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SA8000- Estimating a Living Wage
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SAI Featured in "Wages-Working for a Living" Article
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In the July 2009
edition of Ethical Corporation, SAI Program Director, Judy Gearhart, SAI European Representative,
Sean Ansett, and the SA8000 standard
were featured in the article entitled, "Wages- Working for a
living."
In this article, the challenge of determining a living wage
was explained by experts in the industry, and the challenges outlined, such as
determining the number of dependents, if the framework is auditable, and
alignment with national policy.
"Everyone agrees that paying a living wage
will increase the cost of production to some extent. But who should bear the
cost?" said Mr. Ansett. "Three
questions must be answered before brands commit to a living
wage-
Will suppliers take smaller margins? Will retailers either take a smaller profit
or be prepared to pass on higher costs to consumers? And will consumers be
prepared to pay for a more expensive, "ethical" product?"
As remuneration is one of
the nine essential elements of the SA8000 standard, it is crucial for companies
that seek certification to adhere to the principles, as they are structurally
interdependent.
"Living wage is integral to a social audit,"
said Ms. Gearhart. "If factory auditors
want to understand why workers are working excessive overtime, for example,
they need to know whether or not workers are able to live decently on the wage
they earn for just the regular hours."
Ms. Gearhart
explained that "failing to pay workers enough
to live can have a number of negative consequences. There could be child labour
because parents, who are not earning enough, send their children to work. There
could be bonded labour because workers who do not earn a living wage have to
take loans, which they may struggle to repay. There could be health and safety
issues when even sick workers want extra overtime hours because their normal
wage is not a living wage."
Also featured in this article were
representatives from Adidas, the Centre for Reflection, Education and Action
(CREA), Ethical Trading Initiative, Fair Labour Association (FLA), ILO Better
Factories Cambodia, ILO Cambodia Worker Education Project, and the Joint
Initiative on Corporate Accountability and Worker Rights.
To access the full article, click here |
A Glimpse into Italy's Groundbreaking Approach to SA8000 Certification
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In
April 2009, SAI proudly announced that over one million workers are employed in
SA8000 certified facilities. The adoption of the SA8000
standard has taken place in factories, offices and plantations around the world,
with the largest number of workers in certified facilities in India and China. Italy
continues to lead in the number of certified sites, encompassing over 88% of
certifications in Europe and 45% of the
world's certified organizations.
With the combined efforts
of the regional governments, business, NGOs, and the public, the number of certifications
continues to grow. SA8000 has been a
useful tool for Italy's
innovative public procurement system to advance human rights goals. The central regions of Umbria
and Tuscany,
among others (see below), are leading proponents and actors of this innovative
policy.
"What we have found is
that companies who apply for certification can use the verification process to
review and revise their own internal practices," said SAI Advisory Board member, Marisa Parmigiani, Director
of Social Policies at Coop, ACCDA, "and should a company not meet
requirements in the first round of verification we are there to assist them in
making a plan on how they can improve their production practices to meet the
SA8000 criteria in the future."
Below are some examples of how Regiones in Italy promote and integrate social responsibility in their economies:
 Abruzzo:
The government in Abruzzo
favors socially certified companies when bidding for public contracts. It has
also created a system in which administrative and financial incentives are
offered to certified companies once they have been awarded the contract.
Campania:
Starting in 2006, the
government has been looking into the tool of certification and investigating
local and national CSR patterns and best practices.
Emilia Romagna:
The government encourages
the application of the Lavoro Etico Social Quality Label, which integrates
SA8000 and other well-known standards such as ISO14000 and VISION 2000. In
order for its products to assume labels with regional ties, a company must
demonstrate that its practices correspond to CSR as outlined.
Lazio:
In 2004, the regional
government in the capital city of Rome
instituted a "sponsor etici" policy in which all businesses that want
to have their name associated with Rome
must prove responsible production.
Marche:
Marche partnered
with the Training Center of Marche (CFM)- a consortium of Marche's training companies- to establish an information system on CSR. In 2005, Marche adopted Regional Law 11 to promote
initiatives of CSR and launched the Responsible Business System of Marche.
Sicily:
Funded by the European
Commission, Sicily
carried out the CSR- Vaderegio Project, which aimed to locally understand and
promote CSR. The Regione supports the Etiqualitas Project which is a continent
wide initiative at social responsibility.
