A CASE STUDY ON SA 8000 STANDARDS IN

TIRUPUR GARMENT COMPANIES

SUPPORTED BY

AMERICAN CENTRE FOR INTERNATIONAL LABOUR

SOLIDARITY

SOCIAL AWARENESS AND VOLUNTARY EDUCATION

(SAVE)

NO.5, IYESWARIYA NAGAR,

K.N.P. COLONY (P.O.),

DHARAPURAM ROAD,

TIRUPUR - 641 608

PHONE: 0421-428100/428200

E. MAIL: save@md4vsnl.net.in

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CONTENTS

PREFACE

1. Introduction

2. Profile of Tirupur and SA 8000women workers in India

3. Methodology

4. Findings

5. Perspective analysis

6. Recommendation and Conclusion

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PREFACE

This case study on SA 8000 standards Tirupur Garment companies is conducted at the right moment. It is important to record the working conditions of workers in the companies have SA 8000 certificates since many garment companies are now attempting to receive SA 8000 certificate for either one or two units in their group of companies. I hope while reading this report it will provide a deep insight about the actual status of SA 8000 standards in Tirupur garment companies. I am quite confident that this report will be an eye opener to textile policy makers and observers about the effectiveness of standards like SA8000 and its implementation.

I would like to thank Mr. I. Mohan Dass , Mr.M.Sakthivel and Mr.M.Mothiraj who actively participated in this study. I would like to thank Mr. S.M. Prithiviraj for conducting and coordinating this study.

Finally I would like to thank Mr. William Conklin field representative American Center for international labour solidarity, since who is instrumental and guiding force behind this work

A.ALOYSIUS

DIRECTORSAVE.30th April 2002.

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A CASE STUDY ON SA 8000 STANDARDSIN TIRUPUR GARMENT COMPANIES.

1.INTRODUCTION

In the past three decades, the concern for improving the working conditions of workers all over the world has emerged as a key focal point. International concern for better labour conditions often identified alternative actions and programmes. Social labeling and codes of conduct are promoted to address the issues of ethical production and consumption. Such initiatives are frequently confronted by the arguments like codes of conduct are corporate public relations exercise and also codes of conduct are challenging traditional worker’s movement by interfering in Trade Union’s roles and responsibilities. In fact codes of conduct and standards addressing social accountability has polarized and in some cases driven a wedge between Non – Governmental Organizations and Trade Unions. Many Non-Governmental Organizations have initiated these code of conducts and concepts of social accountability as an effective tool to improve world wide working conditions of workers, while sections of Trade Union movement viewed it skeptically as a corporate ploy and intervention in Trade Union activities.

However, there are many federations of Trade Unions supports these initiatives like ITGLWF (International Textile Garment and Leather Workers Federation) which supports Clean Clothes Campaign’s code of conduct. Social Accountability International another organization which promotes SA8000 standards another set of code of conducts. Representatives from Trade Unions like ITGWLF, Union Network International are represented in its Governing Board. Similarly Ethical Trade Initiative has representatives from International Union of Food workers, The Trade Union Congress, The International Confederation of Free Trades Unions (ICFTU) and ITGLWF. And Workers Rights Consortium (WRC) has representatives from Union of Needle Trades, Industrial and Textile Employees (UNITE) and other Trade Unions from south in its advisory council.

These recent developments indicate major International Trade Union movements have broadly accepted the principles and policies of social accountability. Besides the issues related to the policy and its effectiveness of codes of conduct. The important labour rights question swings in the minds of activists, researchers and trade union movement is how far these of codes of conducts are instrumental in improving the working conditions in the companies. Also whether those who accepted the codes of conduct monitor the compliance of codes of conduct and how frequently these promoting organizations monitor the compliance of code and conduct.These codes of conducts are largely accepted among the industries manufacturing garments. In this context, the objectives of our study are as follows.

To monitor the compliance of SA8000 standards in the garment companies in Tirupur

To analyze the impact of SA8000 standards in the working conditions of garment industries in Tirupur.

Tirupur being one of the leading manufacture garment manufacturing town, many garment supplier to international garment brands have accepted to inspect codes of conduct under the direct influence of their buyers and the emerging trends in international trade and commerce. Many garment suppliers have come in turn with the concept of social accountability.

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2.PROFILEA) PROFILE OF TIRUPUR

Today 75% of the total production of cotton knitwear is exported from India is manufactured in Tirupur. In terms of the total domestic production of cotton knitted garments of India, Tirupur accounts for about 35%; secondary centers throughout the country contribute Delhi for 10%, Calcutta for 30% and the rest. Tirupur managed to start business with large foreign retail trade chains and mail order houses, mainly in Europe up to 1985 the export growth was slow level steady and was confined to T-shirts only. After 1985, the industry diversified very quickly and took up manufacturing as well as direct exports of other outer garments such as Jerseys, pullovers, ladies blouses, dresses and skirts, trousers, night wear, sports and industrial wear.

Tirupur experienced an unprecedented growth of hosiery goods and became the pride of the India in terms of major foreign exchange earnings. The expansion of the garment industry in Tirupur was mainly due to the structure of the industry. There is no manufacturing unit where all the processes of producing garment are carried out less than one roof.

Table 1

Number of units across various operations

Operations Number of UnitsKnitting / Stitching Units 2500Dyeing and Bleaching 800Fabric Printing 350Embroidery 150Other ancillary units 250Compacting and Calendering 200

For each manufacturing process there are many units as listed out in this table. The reason for the growth of garment market is as follows cheap labour, availability of water, cotton and good connections developed by the employers with the buyers of North America and Europe.

Developments like growing concern on labour standards have made employers in Tirupur to move in this direction. First companies supplying garments to Europe have shown interest in Clean Clothes Campaign’s code of conduct and some companies have accepted its code of conduct. And some other companies are involved in pilot project programme with Swiss and Swedish CCC’s to improve the working conditions. Few companies have affiliation to other social labeling.

