To address the challenge and risks facing the garment industry is sub contracting and the uncertainty and risks associated, AEPC in association with Ethical Trading Initiative (ETI) organized, a workshop on, ensuring safe sub contracting – reputational risk management, at apparel house, Gurgaon.
Mr. H K L Magu, Sr. Vice Chairman-AEPC inaugurated the workshop. Mr Ashok Logani, Chairman DISHA Subcommittee, AEPC introduced the workshop theme. Mr Vijay Mathur ASG at AEPC and Chandrima Chatterjee, Director Compliance AEPC along with representatives from various brands and NGO’s were also present in the meeting.
Home workers, contract labour, migrant workers, etc are the target groups that work in this sub-contracted unit, they suffer due to inadequate law and being in unorganized sector. This endemic issue in the industry carries a huge reputational risk. Therefore, the workshop is an effort to focus on the ways by which this issue can be managed. The focus was on:
- Improving on the transparency levels within the supply chains
-Working in collaboration with stakeholders.
The AEPC in association with ETI discussed on the associated risks on sub contracting in the Garment Industry and need for leaner supply chains. This national level discussion deliberated on strategies for collaborative work in building leaner and transparent supply chain which are beneficial, both for the garment manufactures and workers.
Inaugurating the workshop Mr H K L Magu state that, “ To address the issue of sub-contracting and issues related to labor we have a programme called DISHA which trains factories in safeguarding the interest of the workers and ensure compliance. DISHA trains and educate factories on these issues.
"We have reached to the rural and sub-urban areas and trains the workers and provide them with employment too. In this programme 233 factories has already been enrolled and around 60 have completed the assessment and are ready for certification.” AEPC has 8000 members of which 5000 units have in house facility to meet the demand, rest 3000 factories go for sub- contracting therefore, it is the need of time to educate and train those factories in the risks associated with sub- contracting and issues resulting thereof, he added.
Mr. Ashok Logani Chairman DISHA Subcommittee, AEPC in his address said, “Today, the brands and manufacturers have a shared concern and responsibility to adhere to best labour practices. Brand image and action against exploitation of workers in the supply chain is very important and in this regard, labour compliance is critical. Recognizing the need for providing a platform for multistakeholder dialogue on issues like supply chain transparency, concerns related to contract workers , job work outsourcing, , overtime rules & rates etc..
"The Council has initiated Roundtables in various cities on labour issues. The first in the series was on managing the risks of contract labour, held on 8th December, 2010 in Gurgaon.” The contract workers must get all facilities such as minimum wages, weekly off and safe working condition and social safety net. But at the same time, some of the present provisions are not in tune with the requirement of the Indian industry facing severe competition in a globalised world. This issue needs to be addressed for attaining parity.
Chairman AEPC has congratulated team of AEPC- DISHA for organizing this workshop. In his statement he said, “I am happy to note AEPC in association with ETI has made efforts in this sub- contracting area. The national Home workers Group has provided a good platform for bringing awareness and transparency in the supply chain and AEPC would be happy to synergize its efforts with that of ETIs in this direction.”
Ms. Chandrima Chatterjee during her presentation remarked that,” Recognizing the combined responsibility of the manufacturers and brands to ensure proper subcontracting norms are adhered to the AEPC’s Common code of conduct has laid down the following norm with respect to subcontracting: Regulate sub contracting: DISHA certified factories, while hiring and engaging sub contractors, shall follow due processes.
"The due process shall include, but not limited to, encouraging and supporting adherence to all applicable local laws by the sub contractors.“ The essence is to recognize the need for sub contracting and at the same time to regulate it. The DISHA Guidance documents and toolkits give further details on the acts and managements systems to be put in place for subcontracting. The emphasis is on having a policy, having a monitoring system and having people responsible in the factories to ensure the two, she added.
Mr. Rana Alok Singh, India representative & Ms. Julia Kilborne, Apparel & Textile category leader, ETI observed that, “ Homeworkers and ethical trade is a suite if five new training programmes designed to promote understanding of the issues around homeworkers’ working conditions in the supply chain.
"The interactive workshop builds awareness of the opportunities, risks and realities of supply chains that include five key audiences: brands & retailers; suppliers; contractors; sub-contractors and home workers- all supported by a train the trainers’ programmes. The participants will comprehend the reality of home workers’ supply chain, realize the business case for compliance with the ETI base code and know how to achieve compliance with labour rights in the local context. It is to be noted that ETI base code has been derived from the ILO norms.
