Opinions on BSCI factory audit attitude towards wages
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BSCI's attitude towards wages November 2009 In October 2009, a new campaign was launched to raise the minimum wage for garment workers in Asia. The initiative is called the Asian Floor Wage Campaign. It was initiated by a large number of NGOs and trade unions in Asia, Europe and the United States. One of the main proposals is that AFW demands a minimum living wage for Asian workers in the garment industry. This document states that BSCI's attitude towards wages is the same as reflected in the BSCI Code of Conduct and Implementation Guidelines. There are three possible ways that content may affect workers’ wages: 1. Legal minimum wage 2. Local industry wages 3. Minimum Living Wage 1- Wages Required by Law The statutory minimum wage is set by the national government and is determined on the basis of the cost of consumption to meet the basic needs of workers. The BSCI Code of Conduct requires the payment of the statutory minimum wage and overtime allowance. In many developing countries, workers do not receive the statutory minimum wage, and for factories, the payment of statutory wages has long been a difficult task. These wages can also be artificially lowered to attract foreign investment and win export orders, and can also be used to protect intensive export industries, such as the garment industry. When the statutory wage is too low, different chain reactions occur. Low wages explain why workers work overtime. It also leads to child labor, as parents who cannot earn enough money to support their families send their children to work. As experts point out, the minimum wage is often not enough to meet the basic needs of workers and their families. Therefore, The local government must gradually revise the minimum wage for workers, taking into account the increase in the cost of basic products. 2- Local industry wages Local industry wages are the wages generally paid by a particular local industry. It may be higher than the statutory minimum wage. Local social partners (unions and workers) set wages. Antitrust and competition laws make it impossible for retailers and brand companies to set local industry wages. The BSCI Code of Conduct requires the payment of wages in accordance with industry standards when such standards exist or in case they are higher than the legal wage applicable. 3- The controversial living wage There is no universally accepted definition of a living wage A living wage is the amount that someone can sustain himself or her family. BSCI fully supports the idea that workers should earn enough to meet their basic needs (food, rent) and have at least some discretionary income. Things become more complicated when trying to determine how a living wage should be calculated. What is the size of an average family? What is the discretionary income? Many definitions, methods and methodologies have emerged over the past decade, but none are universally accepted. SA8000 Living Wage Calculation BSCI's best practice is the SA8000 social standard, which requires the payment of a living wage. SAI monitors/manages the payment of a living wage based on a combination of qualitative and quantitative analysis. The quantitative analysis refers to the living wage as a measure that provides workers with enough food for their daily diet and enough surplus for their basic needs. and that the average wage for half the people in that area who depend on the household has 10% of additional discretionary income. Qualitative analysis is used by SA8000 auditors and includes comparisons with company unions in the area (provided that independent unions exist in the area) and employee interviews. Qualitative and quantitative methods are used in the audit to confirm a finding among different results. The SA8000 calculation method includes a standard similar to assessing a family's basic food needs or the number of dependents required to support a family's expenses. Defining such a standard is a great challenge/test to monitor/control its implementation in reality. Specifically, The calculation of wages had to be based on the local context, almost on a basic basis, which required a lot of work. When the local union provided a living wage using another calculation, the auditors would ask them to calculate wages using the government framework. NGOs will provide a very different assessment of the wage than unions. No clear responsibility for paying a living wage If a living wage is to be paid, there are three key roles that will play a positive role: 1. Suppliers: Are they willing to take a smaller (profit) margin? 2. Retailers: Can they accept lower profits or pass on a higher cost to consumers? 3. Consumers: Are they willing to pay more? Solution: 1-2 extreme approaches through BSCI The BSCI Code of Conduct takes 2 extreme approaches to the payment of wages, requiring compliance with local legal minimum wages and a goal of a minimum living wage paid voluntarily by suppliers. The issue of the minimum living wage is recorded in the BSCI questionnaire, and an external, independent auditor must perform the necessary gap analysis as part of the BSCI audit. The goal is to negotiate this issue with suppliers, examine the minimum living wage from a strong desire perspective and try to help workers achieve the benefits of the wage-raising organization. Nevertheless, the implementation of the minimum living wage is still voluntary/unpaid. This procedure is generally in line with the BSCI development approach, as in many countries, achieving compliance with legal minimum wages has long been a test. 2-Local lobbying for sustainable improvement BSCI believes that the sustainable way to improve wages for garment workers is through local laws and regulations and based on negotiations between stakeholders. BSCI therefore works to provide a network of national roundtables that bring together representatives of local governments, trade unions, non-governmental organizations, and garment manufacturers and exporters associations. Those roundtables help address strategic issues such as wages and who bears responsibility for local governments, Ensure the welfare of workers. BSCI believes that there are major issues with AFW activities and we will encourage Asian governments, especially Bangladesh, to come together to discuss the issues that arise. |
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