Tuscany:
Tuscany is
the most prominent when it comes to
adopting SA8000, accounting for 14% of the world's certified companies. In
2001, a policy was instituted requiring a company show that it is a responsible
producer in order to do business with the government. SA8000 certified
companies are also given preference in public procurement contracts, and the
government pays half of the costs of a company's certification. Additionally,
training services to help create an integrated system that can provide CSR
assurance have been made available. These efforts have been managed, since 2002,
by a multi-stakeholder Regional Ethical Committee, encouraging CSR by
controlling its process, and providing tools for those in the process of
certification.
Umbria:
Seven years ago, Umbria introduced
measures to promote "widespread knowledge of the importance of the social
responsibilities of companies and consumers." Among these measures are
Laws 20 and 21 (2002), which give SA8000 certified companies priority when
bidding for public contracts, as long as they pass quality specifications. The
government also vowed to cover half of the certification costs of any company
wishing to apply for certification. |
Scaling Up Voluntary Standards- June Meetings
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SAI Participation in Scaling Up Events
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ISEAL Annual General Meeting 2009
On 22-24 June at Royal
Holloway University,
Egham, England, the International
Social and Environmental Accreditation and Labelling Alliance (ISEAL) convened its annual
meeting. The meeting's 60-plus
participants represented ISEAL member
organizations as diverse as the Marine Aquarium Council (MAC), the RugMark
Foundation, and the International Federation of Organic Agriculture Movements
(IFOAM). These participants arrived from destinations as diverse as Nepal, Australia,
Germany and Costa Rica.
The meeting was a
combination of plenary sessions and workshops that discussed topics of scaling
up, governance, policy, and communication. During a plenary session on scaling
up, SAI President, Alice Tepper Marlin
spoke on a panel with Karin Kreider, Deputy Director, Rainforest Alliance, and
Jason Morrison, Globalization Program Director at the Pacific Institute. They
discussed their visions of what scaling up means to their organizations, and
why setting common targets and collecting common data sets is critical for the
standards movement as a whole to achieve and measure collective progress.
Also participating in the meeting were Social
Accountability Accreditation Services (SAAS) Executive Director, Rochelle Zaid, and SAI Development Associate,
Joleen Ong. This meeting was the first meeting for SAAS to attend as a
newly accredited full member of the ISEAL Alliance. At the meeting, Ms. Zaid
was elected to serve on ISEAL's Executive Committee.
Rochelle Zaid, Executive Director, SAAS
To access the full meeting report, click here
Code of Good Practice for Assessing the Impacts
of Social and Environmental Standards Systems
In addition, the week before the ISEAL AGM, SAI
Executive Director, Eileen Kaufman attended the two-day meeting of the steering committee for
ISEAL's code for good practice in impact assessment. Later this summer, a draft
code will be posted for public comment. There is already a monthly newsletter,
wiki and blog supporting involvement in
this project.
Scaling Up Voluntary Standards for Human Rights- The Challenge of Measuring Impact
On 30 June in Bonn, Germany,
the Institute for Development and Peace (INEF) convened an expert workshop
entitled "Scaling Up Voluntary Standards for Human Rights- The Challenge
of Measuring Impact." This workshop focused on the potential of voluntary
standards to ensure the protection of human rights.
Sean Ansett, SAI's
European Representative, represented SAI at this meeting and gave a
presentation that explored the challenges for scaling up voluntary standards
related to gender, the informal sector, and supply chains. His co-panelists spoke on behalf of SUDWIND,
ETI, and the Deutsche Kommission Justitia et Pax. Also speaking was SAI's Executive
Director, Eileen Kaufman, who
participated as a representative from the ISEAL Alliance, on a panel with
representatives of the World Bank, the GTZ, and Global CSR.
The INEF is part of the University of Duisburg-Essen, and this workshop was
organized by the Human Rights, Corporate Responsibility, and Sustainable
Development project. This project is funded by the German Federal Ministry for Economic
Cooperation and Development.
For more information, click here |
A Look Inside SA8000: The Next Decade
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Book excerpt: SA8000: The First Decade. Implementation, Influence, and Impact, edited by Deborah Leipziger.
Chapter 2: SA8000 in Tata Steel
 "With a history of pioneering practices in employee welfare,
what new vistas lie before Tata Steel in continuously improving the quality of
life of its stakeholders as it journeys onwards to a global frontier? Searching
for best practices and structural approaches, it was clear that 'the
challenging SA8000 standard provides opportunity both for improving and
demonstrating our commitment to best practices in the manufacture and supply of
goods we sell and procure.
"The metaphor for SA8000 management system
implementation system in Tata Steel Works is similar to creating a ripple with
enlightened partners, employees, vendors, suppliers, and non-governmental
organizations, among others, to generate a
wider social impact through stewardship.
