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NOT FOR SALE
AUSTRALIA
The Australian Fashion Report
The Truth Behind the BarcodeTHE truth
BEHIND
THE BARCODE:
The Australian
Fashion Report
19 August 2013
Authors: Gershon Nimbalker, Claire Cremen and Haley Wrinkle.
Free2Work is a project of
Baptist World Aid Australia
Not For Sale Australia
NOT FOR SALE
The grades in this report were conducted using the Free2Work grading tool which was developed by Not For Sale
AUSTRALIA
and the International Labor Rights Forum. Research into Australian brands contained in this report was conducted www.notforsalecampaign.org/australia
by Baptist World Aid Australia. Grading of some brands contained in this report was undertaken by Not For Sale,
supported by the International Labor Rights Forum. These grades were previously published November 2012 in the
report Apparel Industry Trends: From Farm to Factory which is available at www.free2work.org and are republished Visit www.behindthebarcode.org.au
in this report with full permission. 19 August 2013 to find out moreIntroduction 3
In the wake of the tragic Rana Plaza factory collapse in Bangladesh, there has been We also want to encourage companies to begin reporting the impact of their CSR policies,
an increasing desire for Australian consumers to know more about how our clothes and in particular the wage gains of their workers – one of the most dependable measures
are produced and how the workers that make them are treated. This report examines of improved worker well-being.
41 companies (128 brands) operating in Australia, and assesses what efforts they are
undertaking to protect the workers in their supply chain from exploitation, forced labour We know that the investment, job opportunities and skills that fashion retailers bring to
and child labour. This research builds upon work previously carried out in the US focused countries, particularly developing countries, can be hugely beneficial for these countries
‘Apparel Industry Trends’ report, compiled by Free2Work. and their citizens. However, we also know that without adequate safeguards, workers can
be exploited or even enslaved, and as we have seen recently, lives can be lost.
Two decades ago it was standard practice for fashion brands to publicly deny any
responsibility for workers in their supply chain. Years of worker and consumer activism, This report aims to empower consumers to purchase ethically while encouraging
and most recently the tragic events in Bangladesh, have shifted the debate. A number companies to ensure that the workers that produce the products they sell are protected
of companies have moved to develop extensive corporate social responsibility (CSR) and not harmed, that they are rewarded, not exploited and that they work free from the
programs that, if properly enacted, should lead to improved working conditions and tyranny of modern slavery.
positive change for workers.
The report grades companies across four categories of their CSR practices: Policies,
Traceability & Transparency, Monitoring & Training, and Worker Rights. It is worth noting
that though more than a third of companies received an A grade for their policies, without
adequate enforcement mechanisms, the impact of these policies on workers’ livelihoods
can be negligible, with only 2 companies (5%) reporting efforts to ensure that workers
at multiple stages of the supply chain receive a living wage. We hold that it is important
for companies to ensure they have supply chains that are highly transparent, and where
workers are respected and afforded a voice to negotiate working conditions and speak
out against grievances.
In compiling these grades, we have sought to engage brands with the research process.
Where brands have not responded we have graded them based on publically available
information on their CSR policies. It is possible that many of these brands are doing
more than is represented by these grades and we look forward to working with them to
understand their practices better.
Along with the presented grades, the report highlights a few significant labour rights
issues faced in the various stages of production, such as the use of forced child labour
in Uzbekistan’s cotton fields and ongoing worker exploitation in Bangladesh’s garment
factories. In addition to comprehensive CSR policies and monitoring, we encourage brands
to support issue specific initiatives like the Bangladesh Accord on Fire and Building Safety
or the Responsible Sourcing Network’s pledge to not use Uzbekistani cotton. These
initiatives represent an essential step toward protecting workers.Introduction | Australian Fashion Industry Overview 4
These grades indicate the extent to which a company has traced its suppliers and The grades below show each company’s overall grade as well as grades in each of the
established systems throughout its supply chain that can enable it to prevent and address assessed categories: Policies, Transparency & Traceability, Monitoring & Training and
worker exploitation and modern slavery. Worker Rights.
