HomeWhat's newSearchAbout usFrequently Asked QuestionsLinksContact
 
Urgent AppealsCampaignsNewsCompaniesPublicationsCodes of Conduct
News:
00-06, Ongoing Labour Dispute in Cambodia
May 2000, Indonesian workers sweat for German fashion-multinationals
adidas, C&A, Otto Versand, Quelle
 

C & A FILE

INTERNATIONAL CLEAN CLOTHES FORUM

BRUSSELS, BELGIUM, MAY 3, 1998

Introduction

C & A belongs to the main retail trading companies selling garments in Western European countries. It is also reported to be one of the largest clothing retailers in the world (1). Given its strategic market position in the Netherlands and elsewhere, and given its tendency to secrecy and its negative attitude towards trade unions, even in its own shops, C & A was selected as the first target of the Clean Clothes Campaign (CCC) when it was launched in 1990 (2). Whereas initially C & A loudly denied any wrongdoings and insisted it was strenuously maintaining legality in its buying practices all over the world, it has more recently recognized the need for improvements. In 1996, the company announced it had decided to restructure its buying policy and its relations with suppliers, and that it was revising its Code of Conduct.

The case regarding C & A at the International Clean Clothes Forum thus will mainly focus on C & A's present Code of Conduct, on matters relating to the Code's efficiency and on C & A 's own attitude towards implementation of the Code. In the existing Code of Conduct, the right to organise and to collective bargaining are noticeably absent. C & A employs the Brussels-based and Belgium-registered company SOCAM (Service Organisation for Compliance Audit Management) to monitor implementation of its Code, and tells consumers who enquire that SOCAM is an 'independent' auditing body. SOCAM, however, is closely linked to C & A and so far has not published any reports of inspection visits made to subcontractors. The lack of transparency in C & A's monitoring system, the inadequacy of C & A 's Code of Conduct, and C & A 's questionable attitude towards implementation of the Code thus form the basis of this case.

A. THE C & A COMPANY AND THE CLEAN CLOTHES CAMPAIGN

A.1. Company Overview C & A is a privately owned company established in 1841 in the Netherlands by Clemens and August (C & A) Brenninkmeyer. The company is still ruled by the Brenninkmeijer family, who carefully avoid publicity and do not disclose any information on company strategy, performance or employment. The number of C & A subsidiaries is unknown, as are the precise relations with suppliers, the exact countries in which the company is active, figures on direct and indirect employment and on the company's profit rate. As the 'Corporate Intelligence on Retailing' (1997) states, "...C & A 's penchant for secrecy precludes any precise revelation of the size of its global network and sales nor, indeed, a definitive picture of even its European operations." (3). The company operates within a framework of independent ownership and with independent management control of production units for clothing. In other words, C & A largely relies on the mechanism of subcontracting to delegate production tasks to external manufacturers.

According to the Corporate Intelligence, C & A owns more than 600 outlets for the sale of clothes in Europe alone, and over 2000 worldwide. (4) There are stores in the Benelux, the UK, France, Spain, Portugal, Italy, Austria, Switserland, Germany, Denmark, the USA, Brazil and Japan. Research shows that C & A is also active in Liechtenstein, the Dutch Antilles and Canada. In the USA, C & A in 1995 was reported to control upwards of 1,450 clothing outlets under various names (5). Furthermore, according to information available to the Clean Clothes Campaign in 1996, 20 outlets and a distribution centre in Argentina were due to be opened between 1996 and 2000 (6).