"Frameworks offering system-wide review, compliance, and verification, irrespective of a company's location, size, stage, growth, can help in identifying and addressing risks, at the very least. For the aspiration-driven enterprise, such frameworks can further support continual improvement and benchmarking critical to the attainment of long term sustainability and 'differentiating' business leadership."
This chapter was written by Priyadarshini Sharma, Senior Manager, Tata Steel. For more information or to order a copy of this book, click here |
Upcoming SAI Training Courses
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5-Day Basic Auditor Training
July 20-24: São Paulo, Brazil Enroll Now
3-Day Advanced Auditor Training
July 20-22: Athens, Greece Enroll Now
SA8000: 2008 Standard Training Revision Course
Online Webinar
July-September 2009: Web-Based Training Enroll Now
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5-Day Basic Auditor Training
August 10-14: Tokyo, Japan Enroll Now
August 17-21: Istanbul, Turkey Enroll Now
3-Day Advanced Auditor Training
August 24-26: Guangzhou, China Enroll Now
Professional Development Series
August 27-28: Guangzhou, China Enroll Now
Topics: Management Systems, Control of Sub-Contractors, Internal Compliance Teams, Overtime & Wages
SA8000: 2008 Standard Training Revision Course- Online Webinar
July-September 2009: Web-Based Training Enroll Now |
5-Day Basic Auditor Training September 7-11: Kampala, Uganda Enroll Now
3-Day Advanced Auditor Training
September 23-25: Milan, Italy Enroll Now
Professional Development Series
September 22-23: San Jose, Costa Rica Enroll Now
Topics: Freedom of Association, Overtime & Wages
September 29-30: Karachi, Pakistan Enroll Now
Topics: Freedom of Association, Overtime & Wages
September 29-30: California, USA Enroll Now
Topics: Management Systems, Control of Sub-Contractors, Internal Compliance Teams, Integrating Sourcing & Compliance
SA8000: 2008 Standard Training Revision Course-Online Webinar
July-September 2009: Web-Based Training Enroll Now |
Corporate Programs Update
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SAI to Develop Social Compliance Handbook for IFC (World Bank)
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SAI is pleased to
announce a work contract with the World
Bank's International Finance Corporation (IFC) to provide the IFC
with a Handbook and Toolkit for improving the social compliance of the companies
in which IFC invests as measured against its Performance Standard 2 (PS2). PS2
addresses Labor and Working Conditions, and is one of eight performance
standards defined by the IFC.
The Handbook and
Toolkit will specifically provide an understanding of the fundamental management
systems and internal staff capabilities required for improving social
performance. The Handbook will provide a step-by-step guide to assist company
management to develop or improve social compliance management
systems.
The management
systems, and related policies and procedures, will be targeted to the
requirements of PS2 standard. The primary focus will be on management systems
for improving social compliance in the company itself. The secondary focus will
be on improving social compliance in the company's supply
chain.
IFC, with 181
member countries, is a member of the World Bank group, and aims to promote
sustainable private sector investment in developing countries as a way to reduce
poverty and improve people's lives.
For information on how to become an SAI Corporate Programs member, click here |
Central America Team Grows
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SAI Program Department Welcomes Yolanda Brenes
and announces Matt Fischer-Daly's return to Headquarters
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The SAI Programs Department
is pleased to announce the addition of staff, Yolanda
Brenes, Project Manager, and the transfer to headquarters
of Matt Fischer-Daly, Project Manager, in SAI's team working to increase
labor compliance in Central America.
SAI is currently working in
three projects in the region, the first two funded by the U.S. Department of
Labor and the third by the U.S. Agency for International Development. Project
Cultivar, managed by SAI, is
aimed at improving labor law compliance in agriculture in Honduras, Nicaragua
and the Dominican Republic. Comply & Win, coordinated by FUNPADEM and Abt Asssociates,
seeks to improve labor inspection capacities in the Central American countries.
Finally, the USAID Environment and Labor Excellence for CAFTA-DR,
coordinated by Chemonics, will build alliances among international buyers,
agricultural producers and promoters of labor and environmental standards in
the six countries.
 Yolanda Brenes has over 10 years experience working to promote labor and environmental standards compliance in the agriculture sector of Central America and the Dominican Republic. She is a SA8000 auditor trainer and has worked with SAI to train labor inspectors throughout the region. Prior to working with SAI, Yolanda founded and continues to run the independent consulting firm R.S.E. Consultores S.A. and worked for Chiquita Brands International as Regional Manager for Social
Accountability projects in Costa Rica.
