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 OUR BUSINESS PRACTICES > DIALOGUE WITH STAKEHOLDERS > ESSAY: FREEDOM OF ASSOCIATION
 

Freedom of association provides workers with the right to establish or join organizations of their choosing and to bargain collectively with employers. These rights are protected under the Universal Declaration of Human Rights, are identified as a fundamental workplace right by the International Labor Organization (ILO), and are a key provision of Reebok’s Standards.

Freedom of association is the most difficult human rights challenge for us to address. The exercise of freedom of association is often constrained by political, legal and economic conditions. Prevailing standards in many countries fall short of ILO conventions. Unions may be restricted by law or manipulated by government or factory management to the disadvantage of workers. Workers with union affiliation are frequently discriminated against.

  

In some regions, unions have a history of violence or corruption. Consequently, some management and workers view the concept of freedom of association with suspicion.

This essay discusses our experiences to date and ideas for enabling workers to participate in protecting their own rights.

WHY WE FOCUS ON THIS RIGHT
Our long-term goal is for workers to be able to raise issues and have their voices heard, without having to rely on a global brand. Workers know best how to improve their working conditions. All they need is a receptive management and a process for getting their suggestions heard. While it is difficult to quantify the impact of worker participation, we find all parties stand to gain.

  
 

Factory management faces less unrest and increased productivity, although they must spend more time communicating and negotiating with their workforce. In many cases, worker forums are a real eye opener for management. It may be the first time they hear about violations committed by supervisors. Workers feel more commitment to the factory where they work. They have greater access to information and are involved in maintaining standards for their work environment. However, worker elections are not a quick fix and by themselves they do not necessarily result in improvements in workplace conditions.

Anti-discrimination measures are not always successful in preventing union members from being singled out for unfair treatment. We have found instances of intimidation, harassment and unfair dismissal of union members in some factories.

Reebok benefits from using factories whose management and workforce can identify and resolve problems on their own.

  
 

“Facing the challenge of Freedom of Association is one of the most difficult challenges companies have. Reebok’s experiments with worker representation in China and around the world are best practice, and should be of interest of all companies who are concerned about defending this fundamental right.”

– Scott Greathead, founder of World Monitors, Inc.,
long-standing Board Member of Human Rights First

  
 

OUR FLEXIBLE APPROACH
We tailor our expectations to what is feasible in the local context and via means that are most appropriate. This ranges from supporting a fair process for union elections, to seeking improved worker communication channels in the most difficult environments. For example, worker representation is relatively straightforward in Sri Lanka, where worker forums are required by law. Workers are better educated and literate and there is a low worker turnover rate. By contrast, worker forums in neighboring India are often less successful due to lower literacy levels and the caste system.

In some countries, for example in Turkey, there is strong cultural resistance to formal unions in the business sector. We have learned to be pragmatic, believing that it was better to get all parties familiar with the concept of a worker forum and then at a later stage focus on fully implementing our principles.

We begin by evaluating local law to understand what the law allows or requires. Our efforts focus on creating a working environment that respects freedom of association by whatever means are most appropriate. We have learned some vital lessons wherever we are striving for effective worker participation:

Education is usually needed: Workers and management need to understand the rights and responsibilities we are recommending. We educate and train workers and we meet with management to explain that the right to Freedom of Association is a requirement for supplying Reebok. But we also argue that worker participation benefits the factory because it leads to better morale and quicker resolution of problems. In the long run that should mean a more productive factory.

  

Workers may also be skeptical and fear that a process for worker participation won’t be fair or transparent. They also fear discrimination. We work with factory management and independent NGOs to explain the process and demonstrate that candidates and voters will not be discriminated against. Training on the practicalities and benefits of worker participation is very important and works best when a third party delivers it.

Protection systems are important: Worker participation must be backed with protection against discrimination and harassment. Transparent policies and procedures protect Freedom of Association rights and make it much harder to hide abuse. We have worked with several local NGOs to refine our approach. Their insights and suggestions have helped us understand the appropriate roles for brands, workers, NGOs and factory management. They also bring independent oversight to the process, increasing credibility in the eyes of workers.

Grievance mechanisms are essential to ensure any violations that occur can be challenged. We impress upon both workers and management the benefit of resolving problems in-house but an external backstop is also needed. We set up systems for workers to report noncompliance issues anonymously to Reebok.

  
 
 

Good internal and external communication channels are required: We encourage channels for communication, consultation, negotiation and conflict resolution inside factories to allow worker participation in factory management decisions that affect them. In Turkey and El Salvador, for instance, democratically elected worker communication committees meet regularly with management to discuss and address workplace issues. Minutes of meetings are then posted in the factory for all to see.

Worker representation must involve an open process: It is essential that the process for establishing representation has credibility. This means elections based on proportional representation, one-worker one-vote, secret ballots and transparency to outside observers. Reebok does not promote trade unions, but we do encourage worker choice.

  

Through our involvement since 2001, elections for worker representatives have taken place in factories in Asia, Europe and the Americas. We have also facilitated the formation of worker forums in many more factories around the world. We have seen signs of success. In Indonesia, for example, we facilitated elections some years ago and elections now take place regularly without our further involvement.

