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FROM PERISHABLEPUNDIT
Is The Industry Serious
About Labor Standards?
New Charter For Responsible Labor Practices Lacks Rigor, Won’t Raise Standards, Ensure Compliance Or Make Buying Easy... California Leafy Greens Marketing Agreement Offers A Stronger Model
Back in 2014, Richard Marosi of the Los Angeles Times wrote a piece titled, Hardship on Mexico’s Farms, a Bounty for U.S. Tables, that shook the industry. We analyzed the article in a piece we titled, DAMAGING LOS ANGELES TIMES ARTICLE ABOUT MEXICAN LABOR, Though Incomplete And Unbalanced, Puts Retailers And Receivers On Notice: In A Transparent World, Retailers In America Are Now Respon- sible For Their Supply Chains. A Big Question: Will Improved Conditions For Laborers Lead To Less Employment?
As a result of this LA Times article and its aftermath, PMA and United formed a Joint Committee on Responsible Labor Practices with the goal of congealing a “global approach to responsible labor practices and consistent expectations among trading part- ners and the public.”
We assessed this effort and tried to identify a path forward in a piece titled, Does Anyone Oppose Responsible Labor Practices? PMA/United’s Joint Initiative Will Have To Navi- gate A Difficult Path Between Shielding The Industry And Actually Trying To Improve The Lot Of Laborers. In that piece, we specifically pointed to similar efforts that had been introduced in the clothing and textile industries and had urged careful attention to these efforts.
For example, we pointed to a program such as this:
Perhaps a better model for the produce industry might be
Worldwide Responsible Accredited Production, or WRAP:
WRAP was formed out of the desire to create an independent and objective body to help apparel and footwear factories around the world verify that they are operating in compliance with local laws and inter- nationally-accepted standards of ethical workplace practices. We trace our origins back to the mid-1990s when reports surfaced of sweatshop-like conditions in numerous apparel factories around the world, including excessive working hours, unsafe conditions, and the denial of several legally-mandated benefits to workers.
Recognizing that such a scenario could jeopardize the apparel industry as a whole, the American Apparel Manufacturers Association (now the American Apparel and Footwear Association) moved to coordinate an industry response to the issue. A task force was formed which received input from a variety of stakeholders including brands, suppliers, NGOs, academia, and
JIM PREVOR EDITOR-IN-CHIEF
government officials. Based on their findings, the task force recommended the creation of an independent third-party organization free of government or corporate influence that could identify and reduce the prevalence of sweatshop conditions in factories around the world.
Today, WRAP has grown to become a global leader in social compliance and a trusted independent supply chain partner for dozens of companies around the world. Its comprehensive facility-based model has made it the world’s largest independent social compliance certification program for the apparel/textile industry.
Basically, a factory gets WRAP certification, just as many factories get ISO9000 or similar certifications, and then they can offer their services to any buyer with this assur- ance. We could do something very similar with farms and packinghouses.
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So, now the produce associations have sent out announcements
to their respective members announcing an Ethical Charter on Responsible Labor Practices.
Has this effort been a success? Not surprisingly, the answer depends on how one defines success.
If the question is: Does this initiative give the industry a talking point so if accused of any issue in this area, companies can point to their endorsement of these standards and this initiative and so claim they are on the side of the good guys? Then yes, this a successful initiative.
But if we ask harder questions, the answer is less encouraging:
1. Will this initiative actually raise the standard by which employees in the produce supply chain are treated?
2. Does this initiative provide buyers an assurance that when they purchase from grower/shippers endorsing this initiative they will be procuring ethically sourced products?
3. Will the initiative satisfy NGOs, journalists, government officials and others as to improvements in the produce industry‘s responsible-sourcing practices in the area of labor?
It is important to understand that most of what this charter requires is simply obedience to current laws. There is nothing in this charter saying that companies should pay $15-an-hour minimum wages regardless of the law or anything of that matter.
In fact, the format of the new initiative doesn’t address the
16 / AUGUST 2018 / PRODUCE BUSINESS