As to the situation in European countries - in the Netherlands C & A is the biggest garment retailer with 91 shops and an estimated turnover of 2 billion Dutch guilders (1996 research data). It also has a stake in MARCA, a legally independent clothes chain with 32 stores in the Netherlands (plus a similarly large number in Belgium), and is known to control 49 Foxy Fashion-shops. (7) In Germany, the only country where C & A is legally obliged to disclose financial information, the company ranks third among garment retailers (after Karstadt and Metro), with about 185 stores and a turn-over in 1995 of DM 8 billion. In France C & A is a prominent clothing retailer too. Average press speculation put the company's turn-over in 1996 at FrF 6.3 to 6.8 billion (8). In the United Kingdom, the total number of C & A stores has been static at 120 over the last few years, and the sales' total for these stores was estimated at Lb 770 Million for 1995/1996 (9). Since March 1996, all of C & A 's European operators have been sharing a single buying organisation called the European Buying Service Company (EBSCO). In 1990, total C & A -turnover was estimated to be over 10 billion Dutch guilders (i.e. over 5 billion US Dollars).

C & A used to aim mainly at the lower, cheaper end of the market. However, over the last few years the company has increasingly catered for the middle range of the market. C & A stores in 1996 had a reported 16 own brand labels (among them Avanti, Rodeo, Clockhouse, Baby-Club) for specific groups of customers (10). Each brand is allocated separate space in the store. C & A has buying houses amongst others in Singapore, Hongkong and India. It claims, however, to source out most of its clothing orders in Europe. According to the company presentation made in London in 1997, C & A sources 65% of its merchandise from Europe, 25 from the Far East and 10% from the rest of the world (11).

A.2. C & A's Code of Conduct

Since 1991, the company has - according to its own statements - been using its own 'Code of Conduct for the Supply of Merchandise'. As stated above, the Code was revised in 1996, when SOCAM was formed. C & A 's Code of Conduct has since been the subject of significant communication and debate between the company and campaign groups connected to the European Clean Clothes Campaign (CCC) in a number of European countries. In 1996 and 1997, C & A was approached amongst others by campaign representatives of the CCC in Belgium, the Netherlands, France, Switserland and the United Kingdom. In the UK for example, a meeting was held in which representatives of the British charity Oxfam stressed the inadequacy of the existing Code to company officials of C & A (12).

C & A claims that by revising the Code and setting up SOCAM, it has fundamentally restructured it buying policies. At the London Conference of October 1997, C & A 's company representative, Chris Williams, stated that the SOCAM auditing team makes in excess of one thousand unannounced visits each year to production units making merchandise for C & A. Where suppliers are found not to comply with C & A 's Code, business is either stopped or warnings are issued (13). However, although the company's Code of Conduct covers a number of basic criteria - such as child labour, forced labour, wages, health and the safety of workers, it has been criticised for being too vague and for failing to cover various aspects detailed below. The lack of independence of C & A 's monitoring system is a further key weakness of C & A's present procedures.

The existing Code is vague on most counts. Firstly, regarding relations with subcontractors, the Code expresses the intention to "develop longterm relations". C & A also requires that its suppliers operate on the principle of "fair and honest dealing" with those with whom suppliers do business. Yet the exact meaning of this wording is unclear. While the Code rejects the "exploitation" of child labour, the company does not give a clear definition of what it considers to be child labour and fails to give a concrete age-limit. On wages, the Code states that these must be "fully comparable with local norms" and "comply with local laws". Since minimum wages in many countries are below subsistence, this formulation fails to ensure that workers are paid a living wage which genuinely covers their basic needs. Thus, an initial critique of the Code is that there is a lack of clarity regarding the meaning of the principles stated.

A second criticism relates to the basic human rights of garment workers, which should have been, but are not defined by C & A's Code of Conduct. The most important of these is the right of workers to join a union of their choice without the fear of being penalised for trade union activity. Although C & A has indicated it is considering inclusion of this right in a future (further revised) Code, the lack of the workers' democratic right to organise is a key omission in the existing Code. Another key omission concerns working hours: there is no reference whatsoever to the length of working time in the existing Code. Nor does the Code provide any form of social security. Since the majority of the workers in the garment sector are women, paid maternity leave is a crucial issue, - one of the key improvements in working conditions that urgently need to be achieved in the sector. Along with three other issues, the right to maternity leave was included in the agreement signed between the owners' association and the trade union movement in Bangladesh in November of last year (14).