Specialty Fashion Group*
Abercrombie and Fitch*
Fusion Retail Brands
Russell Corporation
Fruit of the Loom
Cue Clothing Co*
Simon de Winter
Supre Holdings*
Skechers USA*
Rocky Brands*
Pacific Brands
Sussan Group
Woolworths *
David Jones*
New Balance
Levi Strauss
Just Group*
Kathmandu
Cotton On*
Timberland
Forever 21*
Quiksilver*
Lululemon
Patagonia
Lacoste*
Carter’s*
The Gap
Target*
Kmart*
Coles *
MYER*
Adidas
Inditex
Hanes
Rivers
3 Fish
Puma
Etiko
H&M
Nike
VF*
Overall Grade A D+ B+ D- D+ B- B F A+ D- D D+ B+ A- A- D- B D F B C- D+ B B B B+ B D+ D- D C- B- F F F C- C- B A- C+ C
Policies A- C- A+ D- C B C- F A+ D- C- C A+ B- A D B- C- F A C C A A- A A+ B+ D+ D- C B- B F F F B- C+ A- A B A
Transparency and Traceability A C- A- D- D- C+ B F A D- D C- A- A- A- F A- D F A- C- D B B+ C+ A- B+ D F D+ D B- F F F D C- B+ A B- C-
Monitoring and Training A- D+ A- D D+ B+ B F A D- D D+ B+ A A- F C+ D F B+ C+ D+ B- B+ B B+ B C- F F C B F F F C C B A C C-
Worker Rights A+ D- C F D- D A F A+ F D- D- D B+ C F C F F D+ D- D- C- C- B- C+ D+ F F F D- D+ F F F D- F D C+ D- D-Introduction | Living Wage 5
Wages are one of the chief concerns for workers. Many ethical sourcing policies require the Payment of a Living Wage
payment of a legal minimum wage or the industry standard wage, which usually amounts
to the same thing. The legal minimum wage however, is often not sufficient for a worker and
Living Wage
his/her dependents to meet their basic living needs. Legal minimum wages may serve to Partial
(3Fish and Etiko)
keep workers and their families in poverty, or force them into working excessive overtime to (Cue and Pacific Brands)
5%
make ends meet. 5%
We believe that one of the most demonstrable, and measurable differences a company can
make to the welfare of their workers is through the payment of a ‘living wage’. That is a wage
high enough to ensure that workers can meet the basic needs (food, water, shelter, clothing,
energy, transport etc..) for themselves and their families, with a small amount left over for
savings in case of an emergency. 90%
Legal Minimum
Despite this, our research shows that of all the brands we researched, only the 2 Fairtrade or No Wage
brands, 3Fish and Etiko payed a living wage to multiple levels of their supply chain. Of these Guarantee
two, Etiko produces a total of 3 brands which are encompassed by their grading (Etiko, Jinta
and Pants to Poverty). Cue (which also owns the brand Veronika Maine) was the only other
company to pay a living wage, although this was guaranteed only at the cut, make and trim
stage of its production and only for clothes carrying the Ethical Clothing Australia tag, which
it uses for a proportion of its Australian made products. Pacific Brands also stated that they
have taken some steps to ensure that workers in China are paid above the legal minimum.6
1 METHODOLOGY
This chapter provides an overview
of the research methodology. It also
covers the scope of the report, and
provides basic information about
apparel supply chains.Methodology | Apparel Supply Chains 7
Brand
Our evaluations focus on
Final
three main production phases Inputs Raw
of each supply chain: Stage
Production Materials
Production
Each evaluation Each evaluation Each evaluation
looks at: looks at one of looks at one of
the following the following
phases: phases:
------------------ ------------------ ------------------
Cut-Make-Trim Textiles Cotton
(CMT) Production
(Farming)
Manufacturing ------------------
(Ginning,
(Cutting, Spinning, Wool,
SCOPE OF EVALUATIONS Sewing, Knitting,
Dying,
Rawhide,
Printing) etc.
Embroidery)
Most apparel travels through various parts of the world and through
------------------
many hands before reaching store shelves. Even within the apparel (Husbandry,
industry, there are different sorts of supply chains. Some garments pass Leather Shearing,etc.
through dozens of hands and countries. Other supply chains are more ------------------
vertically integrated. The making of a garment involves harvesting, (Tanning)
manufacturing, transportation, and many phases in between. ------------------ Crude Oil
For Synthetic
Our assessments focus on three stops along this chain: we evaluate each Plastic Fibres,
company’s management of the production of one main raw material,
one main input, and the final manufacturing stage. In apparel, this usually (Processing, Plastics, etc.
means we look at cotton farming, textiles production (fabric-making), Moulding)
and cut-make-trim manufacturing (where fabric is cut and sewn into (Extraction,
garments). Some companies are doing more to address issues in other Refining)
phases, like leather production; in these cases we cater our assessment
to best evaluate the company’s initiatives.Methodology | Grading Process 8
A company’s grades are a measure of its efforts to guard against the use of child and Our grades are an indication of the extent to which companies have developed a set of
forced labour in its supply chain. They are based on publicly available information and management systems that, if used together, can reduce the risk of labour exploitation.
data self-reported by the company. This publication provides an overview of 41 apparel It is important to note however that, outside of a few metrics, we are only able to gather
company ratings. Many of these companies own multiple brands; the assessments in this information on management systems and not on the supply chain working conditions
report look at 128 brands in total (see Index page 26 for details). they are designed to facilitate; this is because the overwhelming majority of companies
are not transparent with working condition information. Except in a few cases, companies
In assessing a company, we ask a set of 61 questions about its production policies and have not made monitoring reports, corrective action plans, or line-by-line statistics on the
practices. Our assessment questions concern a company’s management of raw materials, implementation of code standards available to the public. Without this information, a direct
inputs and cut-make trim manufacturing, and fall into four categories: analysis of the impact of these management systems on child labour, forced labour and
many broader worker rights is not possible.
