Pulling no punches

There has been much inflammatory debate over the years in Ragtrader about the plight of some of Australia's lowest paid workers found in the clothing industry. On many occasions the Homeworkers Code of Practice (HWCP) has been used as a political football in slanging matches between various organisations, writes Tommy Clarke.

As someone employed to administer the accreditation process, I'm keen to set the record straight and present the facts about the HWCP and its 'No Sweat Shop' label.

The basic principle behind the HWCP is if companies can make their Australian supply-chains transparent, then exploitation will be more easily located and addressed. The HWCP 'accreditation' system provides manufacturers with a method to map their supply chains and verify that everyone involved in production is receiving, as a minimum, the award rates and conditions of employment.

All of the HWCP's activities are governed by an independent and incorporated committee consisting of representatives from the Textile Clothing and Footwear Union of Australia, the Council of Textile and Fashion Industries of Australia, Australian Business Limited, the Brotherhood of St Laurence, the Australian Industry Group, and employer representatives from the industry.

Despite persisting misconceptions, the FairWear Campaign is not on the HWCP Committee nor does it have a role in directing the work of the HWCP. Confusion about the difference between the HWCP and FairWear seems to be generated by the fact that, like many organisations, FairWear recognises the HWCP as an appropriate benchmark for 'ethical' manufacturers and as such encourages companies to become Accredited. However, the HWCP has always been an independent body governed by its own committee of management.

The HWCP has three components: one for retailers to commit to ensuring suppliers meet their obligations; a second, and more thorough process, for manufacturers to verify their supply chain is exploitation-free; and a third for organisations such as sports clubs, corporations, schools, local councils etc, that while not directly involved in manufacturing, are responsible for the production of various garments.

Once a manufacturer has successfully become accredited to the HWCP, they are entitled to use the 'No Sweat Shop' label on their Australian-made garments and various promotional materials. The HWCP works to raise the profile of the 'No Sweat Shop' label among consumers, which in turn promotes participating manufacturers. According to the 'Australian Made Campaign', research released by Roy Morgan in late 2006 indicates Australian consumers want to buy goods made locally and more than two thirds consciously do so whenever possible. Likewise, there is evidence that growing consumer bases are becoming more aware of the issues surrounding 'fair trade' and 'ethical' manufacturing.

The 'No Sweat Shop' label aims to capitalise on these emerging markets.

In recent weeks there has been some complaint that the HWCP encompasses the legal obligations of the Federal Clothing Trades Award (CTA). However, provisions for outworker protections have enjoyed support from all sides of politics for some time now. There is also a long history of commissioners from the Australian Industrial Relation Commission and Federal Court Judges recognising in their decisions the ongoing need for the type of regulation and protections provided by the CTA.

The Howard Government ensured through amendments to both the WorkChoices and Independent Contractors Federal Bills, that legislation continues to provide protection to vulnerable home-based workers in keeping with the government's commitments.

Likewise, the Labor Party is also a strong supporter of legislative protections for outworkers. As readers of the June 29 edition of Ragtrader would know, Labor has even pledged, if elected, to grant $4 million to the HWCP over four years, which would be a huge boost for local manufacturers wanting to expand their businesses in an ethical fashion. The HWCP is also continuing to liaise with the Federal Government about opportunities to support the HWCP.

With this backdrop of enduring bipartisan support for outworker protections, the HWCP will continue to help manufacturers understand their minimal legal obligations as well as offer an opportunity - through the accreditation system - to step up to the challenge of ethical manufacturing.

Ending the exploitation of home-based labour will take commitment and effort. The HWCP is no 'magic wand' solution, but it's a practical mechanism that can enable industry, union and community players to help clean up our industry. With growing consumer awareness and community support, the HWCP is a valuable tool that Australian manufacturers should embrace to reduce the high levels of exploitation that unfortunately persist in our industry.

By Tommy Clarke.