Thirdly, campaign participants of the Clean Clothes Campaign criticise C & A 's monitoring procedures. SOCAM is an internal monitoring system rather than an external system of auditing. As none of SOCAM's reports are available to outsiders, there is no way in which consumers' organisations or others can check the validity of C & A 's claim about the number of inspections that are made and the methodology and the findings of SOCAM 's inspections. Information collected by SOCAM is available only to C & A. Thus, like most other retailers which have adopted their own Codes of Conduct, C & A too has failed to develop a truly independent system of monitoring for its Code, and to involve unions, NGOs and other social actors in the process. This weakness of the Code like the previous mentioned weaknesses, is an essential weakness. Without a truly independent system of monitoring, the CCC argues, fundamental improvements in working conditions in the garments' sector cannot be achieved (15).

A.3. C & A and the Workers' Right to Form Unions

Below I will further elaborate two of the criticisms on C & A's Code listed above. First, the issue of the workers' right to form unions. The demand that workers who are employed by garment retailers, and those employed by their suppliers, be granted the right to form independent organisations to defend their own interests, has been a key demand of the Clean Clothes Campaign ever since it was launched. The demand was incorporated in the Fair Trade Charter when this was formulated, and it has continued to figure prominently in discussions between campaign groups and retail traders. When at the start of the European tour of the Clean Clothes Campaign in April, 1996, a Tribunal was held in Amsterdam, the Netherlands, its jury forcefully argued the need to emphasize this demand among the various demands for improvements in garment workers' rights. Multinational retailers, on the other hand, have been conspicuously slow in responding to the demand for recognition of trade union rights.

The C & A company is no exception to this rule. As noted above, its present Code refrains from making any reference to trade union rights, which suggests that the company so far has found this demand specially difficult to accept. The company's longstanding tradition, as wellknown, has been to discourage involvement in trade union activities by its employees, including by salespersonnel in its shops. When an indepth-investigation was carried out regarding the C & A-company by researchers of the Dutch SOMO (Centre for Research on Multinational Corporations), in the late 1980s, sales-women who were interviewed made statements such as that "the word trade union is a curse within C & A" and that the company "makes clear that union membership will certainly harm your carreer" (16). Given the repressive climate in C & A shops (and given the economic benefits C & A reportedly granted its personnel), the degree of organising amongst personnel was found to be extremely low (17).

The question now is whether the attitude of C & A towards union organising has substantially changed in eight years of campaigning by activists of the Clean Clothes Campaign. The question is particularly relevant since the public relations' officer of C & A in the Netherlands, Jaap Bosman, has claimed that the issue of trade union rights will very soon be incorporated in the company's Code (which covers both establishments controlled directly by C & A and establishments controlled by C & A 's suppliers) (18). Trade union officers in the UK and the Netherlands who are responsible for organising employees in C & A 's shops, interviewed by this author in April (1998), however, confirm that it continues to be extremely difficult to organise C & A-personnel. Questioned about the reasons, the Dutch official indicated that those shop-employees who decide to become a union member insist that all information they provide to union officials about the company be kept secret; she indicated that no C & A-personnel dares to join the union committee that prepares for central negotiations with retail traders, and that managers of C & A 's continue to bar the sale of the union paper from the shops (19).

Clearly, a change of wording in the company's Code, if and when it comes, would have to be accompanied by a massive change of culture in C & A 's own establishments. Furthermore, it would be particularly important to see whether a clause on trade union organising in C & A 's Code would be clearly worded, rather than be another vague statement of principle. The 'Code of Labour Practices for the Apparel Industry Including Sportswear' agreed upon by participant coalitions of the European Clean Clothes Campaign contains a clause on trade union organising which may be used to assess formulations on the issue. This Code stipulates: "the right of all workers to form and join trade unions and to bargain collectively shall be recognized (ILO Conventions 87 and 97). Workers' representatives shall not be the subject of discrimination and shall have access to all workplaces necessary to enable them to carry out their representation functions (ILO Convention 135 and Recommendation 143). Employers shall adopt a positive approach towards the activities of trade unions and an open attitude towards their organisational activities." (20).