POLICIES: We evaluate the brand’s code of conduct, sourcing and subcontracting policies,
and involvement with other organisations working to combat child and forced labour. Our grades take into account the prevalence of child and forced labour in the countries
in which companies report operating. Where companies source from suppliers in low
TRACEABILITY & TRANSPARENCY: We look at how thoroughly the brand understands its risk areas, they are graded on a softer curve because it is expected that less stringent
own supply chain, and whether it discloses critical information to the public. management systems are necessary to combat abuse in these regions, particularly where
strong national rule of law exists.
MONITORING & TRAINING: We measure the adequacy of the brand’s monitoring program
to address the specific issues of child and forced labour. High grades do not necessarily represent supply chains free of child or forced labour, but
instead those that are better managed on a relative basis.
WORKER RIGHTS: We assess the degree to which the brand supports worker well-being
by ensuring that workers are able to claim their rights at work through organising, and For more information on our risk assessments and broader methodology, see www.
whether workers earn a living wage. free2work.org. For more information about this report, and to find out more about further
advocacy campaigns by Baptist World Aid Australia, see www.baptistworldaid.org.au/
ethicalfashion.
In conducting a brand evaluation, our research team first assesses a brand’s own
publications alongside relevant independent reports and data such as third party audit
findings and non-governmental organization (NGO) publications. Next we send our
questionnaire to the brand for information and comment, which we in turn review; we allot
six to eight weeks for this process. Where a brand is non-responsive, we note this on its
scorecard (indicated by an asterisk next to the companies’ names). Companies which were
not responsive were provided a copy of the assessment twice by post, and also notified
of the final grade they received before this report was published. Our research team also
attempted to contact them by phone and via email addresses provided on company
websites for public enquiries, to offer them an opportunity to provide information and
comment on our research. The research conducted by Baptist World Aid for this report
took place over a period of 18 months. We remain open to regrading these non-responsive
companies in future should they wish to provide us with further information about their
supply chain management practices.9
State
of the
Industry:
2 Child Labour,
Forced Labour
and Worker
Exploitation
This chapter provides an overview of
where geographically child and forced
labour are used in apparel production
today. We look at three main phases:
cut-make-trim manufacturing, textiles
production, and cotton growing and
harvesting. We use this information to
understand companies’ specific supply
chain risks.Child & Forced Labour in Cut-Make-Trim Manufacturing
10
KEY:
Yellow icons represent countries that lead
Due to decades of international exposure, child and forced labour is less prevalent in export apparel factories today
the world in garment exports
than it was twenty years ago. Nonetheless, people can be found in modern-day slavery even in some key global apparel (Source: World Trade Organization, 2008)
production hubs. Many of the largest global exporters, including China, India and Bangladesh are known to use child
and/or forced labour in their garment production. Red represents countries reported to use
child and/or forced labour in garment
production
(Source: DOL List of Goods Produced by Child
Where is Child and Forced Labour Used? Labour or Forced Labour, 2012. Child Labour in
the Informal Garment Production in Bangladesh,
EUROPEAN ICF 2012)
UNION (26) INDIA
TURKEY CHINA
MEXICO JORDAN
VIETNAM
SPOTLIGHT: Bangladesh
The garment industry is booming in Bangladesh,
and makes up more than 80% of the country’s
exports, with the nation rising to become the
second biggest garment exporter in the world.
Bangladesh attracts garment producers
because the costs of production are so cheap,
the human costs however are not. Many of
the almost 4 million workers employed in the
industry suffer through appalling conditions.
Harassment, unsafe factories and injuries are
rife. Additionally Bangladesh has the lowest
BANGLADESH manufacturing wage in the world, and reports
of child labour remain prevalent.