International Textile Leather and Garment Workers Federation has conducted a training program on SA 8000 for a Trade Union (INTUC- INDIAN TRADE UNION CONGRESS). 5 garment manufacturing companies in India have SA8000 certification, among them 3 companies are in Tirupur. Other 2 companies are operating in Bangalore but they too have manufacturing link with Tirupur region. In this study, we have selected 3 garment companies with SA 8000 certificate in Tirupur for this study. We have not named them in this study as our intention of this study is not to target any individual company rather have a close observatory look at the compliance of SA8000 standards and analyse its impact in improving working conditions. So we name them company-I, II and III in this study.

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B) PROFILE OF SA 8000

Social Accountability International, founded in 1997 as the Council on Economic Priorities Accreditation Agency (CEPAA), is working to address the growing concern among consumers about labor conditions around the world. Since the early 1990s, a growing number of companies from the U.S. and Western Europe have responded by publishing workplace codes of conduct, which they seek to enforce in their own factories and their suppliers’ factories. The diverse codes of conduct published by individual companies have become somewhat problematic, both for consumers who want clear information and for companies seeking to enforce these codes.

In response to the inconsistencies among workplace codes of conduct, SAI developed a standard for workplace conditions and a system for independently verifying factories’ compliance. The standard, Social Accountability 8000 (SA8000), and its verification system draw from established business strategies for ensuring quality (such as those used by the international standards organization for ISO 9000) and add several elements that international human rights experts have identified as essential to social auditing.

In order to ensure maximum effectiveness of this system, SAI seeks to continually improve techniques for verifying factories’ compliance with the standard. These techniques can also help employers develop more effective management systems that have the potential to reduce the risk of accidents and improve productivity. To this end, SAI consults with a broad range of stakeholders - workers, employers, and other interested parties such as NGOs and unions - thus continually working to make the SA 8000 system responsive to regional and cultural differences.

In this era of instant communications, there is unprecedented momentum for global social change in the way workplace conditions are managed. Many major corporations know that their reputation for social accountability is a competitive asset, and they are beginning to see it as an issue of risk management. Many NGOs and unions also recognize that by offering technical advice and constructive criticism, they can encourage employers to improve. SAI is working to make SA 8000, and its verification system, both a viable solution for improving workplace conditions and a good business decision - financially as well as socially.

About Social Accountability International

SAI was established to develop and verify the implementation of voluntary corporate social responsibility standards, the first of which is SA8000. SAI maintains close oversight of the companies it accredits to carry out SA8000 certification, ensuring their capabilities and requiring their collaboration with local experts.

In broad terms, SAI’s mission is to enable organizations to be socially accountable by:

1.Convening key stakeholders to develop consensus-based voluntary standards,

2.Accrediting qualified organizations to verify compliance; and

3.Promoting understanding and encouraging implementation of such standards worldwide.

In order to develop SA8000, SAI convened an international Advisory Board), which includes experts from trade unions, businesses and NGOs. Among the Advisory Board

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members there is a broad range of expertise: human rights, child labor, and labor rights, and socially responsible investment firms, as well as, auditing techniques and the managementof large supply chains. Reaching consensus among this diverse group is a continuing challenge, but the strength of SA8000, notably its rigorous requirements and in its clear, auditable language is the product of such diversity.

What SA8000 is:

Based on the principles of international human rights norms as delineated in International Labour Organisation Conventions, the United Nations Convention on the Rights of the Child and the Universal Declaration of Human Rights, SA8000 has nine core areas:1. Child labour 2. Forced labour 3. Health and safety 4. Compensation 5. Working hours 6. Discrimination 7. Discipline 8. Free association and collective bargaining 9. Management systems

The SA8000 System and The Standard

The SA8000 system is modeled on the one used by companies to ensure quality control: ISO 9000. Over 300,000 production sites around the world use certification of conformance to the International Organization for Standardization’s (ISO) to demonstrate to customers that their production system ensures quality. SA8000 builds on the proven merits of ISO auditing techniques: specifying corrective and preventive actions; encouraging continuous improvement; and focusing on management systems and documentation proving these systems’ effectiveness. In addition, the SA8000 system includes three elements essential for social auditing:

1. Specific performance standards set with minimum requirements;

2. Auditors are required to consult with and learn from interested parties, such as NGOs, trade unions and, of course, workers; and

3. A complaints and appeals mechanism allows individual workers, organizations, and other interested parties to bring forward issues of noncompliance at certified facilities.

SA8000 also has a section on management systems, which requires policies and procedures and documentation systems that demonstrate ongoing compliance with the standard. A United Nations (UNIDO) study comparing SA8000 and ILO Conventions to an ideal norm for workplace conditions concluded that one of the key contributions SA8000 makes toward the fulfillment of these norms is its requirement of management systems that ensure their implementation.

SA8000’s acceptance is growing because companies recognize the benefits of this system, both to workers and to management. A growing number of companies are currently assessing their suppliers’ compliance with SA8000 and others are listing it as an alternative to the company code of conduct.

International trade unions, consumer campaigns, and labor activists consistently recognize SA8000 as a strong and comprehensive standard for dealing with workplace

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conditions. In addition to the SAI Board Members, a broad range of NGOs and trade unions has given valuable comments to greatly improve the effectiveness of the SA8000 system.

Furthering the Dialogue and Capacity Building

It is SAI’s goal to promote understanding of social auditing techniques and the management systems needed to improve workplace conditions. This ensures that NGOs and unions play a constructive role in the SA8000 auditing process and that companies develop social accountability policies. SAI values its links with trade unions and NGOs for their unique knowledge about the community in which they work. These groups help focus public attention and foster consumer awareness of corporate social accountability. SAI recognizes, however, that public pressure will not be the only driving force behind SA8000 in the long term. Corporations need to see SA8000 as a way to strengthen their competitive edge. Knowledge of corporations’ experiences and best practices in social accountability can help corporations identify cost-effective ways to improve.

