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Decent Work in Global Supply Chains

Unit 6, Lecture 4 - Supply Chain Bargaining, the example of the ACT Initiative

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Individual brand efforts and individual factory efforts were not leading to living wages – need to bring all of the industry together.

Creation of sectoral bargaining in order to provide a mechanism + link that mechanism directly to the purchasing practices of the brands. Need a mechanism that is going to isolate the wage component from the other costs in the purchasing contract.

Industry-wide collective bargaining can bring unions collectively to the table with suppliers.
Sectoral bargaining will look different from country to country.

IndustriALL – formed from the recognition that nothing less than a fundamental change to the way that production is organized in garment supply chains will ever deliver sustained and enforceable improvement to wages and conditions, IndustriALL is working with major clothing brands in a process known as ACT to develop systems of industry-wide collective agreements that are linked to purchasing practices to ensure that a larger share of the value generated is passed on to workers.

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