THAILAND
INDONESIA Sources: War on Want (accessed June 2013)
http://www.waronwant.org/overseas-work/sweatshops-
and-plantations/sweatshops-in-bangladesh ICF (2012)
MALAYSIA Reuters (2013) ‘Bangladesh Exports up 10pc on
ARGENTINA garment sales’.Child & Forced Labour in Textiles Production
11
As will be discussed in later pages, most apparel companies covered in this report monitor the
working conditions in at least some portion of their cut-make-trim (CMT) factories. In contrast, the
earlier phases of apparel production – those further upstream in the supply chain – often remain
untraced, unmonitored and out of sight. This opacity significantly contributes the risk of abuse in these
production phases. At the textiles level, child and/ or forced labour is documented in six countries.
SPOTLIGHT: India
Where is Child and Forced Labour Used? India is a global hub for textiles manufacturing.
There are major incidences of child and forced
NORTH KOREA labour in this industry.
BELGIUM
GERMANY SOUTH KOREA In Tamil Nadu in southern India, young women
UNITED STATES CHINA are kept in what can amount to labour bondage
ITALY TAIWAN
through a practice dubbed the “Sumangali
Scheme.” The girls, some younger than 14, are
paid less than the minimum wage for one to
three years. After this work term is finished, the
employer pays the withheld wages to the family
as a lump sum to be used as a dowry. In some
instances the practice can mean forced labour:
in these cases the employer binds the women
to work by refusing to pay the withheld money
unless they complete years of employment.
Some of these women are also victims of other
abuses such as forced overtime, sexual abuse
and gender discrimination.
Children can be found working in the textile
industries of Gujarat and greater Delhi. These
children commonly work long hours in difficult,
dangerous conditions. In Gujarat, ILRF and its
BANGLADESH partner Prayas helped free one 12 year-old boy
held in captivity by a cotton gin in owner after
KEY: having lost his arm in a ginning accident.
INDIA
Yellow icons represent countries that lead
Sources: CCC, SOMO & ICN: Captured by Cotton, 2011
the world in textiles production
(Source: UNCTAD, 2009) Anti-Slavery International: Research 2009-2010
PAKISTAN PRAYAS: Research, 2012
Red represents countries reported to use ILRF: “Child Labourer Finally Freed From Captivity After
Losing Arm in Cotton Ginning Accident,” Labour is Not a
child and/or forced labour in cotton production Commodity Blog, 2012
(Source: DOL List of Goods Produced by Child Labour ETHIOPIA Verite: Regional Report: Indian Workers in Domestic Textile
or Forced Labour, 2011) Production, 2010Child & Forced Labour in Cotton Production
12
KEY:
Much of the apparel we buy contains cotton being produced and harvested by people held in modern Yellow icons represent countries that lead
forms of slavery. The US Department of State and various NGOs report that at least 17 countries are the world in cotton production
known to use child and/or forced labour in cotton production, with the largest producers being China, (Source: USDA Foreign Agricultural Service, 2011)
India, the United States, Pakistan, Brazil, Australia and Uzbekistan. Of the top ten global cotton
Red represents countries known to use child
producers, only Australia has no reported incidences of child and forced labour.
and/or forced labour in cotton production
(Source: DOL List of Goods Produced by Child Labour
or Forced Labour, 2011. Human Rights Watch. Fields of
Where is Child and Forced Labour Used? Peril: Child Labour in US Agriculture 2010).
TURKMENISTAN
TURKEY UZBEKISTAN
KAZAKHSTAN
EGYPT
UNITED STATES TAJIKISTAN
GREECE
KYRGYZ REPUBLIC
SPOTLIGHT: Uzbekistan
Uzbekistan is currently the world’s fourth
largest exporter of cotton globally, where
state-sponsored forced and child labour continue
on a massive scale. Each year the Karimov
government forces over a million people across
the country—from adults to children as young
ARGENTINA as 10—to pick the crop each year. It requires
teachers to close schools for the harvest, and
PARAGUAY forces children to work up to 70 hours a week for
little or no wages under threat of expulsion and
BRAZIL abuse. Farmers are required to meet production
quotas and then forced to sell the crop to the
administration at an artificially low price, keeping
them in poverty. Citizens who speak out against
these abuses are punished with detention, torture
BURKINA FASO and exile. Meanwhile the Karimov government
CHINA
profits from ongoing cotton sales on the
international market, and the material continues
INDIA
BENIN to find its way into globally-sold apparel.
PAKISTAN
Sources: Cotton Campaign: End Forced Labour in the
AZERBAIJAN Cotton Sector of Uzbekistan,2012:
http://www.cottoncampaign.org/
U.S. Central Intelligence Agency: The World Factbook:
AUSTRALIA
Uzbekistan, 2012
ILRF: We Live Subject to their Orders, 2009
ZAMBIAChild & Forced Labour in Cotton Production
13
The following brands have taken substantial steps to ensure that they are not using The companies on this list have taken steps in one of the following four ways:
Uzbekistani cotton. 1. Provided a public commitment by signing the Cotton Pledge with the
Responsible Sourcing Network. The full list of companies which have signed this
pledge may be viewed here.