Encouraging a constructive dialogue among business and social organizations increases the accuracy and viability of audits and the cooperative use of the SA8000 system. Moreover, such a dialogue furthers capacity building among stakeholders locally as they forge new alliances. Informing a broad range of stakeholders helps ensure credibility, widespread use and long-term acceptance of the SA8000 certification system. Input from these diverse actors will allow SAI to continually improve the accreditation process and the SA8000 system overall.

Future Goals: International Consultative Workshops

Through the Consultative Workshops project, SAI seeks to raise awareness of SA8000, build capacity of key stakeholders, and ensure their effective involvement in the social audit process.

Objectives

Strengthen the capacity of NGOs, trade unions, and business (especially manufacturers) to implement management systems for improving workplace conditions and to use social auditing techniques to verify systems’ effectiveness.

Secure the participation of NGOs and trade unions in the auditing process and in the development of system improvements, particularly in helping make auditor guidance more tuned to local issues. Encourage local partnerships among NGOs, business and trade unions and local activities to promote corporate social accountability.

Auditing workplace conditions requires clear and objective mechanisms for documenting both good and bad practice. Trade unions and NGOs will be increasingly effective when they can gather and present objective evidence that identifies areas for corrective action. Likewise, companies can adopt management systems that can help improve conditions. Technical training provided as part of the proposed workshops will facilitate a working relationship among these diverse groups, thereby providing a structure for on-going long-term partnerships.

Social organizations - such as NGOs and trade unions - have a vital role in SA8000 audits: certification companies are required to consult with local groups prior to each audit. Additionally, companies are encouraged to establish a dialogue with these groups. This "due diligence" maximizes auditors’ information about local conditions and thus decreases the likelihood that auditors will overlook problems, which may surface later through the SA8000

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complaints and appeals process. NGOs may eventually become accredited certification auditors as well.

It is imperative that producer country stakeholders become more engaged in the development and fine-tuning of monitoring systems. For this reason, SAI proposes a series of workshops that will be consultative in nature and will build on SAI’s experience in auditor training. The participants will discuss ways in which to improve workplace conditions. These "consultative workshops" will help participants learn about SA8000 and include a collaborative analysis of the local context affecting labor conditions.

SOCIAL ACCOUNTABILITY 8000 (SA8000)I. PURPOSE AND SCOPE

This standard specifies requirements for social accountability to enable a company to:a) Develop, maintain, and enforce policies and procedures in order to manage those

issues which it can control or influence;b) Demonstrate to interested parties that policies, procedures and practices are in

conformity with the requirements of this standard.

The requirements of this standard shall apply universally with regard to geographic location, industry sector and company size.

Note: Readers are advised to consult the SA8000 Guidance Document for interpretative guidance with respect to this standard.

II. NORMATIVE ELEMENTS AND THEIR

INTERPRETATION

The company shall comply with national and other applicable law, other requirements to which the company subscribes, and this standard. When national and other applicable law, other requirements to which the company subscribes, and this standard address the same issue, that provision which is most stringent applies.

The company shall also respect the principles of the following international instruments:

ILO Conventions 29 and 105 (Forced & Bonded Labour)ILO Convention 87 (Freedom of Association)ILO Convention 98 (Right to Collective Bargaining)ILO Conventions 100 and 111 (Equal remuneration for male and female workers for work of equal value; Discrimination)ILO Convention 135 (Workers’ Representatives Convention)ILO Convention 138 & Recommendation 146 (Minimum Age and Recommendation)ILO Convention 155 & Recommendation 164 (Occupational Safety & Health)ILO Convention 159 (Vocational Rehabilitation & Employment/Disabled Persons)ILO Convention 177 (Home Work)ILO Convention 182 (Worst Forms of Child Labour)Universal Declaration of Human RightsThe United Nations Convention on the Rights of the ChildThe United Nations Convention to Eliminate All Forms of Discrimination against Women

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III. DEFINITIONS

1. Definition of company: The entirety of any organization or business entity responsible for implementing the requirements of this standard, including all personnel (i.e., directors, executives, management, supervisors, and non-management staff, whether directly employed, contracted or otherwise representing the company).

2. Definition of supplier/subcontractor: A business entity which provides the company with goods and/or services integral to, and utilized in/for, the production of the company’s goods and/or services.

3. Definition of sub-supplier: A business entity in the supply chain which, directly or indirectly, provides the supplier with goods and/or services integral to, and utilized in/for, the production of the supplier’s and/or company’s goods and/or services.

4. Definition of remedial action: Action taken to make amends to a worker or former employee for a previous violation of a worker’s rights as covered by SA8000.

5. Definition of corrective action: The implementation of a systemic change or solution to ensure an immediate and ongoing remedy to a nonconformance.

6. Definition of interested party: Individual or group concerned with or affected by the social performance of the company.

7. Definition of child: Any person less than 15 years of age, unless local minimum age law stipulates a higher age for work or mandatory schooling, in which case the higher age would apply. If, however, local minimum age law is set at 14 years of age in accordance with developing-country exceptions under ILO Convention 138, the lower age will apply.

8. Definition of young worker: Any worker over the age of a child as defined above and under the age of 18.

9. Definition of child labour: Any work by a child younger than the age(s) specified in the above definition of a child, except as provided for by ILO Recommendation 146.

10. Definition of forced labour: All work or service that is extracted from any person under the menace of any penalty for which said person has not offered him/herself voluntarily or for which such work or service is demanded as a means of repayment of debt.

11. Definition of remediation of children: All necessary support and actions to ensure the safety, health, education, and development of children who have been subjected to child labour, as defined above, and are dismissed.

12. Definition of homeworker: A person who carries out work for a company under direct or indirect contract, other than on a company’s premises, for remuneration, which results in the provision of a product or service as specified by the employer, irrespective of who supplies the equipment, materials or other inputs used.

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IV. Social Accountability Requirements1. Child LabourCriteria:

1.1 The company shall not engage in or support the use of child labour as defined above.

1.2 The company shall establish, document, maintain, and effectively communicate to personnel and other interested parties policies and procedures for remediation of children found to be working in situations which fit the definition of child labour above, and shall provide adequate support to enable such children to attend and remain in school until no longer a child as defined above.

