Responses from Pentland

Proposal A1:

Require suppliers to issue 'Right to Organize' guarantees to workers.

Pentland’s Group Code of Employment Standards for Suppliers includes freedom of association,and is available on their website in thirteen languages. However Pentland does not require suppliers to issue Right to Organize Guarantees to their workers.

Proposal A4: Provide an accessible complaints process for workers.

Pentland does not have a system for reporting complaints to Pentland, although as a member of the Ethical Trading Initiative (ETI) workers at its suppliers can file complaints through the ETI’s third-party complaints system.

Proposal A9: Require suppliers to sign union access agreements.

The company will not require the signing of access agreements, although it leaves open the possibility that this “could be possible as part of a sectoral programme in a country or region.”

Proposal B2: Eliminate third-party employment schemes.

“These already form part of our work with suppliers. Although there are some problems in some countries, in general all our core business suppliers have permanent, direct and open-ended contracts with workers.” While this is positive, the company needs to clarify whether they apply this standard at all supplier factories or just “in general” at “core” suppliers.

Proposal B3: Eliminate short-term contracting.

Pentland says that “These already form part of our work with suppliers. Although there are some problems in some countries, in general all our core business suppliers have permanent, direct and open-ended contracts with workers.” While this is positive, the company needs to clarify whether they apply this standard at all supplier factories or just “in general” at “core” suppliers.

Proposal B6: Establish long-term relationships with factories.

Pentland acknowledges the benefits of longer-term relationships with suppliers but does not commit to any firm targets.

Proposal C1: Adopt Responsible Transitions policies.

Pentland accepts responsibility to work with suppliers to comply with all legal requirements and to minimize the negative impacts of closures on workers, but will make no commitment to give effect to MFA guidelines.

Proposal C3: Report publicly on length of factory relationships.

Pentland says it reports information “relating to presence of unions and collective bargaining agreements, length of relationships with factories,” in its annual reporting to the Ethical Trading Initiative; however that information is not available to the public.

Proposal C4: Report publicly on how suppliers are chosen and/or eliminated.

Pentland reports information to the Ethical Trading Initiative regarding its supplier selection procedures, but this information is not available to the public. The company makes no comment on its termination policy or strategy for managing impact of exiting factories.

Proposal D1:

Make a commitment to paying a living wage.

Pentland says that a living wage is already present in its policies.

Proposal D3: Ensure prices are sufficient to pay a living wage.

Pentland believes some suppliers may not divulge pricing information though it is working with its main suppliers to make wages more transparent. The company will not commit to a third-party review of prices paid to suppliers.

Proposal D6: Take steps to improve workers’ wages.

While Pentland expresses interest in collaborative efforts, it does not commit to this proposal, citing anti-trust concerns among others.