Proposal C1: Adopt Responsible Transitions policies.

Develop and adopt formal policies and procedures to give effect to the MFA Forum’s Collaborative Framework, including all of the steps outlined by the Clean Clothes Campaign and Maquila Solidarity Network, and communicate these policies publicly.

Why?

In most factory closures, workers are cheated out of severance pay, back wages, social security benefits and/or other legal entitlements. There have been positive efforts to develop a catalogue of best practices, outlining a series of concrete steps buyers, suppliers, governments and others should take to minimize the possibility of closures and reduce the negative impacts where they cannot be avoided. One example, which companies should adhere to, is the MFA Forum’s Guidelines for Managing Responsible Transitions. These guidance documents emphasize the need for collaborative efforts among buyers and with suppliers, trade union organizations and NGOs throughout the sourcing and manufacturing cycle.

Responses

adidas

Adidas has already adopted formal policies and procedures in respect to closures which are posted on its website. The company is willing to benchmark these procedures to MFA Forum guidelines.

Full response

"In 2006 SEA reviewed and updated our Workplace Standards and supporting policies, including our standard operating procedures for managing factory terminations. This procedure is posted on our Corporate website. We would be happy to review our termination procedures and benchmark these against the guidance offered in the MFA Forum’s Guidelines for Managing Responsible Transitions. Any revisions or updates to our existing procedures following such a review would be re-posted, i.e. made public, on our website."

Lotto

No response given.

Mizuno

Mizuno “will consider developing formal policies and procedures to give effect to the MFA Forum’s Collaborative Framework” during its code review but will make no commitment at this point.

Full response

"Now we are taking steps to revise our Code of Conduct titled Guiding Principles for Suppliers to the Mizuno Corporation (the “Guiding Principles”), the Checklist and the RSCM. We will consider developing formal policies and procedures to give effect to the MFA Forum’s Collaborative Framework in the steps above-mentioned."

New Balance

New Balance is currently considering the issue, but will make no commitment at this point.

Full response

"This issue is currently under consideration."

Nike

“Nike does have a formal exit policy, outlined in our CR report,” which is publicly available.

Full response

"We advocate for working with stakeholders at the local level to address specific challenges around retrenchment, e.g. payment of severance. Nike does have a formal exit policy, outlined in our CR report."

Pentland

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.

Full response

"Due to our long term relationships with our suppliers, we would strive to be aware of situations likely to lead to lay-offs of workers. We accept responsibility to work with our suppliers to comply with all legal requirements and to minimise the negative impacts on workers."

Puma

Puma is currently working on policies for managing closures taking into consideration the MFA Forum guidelines, but the company has not committed to making these policies public.

Full response

"We are also strengthening our policies on managing factory closures, taking into consideration the guidelines already established by the Fair Labor Association and the MFA (Multi-Fiber-Agreement) Forum. In this regard, the local governing bodies have more power in enforcing the law and we will be working with such bodies wherever we feel it would be most effective."

Response Key

The brand claims to implementing all components of this proposal or has agreed to implement them within Play Fair's proposed timeframe.

The brand is currently implementing or has agreed to implement some of the essential components of the proposal but has refused to implement, has overlooked, or has raised issues with one or more important components; or, the brand agrees to implement the proposal but not within Play Fair’s proposed timeframe.

The brand has refused to implement the essential components of the proposal.

The brand has misunderstood or failed to comment on the proposal; or the brand is considering the proposal, but has yet to make a decision.