1.3 The company shall establish, document, maintain, and effectively communicate to personnel and other interested parties policies and procedures for promotion of education for children covered under ILO Recommendation 146 and young workers who are subject to local compulsory education laws or are attending school, including means to ensure that no such child or young worker is employed during school hours and that combined hours of daily transportation (to and from work and school), school, and work time does not exceed 10 hours a day.

1.4 The company shall not expose children or young workers to situations in or outside of the workplace that are hazardous, unsafe, or unhealthy.

2. Forced Labour Criteria: 2.1 The company shall not engage in or support the use of forced

labour, nor shall personnel be required to lodge ‘deposits’ or identity papers upon commencing employment with the company.

3. Health and SafetyCriteria:

The company, bearing in mind the prevailing knowledge of the industry and of any specific hazards, shall provide a safe and healthy working environment and shall take adequate steps to prevent accidents and injury to health arising out of, associated with or occurring in the course of work, by minimizing, so far as is reasonably practicable, the causes of hazards inherent in the working environment.

The company shall appoint a senior management representative responsible for the health and safety of all personnel, and accountable for the implementation of the Health and Safety elements of this standard.

The company shall ensure that all personnel receive regular and recorded health and safety training, and that such training is repeated for new and reassigned personnel.

The company shall establish systems to detect, avoid or respond to potential threats to the health and safety of all personnel.

The company shall provide, for use by all personnel, clean bathrooms, access to potable water, and, if appropriate, sanitary facilities for food storage.

The company shall ensure that, if provided for personnel, dormitory facilities are clean, safe, and meet the basic needs of the personnel.

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4. Freedom of Association & Right ToCollective Bargaining

Criteria:4.1 The company shall respect the right of all personnel to form and join trade

unions of their choice and to bargain collectively.

4.2 The company shall, in those situations in which the right to freedom of association and collective bargaining are restricted under law, facilitate parallel means of independent and free association and bargaining for all such personnel.

4.3 The company shall ensure that representatives of such personnel are not the subject of discrimination and that such representatives have access to their members in the workplace.

5. DiscriminationCriteria:5.1 The company shall not engage in or support discrimination in hiring,

remuneration, access to training, promotion, termination or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age.

5.2 The company shall not interfere with the exercise of the rights of personnel to observe tenets or practices, or to meet needs relating to race, caste, national origin, religion, disability, gender, sexual orientation, union membership, or political affiliation.

5.3 The company shall not allow behaviour, including gestures, language and physical contact, that is sexually coercive, threatening, abusive or exploitative.6. Disciplinary Practices

Criteria:6.1 The company shall not engage in or support the use of corporal punishment,

mental or physical coercion, and verbal abuse.7. Working Hours

Criteria:7.1 The company shall comply with applicable laws and industry standards on workinghours. The normal workweek shall be as defined by law but shall not on a regular basis exceed 48 hours. Personnel shall be provided with at least one day off in every seven-day period. All overtime work shall be reimbursed at a premium rate and under no circumstances shall exceed 12 hours per employee per week.7.2 Other than as permitted in Section 7.3 (below), overtime work shall be voluntary.7.3 Where the company is party to a collective bargaining agreement freely negotiated with worker organizations (as defined by the ILO) representing a significant portion of its workforce, it may require overtime work in accordance with such agreement to meet short-term business demand. Any such agreement must comply with the requirements of Section 7.1 (above).8. Remuneration

Criteria:8.1 The company shall ensure that wages paid for a standard working week shall

always meet at least legal or industry minimum standards and shall be sufficient to meet basic needs of personnel and to provide some discretionary income.

8.2 The company shall ensure that deductions from wages are not made for disciplinary purposes, and shall ensure that wage and benefits composition are detailed clearly and regularly for workers; the company shall also ensure that wages and benefits are rendered in full compliance with all applicable laws and that remuneration is rendered either in cash or check form, in a manner convenient to workers.

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8.3 The company shall ensure that labour-only contracting arrangements and false apprenticeship schemes are not undertaken in an effort to avoid fulfilling its obligations to personnel under applicable laws pertaining to labour and social security legislation and regulations.9. Management Systems

Criteria: Policy

9.1 Top management shall define the company’s policy for social accountability and labour conditions to ensure that it:a) Includes a commitment to conform to all requirements of this standard;b) Includes a commitment to comply with national and other applicable law, other requirements to which the company subscribes and to respect the international instruments and their interpretation (as listed in Section II);c) Includes a commitment to continual improvement;d)is effectively documented, implemented, maintained, communicated and is accessible in a comprehensible form to all personnel, including, directors, executives, management, supervisors, and staff, whether directly employed, contracted or otherwise representing the company;e)is publicly available.

Management Review9.2 Top management shall periodically review the adequacy, suitability, and

continuing effectiveness of the company’s policy, procedures and performance results vis-a-vis the requirements of this standard and other requirements to which the company subscribes. System amendments and improvements shall be implemented where appropriate.

Company Representatives9.3 The company shall appoint a senior management representative who,

irrespective of other responsibilities, shall ensure that the requirements of this standard are met.

9.4 The company shall provide for non-management personnel to choose a representative from their own group to facilitate communication with senior management on matters related to this standard.

Planning and Implementation9.5 The company shall ensure that the requirements of this standard are

understood and implemented at all levels of the organisation; methods shall include, but are not limited to:

a) clear definition of roles, responsibilities, and authority;b)training of new and/or temporary employees upon hiring;c)periodic training and awareness programs for existing employees;d)continuous monitoring of activities and results to demonstrate the effectiveness of

systems implemented to meet the company’s policy and the requirements of this standard.Control of Suppliers/Subcontractors and Sub-Suppliers9.6 The company shall establish and maintain appropriate procedures to evaluate

and select suppliers/subcontractors (and, where appropriate, sub-suppliers) based on their ability to meet the requirements of this standard.

