Comparison of Codes: ETI Base Code; SA8000; GSCP

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1 Comparison of Codes: ETI Base Code; SA8000; GSCP

2 SEDEX CODE COMPARISON Introduction to the Codes ETI Ethical Trade Initiative: The Ethical Trading Initiative (ETI) is a ground-breaking alliance of companies, trade unions and voluntary organisations which promotes the implementation of corporate codes of practice which cover supply chain working conditions. Their ultimate goal is to ensure that the working conditions of workers producing for the UK market meet or exceed international labour standards. The Ethical Trading Initiative (ETI) produces guidelines aimed at the promotion and the improvement of ethical trade. The code of conduct has been elaborated in the UK by an alliance of companies, non-governmental organisations (NGOs) and trade union organisations. It is composed of two key elements: the ETI Base Code and the accompanying Principles of Implementation. ETI has developed a code of labour practice - the 'Base Code' - reflecting the most relevant international standards with respect to labour practices which will be used as the basis of its work under the form of 9 statements. ETI member companies are expected to adopt the Base Code, or to adopt their own code so long as it incorporates the Base Code. The Base Code, which is accompanied by a set of general principles concerning implementation, provides a foundation for ETI's philosophy of learning. SA8000: SAI is a non-governmental, international, multi-stakeholder organization dedicated to improving workplaces and communities. It does this work with two principal types of tools; developing and implementing socially responsible standards, the first of which was SA8000; training and capacity building-- about specific standards and management systems for implementing social standards-- for workers, managers and auditors throughout the supply chain. SA8000 is an auditable certification standard based on international workplace norms of International Labour Organisation (ILO) conventions, the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. This standard is the benchmark against which companies and factories measure their performance. Those seeking to comply with SA8000 have adopted policies and procedures that protect the basic human rights of workers. There are a series of documents available to support auditors and implementers of the SA8000 Standard; these are: the SA8000 Guidance Document; The SA8000 :2008 Drafters' Notes; and the SA8000 Frequently Asked Questions (FAQs). Comparison of Codes - Similarities & Page 2

3 Comparison of Codes - Similarities & Page 3

4 GSCP (Global Social Compliance Program): The Global Social Compliance Programme is a business-driven programme for the continuous improvement of working and environmental conditions in global supply chains. The GSCP was created by and for global buying companies wanting to work collaboratively on improving the sustainability (social and environmental) of their oftenshared supply base. To this end, these companies are working on harmonizing existing efforts to deliver a shared, global and sustainable approach based on consensus and best existing practice, to promote upward convergence and reduce duplication. The GSCP Reference tools, including the Reference Code used in this comparison, are the product of the identification of best existing practices in operating monitoring systems, and provide a common base of high-level labour requirements applicable across sectors and geographies. The GSCP Reference Code is not a standard and the GSCP is not a monitoring system. The Programme and its tools are used by companies as a basis to develop their own supplier codes of conduct or as a benchmark for schemes owners (including initiatives or standard-setting bodies) to assess and improve their existing requirements for these to reflect best existing practice. The Reference Code is complemented by other GSCP Reference tools (available open source on which set out additional requirements for auditing (Reference Audit Process and Methodology), for auditing bodies and auditors (Reference tool for Auditing Competence) and Social Performance Management Systems. Comparison of Codes - Similarities & Page 4