A.4. Doubts about the Function of SOCAM

Doubts regarding the method of operation and the function of SOCAM (Service Organisation for Compliance Audit Management) may also be specified. According to the presentation made by C & A 's public relations officer Chris Williams in October of 1997, the introduction of the monitoring system involved an elaborate process of preparations (such as the setting up of the necessary data bases, recruiting and training SOCAM-staff and training C & A-managers, and the translation of the company's Code into all European languages. He further stated that through the Sourcing Department of C & A 's buying organisation EBSCO, written confirmation was received "from every supplier throughout the world" stating that they will permit SOCAM to make unannounced visits at any time to factories which are being used to make merchandise for C & A. Further, C & A claims to have developed an effective methodology to deal with infringements on the Code and to discourage violations by its suppliers (21).

While more independent research is required before we are in a position to fully assess the implications of SOCAM's existence, it is possible to refer to an initial experience in gathering data about C & A 's monitoring practices, i.e. an investigation about garments production in Roumania carried out by SOMO-searchers recently. This field investigation, amongst others, covered five C & A-suppliers. In each case factory managers interviewed confirmed their company's relationship with C & A. The SOMO-investigation, however, could not discern any systematic approach of C & A 's towards monitoring. To one small production unit C & A apparently did send a team which checked on working conditions, including wages and sanitary facilities. But elsewhere C & A inspectors reportedly did not look at wages, or did not raise any questions about environmental or social standards. No evidence was unearthed indicating that C & A distributed its Code of Conduct to suppliers. No company inspectors took the trouble to interview workers. The investigation in Roumania does indeed raise doubts about C & A 's monitoring procedures (22).

C & A 's response to the Clean Clothes Campaign in setting up its own internal monitoring system must be carefully assessed before final conclusions are drawn. Yet it is useful - given the prima facie doubts already mentioned - to recall the way the multinational Nestle has responded to demands raised by international campaigners against breastmilk substitutes. A key demand of campaign groups was that multinationals adhere to the International Code of Marketing of Breastmilk Substitutes which the WHO Assembly adopted in 1981, in response to intense lobbying activities by campaigners. Nestle, the campaign's main target company, subsequently created a committee, known as the Muskie Committee, with the task to 'monitor' Nestle's marketing practices. The Committee was presented as an "independent social audit committee". However, IBFAN, i.e. the International Baby Food Action Network, has described the Muskie Committee as a tool to "undercut independent monitoring", and as a device to divert press attention and win away constituencies (23).

The question may legitimately be asked whether C & A has launched the SOCAM primarily as a public relations' exercise, or with sounder aims in mind. In the case of Nestle, there is proven evidence that the idea of the formation of the Muskie Committee sprouted from the head of a public relations' expert hired by the multinational. The idea originated with Raphael Pagan, described in a recent Corner House publication as "an experienced PR executive", who was appointed to lead Nestle's counter-operation against the international baby food campaign (24). Pagan identified the building of the monitoring committee as a key feature of his 'social awareness strategy' (25). Since the formation of a monitoring unit that is 'independent' in name, is a key strategem used by both Nestle and C & A in reaction to strong and persistent international campaigns against their malpractices, it is legitimate to question C & A 's motives in the formation of SOCAM. The evidence collected by independent researchers so far indicates that SOCAM is not effectively monitoring working conditions, and suggests it may be part of a consciously planned public relations strategy.


