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What is the E.T.I Base code?

‘The Ethical Trading Initiative (ETI) Base Code is a well-respected code of labour practice that is used by companies and suppliers around the world. The nine point code is largely drawn from International Labour Organisation (ILO) conventions and covers core workers’ rights including health and safety, working hours and freedom of association.’

The nine point code:

1. Employment is freely chosen

2. Freedom of association and the right to collective bargaining are respected

3. Working conditions are safe and hygienic

4. Child labour shall not be used

5. Living wages are paid

6. Working hours are not excessive

7. No discrimination is practiced

8. Regular employment is provided

9. No harsh or inhumane treatment is allowed

What is a code of conduct?

‘An agreement on rules of behaviour for a group or organisation.’

Code of conduct is also an alternative term for ‘code of ethics’ or ‘code of practise’.

Code of ethics-‘A written set of guidelines issued by an organisation to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards.’

Code of practise- ‘Written guidelines issued by an official body or a professional association to its members to help them comply with its ethical standards.’

Within retail production retailers must follow the E.T.I Base Code and along with this they often have their own, personal, code of conduct which highlights how they stick to the standards set by the E.T.I Base Code. The code of conduct outlines a retailers ethical practices, primary values and ethical standards which they state to follow.

ASOS, the large online retailer, has their own personal code of conduct as many do; ‘ASOS Ethical code of conduct’- http://www.asosplc.com/~/media/Files/A/ASOS/documents/asos-ethical-code-of-conduct.pdf.

ASOS Ethical Code of Conduct-

This is how ASOS overviews their code of conduct- ‘The ASOS Ethical Code of Conduct sets out the minimum standards that ASOS requires from all suppliers who manufacture or procure goods for ASOS. They are based on the conventions of the United Nations and International Labour Organisation core standards and reflect the best practice industry standards being applied globally by a number of retailers. The code applies to all suppliers and all sites manufacturing goods for ASOS.

It is the supplier’s responsibility to meet these standards and to be able to demonstrate to ASOS that it has done so. ASOS will support sites who disclose difficulties in meeting the standards and seek to work with them to put in place necessary improvements.’

These of the key points of focus in ASOS’s code of conduct- I have further quoted, to highlight, the key points picked out from the document:

1. BUSINESS INTEGRITY

2. COMPLIANCE WITH ALL APPLICABLE LAWS & REGULATIONS- ‘Suppliers and factories that produce goods for ASOS must fully understand and comply with all applicable laws and regulations in the countries where they operate, including laws relating to employment, health and safety, and the environment.’

3. TERMS OF EMPLOYMENT- ‘All workers must be employed voluntarily and have the freedom to leave their employment if they give their employer reasonable notice. There must not be any form of social pressure, unpaid loans or other restrictions imposed by the employer that would restrict this freedom.’

‘The factory must take the necessary measures to ensure that all employees have a legal right to work.’

1. FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING-‘ Workers must be able to communicate openly with management regarding working conditions without fear of reprisal, intimidation or harassment.’

2. WAGES AND WORKING HOURS- ‘Hours in excess of contracted standard hours (overtime) must be offered fairly, contracted voluntarily and paid at a premium rate. Workers must be able to refuse to work overtime without any form of penalty.’

‘Working hours must not exceed the maximum set under local law. Where there is no legislation governing maximum working hours, a maximum limit of 48 hours must be set for regular working with a maximum of 12 hours per week overtime.’

‘There must be adequate management systems in place to restrict overtime within these limits, except in emergency or unusual situations.’

‘Workers must have at least one full day away from work per week on a regular basis. The working week may be extended in exceptional circumstances but employees must not work more than 12 days in any 14 day period.’

1. EMPLOYING YOUNG WORKERS-

‘Factories must have effective systems in place to check the ages of all recruited employees and must hold copies of official documentation for every worker that verifies their date of birth. In countries where official documents are not available to confirm the exact date of birth, the factory must verify workers’ ages using an appropriate and reliable assessment method.

All workers must be at least 15 years old, or meet the legal minimum age of employment if this is higher.