9.7 The company shall maintain appropriate records of suppliers/subcontractors (and, where appropriate, sub-suppliers’) commitments to social accountability, including, but not limited to, the written commitment of those organizations to:

a) conform to all requirements of this standard (including this clause);b) participate in the company’s monitoring activities as requested;c) promptly implement remedial and corrective action to address any

nonconformance identified against the requirements of this standard;d) promptly and completely inform the company of any and all relevant business

relationship(s) with other suppliers/subcontractors and sub-suppliers.

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9.8 The company shall maintain reasonable evidence that suppliers and subcontractors are meeting the requirements of this standard.

9.9 In addition to the requirements of Sections 9.6 and 9.7 above, where the company receives, handles or promotes goods and/or services from suppliers/subcontractors or sub-suppliers who are classified as homeworkers, the company shall take special steps to ensure that such homeworkers are afforded a similar level of protection as would be afforded to directly employed personnel under the requirements of this standard. Such special steps shall include but not be limited to:

(a) establishing legally binding, written purchasing contracts requiring conformance to minimum criteria (in accordance with the requirements of this standard);

(b) ensuring that the requirements of the written purchasing contract are understood and implemented by homeworkers and all other parties involved in the purchasing contract;

(c) maintaining, on the company premises, comprehensive records detailing the identities of homeworkers; the quantities of goods produced/services provided and/or hours worked by each homeworker;

(d) frequent announced and unannounced monitoring activities to verify compliance with the terms of the written purchasing contract.

Addressing Concerns and Taking Corrective Action9.10 The company shall investigate, address, and respond to the concerns of

employees and other interested parties with regard to conformance/nonconformance with the company’s policy and/or the requirements of this standard; the company shall refrain from disciplining, dismissing or otherwise discriminating against any employee for providing information concerning observance of the standard.

9.11 The company shall implement remedial and corrective action and allocate adequate resources appropriate to the nature and severity of any nonconformance identified against the company’s policy and/or the requirements of the standard.

Outside Communication9.12 The company shall establish and maintain procedures to communicate

regularly to all interested parties data and other information regarding performance against the requirements of this document, including, but not limited to, the results of management reviews and monitoring activities.

Access for Verification9.13 Where required by contract, the company shall provide reasonable

information and access to interested parties seeking to verify conformance to the requirements of this standard; where further required by contract, similar information and access shall also be afforded by the company's suppliers and subcontractors through the incorporation of such a requirement in the company's purchasing contracts.

Records9.14 The company shall maintain appropriate records to demonstrate conformance

to the requirements of this standard.

3.METHODOLOGY

Interviews with workers of SA 8000 companies, Interviews with Trade Union leaders who have their presence in these SA 8000 companies and interviews with SA 8000 management representatives are conducted for this study. The informal discussions with commercialauditors and other trade unions leaders also assisted to sharpen our perspective on the field realities of implementation of SA 8000 process and its impact.

We have interviewed 52 men and women workers from 3 SA 8000 companies in Tirupur, 10 other interviews with trade union leaders, SA 8000 management representatives and commercial auditors. We have interviewed few supervisors in these companies. We have gathered information about their age, sex, and nature of work and family size.The Questionnaire for this study is formulated with the basis of nine core areas covered by SA 8000 standard like child labour, forced labour, health and safety, compensation, working

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hours, discrimination discipline, free association and collective bargaining and management systems. Questionnaire is devised to probe the compliance of SA 8000 systems subjected its specifications.

4.FINDINGSIn this study we have covered all the three SA 8000 companies in Tirupur. We have found several aspects covered by SA 8000 are implemented and at the same time there are some slackness in the implementation process.

Profile of workers

In our selected sample of workers we have found 5%, 11% and 6% of the workers are in the age group of 16 to 18 years in the three companies respectively. 28%, 17% and 38% of the workers in the three companies are in the age group of 19 to 24 years of age. Overall more than 80% of the workers are in the age group of below 36 years (see table-1).

GENERAL INFORMATION FROM SAMPLE – Table -1

DETAILS COMPANY – I COMPANY – II COMPANY – IIIAge16 – 18 5 11 619 – 24 28 17 3825 – 30 28 44 5031 – 36 28 11 637 and above 11 17 0

100 100 100Sex Male 67 61 50Female 33 39 50Nature of workSkilled 39 50 44Unskilled 61 50 56Family SizeNumber of Person3 6 6 64 44 22 565 28 33 136 22 27 257 and above 0 12 0

100 100 100

In company-I there are totally 155 workers, among them 40% of the workers are women workers and remaining 60% of the workers are men workers. 40% of the women workers are skilled and the remaining are unskilled workers. Also 90% of the men workers are skilled workers and only 10% of the men workers are unskilled workers.

There are around 500 workers working in Company-II. Around 40% of the workers are women workers, among them. 40% are skilled women workers and 60% are unskilled women workers. 60% of the men workers are skilled workers and remaining 40% of the men workers are unskilled workers.

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There are 321 workers working in Company – III. Nearly 66% of them are men workers and the remaining 34% of them are women workers. Among the women workers nearly 40% are skilled and the remaining workers are unskilled.Only 6% of the workers in all the three companies have a family size of 3.Majority of the workers in the three companies (72%, 55% & 69%) are having a family size of 4 or 5 persons. While 22%, 37% and 25% of the workers respectively in the three companies have a family size of 6 and more than 6 persons.

Nature of work 28% of the workers each in the Company I & II and 29% of the workers in Company III are working as helpers. 11%, 22% and 29% of the workers in the three companies respectively are working in the garment folding section. 33%, 22% and 16% of the workers in three companies are working in tailoring unit. Around 10% of the workers are in the supervisor category in the three companies, while others are working in other sections related to garment manufacture.