B. THE EVIDENCE TO BE PRESENTED AT THE FORUM

A number of witness accounts will be presented at the International Clean Clothes Forum, further testifying to the above-mentioned weaknesses in C & A 's Code of Conduct and monitoring procedures. One of the issues to be highlighted, by a Belgian trade union representative, is the workers' right to organise. Other witnesses will be: a Zimbabwean and a Bangladeshi trade union leader, a representative of an Indian non-governmental organisation and a Pakistani and Indian homeworker from the United Kingdom. Below, we present preliminary accounts regarding C & A 's practices in two Southern countries. The case of the negotiations between C & A's buying house in Tirupur, India, and an Indian non-governmental organisation called SAVE, casts doubt over C & A 's willingness to implement even elementary provisions of its Code. The case of working conditions at C & A 's subcontractors in Zimbabwe, to be presented by the Zimbabwean trade unionist, is an important illustration of the inadequacy and ineffectiveness, of C & A 's existing Code of Conduct, even if this Code were implemented. The issues that figured in last year's conflict in Zimbabwe's garment sector, so far, are not covered by C & A's Code.

B.1. C & A and the Memorandum (MOU) on Child Labour in Tirupur, India:

Tirupur, a city in the state of Tamil Nadu, in South India, is known for exporting knitted underwear. The production and export of underwear has seen an explosive growth in recent years, in line with the general expansion of garment exports from India. Whereas in 1984, the value of underwear exports from Tirupur reportedly amounted to Rs.9.69 Crores, it reached Rs.1332.00 Crores a decade later, in 1994. In 1994, Tirupur's share in the total export of knitted garments from India was estimated to be 45 percent (26). Thus, in a period when readymade garments were rapidly turning into India's chief foreign exchange earner (contributing 18% to the value of all commodities exported form India by 1994/1995), Tirupur's importance as a centre of export production grew accordingly: it holds "the pride of place of India in terms of major foreign exchange earnings." (27).

The expansion of Tirupur's garment industry is said to be mainly due to the industry's production structures. Here, manufacturing units have developed as 'single task units' rather than combining all aspects of production in one unit. This means that "exporters get their yarn knitted in one place, bleached and dyed in another place, at a third place it will be printed with a design, and finally they get the knitted fabric cut, stitched and finished again in another unit", as reported in an investigation carried out by the India Committee of the Netherlands (ICN) (28). Other factors that have favoured Tirupur's growth as production centre are, the easy availability of yarn from nearby towns, the availability of water for dyeing, bleaching and printing from a local river, and a cheap labour force. Reportedly, Tirupur is surrounded by large drought-prone areas, where many families suffer from severe poverty and where unemployment is widespread (29).

The ICN-research (November 1996) while recognizing that labour conditions in Tirupur generally were poor, focused on the incidence of child labour. According to the report, based on visits to 15 hosiery units, and on intensive interviews with child labourers, the operations performed by children were: helping the tailors, checking, stitching, cutting threads, finishing and packing. During factory visits, children were also found at work in dyeing and bleaching units, with serious risk to their health (30). Working hours for the children were exceedingly long, just as for adult workers. Most of the children reportedly worked 12 to 16 hours per day for 6 days in a week. While the income from the children's labour formed an important source of survival for their families (31), all the children interviewed by the ICN-researcher suffered from physical exhaustion (32). Estimates of the number of child labourers ranged from 8,000 to 35,000, out of a total workforce of 300,000.

Children were found to be working in units producing knitted garments for C & A, which is one of the European retail trading companies doing extensive business with exporters and manufacturers in Tirupur. It does so through its own subsidiary organisation Mondial, which acts on behalf of C & A's buying organisation, EBSCO. According to officials of Mondial, this C & A subsidiary deals with 1200 units out of 3000 units in the Tirupur knitwear industry (33). Thus, C & A undoubtedly is a key purchaser of Tirupur knitwear. The prevailance of child labour in units producing for C & A was revealed to the British public by two journalists, writing for the Mail on Sunday (January 1995) (34) whilst the already mentioned ICN-research further confirms the existence of children much younger than 14 years of age employed by suppliers of C & A's (35).

