Manufacturing Group’s Second Standard: Human and Worker Rights
Introduction:
This is ongoing recordings of a dialogs between members of our Manufacturing Group charged with the task of developing exceptional standards for jewelry manufacturing. Follow this link for full review of past discussions. The entire principles and standards document can be found here https://fairjewelry.org/archives/3196.
Here, I introduce the second standard. Comments from participants follow.
~Marc Choyt, Publisher, Fairjewelry.org
Moving on, the second standard, Human and Worker Rights, is divided into four sections. First is the minimum standard for all manufacturers. Second, you’ll find additional standards for medium size manufacturers. Third, you’ll find the progressive standards. After that, which I would like to be an entirely additional discussion, is the Skill Transfer Program which has its own minimum and progressive standards.
Though the entire section does need to be considered as a whole, I would prefer to go section by section, recognizing that some of what is in section one (2.1-2.7) may need to go to section two (2.8-2.9) or three (2.10-2.15), or visa versa.
We move forward with the recognition that, working in a circular manner, we will bring these standards to the actual producer before finalizing anything. Their feed back in the field is essential for our multi-stakeholder process.
Thank you for your consideration. Please find the standards below my signature.
Human and Workers Rights
Introductory Comments:
The principles contained in the International Labor Organization (ILO) have increasingly become the standard global objectives to eliminate poverty and support a worker’s rights to a fair wage and decent working conditions. Decent work, as described by the ILO: “Involves opportunities for work that is productive and delivers a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men…”
At a minimum, whether considered large or small, factories where fair made jewelry is produced must embody decent work standards.
Principle:
Employers will respect basic human rights and labor standards, including but not limited to: freedom to organize, no forced labor, no child labor and no discrimination, in adherence with the eight core International Labor Organization (ILO) Principles. Employers will also respect the rights of women and disadvantaged groups.
Standards for Human and Worker Rights:
Minimum requirements for small and medium fair made manufacturers:
2.1: Workers can organize and form a collective for their betterment.
2.2: In such cases where workers have chosen to organize, the Director of the Fair Made factory, recognizing that the spirit of fair trade is transparency and fair and equitable distribution of resources, agrees to freely contact the fair made governing body.
2.3: The factory shall not use forced labor, or employ workers under any threat or duress.
2.4: The factory shall not use child labor. In the case of families employing children, such employment shall not interfere with schooling.
2.5: In the hiring and day to day practices, the factory shall not discriminate against race, religion, sexual orientation, or gender. Women and men shall be equally compensated for the work they do.
2.6: The company shall pay at least, but preferably more, than the minimum wage, as set by the local government.
2.7: Workers will be properly compensated for overtime, according to local laws and regulations. (Does every country address this in their regulations?)
Additional minimum requirements for medium fair made manufacturers:
2.8: An employee handbook shall be created and distributed to all employees, which outlines these basic rights and the policies of the company. A further copy of this handbook shall be readily available for all employees at the work site.
The handbook should be available in the languages of the employees. If employees cannot read, the handbook shall be read to them. As much as possible, key points shall be based on visual communication, including pictures and stories.
2.9: A formal procedure to evaluate grievances and conflicts shall be established.
Progressive Requirements:
2.10p A profit sharing mechanism shall be established.
2.11p A company shall provide a medical fund to support the treatment of illnesses in its employees requiring hospitalization.
2.12p The company shall provide a vacation and or holiday allowance for employees.
2.13p The company shall pay a living wage, over the minimum wage for all employees, depending upon experience and length of service.
2.14p Paid bereavement compensation and time for losses of immediate family.
2.15p: The company transparently pays more than the minimum wage to its workers.
Editors Note: Many of the people who commented wrote “agreed” after the points. Here, I’m only including the text where people actually made suggestions.
Vivien Johnstone Wrote:
I support these standards and have nothing further to add to this section.
Martin Rizzi Wrote:
I must say you are all to be congratulated and that I am astounded and amazed that artisans can aspire to the kinds of benefits that are mentioned in this document. Jewelry producers in the Municipality of Taxco, Guerrero, Mexico have never even dreamed of any such considerations; what the jewelry makers here expect is to migrate to the USA Sounds like this may be the way to go – there will be no problem finding employees – not around here! Run a few spots on the radio and probably at least a couple of thousand artisans will come in to apply.
I am not being ironic. I am admiring the existence of the factory institution in S Africa and other countries. If the artisans have a labor union with health benefits and pension security, good work and congratulations
Patrick Schein Wrote:
Progressive Requirements
2.10p *A profit sharing mechanism shall be established.*
Profit is difficult to control for the employees. The best system is based on sales. It is easily checkable. It works like a royalty in mining. If introduced in the standards, should be defined: 1%, 0.01%, 10%?
*2.12p *The company shall provide a vacation and or holiday allowance for employees according to national regulations requirements.
*2.15p*: The company transparently pays more than the minimum wage to its workers.
Must exclude any profit sharing mechanism or health, retirement and vacation plan.
Mari Lee Wrote:
*2.2: *In such cases where workers have chosen to organize, the Director of the Fair Made factory, recognizing that the spirit of fair trade is transparency and fair and equitable distribution of resources, agrees to freely contact the fair made governing body.
Agreed, as long as proper communication channels are followed – i.e. don’t do so without informing company/Director
*2.7: *Workers will be properly compensated for overtime, according to local laws and regulations.
(Does every country address this in their regulations?) Agreed – we have this in SA regulations.
*2.8: *An employee handbook shall be created and distributed to all employees, which outlines these basic rights and the policies of the company. A further copy of this handbook shall be readily available for all employees at the work site. The handbook should be available in the languages of the employees. For employees that cannot read, the handbook shall be read to them. As much as possible, key points shall be based on visual communication, including pictures and stories.