Companies Boycotting 2. The company has provided Baptist World Aid Australia or Stop the Traffik with
Uzbekistani Cotton a commitment to not knowingly use cotton sourced from Uzbekistan, along
3 Fish with confirmation that they have either communicated this commitment to their
Adidas suppliers, and have undertaken audits to enforce this commitment.
3. The company has provided a public commitment to not knowingly use cotton
Carter’s sourced from Uzbekistan, or
Cotton On 4. The company has traced the origins of 100% of their cotton supply chain
Etiko
Fruit of the Loom
H&M
Inditex
Just Group
Kmart
Levi Strauss
New Balance
Nike
Pacific Brands
Patagonia
Puma
Russell Corporation
Sussan Group
Target
The Gap14
State
of the
Industry:
3 POLICIES
This chapter focuses on apparel
companies’ policies to address
exploitation, child labour and forced
labour in their supply chains. It looks
at how 41 companies perform in
this category.Policies | State of the Industry: Overview 15
While good policies do not necessarily mean good practices, they are a critical starting
point. They form the backbone of management systems that uphold worker rights and
protect against abuses like the use of child and forced labour.
CODES OF CONDUCT
71% A Code of Conduct lays out minimum social requirements suppliers must follow.
of companies
assessed have
Good codes are based on internationally agreed upon standards. The International
a code of conduct Labour Organization (ILO) Four Fundamental Principles and Rights at Work define
that covers core clear principles for prohibitions against child labour, forced labour and discrimination,
ILO principles and guarantees for worker rights to freedom of association and collective bargaining.
Among the apparel companies Free2Work assessed, 71% have Codes of Conduct that
align at minimum with these basic principles.
RESPONSIBLE PURCHASING
The way a company purchases from its subcontracted factories and suppliers affects
37% those businesses’ ability to provide fair conditions to workers. The quick order
turnarounds of the fast-fashion world, for example, can lead a supplier to force workers
have taken steps to labour overtime. When companies squeeze suppliers by demanding low prices,
to use responsible this means suppliers have less money to spend on paying decent wages. Very few
purchasing
practices of the companies assessed guarantee a decent price to their suppliers or otherwise
financially enable their suppliers to comply with code standards. Nevertheless, 37% of
those assessed did report some steps towards improving purchasing practices, which
indicates at least an admission of the need to address the problem.
SUBCONTRACTING POLICIES
59% It is common practice for suppliers to subcontract parts of companies’ orders out to
have a policy unauthorised, unmonitored facilities where workers are left without any redress in the
addressing event of abuse. 59% of companies assessed say they are taking steps to implement
subcontracting policies against unauthorised production; most commonly this entails monitoring
and homework suppliers’ production volumes against capacities.Policies | Company Performance 16
KEY:
See which companies performed the best and which companies lack policies that uphold worker rights. = yes = partial = no
Most companies own multiple brands; see index for full brand breakdown.
Specialty Fashion Group*
Abercrombie and Fitch*
Fusion Retail Brands
Russell Corporation
Fruit of the Loom
Cue Clothing Co*
Simon de Winter
Supre Holdings*
Skechers USA*
Rocky Brands*
Pacific Brands
Sussan Group
Woolworths *
David Jones*
New Balance
Levi Strauss
Just Group*
Kathmandu
Cotton On*
Timberland
Forever 21*
Quiksilver*
Lululemon
Patagonia
Lacoste*
Carter’s*
The Gap
Target*
Kmart*
Coles *
MYER*
Adidas
Inditex
Hanes
Rivers
3 Fish
Puma
Etiko
H&M
Nike
VF*
POLICIES GRADE A- C- A+ D- C B C- F A+ D- C- C A+ B- A D B- C- F A C C A A- A A+ B+ D+ D- C B- B F F F B- C+ A- A B A
CODE OF CONDUCT
Q1 Does the brand have a code that
addresses labor standards?
Q2 Does the code include elimination
of child labor?
Q3 Does the code include abolition
of forced or compulsory labour?
Q4 Does the code include freedom of
association?
Q5 Does the code include rights to
collective bargaining?
Q6 Does the code prohibit
discrimination on the basis of
personal attributes or affiliations?
Q7 Does the code prohibit use of
regular and excessive overtime?
Q8 Are suppliers required to ensure
freedom of movement for
employees and their right to leave
and enter work voluntarily?
Q9 Are suppliers prohibited from
using recruitment fees?
Q10 Does the code apply to multiple
levels of the supply chain?
Q11 Is the code included in supplier
contracts?