In 1997, the Indian NGO SAVE approached the hosiery industry in Tirupur, and specifically C & A's subsidiary Mondial, to discuss measures to improve labouring conditions and steps to combat child labour. A Memorandum of Understanding (MOU) was drafted which, inter alia, aimed at ending the labour of children and promote the rehabilitation of children. The MOU also comprised proposals for independent monitoring. The substance of the proposed agreement was in line with C & A's own Code of Conduct which states that child labour is "absolutely unacceptable". Yet Mondial subsequently backed out of the negotiations and refused to implement structural measures to eliminate child labour, prefering instead to donate money to a welfare project for children. Mondial did not reply to the SAVE's request to release information on its own measures to comply with C & A 's Code of Conduct (36).

The example of the discussions held by the Indian NGO SAVE and Mondial thus raises serious questions as to C & A's commitment to its own Code of Conduct. Given the political climate existing in India at the time of the Mondial-SAVE discussions, an agreement targeting the elimination of child labour would probably have been welcomed in official circles. Thus, the state government of Tamil Nadu, the state where Tirupur is located, sets goals towards the elimination of child labour in its State Plan of Action, launched in 1993. Concretely, this plan of action aimed at the elimination of full-time child labour by children under 12 years' of age by 1998 (37). Concern about child labour was also expressed by India's former government, headed by Narasimha Rao. A concrete commitment towards abolition of child labour by C & A would therefore hardly have been considered radical. Although it would not solve the problem of poverty for those Tirupur families who depend on the income of their children for survival, nor improve overall working conditions in units producing for C & A, C & A 's non-acceptance of the MOU indicates that the company is not seriously interested in ensuring implementation of even a part of its own Code of Conduct.

B.2. Failure to Take Responsibility for Workers' Rights:

The Case of the Conflict in Zimbabwe:

The case of garment production in Zimbabwe is a second major example to be cited during the session of the Internationmal Clean Clothes Forum on C & A. The importance of Zimbabwean garments to Europe has increased in recent years, although only a minor portion of the country's textile and clothing production is as yet exported (10 percent in 1994). Zimbabwe's total export income from the clothing industry was estimated at 70 million US dollars in 1994. Out of this total, 60 percent was from exports to European countries. The textile and clothing sector was restructured following several crises that rocked the sector in the first half of the 1990s. Subsequently, production has shifted from large-scale factories to more 'flexible', medium and small-scale companies. In 1996, the Zimbabwean clothing and textile sector counted 274 registered companies, of which 225 were clothing factories. Most of these (98%) are in the hands of (white) Zimbabweans (38).

The central issue in the Zimbabwean case-study is last year's labour conflict in the country's clothing sector after the failure of annual negotiations on the basic wage resulted in a ten days' workers' strike and in the massive dismissal of garment workers. In April, 1997, trade unions started negotiations with the employers for a wage raise of 69%, considered necessary in view of Zimbabwe's high rate of inflation and the rising cost of living. The National Union of Clothing Industries (NUCI), reportedly representing 95% of the workers in the clothing industry, produced evidence of the hardship suffered by its members, and data regarding the industry's profit levels. According to the union, a family of 6 persons needed 441.80 Zim dollars for its weekly subsistence needs (excluding school fees, medication and clothing). Yet the basic wage in the clothing industry was only 166 Zim dollars (39). The negotiating process got stuck over the precise wage increase to be granted. Without waiting for the final outcome, clothing workers spontaneously went on a strike on July 4, 1997.

Both the government of Zimbabwe and the employers' association reacted vehemently to the strike. When the negotiations got stuck, the unions and the employers took steps to settle the conflict through an arbitrator who suggested a 25% wage increase (13 July). However, the Ministry of Industrial Relations ignored the arbitration process and instead issued a disposal order: all workers had to go back to work before July 14th; failing this, the employers were free to dismiss the workers. The Employers' Association of the Clothing Industry took advantage of the government's position, and unanimously took the decision to dismiss all garment workers. As a result, 13 thousand workers were dismissed. Out of those, 11 thousand were hired back on a contract basis, i.e. under working conditions much less favourable than previously when they were in 'fixed' wage-employment. Under the new contracts, workers for instance can easily be fired. Further, many of the workers dismissed in July of last year were members of (elected) Workers' Committees and trade union activists. According to NUCI-sources, the 2 thousand workers not taken back by the employers were mainly members of Workers' Committees. By dismissing them, the employers outlocked the unions and deprived the workers of their right to organise (40).