The process must be allowed to take its own course: For example, if worker representatives want to negotiate with management for better transportation, rather than improvements in wages, we must not intervene. Our role is to ensure both sides are communicating in good faith.

Representatives need help developing skills: Sometimes workers have representation but it is ineffective. We develop the skills of worker representatives (for example, organization and negotiation skills). We also encourage elected representatives to learn from their peers by arranging exchanges with other factories producing for Reebok.

  
 
 

“Reebok footwear has been a leader in providing opportunities to workers in China to participate in forms of worker representation. We hope to see the experience gained in Reebok’s initiatives extended in more factories in China and to other countries as well.”

– Auret Van Heerden
President and Chief Executive Officer of the Fair Labor Association
Statement made in FLA Press Release, April 29, 2004

  
 
 

WHERE DO WE GO FROM HERE?
Our pilot projects have been encouraging but we recognize the need for wider, more explicit support from all parties. Buyers need more training on Freedom of Association and what they can do to drive home the message in their commercial dealings. The involvement of NGOs makes a significant difference and we hope to secure this wherever possible. Once we have accumulated evidence of the commercial benefits to factories, our argument will be much stronger. Our hope is that other brands will join us and press for increased worker representation, as an expression of the rights of workers to freedom of association.

CHINA ELECTIONS EXPERIMENT
In 2001, we began our experiment with democratic elections of worker representatives in China. We have facilitated 3 elections in apparel factories and 4 in footwear.

We have found that it is possible to establish viable worker representation within China’s legal framework. China’s Trade Union Law of 2001 allows democratic elections of worker representatives within the context of the state-sanctioned All China Federations of Trade Unions (ACFTU). Independent trade unions are prohibited in China. So Reebok explored working within the framework of the ACFTU.

  

We focused on factories with significant compliance problems. Chinese workers embraced the opportunity to play a part in resolving workplace problems and demonstrated a readiness to bring problems to their worker representatives. In one apparel factory in China, over 150 workers put their names forward as candidates for their union election in 2003, (from a workforce of 2,900). In a footwear factory, 192 workers (from a workforce of 11,000) put their names forward for an election in 2002.

Information about candidates was posted and campaign speeches held. Voting was by secret ballot and votes were counted publicly in the factory courtyard, where workers or ACFTU representatives, or where feasible NGOs, observed. Elections training has been a priority and has been provided by two NGOs.

We have not yet proved that democratic elections improve workplace conditions. But we have established that given the opportunity, Chinese workers passionately embrace the opportunity to play a part in their workplace and will report problems to their worker representatives. In early 2006, we will carry out an evaluation of worker participation projects at two Chinese factories. This will give us a better understanding of the impact of these projects.

  
 

The voices of independent NGOs
Reebok partnered with two Hong Kong-Chinese NGOs to develop worker participation in China. The names of the NGOs have been withheld at their request to protect their ability to continue operating in China. Here they give their perspective on our joint efforts to facilitate democratic elections of worker representatives:

  
 
 

Many years of monitoring have achieved very little without workers’ participation. Reebok was the first company to take on this challenge.

Nine years ago we had a bad relationship with Reebok - NGOs and brands did not trust each other. With more dialogue we both saw it was best to work together to bring meaningful change. Through our collaboration with Reebok we know they are not doing it just for show. They are truly willing to push boundaries beyond police-style monitoring. Both the brand and the NGOs have learned meaningful lessons through this process.

Reebok had the right approach but needed to include worker training. Systems for worker participation are pointless if we don’t develop the capacity of workers to truly use the system because workers don’t have the experience to make it work.

We advised on implementing a worker representation mechanism based on the laws and acted as independent observers of the elections. The next challenge is to make the mechanism functions. This includes training management and worker representatives on problem-resolution, communication and negotiation skills, meeting facilitation and note-taking; and maintaining effective communication between the brand, suppliers and the workers.

  

Our objectives were partially achieved. Open and fair elections took place and a mechanism was built for workers to protect their rights in dialogue with management.

There are still a lot of difficulties. Support from management is inconsistent, and pressures on worker representatives make it difficult for them to fully perform their duties. There is a continuing role for Reebok in ensuring that management acts in good faith.

Participation mechanisms are only a first step. It takes time to cultivate a corporate culture that meaningfully addresses problems though equal dialogue. This may take several years at any one factory so both the NGO and the brand must have a long-term commitment.

Education is needed before elections as well as after. More protection for elected committee members should be enshrined in union charters, so they feel confident about speaking up.

The NGOs that Reebok has consulted made the following comments: These experiments are still isolated cases. Even among Reebok suppliers, not to mention other brands, we’re talking about just a few factories. A lot of companies are talking about worker representation but they must not water down the approach.

It is not ideal for worker representation to be brand-driven. We hope that eventually the process will become part of the culture but in China, this will take time.

  
 
 

The first NGO provides direct services to workers and their families, monitoring current Chinese government policies, and empowering workers to fight for their own rights. The second NGO is dedicated to improving the labor rights of workers in China through education, training and the provision of legal services.