POLICIES
Q1 Does the brand have a policy of
non-interference toward trade
unions and workers organising?
Q2 Does the brand participate
in any multi-stakeholder
initiatives? (e.g. Bangladesh Fire
and Safety Accord)
Q3 Has the brand taken steps to
use responsible purchasing
practices?
Q4 Does brand have a policy that
addresses subcontracting in the
supply chain (including homework)?17
State
of the
Industry:
4 TRACEABILITY
&
TRANSPARENCY
This chapter focuses on apparel
companies’ supply chain traceability
and transparency.Traceability & Transparency | State of the Industry: Overview 18
Surprisingly, many companies do not know exactly who produces their goods. Since child and forced labour
are used in garment, textiles and cotton production globally, it is critical that a company knows the actors
at each stage of its supply chain to guard against such abuses. Public transparency is important as well
because it shows a company’s willingness to being held externally accountable for its supply chain. We
define traceability as the extent to which a company understands its supply chain, and transparency as the
Percentage of companies that have fully extent to which it makes information publicly available.
traced their suppliers, at particular supply
chain levels:
CMT - 39% KNOWN SUPPLIERS
Input - 24%
We believe that companies are responsible for the workers making products in every stage of production,
Raw Materials - 7% and traceability is the first concrete step a company can take to realising this responsibility. While most
companies have some relationship with their direct cut-make-trim suppliers, they are often less clear about
whether these suppliers are contracting production out to other factories. When it gets down to the cotton
level, where the risks are significant, only 3Fish and Etiko, those with Fairtrade certified supply chains, knew
every supplier.
PUBLIC SUPPLIER LISTS
20% Companies can show workers, consumers, and the public as a whole that they are committed to being
held accountable to the workers in their supply chains by publishing supplier lists. Transparency enables
of companies independent groups to shed light on working conditions, which can in turn facilitate better public
assessed publish understanding of the issues and consumer demand for change. Of the companies we assessed, 15%
supplier names
and addresses publish a full cut-make-trim supplier list.
(CMT level)Traceability & Transparency | Company Performance 19
KEY:
See which companies performed the best and which companies lack in transparency.
Most companies own multiple brands; see index for full brand breakdown. = yes = partial = no
Specialty Fashion Group*
Abercrombie and Fitch*
Fusion Retail Brands
Russell Corporation
Rocky Brands, Inc*
Fruit of the Loom
Cue Clothing Co*
Simon de Winter
Supre Holdings*
Skechers USA*
Pacific Brands
Sussan Group
Woolworths *
David Jones*
New Balance
Levi Strauss
Just Group*
Kathmandu
Cotton On*
Timberland
Forever 21*
Quiksilver*
Lululemon
Patagonia
Lacoste*
Carter’s*
The Gap
Target*
Kmart*
Coles *
MYER*
Adidas
Inditex
Hanes
Rivers
3 Fish
Puma
Etiko
H&M
Nike
VF*
TRACEABILITY & TRANSPARENCY GRADE A C- A- D- D- C+ B F A D- D C- A- A- A- F A- D F A- C- D B B+ C+ A- B+ D F D+ D B- F F F D C- B+ A B- C-
TRACEABILITY
Q1 If brand claims to have traced all
CMT suppliers, does it also have a
system to make sure subcontractors
are known?*
Q2 Has the brand traced all or
almost all of its suppliers at one
input level?
(partial = some directly traced)
Q3 Has the brand traced all or almost
all of its suppliers at one raw
materials level?
(partial = some directly traced)
TRANSPARENCY
Q1 Is there a public list of
countries in which suppliers
are located?*
Q2 Is there a public list of
direct suppliers?*
Q3 Does the brand require and keep
record of information from direct
suppliers on every sub-contractor
and sub-contract?*
Q4 Does the brand track suppliers’
use of temporary or contract
workers?20
State
of the
Industry:
5 monitoring
&
TRAining
This chapter focuses on apparel
companies’ monitoring and training
programs, which can be important
parts of systems that effectively
prevent worker exploitation.Monitoring & Training | State of the Industry: Overview 21
Audits are tools companies can use to get snapshots of supplier working conditions, and to identify While audits can be a key element of ensuring compliance, they are only
major abuses such as the use of modern-day slavery. Workers themselves are the best monitors. effective when the information gathered is used to improve working
Accurate information can often only be gathered by interviewing workers off-site and away from conditions. Audits can form the basis of corrective action plans, which
management, where workers feel comfortable to express concerns. The most replicable model – one suppliers can use to correct issues. Many suppliers lack the capacity or
that is under-utilised – is one where workers are organised into a functioning union with access to a knowledge to provide certain protections to workers, which is why training
safe and effective grievance process. programs can be an important tool.