5 Intention of Code / Audit Method - Auditable Labour Standards Code not certification scheme. - Audits conducted by any parties as agreed by the supply chain. - Third party accredited certification scheme. - Audits conducted by approved SA8000 auditors - Reference code for benchmarking - Audits conducted by any parties as agreed by the supply chain. Structure and General comments The ETI Base code is structured as follows: 1. ETI Base Code 9 elements 2. Appendices - Relevant international standards - UN Universal Declaration of Human Rights, ILO etc. - Definitions (specifically a child ) The SA8000 code is structured as follows: 1. Purpose and scope of the code 2. Normative elements and their interpretation ILO conventions 3. Definitions of multiple terms 4. Social Accountability Requirements(SA8000) 9 elements The GSCP Reference code is structured as follows: 1.Objective 2. Scope 3. Structure and Annexes 4. Compliance with international labour standards and national legislation - including ILO conventions 5. Reference code 7 elements Differences (a) Code refers to The Employer. (a) Code refers to The Company. (a) Reference Code refers to The Supplier. ILO Conventions / International Standards - Universal Declaration of Human Rights - Guidelines for Multinational Enterprises developed by the Organisation for Economic Co-operation and Development (OECD) - United Nations Convention on the Rights of the Child - ILO Code of Practice on HIV/AIDS and the World of Work - Universal Declaration of Human Rights - The International Covenant on Economic, Social and Cultural Rights - The International Covenant on Civil and Political Rights - The United Nations Convention on the Rights of the Child - The United Nations Convention on the Elimination of All Forms of Discrimination Against Women - The United Nations Convention on the Elimination of All Forms of Racial Discrimination This reference code shall not be used to prevent international labour standards or national and/or local legislations from being exceeded. Comparison of Codes - Similarities & Page 5

6 0 Scope and Objective (a) The code constitutes minimum not maximum standards. (b) All relevant legislation will apply to companies. (c) Companies will apply the provision which affords the highest protection. (b) All relevant legislation will apply to companies (appears in Compliance with international labour standards and national legislation section). (c) Companies will apply the provision which is most favourable to workers (appears in Compliance with international labour standards and national legislation section). The code intends to protect and empower all personnel within a company s scope of control and influence as well as control of its suppliers, subcontractors and sub-suppliers and home workers (appears in Purpose and Scope ). (a) The Reference code constitutes minimum not maximum standards (appears in Compliance with international labour standards and national legislation section). (b) ILO/national standard/local legislation/gscp Reference code will apply (appears in Compliance with international labour standards and national legislation section). (c) Companies will apply the provision which affords the highest protection (appears in Compliance with international labour standards and national legislation section). Requirements in this Reference code apply to the whole supply chain (appears in Scope ) - The principles and requirements should be respected and implemented (appears in Compliance with international labour standards and national legislation section). Comparison of Codes - Similarities & Page 6

7 1 Employment is freely chosen (a) There is no forced, bonded or involuntary prison labour. (b) Workers are not required to lodge deposits or identity papers. (c) Workers are free to leave their employer after reasonable notice. ILO Convention 29, 105 and Recommendation 35 (a) The company shall not engage in or support the use of forced or compulsory prison labour (as defined in C29). (b)1. Personnel are not required to pay deposits or lodge identity papers. (b)2. The company and any entity supplying labour should not withhold any part of the worker s salary, benefits, property or documents. (c) Personnel are free to terminate their employment provided they give reasonable notice. - Personnel have a right to leave their workplace at the end of their shift. - The company and any entity supplying labour shall not engage nor support trafficking. ILO Convention 29, 105 (a)1. All work must be conducted on a voluntary basis with no threat of any penalty or sanctions. (a)2. No forced or compulsory labour in all its forms, including prison labour (as defined in C29). (a)3. Bonded labour prohibited. (b)1. Workers are not required to lodge deposits or identity papers. (b)2. Employers should not withhold any part of the worker s salary (outside a legal contractual agreement). (c) Workers are free to terminate their employment after reasonable notice. - Workers have a right to leave their workplace at the end of their shift. - Suppliers must not permit or encourage debt by e.g. recruitment fees, fines. ILO Convention 29, 105 Fundamental principle Comparison of Codes - Similarities & Page 7