Agreed – this is a good point, as literacy is an issue in our environment!
*2.9: *A formal procedure to evaluate grievances and conflicts shall be established.
Agreed – and an arbitration process shall be agreed upon? In our experience, it is good to say who will handle arbitration should a situation arise, so that this decision is made when there is no tension, and when tension arise, the necessary systems are already in place? We use the SA Jewellery Council of which we are members as Arbitration partner.
Progressive Requirements
*2.11p *A company shall provide a medical fund to support the treatment of illnesses in its employees requiring hospitalization.*
This is VERY expensive in SA, and although progressive, a tough one to meet for small companies – the new proposed National Health Insurance will be a possible alternative to this.
*2.12p *The company shall provide a vacation and or holiday allowance for employees.*
Not sure this will be realistic in SA ever… not part of any business practice here, not even large corporate does this – they only do performance bonuses linked to performance.
*2.14p *Paid bereavement compensation and time for losses of immediate family.*
This will be another unrealistic one in SA, with the HIV/Aids pandemic. We lose people or family members daily, and this can literally bankrupt a small manufacturer… Maybe a contribution towards a funeral policy for the immediate family at best, and sticking to the 5 days per annum family related leave already in legislation?
Flavia Aarden-Kilger, Wrote:
*2.4: *The factory shall not use child labor. In the case of families employing children, such employment shall not interfere with schooling.
Agreed, is schooling always available in the area? Though,shouldn’t there be at least a minimum age?
*2.5: *In the hiring and day to day practices, the factory shall not discriminate against race, religion, sexual orientation, or gender. Women and men shall be equally compensated for the work they do.
Agreed, though we must be aware that in the “north” equality is still not a resolved issue.
*2.6: *The company shall pay at least, but preferably more, than the minimum wage, as set by the local government.
Agreed. doesn’t this tie in with *2.13p and *2.15p?
*2.9: *A formal procedure to evaluate grievances and conflicts shall be established.
Agreed, should be outlined in the employee handbook
*Progressive Requirements:*
*2.10p *A profit sharing mechanism shall be established.
Would be nice, but is this realistic?, then Fair Made company should form a co-op.
*2.11p *A company shall provide a medical fund to support the treatment of illnesses in its employees requiring hospitalization.
This is very expensive. Will it be feasible for companies to offer this to their employees? In many European countries, employees and employers pay into a medical insurance (fund), that pays for medical treatments. In Canada the employer pays into a “Workers safe fund”, this ensures workers and their families that if something happens, they will be taken care of.
*2.13p *The company shall pay a living wage, over the minimum wage for all employees, depending upon experience and length of service.
Isn’t this the same as what is trying to be accomplished with *2.15p?
*2.14p *Paid bereavement compensation and time for losses of immediate family.
Within reason. Some NGO companies give up to 1 week paid compensation, commercial companies I have worked with, only give 1 day paid compensation.
*2.15p*: The company transparently pays more than the minimum wage to its workers.
Should there not be a minimum % above minimum wage? Depending on the country.
Marc Choyt wrote:
I have rewritten the sections, incorporating suggestions.
The progressive requirements (noted with a number followed by the letter “p”) are well beyond and above what would be required for a company to take part in this program. As some of you have pointed out, many of the requirements are beyond what companies in developed nations require or have even resolved.
However, there will be some factories able to fulfill progressive requirements to some degree or another. In the system internet based system that we create, these exceptional policies will be a noted part of that company’s unique selling point to those that might utilize their skills.
As per Flavia suggestion, that 2.13p and 2.15p are repetitive:
2.13p; The company shall pay a living wage, over the minimum wage for all employees, depending upon experience and length of service. & 2.15p; The company transparently pays more than the minimum wage to its workers.
I would suggest simply eliminating 2.15p.
Below is a rewrite for your review. Thank you for your continued interest.
REWRITE OF SECTION 2
2.2: In such cases where workers have chosen to organize, they shall notify first the Director of the Fair Made factory. The workers, recognizing that the spirit of fair trade is transparency and fair and equitable distribution of resources, also agrees to freely contact the fair made governing body.
2.4: The factory shall not use child labor. In the case of families employing their own children, such employment shall not interfere with schooling as per the regulations of the country where the factory is operating.
2.6: The company shall pay at least the minimum wage, as set by the local government.
2.7: Workers will be properly compensated for overtime, according to local laws and regulations. In countries where such compensation laws do not exist, fair made factories shall establish overtime compensation.
2.8: An employee handbook shall be created and distributed to all employees, which outlines these basic rights and the policies of the company. A further copy of this handbook shall be readily available for all employees at the work site. The handbook should be available in the languages of the employees. For employees that cannot read, the handbook shall be read to them. As much as possible, key points shall be based on visual communication, including pictures and stories.
2.9: A formal procedure to evaluate grievances and conflicts among workers shall be fully documented and established. The grievance policy shall be outlined in the Employee Handbook.
PROGRESSIVE REQUIREMENTS
2.10p A profit sharing mechanism, based on percentage of total sales, is established..
2.11p A company shall provide a medical fund to support the treatment of illnesses in its employees requiring hospitalization.
2.12p The company shall provide a vacation and or holiday allowance for employees according to national regulations and requirements.
2.14p Paid bereavement compensation and time for losses of immediate family, inclusive or beyond a contribution toward a funeral policy, or certain number of days per annum for family related leave.
2.15p: The company transparently pays more than the minimum wage to its workers excluding profit sharing, health, retirement and vacation plan.