The Zimbabwean conflict directly involved three parties, i.e. the workers and their unions, garment employers and the government. While the question of responsibility on the part of companies buying from Zimbabwe was not raised, the issues involved in the conflict - namely the question of a living wage and the workers' right to form and join unions - are key issues in discussions between the CCC and retailers in Europe. The nature of C & A 's relationship to Zimbabwean garment manufacturers was revealed through an investigation carried out by the Dutch research institute SOMO in 1997. Out of 11 companies covered by the research, 3 were reported to be C & A -suppliers (41). According to the same research, there are indications that C & A does send inspectors to check on some aspects of work in the factories (such as toilets, fire-exits and child labour). The effectiveness of the inspections however remains unclear. In any case, these inspections cannot address the issues involved in last year's labour conflict, since C & A 's Code of Conduct does not stipulate the payment of a living wage or the workers' right to join independent trade unions. Thus the company takes no responsibility for wage improvements, nor does it take resposibility to counter the dismissal of trade union activists.

SOMO's example of Winfield Barlana brings out C & A 's failure to act. Winflied Barlana is a company employing 1200 people with a yearly turn-over of US $ 11 million (1996-1997). It produces jeans, shorts, cotton trousers and shirts for C & A in the whole of Europe, C & A thus being one of the main customers of Winfield Barlana (42). When the sector-wise workers' strike erupted in July of last year, workers of Winfields joined the strike since they, like Zimbabwean clothing workers elsewhere, could not make ends meet on the existing wage. According to interviews SOMO held with Winfield workers, at least at one of Winfield's production sites employees were dismissed. The vague and incomplete clauses of C & A 's present Code fail to oblige the retail trading company to intervene in a labour conflict such as the one that occurred at Winfields. Thus, the Zimbabwean conflict demonstrates the claim that the C & A's present Code of Conduct does not ensure the elementary rights of garment workers employed by its subcontractors.

Conclusion

As campaigning about exploitative working condition among C & A's worldwide suppliers increased, the company has worked at improving its image, revising its Code of Conduct, and instituting procedures for monitoring the Code's contents via the Brussels- based institution SOCAM. The change in policy indicates that C & A is getting worried about its image among European consumers. Yet research carried out by campaign-related groups and reports the Clean Clothes Campaign has received from trade unions and non-governmental organisations in both Southern and Northern countries bring out the fact that C & A 's new policy does not yet fulfill the standards set by the CCC. As the evidence presented above about India and Zimbabwe well illustrates, there are good reasons to question C & A's commitment towards its own Code of Conduct, as well as the adequacy of the clauses it contains. Moreover, the system of monitoring instituted by C & A is an internal system of monitoring rather than a system of independent monitoring. Therefore, the Clean Clothes Campaign calls upon C & A both to fundamentally revise and strengthen its Code, and to agree to act on the basis of transparency, i.e. accept that its business practices henceforth will be monitored by an independent institution in which trade unions and consumer organisations participate.

Dr.Peter Custers

Co-founder

Clean Clothes Campaign (CCC)

Amsterdam, April 23, 1998

Notes:

(1) see Corporate Intelligence on Retailing, London, 1997, p.406;

(2) the campaign was launched on the basis of the data collected in the book 'C & A, De Stille Gigant - Van Kledingmultinational tot Thuiswerkster' (C & A, The Silent Gigant - From Clothing Multinational to Homeworker) by Marijke Smit and Lorette Jongejans, SOMO, Amsterdam, the Netherlands, May 1989);

(3) Corporate Intelligence on Retailing, op.cit., p.406;

(4) op.cit., p.268;

(5) op.cit., p.407;

(6) Ineke Zeldenrust and Janneke van Eijk, 'Of Rags and Riches', booklet published by the Clean Clothes Campaign, The Netherlands, January, 1997, p.7;