AUDITING
SUPPLIERS
% of companies that monitor
more than 75% of suppliers, % of companies that audit suppliers
by supply chain level unannounced or with off-site worker interviews
(CMT)
CMT - 49% QUALITY OF AUDIT
Input - 10% Unannounced audits provide a more accurate picture of day-to-day
operations because abuses cannot be as easily hidden without
Raw Materials - 7% 56% advanced warning. Workers are best able to express concerns when
interviewed off-site, away from management. 56% of companies
assessed report using unannounced visits and/or offsite interviews
for some of their CMT audits.Monitoring & Training | Company Performance 22
KEY:
See which companies performed the best and which companies have neglected monitoring or training their suppliers.
Most companies own multiple brands; see index for full brand breakdown. = yes = partial = no
Specialty Fashion Group*
Abercrombie and Fitch*
Fusion Retail Brands
Russell Corporation
Fruit of the Loom
Cue Clothing Co*
Simon de Winter
Supre Holdings*
Skechers USA*
Rocky Brands*
Pacific Brands
Sussan Group
Woolworths *
David Jones*
New Balance
Levi Strauss
Just Group*
Kathmandu
Cotton On*
Timberland
Forever 21*
Quiksilver*
Lululemon
Patagonia
Lacoste*
Carter’s*
The Gap
Target*
Kmart*
MYER*
Adidas
Inditex
Coles*
Hanes
Rivers
3 Fish
Puma
Etiko
H&M
Nike
VF*
Monitoring and Training Grade A- D+ A- D D+ B B F A D- D D+ B+ A A- F C+ D F B+ C+ D+ B- B+ B B+ B C- F F C B F F F C C B A C C-
Monitoring
Q1 Does the brand monitor at least
75% of its direct CMT suppliers
annually?*
Q2 Does the brand monitor at least
75% of its inputs suppliers annually?
(one input)
Q3 Does the brand monitor at least
75% of its raw materials suppliers
annually? (one raw material)
Q4 Does the brand monitor at least
75% of its CMT suppliers with
unannounced visits or off-site
worker interviews?*
Q5 Does the brand share audit
reports and corrective action
plans publicly?
Training
Q1 Are both auditors and factory
managers trained to identify
human trafficking, child labour
and forced labour?*
Q2 Does the brand invest in supplier
compliance implementation
through training or other financial
support?*23
State
of the
Industry:
6 worker
rights
This chapter focuses on the
degree to which companies
support worker rights.Worker Rights | State of the Industry: Overview 24
Most workers in apparel supply chains toil under poor conditions and are paid extremely low
wages. We look at whether companies are actively addressing worker well-being. Risks of
modern-day slavery are far less in workplaces where individuals are able to claim their rights at
work through organising, and where companies actively work to ensure the wellbeing of their
workers through the payment of a living wage.
PREFERRED SUPPLIER PROGRAMS
49% Companies have the financial leverage to demand and ensure decent working conditions, living
wages and implementation of labour rights, in particular by concentrating their order volumes
base sourcing
decisions on supplier
in a sufficiently narrow set of suppliers in order to command a significant portion of a supplier’s
labour conditions product capacity. While most companies assessed do not make compliance with social
(CMT level) standards a priority in picking suppliers, 49% report basing sourcing decisions to some degree
on labour conditions.
GRIEVANCE MECHANISMS
49% Grievance mechanisms are systems through which workers can anonymously submit complaints
of violations of their rights and seek relief. While many companies ask their suppliers to establish
have at least a
pilot grievance
internal grievance mechanisms, it is important that workers are given an avenue through which
mechanism project they can communicate to an external party, since the supplier may be directly responsible for
(CMT level) the abuse. Among the companies assessed, 49% have made some form of external grievance
mechanism available to at least a portion of their supply chain.Worker Rights | Company Performance 25
KEY:
See which companies performed the best and which companies have neglected supporting the rights of their supply chain workers. = yes = partial = no
Most companies own multiple brands; see index for full brand breakdown.
Specialty Fashion Group*
Abercrombie and Fitch*
Fusion Retail Brands
Russell Corporation
Fruit of the Loom
Cue Clothing Co*
Simon de Winter
Supre Holdings*
Skechers USA*
Rocky Brands*
Pacific Brands
Sussan Group
Woolworths *
David Jones*
New Balance
Levi Strauss
Just Group*
Kathmandu
Cotton On*
Timberland
Forever 21*
Quiksilver*
Lululemon
Patagonia
Lacoste*
Carter’s*
The Gap
Target*
Kmart*
Coles *
MYER*
Adidas
Inditex
Hanes
Rivers
3 Fish
Puma
Etiko
H&M
Nike
VF*
WORKER RIGHTS GRADE A+ D- C F D- D A F A+ F D- D- D B+ C F C F F D+ D- D- C- C- B- C+ D+ F F F D- D+ F F F D- F D C+ D- D-
Worker Rights
Q1 Does the brand guarantee that
workers make a living wage?*
Q2 Is a stable price guarenteed to
suppliers regardless of world price
fluctiations?