Young workers between the minimum age of employment and 18 years old can be employed, provided there are adequate precautions to protect them. They must not be employed at night, work overtime or carry out any form of hazardous work.

If children are found to be working directly or indirectly for the supplier, the supplier must immediately inform ASOS who will support a solution that puts the best interests of the child first.

For further information, refer to the ASOS Young Worker and Child Labour Policy.’

ASOS have an extended policy focusing solely on Young Workers and Child Labouring- http://www.asosplc.com/~/media/Files/A/ASOS/documents/asos-young-worker-and-child-labour-policy.pdf

‘ASOS defines a young worker as someone under the age of 18 who is legally entitled to work and a child worker as someone under the age of 18 who is not legally entitled to work.’

‘Children must not be involved in any part of ASOS’ supply chain.’

‘Children must not be involved in the manufacture or supply of goods to ASOS. Children who are made to work, or who choose to work, are deprived of their rights to a childhood and education and are at risk of endangering their physical, mental and social well-being.’

1. WORK ENVIRONMENT-

‘Factory managers and supervisors must treat all workers with respect and dignity at all times.’

1. HEALTH AND SAFETY-

‘Workers must have access to clean toilets, potable water and hygienic food storage/preparation and eating facilities. Where provided, worker dormitories must: be well maintained, clean and safe; have sufficient emergency exits, hot water for bathing and showering; have adequate heat and ventilation; provide reasonable personal space and personal freedom.’

1. ENVIRONMENTAL MANAGEMENT

Do ASOS practise what they promise?

Recently there have been 2 main articles regarding ASOS’s production; M&S and ASOS among British retailers found employing child refugees in factories & ASOS warehouse staff ‘are being exploited by legally shaky contracts’.

The first article was published 7 October 2016- ASOS warehouse staff ‘are being exploited by legally shaky contracts’. Around 4,000 people are employed at ASOS’s warehouse in Grimethorpe, near Barnsley, some of whom recently spoke to the BBC. It was suggested that the contracts, which allow shifts to be extended or reduced by two hours, should be investigated. However XPO Logistics, which runs the warehouse on behalf of ASOS, stated that these contracts were/are “fully compliant with employment law”. Many of the workers complained about the flexing clause, saying that they were punished for refusing to work extra hours last minute. Emma Clark, a former team leader and single parent, described the struggle of finding last minute childcare when asked to ‘flex up’ just before a shift. If she refused to work the extra hours, she would be disciplined. Another worker, who remained anonymous, described the system as ‘unpaid overtime’: ‘If we don’t do it, we’re disciplined. I’ve been up for disciplinaries for refusing to flex.’ - This issue is a clear breach of the 3rd key aspect of ASOS’s ethical code of conduct; TERMS OF EMPLOYMENT- ‘All workers must be employed voluntarily and have the freedom to leave their employment if they give their employer reasonable notice. There must not be any form of social pressure, unpaid loans or other restrictions imposed by the employer that would restrict this freedom.’

The second article was recently published 24th October 2016. Refugee children from Syria were found making clothes for British fashion brands in Turkey. Children as young as 15 were reportedly found working on clothes for Marks & Spencer and the online retailer ASOS, some working more than 12 hours a day. In another Istanbul workshop, where several Syrian children were at work, an ASOS sample was found in the office. Reporter Darragh MacIntyre said Syrian workers felt they were being exploited. Most of the refugees do not have work permits and many of them are working illegally in the garment industry. He said: "They speak of pitiful wages and terrible working conditions. This is a clear breach of both of ASOS’s given policies; ASOS Ethical Code of Conduct& Young Worker and Child Labour. The policies clearly state ’Children must not be involved in any part of ASOS’ supply chain.’- Children were found being laboured as part of the production line.

In response to these accusations ASOS replies with: ‘ASOS accepted its clothes were made in the workshop Panorama discovered but said it was not an approved factory and promised to financially support the workers found there. ASOS says the children will be financially supported so they can return to school and the adult refugees will be paid a wage until they have been found legal work. A spokesperson for the company said: "We have implemented these remediation programmes despite the fact that this factory has nothing to do with ASOS.

Ethical Production