NATURE OF WORK - Table –2

Category of work Company – I Company – II Company – IIIHelper 28 28 19Folding 11 22 19Tailoring 33 22 6Supervisor 11 17 50Others 17 11 6

100 100 100

NATURE OF WORK – Table – 3

Company – I Company – II Company – IIIMale Female Total Male Femal

eTotal Male Femal

eTotal

UnskilledHelper 33 33 33 27 29 28 37 0 19Folding 0 17 6 9 43 22 0 50 25SkilledTailor 17 50 28 18 28 22 50 50 50Supervisor 17 0 11 28 0 17 0 0 0Others 33 0 22 18 0 11 13 0 6

12 6 18 11 7 18 8 8 16100 100 100 100 100 100 100 100 100

Monthly income28% of the workers in Company – I, 17% of the workers in Company-II and 13% of the workers in Company-III are receiving a monthly income of less than Rs.2000/- 28%, 33% and 62% of the workers in the three companies respectively, earn around Rs.2000 to Rs.3000 per month. Also 28%, 6% and 13% of the workers in the three companies are receiving an income of around Rs.3000 to Rs.4000/- per month.16%, 44% and 12% of the workers in the three companies earn between Rs.4000 to Rs.5000/-.

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A large number of workers (56%, 50% and 75% in three companies respectively) earn less than Rs.3000/- per month.

MONTHLY INCOME – Table – 4

Monthly Income of Workers (Rs)

Company – I Company – II Company – III

Below Rs. 2000 28 17 13Rs. 2000 – 3000 28 33 62Rs. 3000 – 4000 28 6 13Rs. 4000 – 5000 16 44 12

100 100 100

BenefitsNone of the workers in the three factories receive daily allowance. Only 17% of the workers in Company II receive Travel Allowance and other workers are not receiving any travel allowance. All the workers in the three companies receive Bonus and all the women workers in the three companies are entitled to paid maternity leave. 94% and 89% of workers in the Company I and II are provided Provident Fund facility and all the women workers in Company III are entitled to Provident Fund. None of the workers in the three companies receive any incentives.

BENEFITS – Table – 5

Benefits Company – I Company – II Company – IIIDaily Allowance 0 0 0Travel Allowance 0 17 0Bonus 100 100 100Incentive 0 0 0Paid maternity leave 100 100 100Provident Fund 94 89 100

Monthly income required39% of the workers in Company I, 22% of the workers in Company II and 38% of the workers in Company III ace expressed that their monthly income is sufficient. 50%, 67% and 62% of the workers in the three companies respectively have expressed that they need an additional income of below Rs.2000/- per month, while 11% of the workers in Company I & II are demanding an additional income of around Rs.2000/- to Rs.3000/- per month.

MONTHLY INCOME REQUIRED - Table –6

Monthly income required Company – I Company – II Company – IIIMonthly Income is Sufficient 39 22 38Below Rs. 1000 22 39 62Rs. 1000 – 2000 28 28 0Rs. 2000 – 3000 11 11 0

100 100 100

Working hours72% of the workers in Company I and 50% of the workers in Company II are working 48 hours per week. 6% of the workers in Company I 50% of the workers in Company II and all the workers in Company III are working 60 hours per week, while 22% of the worker in Company-I are working around 72 hours per week.

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WORKING HOURS – Table – 7

Working hours per week

Company – I Company – II Company – III

48 hours per week 72 50 060 hours per week 6 50 10072 hours per week 22 0 0

100 100 100

OVER TIME WORK – Table –8

Hours Company – I Company – II Company – IIINo over time 61 6 25Below 12 28 44 7513 – 18 11 11 0Above – 19 - 39 0

100 100 100

Over time work61% of the workers in Company I, 6% of the workers in Company-II and 25% of the workers in Company III have no overtime work. 28%, 44% and 75% of the workers in these companies respectively work below 12 hours per week. 11% of the workers in Company I & II work around 13 to 18 hours per week as over time and 39% of the workers in the company III work more than 19 hours per week as overtime.

MONTHLY INCOME – Table – 9

Monthly Income in (Rs)

Company – I Company – II Company – III

Male %

Female %

Total % Male %

Female %

Total %

Male %

Female %

Total %

Below Rs. 2000 33 17 28 18 14 17 0 25 13Rs. 2001 – 3000 25 33 28 18 57 33 50 75 62Rs. 3001 – 4000 9 50 22 0 14 6 25 0 13Rs. 4001 – 5000 33 0 22 64 15 44 25 0 12

100 100 100 100 100 100 100 100 100

Monthly Income – Gender wise17% of women workers in Company-I, 14% of the women workers in Company-II, 25% of the women workers in Company-III monthly income below Rs.2000/- 33% of the women workers in Company-I, 57% of the women workers in Company –II and 75% of the women workers in Company-III earn between Rs.2001 to Rs.3000/- others earn more than Rs.3000/- in Company I & II and none of the women workers of Company III earn more than Rs.3000/-

Forcible labour44% of the workers in Company I, 56% of the workers in Company II and all the workers in Company III are forced to work during peak garment supply season. Also 50% & 44% of the workers of garment Company I & II are not forced to work.

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WORKERS FORCED TO WORK – Table – 10

Company – I Company – II Company – IIIForced to work 44 56 100Not forced to work 56 44 0

100 100 100

DiscriminationGenerally there is not discrimination in all these companies but workers in Company II accepts that there is discrimination in promotion and termination. Only 5% of the workers in Company II have identified discrimination in promotion and 28% of the workers in the same company have found discrimination in termination. Workers generally feel that there is not discrimination based on religion, caste, colour, sex and age in hiring, remuneration, access to training, promotion and termination.

DISCRIMINATION – Table – 11

Type of Discrimination Company – I Company – II Company – IIIIn hiring 0 0 0In remuneration 0 0 0In access to training 0 0 0In promotion 0 5 0In termination 0 28 0

Child labour There is no child labour system in these companies. We found this during our investigation and workers of these companies also confirms our findings. These are few cases of child labourers working in company-II, according to some workers. In our investigation, we could not able to collect solid evidence based on workers’ reported disclosure.