Q3 Does the brand have a system for
basing sourcing decision on supplier
labour conditions?
Q4 If the brand ends its relationship with
a supplier, does it have a program to
ensure that workers are fully paid for
hours worked?*
Q5 CMT level: Are suppliers either
majority-worker-owned co-ops,
or are collective bargaining
agreements in place?*
Q6 Raw Materials: Are suppliers either
majority-worker-owned co-ops, or
are collective bargaining agreements
in place?*
Q7 Does the brand have a functioning
grievance mechanism (may be a pilot
project)?*
Q8 Does the brand have a functioning
dispute resolution mechanism?
Q9 Does the brand have local partnerships
in place in high-risk areas to rehabilitate
child or forced laborers when found?*
Q10 When child or forced labor is removed
from the workplace, is it later verified
by unannounced monitoring?
Q11 If child labor is discovered, does the
brand find a way to provide for the
child’s education and replace the lost
income to the family?*
Q12 If forced labour is discovered does
the brand facillitate the individuals
reintegration into the labour market?*Index | Rating Scopes 26
Most ratings apply
Etiko Lacoste Rio Specialty Fashion
to multiple brands
Etiko Lacoste Sheridan Group
owned by the Slazenger
Jinta Autograph
same company. Levi Strauss Stubbies
Pants to Poverty City Chic
See the scope of Levi Strauss Stussy Crossroads
each rating below: Forever 21 Stylecorp
Lululemon Katies
Forever 21 Tontine
Lululemon Millers
Fruit of the Loom Volley
MYER Voodoo Supre Holdings
3 Fish Fruit of the Loom
MYER Wicked Supre
3 Fish
Fusion Retail Brands
New Balance Patagonia Sussan Group
Abercrombie and Colorado
New Balance Patagonia Sussan
Fitch diana ferrari
Sportsgirl
Abercrombie and Fitch JAG Nike Puma Suzanne Grae
Hollister Mathers Nike Puma
Williams Converse Cobra Golf Target
Adidas
Hurley Tretorn Target
Adidas H&M
Taylor Made David Beckham Pacific Brands Quiksilver The Gap
Reebok Monki Berlei Quiksilver Gap
Bonds Roxy Old Navy
Carter’s Hanes
Can’t Tear Ém DC Athleta
Osh Kosh Wonderbra
Dunlop Moskova Banana Republic
Genuine Kids Playtex
Hanes Everlast Timberland
Rivers
Coles Holeproof Explorer Rivers Timberland
Coles Inditex Grosby
Coles SmartBuy Zara Hard Yakka Rocky Brands VF
BiLo Holeproof Heroes Rocky VF
Just Group
Mix Apparel Hestia Georgia Boots Vans
Just Jeans
Holeproof The North Face
Cotton On Jay Jays Russell Corporation
Hush Puppies Rustler
Cotton On Jacqui E Brooks
Jockey Lee Jeans,
Factorie Peter Alexander Russell Athletic
Julius Marlow Eagle Creek
Rubi Dotti Spalding
Kayser Lee Sport
Typo Smiggle
King Gee Simon de Winter Riders by Lee
Portmans
Cue Clothing Co Mooks Simon de Winter
Woolworths
Cue Kathmandu Mossimo Darn Tough
Woolworths
Veronika Maine Kathmandu NNT uniforms
Skechers USA Big W
Platinum
David Jones Kmart Pop Skechers
David Jones Kmart Marc
Razza Matazz
EckoIndex | Rating Scopes 27 The grades for the following companies were The assessment of the following companies derived from the report Apparel Industry Trends: was undertaken by Baptist World Aid From Factory to Farm published November Australia as part of the Free2Work project. 2012 by Free2Work. Grades are correct as at 15 July 2013. Abercrombie and Fitch 3 Fish Adidas Coles Carters Cotton On Forever 21 Cue Clothing Co Fruit of the Loom David Jones H&M Etiko Hanes Fusion Retail Brands Inditex Just Group Lacoste Kathmandu Levi Strauss Kmart Lululemon MYER New Balance Nike Patagonia Pacific Brands Puma Rivers Quiksilver Simon de Winter Rocky Brands Specialty Fashion Group Russell Corporation Supre Skechers USA Sussan Group The Gap Target VF Woolworths
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