Vol. 12 #01: Thursday, December 14, 2006
Calgary's News & Entertainment Weekly
FFWD Weekly
NEWS
by AMY STEELE
Consumer pressure impacts sweatshops
Lost sales, bad PR forces companies to change criticized labour practices
A number of companies that sell clothing in Canada are making progress in addressing labour standards in overseas factories. Even those at the top of the pack, however, have a long way to go before consumers can be assured that they’re buying sweatshop-free clothing, according to a new report by the Maquila Solidarity Network (MSN).

MSN, which lobbies to improve working conditions for employees in the international garment industry, released its 2006 Transparency Report Card on December 7. The report card assesses the policies and programs of 30 companies that sell clothing in the Canadian market. It assesses whether or not these measures ensure that ethical labour standards are being met in factories manufacturing their products. The report relies on publicly available information about corporate activities. MSN cautions that the report does not assess actual labour conditions in overseas factories because most companies don’t disclose factory locations or audit results from factory inspections.

On the report’s scale, where zero is worst and 100 is best, Levi Strauss, Reebok, Mountain Equipment Co-op, Adidas and the Gap all scored in the 70s, while Nike, Eddie Bauer and Liz Claiborne scored in the 60s. Zara, Hudson’s Bay Company, American Eagle Outfitters and Wal-Mart were in the 40s. Mark’s Work Wearhouse and Winners scored in the 30s, while Roots and La Senza scored in the 20s. Lululemon received a score of 18 and Sears, the Northern Group (Northern Reflections), Reitmans and Ralph Lauren Polo received scores of under 10. Jacob, Forzani Group, Grafton-Fraser, Harry Rosen, International Clothiers, Le Chateau, Tristan and America and YM Inc. were at the very bottom of the pack with scores of zero.

Ian Thomson, member of MSN, says there’s been a big improvement in how some major companies are addressing labour standards.

"Gap and Nike were the real poster children for sweatshops in the ’90s and their brand took a real beating and they realized denial is not going to get us out of this mess and we’re not going to just be able to ride this out with a PR war," says Thomson.

Thomson also credits Mountain Equipment Co-op for dramatically improving its score this year. He says the company will likely score even higher in 2008 when they’ve promised to disclose the locations of their factories.

But Thomson says other companies aren’t making any progress. He says Forzani Group’s score of zero should be particularly relevant to Calgarians because the company is based here. Forzani Group is the owner of Sport Chek and Coast Mountain Sports, among other stores.

Kevin Thomas, another MSN member, says the report card indicates how transparent companies are about their policies to address labour standards. But he says companies that scored well may still have unfair labour practices taking place within their supply chain.

The report found that companies aren’t providing true incentives in the way of increased prices and long-term contracts to factories that commit to improved labour conditions. Thomas says in some cases factories do improve their labour and health and safety standards, but then companies no longer buy clothing from them.

"It’s an ongoing problem where if factories do improve they’re no longer considered competitive," he says. "Companies have got to consider whether their own purchasing policies impact on labour rights."

Thomas says there are some encouraging trends within some companies to do more consultation with non-government groups, unions and factory employees on labour conditions. He adds that an increasing number of companies, such as Nike, Puma and Levi Strauss have revealed factory locations. Some companies have also become members of organizations like the Fair Labour Association and the Ethical Trading Initiative. Members agree to meet labour standards created by the organizations.

Thomas says these trends demonstrate that pressure from ordinary citizens is making a difference.

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