Matt Fischer-Daly has
worked with SAI since 2006. Matt most recently worked as Project
Associate for Project Cultivar, coordinating SAI's local partners on the
training, multi-stakeholder dialogue activities of the project. He holds an
M.A. in International Economic Policy from American
University, with an undergraduate
degree from the University
of Michigan in Political
Science and Spanish Language Literature.
SAI continues to carry out
its mission to improve labor conditions worldwide through the work of its
Programs department, as it promotes a culture of labor rights compliance in Central America, through multi-stakeholder social
dialogue. |
SAI-Europe Update
Last
month, Sean Ansett, SAI's European Representative, published an article
regarding responsible public procurement citing the Tuscany
example of using SA8000, in Spain's
premier purchasing professionals magazine "Gestion de Compras".
The Spanish government, like some other EU members, is currently developing guidelines for
responsible procurement.
Mr. Ansett also taught a class last month in the Corporate Social
Responsibility Masters degree program at the Universidad de Alcala regarding
SAI's work and development of a
responsible purchasing program.
For more information, please contact Sean Ansett at SAnsett@sa-intl.org
MFA Forum
Inaugurates the Sustainable Apparel and Footwear Initiative (SAFI)-- Industry
Response to the Economic Crisis by
Investing in the Future
The
Multi Fiber Arrangement (MFA) Forum recently launched the Sustainable Apparel
and Footwear Initiative (SAFI) at an IFC-hosted meeting in Washington, D.C.
in May. SAFI is
a coordinated set of initiatives designed to promote rapid responses to the
urgent needs presented by the current economic crisis and to orient
stakeholders around solutions that will drive long-term positive impacts and
value for the industry. In order to have an integrated and coordinated
response, SAFI
is focused on the following three work streams:
1. Promoting Responsible Trade Finance
2. Global Advocacy and Country
execution of social protection programs.
3. Shape the development of a new model
of competitiveness
SAI has been a member of the MFA Forum since its inception in 2004, and currently serves as the representative of the Multi-Stakeholder Initiatives (MSI) on the Forum's Executive Committee and as co-chair of the Dominican Republic working group. The MFA Forum is an open network of companies, trade unions,
non-governmental organizations, and international institutions promoting and working toward responsible
competitiveness in the textile and garments industry. For more information on SAFI or the MFA Forum, please contact Sasha Radovich, Senior Manager, at sasha@accountability21.net
Website:
http://www.mfa-forum.net
Ethical Sourcing- Show Us the Money
In the July 2009 edition of Ethical Corporation, the SA8000
standard was cited in an article entitled, "Ethical Sourcing- Show us the money." The article recommended
that brands disclose
more data about wages in their supply chain, and examined
the steps taken by
major brands to determine payment of living wages in their international
factories.
"For a start, brands
have access to suppliers' salary data. And auditing standards such as the
SA8000 certification already include a living wage test, using a formula that
can be tailored to different countries and regions. Brands should report on how
wages paid in their supply chains match up to a series of wage benchmarks: the
legal minimum, industry average and a number of living wage standards."
To read the full article, click here
Ethical Corporation's Report "Guide to Industry
Initiatives in CSR"
The Ethical Corporation Institute recently
published the report, "The Guide to Industry Initiatives in CSR," which examines leading global initiatives across a range of industries. This
report covers 31 initiatives across various sectors, including agriculture,
manufacturing, mining and natural resources, services, retail
and cross-sector initiatives. The SA8000 standard is featured
among other initiatives such as the Forest Stewardship Council (FSC), Fair Labour
Association (FLA), International Council of Toy Industries CARE Process (ICTI CARE),
and the Business for Social Compliance Initiative (BSCI). The research presented in this report will give
updates on impact of the initiatives, provide insight from companies that are
involved, and help one select an initiative to choose in order to communicate
your brand values to consumers and improve ethical brand awareness.
For more information, and to order a
copy click here
The Slave Next Door: Human Trafficking and Slavery in America Today "The Slave Next Door: Human Trafficking and Slavery in
America Today," published by UC Press last May was written by Ron Soodalter and Kevin Bales, and examines current
slave trafficking in America and the horrific experiences from the perspectives of former slaves. In addition
to shedding light on the conditions of the slavery that exists in the United
States, the authors examine the actions being
taken at local, state, and federal levels to address the issue. The authors turn to the
readers to recognize slavery in their own neighborhoods.
Kevin Bales is an expert in modern slavery and the
president of Free the Slaves, an international NGO and lobby group that works to
end slavery worldwide. Ron Soodalter is a professional writer, and a featured columnist for "America's Civil War."
