Migros joins global fight against labour abuses

The code of conduct covers fair pay and racial discrimination Keystone

The world's biggest retailers are drafting a new set of international labour standards following an initiative by leading Swiss supermarket chain Migros.

The code of conduct covering issues such as health and safety, child labour, fair pay, and racial and sexual discrimination is aimed at harmonising practices among suppliers.

Johann Züblin, head of standards and social compliance at Migros, told swissinfo that the retailer had been working closely with Wal-Mart, Tesco, Metro and Carrefour to shape the new standards.

The initiative, called the Global Social Compliance Programme (GSCP), draws on existing social charters and is seen by its backers as establishing a new benchmark for worker rights.

“Health and safety, wages, child labour, all the core ILO conventions – human rights, women’s rights and child rights – are included in this,” said Züblin.

“We expect existing [social] programmes to use this code as a benchmark. If [producers] are already at this level they will be accepted or else they will have to improve their systems.”

Züblin added that the code would be monitored by independent auditing companies.

The CIES, an international association of food retailers, is due to hold a meeting next month to discuss the initiative. Züblin said the big retailers, producers, labour organisations and other stakeholders were all being invited.

Migros says the company’s chairman Claude Hauser first urged the CIES to draft a unified set of standards a couple of years ago.

Caught out

Stefan Indermühle, co-ordinator of the Swiss Clean Clothes Campaign, said the news – revealed by the Financial Times – had come as a surprise to non-governmental organisations. He told swissinfo that NGOs were now “sceptical” about the project, as a result of having been kept in the dark.

But he said that if the “ambitious” goals of the retail giants were achieved, then the code would represent a positive development.

“It’s essential that they put together a good set of standards and give suppliers internationally acceptable targets to aim at,” said Indermühle.

“They also need an effective monitoring system and an active commitment to ensure suppliers comply.”

Züblin said he understood why there might be disquiet among NGOs, “especially since certain companies may not have the best reputation at the moment”. Wal-Mart, for one, has been looking to boost its ethical credentials.

“It’s their [the NGOs’] job to be critical, but let’s see if this common approach works first,” he said.

The International Labour Organization said it welcomed any initiative that contributed to promoting decent work for men and women around the world. The Geneva-based body, however, called for all stakeholders to be included in the project.

“To genuinely achieve this goal, it is essential that representatives of the employers and workers who will be affected by such an initiative have a voice in its development and implementation,” said Dominique Michel, head of the ILO’s multinational enterprises programme.

swissinfo, Adam Beaumont

In brief

Respect for people, wildlife and the environment is written into the Migros mission statement and set down in its environmental and social policy.

In 2004 the Migros code of conduct was incorporated into the new European
Standard BSCI (Business Social Compliance Initiative).

The BSCI is based on the standards of the International Labour Organization (ILO) and other international regulations such as the UN Charter on Human Rights.

Key facts

Migros 2005 results:
Group net profits: SFr699 million (2004: SFr545 million)
Turnover: SFr20.39 billion (+0.4%)
Staffing levels: 81,049 (-1,223)