(7) Corporate Intelligence on Retailing, op.cit., p.406; Ineke Zeldenrust and Janneke van Eijk, op.cit.;

(8) Corporate Intelligence on Retailing, op.cit., p.173;

(9) ibid, p.635;

(10) Ineke Zeldenrust and Janneke van Eijk, op.cit.;

(11) Chris Williams, 'The Auditing of C & A's Code of Conduct For the supply of merchanise' (LATC London Conference, Tuesday 21st October 1997);

(12) records of the International Secretariat of the Clean Clothes Campaign, Amsterdam, the Netherlands;

(13) Chris Williams, op.cit;

(14) the agreement between the Bangladesh Garment Manufacturers' and Exporters' Association (BGMEA) and representatives of the trade unions states: "Women workers employed in the sector wqill be granted 12 months' paid maternity leave. The BGMEA will take necessary steps to establish daycare centres. Whenever garment units are established - the question of housing for workers in the area will be given priority consideration.";

(15) see Shelagh Young's paper 'Commentary on C & A Code of Conduct for the Supply of Merchandise', Oxfam United Kingdom, July 1996;

(16) Marijke Smit and Lorette Jongejans, op.cit., p.109;

(17) ibid, p.19;

(18) communication Jaap Bosman, April 1998;

(19) communication Karen Heynsdijk, trade union official for the sector of retail trade, Federation of Dutch Trade Unions (FNV -Allies). April 22, 1998;

(20) see 'Code of Labour Practices for the Apparel Industry Including Sportswear', February 1998;

(21) Chris Williams, op.cit.;

(22) investigation carried out by Jantien Meyer and Esther de Haan, March/April 1998 (unpublished report);

(23) Judith Richter, 'Engineering of Consent. Uncovering Corporate PR', Corner House briefing paper, march 1998, p.8;

(24) op.cit., p.3;

(25) op.cit., p.8;'

(26) see Martine Kruijtbosch, 'Child and Adult Labour in the Export-Oriented Garment and Gem Polishing Industry of India. With Case Studies from Tirupur, Bangalore, Jaipur and Trichy' (India Committee of the Netherlands, Utrecht, the Netherlands, November 1996, p.31);

(27) ibid;

(28) ibid, p.31;

(29) ibid, p.32;

(30) ibid, p.39; according to the author, "During factory visits, children were also found at work in dying and bleaching units. Two boys I had seen standing in a container of black paint (e.g. water mixed with all kinds of chemicals and dyes) while they coloured a piece of fabric.";

(31) ibid, p.55-56;

(32) ibid, p.43: "The child labourers (often two children labourers per family), with parents who work in the hosiery industry, contribute 30 to 40 percent to the family income.";

(33) information provided by Mondial-officials during their meeting with SAVE- and SACCS-representatives, April 13, 1997;

(34) ibid, p.26;

(35) ibid, p.46 and p.48;

(36) correspondence between SAVE and SACCS (South Asian Coalition on Child Servitude) and the India Committee of the Netherlands, 1997;

(37) see Martine Kruijtbosch, op.cit., p.33;

(38) see the report 'Profiles of Garment Exporting Companies in Kenya, Madagascar, Mauritius and Zimbabwe', field research by Pit Gooskens and Esther de Haan, SOMO (Centre for Research on Multinational Corporations), Amsterdam,August 1997, p.119;

(39) Pit Gooskens and Esther de Haan, op.cit., p.121/122;

(40) ibid, p.120/121 and p.123;

(41) the companies refered to are: Cinderella Manufacturing (Ptt) Ltd, a small company which produces girls' dresses for C & A-Germany; Winfields Barlana which produces for C & A in the whole of Europe; and African Threads where the sales' and marketing director confirmed that C & A- Brussels is the company's most important customer (70 to 80% of the company's exports were destined for C & A) - see Pit Gooskens/Esther de Haan, op.cit., p.135, 147 and 150;

(42) ibid, p.147-149.

Go to the top of the pageTell a friend about this siteJoin the Urgent Action Network