In 2014, IndustriALL Global Union and several multinational enterprises signed a memorandum of understanding (MOU) on Action, Collaboration, Transformation (ACT) with a view to establishing industry-level collective bargaining, including on wages, in a number of supplier countries. The ACT initiative, which now involves 20 brands and IndustriAll Global Union and its affiliates in the countries concerned, is part of a cross-border social dialogue programme.
ACT members have agreed on the following principles:
— A joint approach is needed where all participants in global supply chains assume their respective responsibilities in achieving freedom of association, collective bargaining and living wages.
— Agreement on a living wage should be reached through collective bargaining between employers, workers and their representatives, at national / industry level.
— Workers must be free and able to exercise their right to organize and bargain collectively in accordance with ILO conventions.
The ACT initiative supports negotiations between national representatives of manufacturers and trade unions, towards collective bargaining agreements at industry level. The work of ACT is based on a collaboration between global brands and retailers with manufacturers, national and international trade unions, and governments. ACT members and retailers have agreed on commitments to link purchasing practices to collective bargaining at industry level, enabling manufacturers to meet the terms of negotiated agreements on wages and working conditions. At the same time, ACT works with manufacturers at country level to develop and implement improvements to manufacturing standards and systems, such as efficient human resources and wage management systems. This is expected to stimulate accelerated growth in productivity and industrial upgrading, recognizing that business security and commitment to production countries and manufacturers are key enablers for paying living wages.
Currently, ACT is operational in four key garment-producing countries: Bangladesh, Cambodia, Myanmar and Turkey.
Recent results:
- Myanmar
Factories producing for ACT brands have established an Employment Working Group (EWG) to engage in the development of a Myanmar Freedom of Association (FOA) Guideline. The working group nominated delegates to negotiate the content of the guidelines with the Industrial Workers’ Federation of Myanmar (IWFM), the sectoral trade union federation representing garment and footwear workers. The Freedom of Association (FOA) Guideline, agreed in November 2019, aims to contribute to a stable and growing industry through constructive industrial relations in line with international labour standards.
In June 2021, following a dialogue process with the IWFM, ACT member brands adopted a framework on workers’ safety and terminations, which aims to address the challenge workers face in situations where they cannot be at work due to safety concerns. ACT brands committed to communicate with factories in their supply chain in Myanmar to inform and urge them that workers who have been absent from work for more than three consecutive days for safety reasons, can only be dismissed upon payment of adequate compensation (severance pay) or, if possible, should be granted unpaid leave for a period agreed between the worker and the employer. The MOU also provides for a fast-track dispute resolution mechanism (DRM) to manage any allegation of failure to respect this commitment.
- Türkiye
In 2022, ACT enacted the Türkiye Freedom of Association (FoA) Annex as an annex to the ACT Memorandum of Understanding (MoU). The FOA Annex contextualises global freedom of association commitments made by brands in the ACT Memorandum of Understanding (MOU). It reflects the unique industrial relations challenges faced by industry stakeholders and establishes a clear, efficient and result-oriented protocol to continue supporting constructive and mature industrial relations in Türkiye
The Annex was agreed between 17 ACT member brands sourcing from Türkiye and IndustriALL Global Union including its affiliates in Türkiye. Reflecting international and National core labour legislation that are also covered by all brands’ codes of conduct, it is an industrial relations agreement covering all supply chain units in the Turkish textile, garment and leather industries producing for ACT member brands.
- Cambodia
In May 2024, IndustriALL Global Union announced it had reached binding individual agreements with major brands (PVH, H&M, Asos, etc.) to support collective bargaining agreements in Cambodia. From an ACT perspective, these bilateral agreements between individual brands and IndustriALL Global Union, support effective industry collaboration amongst all stakeholders across the value chain, and mark a significant milestone in the move towards the first-ever brand-supported collective bargaining agreement in the Garment and Footwear sector. Brands have legally committed to support national collective bargaining to uphold their production volume in Cambodia, and to ring fence labour costs to ensure higher item prices.
For more information, the ACT homepage is here.