8 2 Freedom of association and the right to collective bargaining are respected (a) Workers have the right to join or form trade unions and to bargain collectively. (b) Members or representatives are not discriminated against. (c) The employer must adopt an open attitude. (d) Where the right is restricted by law, the employer facilitates a parallel means. (e) Members shall have access to carry out trade union function in the workplace. ILO Convention 87, 98, - core conventions ILO Convention 135, 154 and Recommendation 143 relevant to ETI (a) All personnel have the right to join, organise or form trade unions and to bargain collectively. (b) Any workers engaged in collective bargaining, are not subject to any harassment, discrimination, intimidation or retaliation. (c) The company shall not interfere with the establishment, functioning or administration of the collective bargaining (interfere includes: includes company interference in workers organizations and collective bargaining). (d) Where the right is restricted by law, workers are allowed to freely elect their own representatives. (e) Company shall ensure that representatives have access to their members in the work place. - The company shall effectively communicate this right to workers. ILO Convention 98, 87, 135 (a) Workers have the right to join or form trade unions and to bargain collectively. (b) Any workers engaged in trade unions (incl. worker representation) and collective bargaining, are not subject to any discrimination or otherwise penalised. (c) Suppliers shall not interfere, obstruct or prevent such activities. (d) Where the law is restrictive, supplier shall not hinder alternative form of independent and free worker representation and negotiation. (e) Suppliers shall give representatives access to the workplace in order to carry out their function. ILO Convention 87, 98 Fundamental principles ILO Convention other applicable standards Comparison of Codes - Similarities & Page 8

9 3 Working conditions are safe and hygienic (a) A safe and hygienic working environment is to be provided. (b) Steps are to be taken to prevent accidents arising out of, associated with, or occurring in the course of work. (c) Workers shall receive regular and recorded H&S training. (d) Clean toilet facilities and potable water to be provided & if appropriate sanitary food storage facilities. (e) Accommodation shall be clean, safe & hygienic. (f) There should be a senior management representative for H&S. ILO Convention 155, 190, 183 and Recommendation 164 relevant to ETI (a) A safe and hygienic working environment is to be provided. (b)1. Steps are to be taken to prevent accidents arising out of, associated with, or occurring in the course of work. (b)2. Establish systems to detect, avoid and respond to potential threats & maintain written records of all accidents. (c) Workers shall receive regular and recorded H&S training. (d) Clean toilet facilities and potable water to be provided & if appropriate sanitary food storage facilities. (e) Accommodation shall be clean, safe & hygienic. (f) There should be a senior management representative for H&S. - Appropriate PPE, first aid and follow-up medical treatment for accidents at the company's expense shall be provided. - Assess risk for new & expectant mothers & ensure risk is reduced. - Workers have the right to remove themselves from imminent danger without permission. ILO Convention 155, 183 and recommendation 164 (a) A safe and hygienic working environment is to be provided. (b)1. Steps are to be taken to prevent accidents arising out of, associated with, or occurring in the course of work. (b)2. Provide adequate safeguards against fire. (b)3. Suppliers shall establish and follow a clear set of procedures regulating H&S. (c) Workers shall receive regular and recorded H&S training. (d) Clean toilet facilities and potable water to be provided & if appropriate sanitary food storage facilities. (e) Accommodation shall be clean, safe & hygienic. (f) There should be a senior management representative for H&S. - Appropriate PPE provided by suppliers andworkers access to medical assistance and facilities. - Adequate fire safety, safe buildings and equipment. - Workers to be trained in waste management (handling & disposal of chemicals & other dangerous materials). - Suppliers to provide access to adequate medical assistance & facilities. ILO Convention 155, 161, other applicable standards Comparison of Codes - Similarities & Page 9

