Through The Bangladesh Accord on Fire and Building Safety experience, unions and companies have identified the elements that must be present in order for strategies to improve supply chain labour standards to be effective. IndustriAll enlists those key elements as collaborative efforts that involve buyers, factories, workers and their unions that address root causes, including purchasing practices. Further, they must include longer-term commitments from buyers to suppliers in order to provide an incentive for them to comply, as well as sanctions if they do not. IndustriALL has signed a Memorandum of Understanding with each of the brands involved in the ACT process. The MoU is explicit in identifying the development of industry bargaining in garment producing countries as essential to achieving living wages and the need for effective recognition of workers’ rights to freedom of association and collective bargaining in order for this to be realized.
The ACT process will develop the means to link the supply chain responsibilities of buying companies to the collective bargaining process between local unions and employers. This will involve developing contractual or other mechanisms that support suppliers to implement the negotiated wage. Commitments to continued sourcing and greater stability of orders will be key, as will commitments that prices paid will take account of negotiated increases.