Disciplinary Practices

Vendors shall not use corporal punishment or any other form of physical or psychological coercion or

intimidation against workers.

Wages and Benefits

Vendors shall provide wages and benefits that comply with all applicable laws and regulations or match

the prevailing local manufacturing or industry rates, whichever is higher. Overtime pay shall be

calculated at the legally required rate, regardless of whether workers are compensated hourly or by piece

rate.

Working Hours

Vendors shall not require workers to work, including overtime, more than 60 hours per week or more than any maximum number of hours per week established by applicable laws and regulations, whichever is less. Vendors shall guarantee that workers receive at least one day off during each seven-day period.

Contractors and Suppliers

Vendors shall ensure that their contractors and suppliers adhere to this Code of Conduct.

Monitoring of Compliance

Vendors authorize Acme Intl and its principals to conduct scheduled and unscheduled inspections of Vendors’ facilities for the purpose of ensuring compliance with this Code of Conduct. During these inspections, Acme Intl and its principals shall have the right to review all employee-related books and records maintained by Vendors and to interview workers.

 Familiarization and Display of This Code of Conduct

Vendors shall familiarize workers with this Code of Conduct and display this Code of Conduct, translated in the local language, at each of their facilities in a place readily visible and accessible to worker.

Social Codes of Conduct in the RMG Industry

What are Social Codes of Conduct?

Voluntary Codes of Conduct

  • Social codes of conduct are rules and guidelines imposed by buyers upon themselves and along their supply chains, both in response to consumer

pressure and as part of comprehensive marketing strategies aimed at     improving their image.

  • Social and environmental standards as outlined in the Bangladesh Labor Law and Environmental Act set out minimum standards to which manufacturers in Bangladesh must adhere. In contrast, compliance with general codes of conducts, which usually contain standards slightly higher than those defined by the Bangladesh laws, is voluntary.
  • The social compliance status of the Bangladesh RMG industry refers to the extent to which the industry meets the requirements of the labor law and/or any other buyer-specific code of conductor voluntary certification scheme.
  • The current social compliance status of the industry is not satisfactory; there is an urgent need to improve the situation.

The voluntary codes of conduct most widely used by the RMG sector include those of:

  • Social Accountability International (SAI) – SA8000
  • Ethical Trading Initiative (ETI)
  • Fair Labor Association (FLA)
  • Fair Wear Foundation (FWF)
  • Business Social Compliance Initiative (BSCI)
  • Worldwide Responsible Apparel Production
  • (WRAP).

Only WRAP and SAI have certifications for factories, whereas FLA certifies brands, not factories. The other above-mentioned codes of conduct do not have any certification options.

Generally, adherence by a particular manufacturer to a given standard or code of conduct is verified through periodic audits/ inspections. These inspections are carried out by buyers and/or thirdparty auditors nominated by the buyers.

Bangladesh Labor Law 2006 (BLL 2006) Implementation of the BLL 2006 ismonitored primarily by Ministry of Labor and Employment (MoLE) factory inspectors and BGMEA and BKMEA social compliance monitors. Besides inspecting and monitoring the status of the factories, BGMEA and BKMEA monitors provide advisory support to factory personnel so that they are able to implement the required, correct measures as stated in BLL 2006.

General codes of conduct (CoCs) are usually voluntary and developed using a multistakeholder approach. SA8000, ETI, WRAP, BSCI, FWF and FLA are some of the prevailing general CoCs.

 Areas of Code of conduct:

  1. ILO Core Labor Standard:
  2. Child Labor
  3. Forced Labor
  4. Freedom of Association
  5. Discrimination
    1. Employment Conditions :
    2. Harassment and Abuse
    3. Wages
    4. Working Hours
    5. Leave and Holidays
      1. Occupational Heath &safety :
      2. Health
      3. Workplace Conditions
      4. Welfare
      5. Safety
      6. OHS Management System & Training
        1. Others aspects ;
        2. Environment
        3. Women’s right
        4. Management
        5. Employment Relations
        6. Others.

Corrective Action
When violations are found, Company  and the Vendor will determine a corrective action plan to eliminate the problem in a timely manner. If it is identified that the Vendor is knowingly and/or repeatedly in violation of this Code of Conduct, Company  and its principals shall take necessary action which may include cancellation of orders and/or termination of business with the Vendor in question.

ETI