10 4 Child labour shall not be used (a)1. No new recruitment of child labour. (a)2. These policies and procedures shall conform to the provisions of the relevant ILO standards. (b) Develop, participate & contribute to policies and programmes for transition enabling them to attend and remain in education. (c) Young workers not to be employed at night or in hazardous conditions. ILO Conventions 138, 182 and Recommendation 146, 190 (a) The company shall not engage nor support the use of Child labour. (b) Effectively establish & communicate procedures for remediation, with adequate financial and other support to remain in school. (c) The company shall not expose children or young workers to night work, any hazardous conditions or work unsafe to mental/physical development. - The children or young workers shall not be exposed to these conditions in or outside of the work place. - Work only outside of school hours, no more than combined 10 hours/day (including school, work and travel). - Young workers shall work for no more than 8 hours/day. ILO Convention 138, 182 and recommendation 146 (a)1. No new recruitment or exploitation of child labour. (a)2. Suppliers shall comply with national min age, age of completion of compulsory education or otherwise specified exceptions however no less than 15, whichever is higher. By ILO 138 exception 14 may apply. (b) Sensitive and satisfactory solution with child's best interest first. (c) Young workers not to be employed at night or in hazardous conditions which compromise their health, safety, moral integrity, physical, mental, spiritual, moral or social development. - This applies for children working both directly and indirectly for the supplier. ILO Convention 138, 182 Fundamental principles ILO Convention other applicable standards Comparison of Codes - Similarities & Page 10

11 5 Living wages are paid (a) National legal standards/industry benchmark standards (income should meet basic needs & provide discretionary income). (b) Written & understandable employment conditions in respect to wages before employment & each payment period. (a) Living wage stated requirement, national legal standards/industry benchmark standards (income should meet basic needs & provide discretionary income). (b) Wages & benefits are written & detailed clearly for each payment period. (a) National legal standards/industry benchmark standards/collective bargaining agreements (income should meet basic needs & provide discretionary income for workers and their families) whichever is more favourable. (b) Written & understandable employment conditions in respect to wages before employment & each payment period. (c) No deductions as a disciplinary means (except legal deductions). (d) All disciplinary measures should be recorded. - Only disciplinary deductions with the expressed permission of the worker concerned. ILO Convention 100, 111, 81, 122 and Recommendation 90 & 111 Core conventions ILO Convention 131 Relevant to ETI (c) No deductions as a disciplinary means (except legal deductions & freely negotiated collective bargaining agreement). - Only disciplinary deductions only when both; permitted by law and collective bargaining. - Paid in cash/check (convenient for workers). ILO Convention 100 (c) No deductions as a disciplinary means (outside legal deductions). (d) All disciplinary actions recorded (appears in Discrimination Harassment and Abuse section). ILO Convention 100 Fundamental principle ILO Convention 95, 131, 135, 85 - other applicable standards Comparison of Codes - Similarities & Page 11

12 6 Working hours are not excessive 7 No discrimination is practised (a) Working hours shall comply with national law & industry benchmark standards (whichever provides more protection). (a) The company shall comply with national law & industry benchmark standards (whichever provides more protection) including public holidays. (a) Suppliers shall set working hours that comply with national law & industry benchmark standards (whichever provides more protection). (b) No more than 48 hours per week. (b) No more than 48 hours per week. (b) No more than 48 hours per week excluding overtime. (c) Overtime voluntary and no more than 12 hours/week, not regular. (c) Overtime is voluntary and no more than 12 hours/week, not regular. (c) Overtime shall be voluntary and no more than 12/week, not regular. (d) One day off for every 7 day period. (d) One day off for every 7 day period. (d) One day off for every 7 day period. (e) Overtime at premium rate. (e) Overtime shall be paid at a premium (appears in Remuneration section). (e) Overtime shall be paid at a premium (appears in Wages, benefits and terms of Employment section). - exception to (d) if national law allows work time averaging and collective bargaining agreement is in place. - If short-term business needs must still comply with collective bargaining agreement. - Suppliers will respect workers right to public and annual holidays. - Respect workers right to breaks during work shifts. ILO Convention 175 Relevant to ETI ILO Convention 1, 116 ILO Convention 1, 14, 116 other applicable standards (a) There is no discrimination, on hiring, (a) No engagement in discrimination on (a) No engagement, support or tolerance compensation, promotion, termination, or hiring, compensation, promotion, of discrimination on hiring, compensation, retirement etc. termination, or retirement etc. promotion, termination, or retirement etc. ILO Convention 159 and Recommendation 168 relevant to ETI - No interference with the exercise of personnel's rights to observe practices which could give rise to discrimination. - The company shall not subject any personnel to pregnancy/virginity tests. ILO Convention 100, 111, 102, 131, 159, Suppliers shall respect equal opportunities. - Base all terms & conditions of employment on an individual s ability to do the job. ILO Convention 111 Fundamental principle Comparison of Codes - Similarities & Page 12

