Open Access Article
Establishing Operational Norms for Labor Rights Standards Implementation in Low-Cost Apparel Production
by Rejaul Hasan,Marguerite Moore and Robert Handfield
Wilson College of Management, North Carolina State University, Raleigh, NC 27695, USA
Academic Editor: Franklin G. Mixon
Sustainability 2021, 13(21), 12120; https://doi.org/10.3390/su132112120
Received: 26 September 2021 / Revised: 26 October 2021 / Accepted: 28 October 2021 / Published: 2 November 2021
All respondents recommended an onsite social compliance officer as well as ongoing awareness training regarding forced labor practices for workers, managers, and owners. Likewise, the majority of respondents (93%) indicated that enforcement of accurate compensation and overtime accounting aids in controlling forced labor practices. Additional actions selected by the majority of auditors include: establishing and communicating an explicit forced labor policy to workers, managers and owners (80%), establish a grievance mechanism for workers (73%), provide a dedicated production planner (73%) and implement efficient production planning procedures (73%). Overall, the auditors primarily suggested actions related to the provision of personnel, development and enforcement of policies, education of factory stakeholders and improvements in production efficiency to address forced labor.
To address child labor practices, auditors unanimously indicated two cost-bearing actions related to personnel: provide a dedicated social compliance auditor as well as a dedicated health professional onsite. All respondents also suggested providing an onsite medical facility, along with implementing policies that enforce explicit age limits for recruitment. Additional actions selected by the majority of respondents include: establishing and communicating a no child labor policy to workers, managers and owners (87%) and providing training for recruiters to avoid child labor (73%).
In terms of compensation, respondents consistently recommended providing an onsite social compliance officer, providing awareness training on compensation policy, establishing an effective grievance mechanism, and establishing payment systems based on worker skills. The respondents also unanimously indicated that enforcement of the minimum wage, overtime payment, legal benefits and implementation of a worker attendance system are needed for minimum compliance to compensation standards. Additionally, most respondents recognized a need for production planning personnel (73%), while fewer (20%) suggested implementation of efficient planning processes.
For minimum cost-related actions required to enforce working hours standards in factories, respondents unanimously indicated a need for an onsite compliance officer and production planner, payment of the legal minimum wage, provision of overtime and benefits as well as implementation of a worker attendance system. Additional actions suggested by the majority of respondents to meet working hours standards include: implementation of efficient production planning (86%), provision of a grievance mechanism for workers (80%), provision of a service book (73%) and an onsite production planner (73%). In regard to freedom of association, respondents unanimously indicated provision of an onsite social compliance officer, FOA awareness training for workers, managers and owners, and effective communication of FOA policy. These are costs that must ultimately be folded into the overhead costs of operating the factory.
Recommended actions related to health and safety suggested the highest degree of agreement among the auditors. All respondents suggested onsite access to a health care professional, access to an occupational health and safety (OHS) officer, and maintenance personnel. Further, the entire sample indicated a need for health and safety related awareness training, effective communication of relevant policies and provision of personal protection equipment (PPE). Again, all respondents indicated that compliance with the Accord and Alliances also constitutes a minimum action to meet health and safety standards; note that both initiatives were active at the beginning of data collection but have since ended for the most part. Here again, these investments are likely to increase overhead costs associated with the factory operational costs.
To support freedom of association and collective bargaining rights, the auditors unanimously suggested provision of an onsite social compliance officer, development and communication of a clear freedom of association policy, training for factory workers, managers and owners and establishment of a grievance mechanism. Only a single respondent suggested that the factory should commit resources to directly support workers’ unions.
To enforce non-discrimination, all respondents indicated a need for an onsite social compliance officer, along with awareness training and implementation of an effective grievance mechanism for workers. Additionally, most expert respondents (86%) also recommend establishing and communicating a clear non-discrimination policy at the factory. Similarly, the experts suggested a narrow range of actions to enforce disciplinary practices with unanimous agreement for providing an onsite social compliance officer, providing awareness training to all employees and establishing effective grievance mechanism. Likewise, the majority of the respondents (86%) also recommended establishing and communicating a clear non-discrimination policy at the factory.
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