In 2014, IndustriALL Global Union and several multinational enterprises signed a memorandum of understanding (MOU) on Action, Collaboration, Transformation (ACT) with a view to establish industry-level collective bargaining, including on wages, in a number of supplier countries. The ACT initiative, which now involves 20 brands and the trade union organization 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 and 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 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 agreements on wages and working conditions that are negotiated. 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 stimulates accelerated growth in productivity and industrial upgrading, recognising that business security and commitment to production countries and manufacturers are a key enabler 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), that is, the sectoral trade union federation representing garment and footwear workers. The 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.
More recently, following a dialogue process with the IWFM, ACT member brands adopted in June 2021 a framework on workers’ safety and terminations, which aims to address the challenge of workers in situations where they cannot attend work due to safety concerns. ACT brands will communicate with factories in their supply chain in Myanmar informing and urging them that workers who have been absent from work for more than three consecutive days for safety reasons can only be terminated 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 provides for recourse to a fast-track dispute resolution mechanism (DRM) to manage any type of allegation of failure to respect this commitment.
- Türkiye
In 2022, ACT has 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 the Global Trade Union Federation IndustriALL 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 which covers all supply chain units in the Turkish textile, garment and leather industries producing for ACT member brands.
For more information, the ACT homepage is here.