13 8 Regular employment is provided (a) As much as possible, work must be performed on a recognised employment relationship (according to law). (b)1. Obligations to employees shall not be avoided by:- labour-only contractingsub-contracting- home-working agreements - apprenticeship schemeswhere there is no real intent to impart skills or provide regular employment. (b)2. Obligations include meeting Labour and social security laws. ILO Convention 177 and Recommendation 184 Relevant to ETI (b)1. Obligations to employees shall not be avoided by:- labour-only contractingsub-contracting- home-working falseapprenticeship schemes- where there is no real intent to impart skills or repeated fixed term contracts (appears in Remuneration section). (b)2. The company should supply all legally required benefits (appears in Remuneration section). ILO Convention 177 (a) Work must be performed on a recognised employment relationship (according to law) (appears in 'Wages, Benefits and Terms of Employment section). (b)1. Obligations to employees shall not be avoided by:- labour-only contractingsub-contracting- home-working agreements - apprenticeship schemes- or where there is no real intent to impart skills or provide regular employment (appears in Wages, Benefits and Terms of Employment section). (b)2. Supply all legally required wages, overtime pay, benefits and paid leave which respectively meet or exceed legal min. and/or industry benchmark standards and/or collective agreements, whichever is higher (appears in Wages, Benefits and Terms of Employment section). ILO Convention other applicable standards Comparison of Codes - Similarities & Page 13

14 9 No harsh or inhumane treatment is allowed (a) There shall be no physical or threat of abuse nor harassment, verbal abuse or other forms of intimidation. (a)1. No bullying/harassment/ or abuse of any kind (appears in Discrimination section). (a)2. No harsh or inhumane treatment (appears in Disciplinary Practices section). - Personnel are to be treated with respect & dignity (appears in Disciplinary Practices section). (a) No bullying/harassment/ or abuse of any kind (appears in Discrimination, Harassment and Abuse section). -Workers are to be treated with respect & dignity (appears in Discrimination, Harassment and Abuse section). - Written disciplinary procedures established and effectively communicated (appears in Discrimination, Harassment and abuse section) 10 Management systems NIL - Policy. - Management Representative. - SA8000 Worker Representative. - Management Review. - Planning & Implementation. - Control of Suppliers, Sub-contractors and Sub-suppliers. - Addressing Concerns and Taking Corrective Action. - Outside Communication and Stakeholder Engagement. - Access for Verification and Records. NIL Comparison of Codes - Similarities & Page 14

15 Legend: (a) (a)1. (a)2. There shall be no physical Personnel are to be treated (Disciplinary Practices section) Indicates each comment. Each letter (across all three codes) indicates an agreement. Where a single ETI paragraph includes more than one comment, the comments have been split Similarities (Arial Font) (Times New Roman Font) Where the comment is detailed under a different section of the code (Italics). This Code Comparison Document has been produced by Sedex to give members guidance on the scope of 3 common codes (ETI Base Code, SA8000 and GSCP Reference Code). The author has used interpretation to simplify and align the language used by these codes. Hence opinions expressed in this document are the subjective opinions of Sedex and do not necessarily represent the opinions of other companies referred to in this document. The inclusion or reference to external companies or codes does not constitute endorsement, recommendation, or approval of those companies, codes or their contents. This document bears no responsibility for the accuracy, legality or content of the external parties or for the content of their codes and publications. The document is not designed for compliance, rather a tool to see the overlap of requirements for the codes. Please see the individual websites for the full codes: 1. ETI Base Code 2. SA GSCP Reference Code Material in this document, including text and images, is protected by copyright. It may not be copied, reproduced, republished, downloaded, posted, broadcast or transmitted in any way except for your own personal, non-commercial use. Please note these materials may be changed without notice. Comparison of Codes - Similarities & Page 15

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