Child labour system in a SA 8000 company may pose a serious problem both to the company and systems and procedures of SA8000 certification. Therefore, we cannot conclude the presence of child labour in this company based on few workers respect rather than with solid evidence. At the same time workers report may me true since we cannot scan all 500 odd workers working in various shifts in various seasons with frequent mobility of workers?.Health and safety All the workers in the three companies accept that their management has taken adequate steps to prevent accident and also their management has taken adequate steps to prevent health problems due to their work. All the workers in all three SA 8000 companies are saying that their company will pay enough compensation in case of accident at work place. Workers of company I and III confirm that they have received training for safety aspect.

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HEALTH AND SAFETY - Table –12

S.No

Health & Safety Particulars Company – I Company – II Company – III

1 Management take adequate step to prevent accident

100 100 100

2 Adequate step to prevent to health problems due to work

100 100 100

3 Adequate step to prevent hazards inherent in work

100 39 100

4 Accident to in the company past 1 year

0 28 100

5 Paid for accidents compensation 100 100 1006 Provide training for safety 100 78 100

28% of the workers of company reports that accident took place in the last one year and 39% of the workers from the same company feels that the company has not taken adequate steps to prevent hazards inherent in work. 22% of the workers of company II complains that they have not received training related to safety at workplace

FACILITIES – Table – 13

Company – I Company – II Company - IIIFacilities Good Averag

eBad Good Averag

eBad Good Averag

eBad

Portable water 100 - - 6 39 55 100 - -Clean toilets 100 - - 22 56 22 100 - -Facilities for food storage

100 - - 11 11 78 100 - -

Lighting 100 - - 67 33 - 100 - -Air Ventilation 100 - - 72 28 - 100 - -

Good potable water, clean toilets, facilities for food storage, good lighting and proper air ventilation are available in company III& I. 55% of workers in company II says that they get bad quality of potable water, 78% of the workers from the same are not satisfied about the cleanliness of the toilet 28% of the workers of the company 2 says that they have bad facilities for food storage. More man one fourth of the workers from the same company are not satisfied with lighting and air ventilation facilities in their company.

SAFETY ASPECTS TRAINING TO WORKERS -Table – 14

Company – I Company – II Company – IIINo information - 22 -6 Months 61 33 6712 Months 39 45 33

100 100 100 61% and 67% of the workers in company I and II, says that receive training related to safety at work place for even six month and remaining workers says that they receive training once in year. Surprisingly, around 22% of the workers in company II have no information about such training. 33% of the workers in the same company says that they receive safety training for every six-month and 45% of the workers receiving safety training once in year.

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Free association and collective bargaining Trade union and their representatives are accessible to all the three company workers. They are not discriminated by the management for their involvement in trade union. However 31% of the workers in company III says that will be discriminated if the management finds involvement with trade union. Trade unions or workers association is not available in this company III. Also (63% of the workers) nearly two third of the total workers of company III are not members in AITUC trade union and 12% of the workers are enrolled in CITU without the knowledge of their management. Workers in the company III and I are officially participating in Trade union activities.

AFFILIATION TO TRADE UNIONS - Table -15

Company – I Company – II Company – IIIC I T U 83 39 12A I T U C 6 5 25I N T U C 0 11 0A T P 0 6 0Non a members 11 39 63

100 100 100

AITUC-ALL INDIA TRADE UNION CONGRESS, CITU-CENTRAL INDIAN TRADE UNION INTUC-INDIAN TRADE UNION CONGRESS, ATP-ANNA THOLILAR PERAVAI

83% of the workers in the company I are enrolled in CITU, 6% of the workers are enrolled in AITUC and only 11% of the workers are not members in any trade union. 39% of the workers in company 2 are member in CITU, 11% of the workers are enrolled in INTUC, 6% of the workers are members in ATP and 5% of the workers are member of AITUC while 39% of the workers are not member in any union.

Discipline

Management of all the three companies has uniformly implemented SA 8000 standard prescribed under this title. There are no reports from workers on bad behaviour of supervisors, mental /physical coercion and verbal abuse etc.

Management systems

Top management has defined the company’s policy for social accountability and labour conditions. All the three companies have exhibited their company’s policy for social accountability and its commitment for conform to all requirements of SA8000 standard inmounted poster at work place.

Social Auditing

56%,50% and 67% of workers in company-I, II and III respectively know about social auditing. All the workers in company I and III says that their company has SA8000 certificate, private social auditors used to visit their workplace, NGO’s have inspected their workplace. Also they confirm that buyers have inspected their company and management has explained to them about Sa8000 and their rights under SA8000.And all the workers in these two companies says that they have answered the questions asked to them during social auditing without any fear of reprisal.

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50% of the workers in company –II knows that their company has SA8000 certificate and they have answered the questions asked to them during social auditing without any fear of reprisal. Nearly one fifth of the workers in this company have no knowledge of buyers’ inspection and deny that the management has so far never explained about SA8000 and their due rights under SA8000.

All the workers in company I and III have no fear for their job security. They all know about their due rights under SA8000 and social auditors have explained them about SA 8000 standards. However all the workers in these companies have said that social auditors. Three fourth of the workers in company-II have fear over their job security. Their social auditors have not explained to them about SA8000. Also workers in company –II do not have any access to social auditors.

Workers in all the three companies do not know about SA8000representative, complaint system and labour contract system in their company.

SOCIAL AUDITING – Table - 16

Company – I Company – II Company – IIIKnow about social auditing 56 50 67Company has SA 8000 certificate

100 50 100

Private Social Auditors visits 100 100 100Private social auditors, questioned the labour condition

100 50 100

Workers answered the question with out fear

100 50 100

Management explain to you about SA 8000 and its rights

100 83 100

NGO’s inspected your company

100 22 100

Buyers have inspected your company

100 78 100

Company I and II have apprenticeship scheme. Most of the workers in all the three companies say that their management provides SA 8000 awareness training programmme to all the new workers. All the workers in three companies feel that labour conditions have improved as a result of SA 8000 certification. Most of the workers (see table) express satisfaction about the improvements made in aspects related to SA 8000 core areas child labour, forced labour, health and safety, compensation, working hours, discrimination, discipline, free association and collective bargaining and management systems.

