Leveraging change in the working conditions of UK homeworkers

Abstract

The debate among NGO and union activists about how to improve working conditions and labour rights has been dominated by proponents of specific approaches, arguing variously that the best route is through company codes, legislation, organisation of workers, or sweatshop-style campaigning. This article describes a campaign by NGOs and trade unions that integrates these approaches to improve the labour rights and conditions of UK homeworkers. Its ‘change model’ is to seek changes in company behaviour as part of a strategy to strengthen legislation while also exploring the opportunities and mechanisms for leveraging change in (company) practices and (government) policies.

Notes

1. KFAT has since changed its name to Community, after a merger with the steelworkers' union ISTC.

2. The implementation of the ETI Homeworking Guidelines in India will be also be informed by the experience of the UK trials. NGOs and unions are seeking written commitments from retailers as a precondition of implementation. Other approaches are under consideration, notably asking retailers to direct orders towards an approved list of participating suppliers that are willing to raise homeworkers' conditions.

3. While the ETI has no figures on the proportion of the UK retail market represented by ETI member companies, it estimates that roughly 80 per cent of UK retail food sales are through ETI members (personal communication, Dan Rees, ETI Director, 29 June 2004).

4. The following UK retailers participated in the Homework Project: ASDA, The Body Shop, Boots, Co-op, Debenhams, Sainsbury's, Safeway, Littlewoods (which withdrew from the ETI), Marks & Spencer, Monsoon/Accessorize, Next, Oxfam Trading, Tesco, Traidcraft, and WH Smith (Brown 2004).

5. For example, in 1990, Perrier incurred a loss of brand value as a result of contamination of bottled water with benzene, requiring £84 million for the repositioning of the product, plus a £125 million price reduction when the drinks division was sold off (Gream 2004).

6. This retailer made payment of the NMW and production by homeworkers part of the contractual obligations with its supplier.

7. One of the frustrations of the ETI Homeworking Group was the lack of transparency by retailers and suppliers over the breakdown of production costs. It is understood that labour accounts for 10 per cent of the wholesale cost of a typical cracker, but would double if NMW and holiday pay were respected, increasing the wholesale price by roughly 10 per cent.

8. In addition to the current expectation of falling retail and wholesale prices, over the course of the ETI Homework Project several companies were affected by takeovers, profits crises, and subsequent downsizing, all of which inevitably reduced the capacity and influence of their ethical purchasing teams.

Additional information

Notes on contributors

Peter Williams

Peter Williams works for Sust! Project, a DFID-funded initiative promoting fair and ethical trade and sustainable business practices, in Milton Keynes. He was formerly the Global Livelihoods Adviser at Oxfam GB, representing the organisation on the ETI Homework Project.