For more information, click here
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Interns play an important role here at SAI. This summer, more than half a dozen have joined us from Columbia University's SIPA, New York University's Wagner, and Wellesley College. We are
pleased to welcome Elisa Lee and Olinda Hassan, and to introduce them, in their own
words:
 Elisa Lee
I am a rising senior at Wellesley
College, majoring in economics,
arriving at SAI after studying abroad for a year in England. Two years ago, I spent a
summer in Seoul,
South Korea and
learned about the pragmatic importance and relevance, through doctrine and
theory, of promoting human rights for workers in my Management and International
Human Rights Law courses. This summer, I will be working with Lisa Bernstein,
the Program Manager of Social Accountability Accreditation Services (SAAS).
Through this experience I hope to better understand the benefits of accrediting
certification bodies
and certifying
facilities, challenges faced in the process, and what measures are taken to
resolve conflicts and issues brought up by workers, various levels of
management, and certification bodies.
 Olinda Hassan
I am a rising senior majoring in political science and South Asian studies at
Wellesley
College, with particular
focus on international labor and migration. I was recently abroad in Cairo, Egypt where among my subjects I studied the
conditions of migrant laborers in the Middle
East. I have applied this academic interest to various areas,
including a consulting internship in Delhi,
India and PR work in an NGO
promoting micro-businesses in Tucson, Arizona. My concern with international
development led me to SAI where I have started to look at social compliance
issues in Brazil,
India, and
Italy. I hope to gain a better
understanding of corporate social responsibility and its role in our fast paced
global market, and am excited to be part of the SAI team in New York.
We are always welcoming new interns, for opportunities click here |
Announcements and Upcoming Events
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The One World Trust Interactive Civil Society Organizations Map
This month, the One World Trust organization launched a database
of Civil Society Organizations (CSO) and voluntary initiatives, along with an interactive map. This new resource
provides information on the 309 initiatives that have been identified worldwide,
examining the various types of initiatives that exist and the patterns they
follow at the national, regional, and international levels. In addition to the
interactive world map, the portal contains a briefing paper, a project summary,
and FAQs about CSO self-regulation and the project.
To access this map, click here
International Labor Standards, Rights and Beyond, Conference14-15 August 2009, Stanford Law School, California
The conference will focus on the development of international labor
standards and rights, beginning with a keynote address by Judge Rosemary
Barkett of the United States Court of Appeals for the Eleventh Circuit. Speakers
will address topics including country-specific labor programs linking trade and
labor rights, and the roles of the World Trade Organization and the
International Labor Organization. Dan Henkle, SAI Advisory Board Member and Senior Vice President of Social Responsibility at Gap, Inc. is a featured speaker. For more information, click here
Ethical Corporation's 3rd Annual
Corporate Responsibility
Reporting and Communications Summit
25-26 November 2009, Regent's Park Marriott Hotel, London
Ethical Corporation reports
that its summit will provide companies and NGO's with a benchmark against the
best, and demonstrate how to communicate positive sustainability messages.
Tools will be given to create a readable, transparent and precise corporate
responsibility report based on strategy, innovation, transparency, and
readability. Attending this summit will provide: innovative and practical
agenda of concrete best practices; advice from the experts; topical and
relevant programs; focus on interactivity; extension of networks and
improvement of support system. For more information, click here |
We invite you to continually send any updates for us to publish in our monthly newsletters!
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Social Accountability International (SAI) is an international non-governmental organization that
promotes workers rights through multi stakeholder collaboration including
companies, trade unions and NGOs. It assists partners in the development and
use of practical tools, particularly the SA8000 standard, for safe and decent
workplace conditions.
SAI and the SA8000 standard focus on the human elements of
the workplace and the supply chain. SA8000 is the standard that considers the
importance of each job and strives to recognize the equal dignity of each
person involved in the supply chain - from the worker to the retailer to
the consumer. Today SA8000 certification covers over 1830 facilities in 68
countries, across 67 industries, and over one million employees.
SAI is one of the world's leading social compliance
training organizations, having provided training to over 15,000 people. SAI
courses integrate compliance with management systems issues.
SAI is headquartered in the United States with representations in Brazil, China, India, the Netherlands, Nicaragua, Spain, and Vietnam.
SAI
15 West 44th Street, 6th Floor
New York, NY 10036
(212) 684-1414
Website: http://www.sa-intl.org
For newsletter inquiries contact:
Joleen Ong
jong@sa-intl.org |
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