5. PERSPECTIVE ANALYSIS

The management of company-I feels that SA 8000 has provided the workers a sense of job security. 90% of the workers in their unit have become permanent workers and SA8000 standard has in fact halted the mobility of workers. In Tirupur, most of the time a majority of workers frequently move from one company to another and under this context the management of company-I has expressed its satisfaction over reduced mobility of workers as a direct positive impact of SA8000. Overall the relationship between workers and management has improved and this helps their productivity. Workers issues are quickly solved with the direct intervention of Chief Executive Officer and workers representative.

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The management of company-II has provided an opportunity to the company to improve its working conditions. Slowly and steadily the company addresses the workers issue step by step and positively won the confidence of workers. Company could make much improvements in Child labour, Health and Safety and other core aspects of SA8000.

The management in company-III feels that labour issues are solved and labour conditions are improved. Working hours are streamlined. Health and Safety aspects are improved.

The management of company-I, II and III has uniformly finds the assertive approach of workers is the main negative aspect of SA8000. They all feel that SA8000 gives undue advantage to the workers and it makes the management difficult to administrate. The supervisors feel insecure and workers misuse their powers. Process of implementing SA8000 is very costly and the total costs are loaded to the manufacturers while retailers from Developed countries take advantage in marketing their products by informing the consumers that their products are manufactured in SA 8000 standard company. Limited overtime makes the workers uneasy since they want to work more hours. Workers in the age group of 16 to 18 feel that they have denied their right to work under SA8000.The management feels helpless while removing those young workers since after all they have worked for the company couple of years before the company achieved SA8000.

Trade Union leaders in these companies feels that SA8000 has simplified their tasks particularly workers can become members in the trade union officially and their fear for management actions are now ruled out. Trade union members are elected to Non Management Committee. They are expressing their support to these companies with SA8000 certificate particularly in the aspects like free association and collective bargaining, no forcible labour, no child labour, better relationship between management and workers and no discrimination. All the Trade union leaders uniformly welcome SA 8000 and they want all the companies should have such certificate. They never feel betrayed by SA 8000’s intervention in their roles and responsibilities.

Our perspective based on the interviews of workers are different from what the management views as negative aspects of SA8000 except the fact that workers are disappointed with SA 8000 stipulation on working hours and workers feel that they loose their wages on account of SA8000.

Company-III has not allowed any Trade Union to operate in the company but they say Trade Union is not necessary in their premises as every need of workers are taken care by the management. It exposes the commitment of commercial auditors who have done the verification process.

The facts related to lack of trade union inside the factory and the lack of official recognition of such trade unions or employees association indeed makes mockery of SA 8000. And 31% of the workers in this company-III have informed us that they will be discriminated on account of their involvement with trade union conform the status of right to organise and the right to collective bargaining in SA8000 standards. SA8000 receives wider support from workers rights groups based on this fact however in reality it seems to be very different from what papers says so.

Our perspective on SA 8000 and its compliance identifies following irregularities in its implementation in Tirupur

Approximately 45 to 33 percentage of workers in the 3 companies actually do not know anything about SA8000 and the rights apart from simply knowing that their company has SA8000 certificate.

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Workers do not have free access to contact SA 8000 auditors.

Workers do not know that they can make complaint or appeal to SAI about the non-compliance of SA 8000 standards and they do not the lengthy system of complaint procedures.

Workers do not proper compensation. The companies failed to ensure that sufficient wages are paid to meet basic needs of workers. Workers do not get daily allowance, travel allowance and incentives, their basic needs will be covered only if they pay these remuneration.

Companies have false apprenticeship schemes, which makes the company to avoid fulfilling its obligations.

Workers around 60 to 80 percentage have expressed their dissatisfaction over the remuneration paid to them. This aspect makes them to demand more working hours and find fault with SA 8000 standard on working hours. Our view is that if they pay proper remuneration then the workers will accept the SA8000 standard on working hours.

Company-II lacks in steps taken to prevent accidents and workers report accidents in the past 1year even after this company achieved SA 8000 certification.

Company-II and III needs to improve a lot to satisfy workers on facilities at workplace like potable water, clean bathroom, facilities for storage of foods, lighting and air ventilation.

Workers in company-II complains about discrimination in termination and this issue seems to be prevalent in this company as some workers during interviews asked details about how to make complain or appeal to SAI and we provided the details.

Around 45 to 55 percentage of workers in company-I and II are forced to work in peak season in violation of SA 8000 standard on forcible labour.

9. RECOMENDATIONS AND CONCLUSION.

After conducting the case study on SA 8000 standards in garment companies we understand that these companies need to take steps to implement SA8000 standards in letter and sprit.

SAI must take adequate steps to force these companies to implement better compensation to workers so that they receive remuneration sufficient to their survival.

SAI and its auditors must conduct another audit to improve the existing conditions to be in tune with the specifications of SA8000 standards.

Social auditors must create a condition in the companies where workers have right to organise and the right to collective bargaining. So that workers can participate in trade unions without any fear of reprisal.

SAI must involve NGO audits more frequently and make it a mandatory to issue SA 8000 standards along with more active involvement of trade unions.

SAI must work towards abolition of false apprenticeship system in the companies.

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Social auditors must issue SA8000 certification in this region to the companies only after thorough verification of compliance of SA8000 standards.

SAI must take adequate initiatives along with its certified auditors and certified companies to develop a systematic process so that all workers are aware of its complaint system. Workers must be trained to understand all the aspects related to SA 8000 standards. In future NGOs and trade unions must have a comprehensive role in this mechanism when it is going revise its standards in 2004.

While concluding this report that we understand SA8000 standards have made tremendous impact on the working conditions of the workers in the SA 8000 certified companies. SA8000 have provided an opportunity to the workers the right to organize. This is a key and valuable input of SA8000 standard in the companies. In future SA 8000 standards must have a major emphasis on compensation to workers and indeed it is the major aspect related to improving living conditions of workers.