As part of our commitment to transparency we publish details of where we have been challenged by NGOs and campaigners on human rights in our supply chain and the details of our response and resolution.
This includes being transparent when we are challenged and responding to these challenges in the right way. We always do everything we can to be open and transparent – both in the information we make public and the way we share it. This includes taking every opportunity to learn when things don’t go to plan and to make the necessary improvements in order to continue to be a responsible business.
We aim to enhance the lives and support the local communities of the people who work for and with us. We’re committed to source responsibly and we work closely with our suppliers to make sure they respect human rights, promote decent working conditions and improve sustainability across our supply base.
The following summarises the third party challenges we’ve received since 2014:
2023
Sourcing responsibly and ethically is fundamental to how we do business, and all of our suppliers must adhere to our Global Sourcing Principles designed to uphold all human rights and ensure employees are provided with safe and fair working conditions. Supplier partners must pay a fair wage and benefits, ensuring that workers’ wages meet basic needs and uphold the right for an adequate standard of living as described in the Universal Declaration of Human Rights. Supplier partners must have a transparent process to ensure that workers fully understand the wages that they receive. In addition, Supplier partners must respect their workers’ right to freedom of association. M&S Global Sourcing Principles
Therefore, we support the process of the tri-partite negotiations in Bangladesh between the Unions, the Government Wages Board and the Employers’ Associations and we do not condone harassment of trade union leaders and we support freedom of association.
As a member of the ETI we were made aware that they, together with amfori, Fair Labor Association (FLA), Fair Wear, and Mondiaal FNV, sent a letter to the Chairman of Bangladesh's Minimum Wage Board, supporting an increase in the minimum wage for the ready-made good sector and we also support the main points of the letter as outlined in their statement: ETI statement.
2021
In January 2021, M&S has become one of the first companies to formally sign the Call to Action on human rights abuses: Brand Commitment to Exit the Uyghur Region. This is in line with the company’s long-term focus on ensuring its supply chains are sustainable and ethical, where workers are treated fairly, and their human rights are respected.
As the Call to Action notes, more than 80 percent of China’s cotton is grown in the Uyghur Region, approaching almost 20 percent of global production. In response to mounting evidence of forced labour, the Coalition, (supported by groups including the Ethical Trading Initiative) has set out a series of asks of businesses in order to ensure that their full supply chains—including secondary and tertiary suppliers—are not linked to the human rights abuses in the region.
100% of the cotton for M&S Clothing is sustainably sourced (the majority Better Cotton Initiative*) and M&S is already one of the few retailers that does not work with any supplier in or source from Xinjiang, in addition to being committed to tackling indirect supply risks. However, M&S has signed up to the important Call to Action to help play its part in driving meaningful change at scale.
Issues around the minimum wage for workers in the Karnataka region of India have been ongoing since April 2020. Non-payment of the Variable Dearness Allowance (VDA) in Karnataka is a multi-sector issue, not limited to the garment industry, and the case being heard by the High Court of Karnataka relating to the re-payment of VDA was postponed multiple times. We recognise the increased risk of forced labour and exploitation as a result of delayed or unpaid wages.
We worked with the ETI and Brands Ethical Working Group to insist that all workers in Karnataka be paid the Mandatory Minimum Wage and all arrear payments of VDA. We engaged our suppliers in the state directly, making clear our expectation that these conditions be met with immediate effect. We also collaborated with other stakeholders to lobby for a pay ruling and support of the court hearings in order to get a resolution. In February 2022, we reached a successful resolution, and due to pressure from the Brands Ethical Working Group and external stakeholders, all of our suppliers committed to repay VDA wage increases for both 2020 and 2021, regardless of any outstanding court decision.
2020
The impact of COVID-19 across the clothing sector was completely unprecedented and has been felt acutely by both retailers and our suppliers. We are very proud to have strong long-term relationships with our clothing suppliers; in fact, we have worked with over 70% of our supply base for over seven years.
We continue to track changes in each country and maintain regular contact with our suppliers and factories working through a plan which is as follows:
- We have paid and continue to pay for all shipped products
- Whilst our previous standard payment terms (75 days) have been extended to 120 days in response to Covid-19, we are continuing to offer supply chain finance which means suppliers get early access to cash regardless of payment terms
- We have taken precautionary steps to ensure suppliers are implementing safeguarding measures to protect garment workers. This includes social distancing, sanitising practices, providing adequate protective equipment and additional awareness training about the virus
- We fully support the efforts of the Ethical Trading Initiative and our partner the International Labour Organization who are facilitating the coordination and distribution of emergency relief funds, supporting safe working where manufacturing continues and co-ordinating an industry-wide response. We endorsed the “COVID-19: Action in the Global Garment Industry” which you can read on the ILO’s website
- We were also involved in submitting proposals to DFID to support their COVID-19 Vulnerable Supply Chains Facility (VSCF), to form partnerships that support and respond to the challenges that COVID-19 presents within DFID-priority countries and ensure the most vulnerable workers and suppliers are prepared for the anticipated economic and social shocks
- More widely, we remain committed to our Global Sourcing Principles that outline how we work with suppliers in relation to human rights, sustainability and decent working conditions
2018
In January 2016, the India Committee of the Netherlands (ICN), a human rights organisation, released a report titled ‘Unfree and Unfair’ focusing on poor housing conditions offered to migrant workers in garment factories in Bangalore. Two years later, they conducted an updated study in collaboration with the Garment Labour Union, Bangalore and titled ‘Labour Without Liberty’. This was based on interviews with 63 female workers at three garment manufacturing sites. The reports alleged that the factories were suppliers for M&S and several other brands including Abercrombie & Fitch, Benetton, C&A, Columbia Sportswear, Decathlon, Gap (Old Navy and Banana Republic), H&M, Levi Strauss and Co. (Levi) and PVH (Tommy Hilfiger and Calvin Klein). The factory known as ‘Company 1’ was highlighted specifically as an M&S supplier. It is understood that ‘Company 1’ has more than twenty units in Bangalore – the unit selected for the research was reported to be in the Peenya Industrial Area. The reports do not identify the three factories because it’s understood that the authors wanted to raise systemic issues rather than point fingers.
The reports allege five out of eleven ILO indicators for forced labour existed: abuse of vulnerability, deception as a result of false promises, restriction of movement, intimidation and threats and abusive working and living conditions. Workers, mainly migrant, were accommodated in hostels located nearby the factories were found to have their movement restricted by factory employees and hostel management. In the case of ‘Company 1’, women were escorted from the factory back to the hostel in the afternoon and were reportedly banned from leaving the hostel during weekday evenings. On Sunday’s they could leave the hostel unaccompanied, however this was only between the hours of 4pm and 7pm.
We were in contact with ICN before the publication of the report and were given the opportunity to review some general text from the report. We source from a number of factories in and around Bangalore (as of December 2018 we had in excess of 20 active factories – please refer to our interactive map). We therefore asked if ICN could provide us with factory information to enable us to identify the one factory that we are linked with in the report. Understandably they would not supply us with the factory name to ensure there was no retaliation on workers.
We will not tolerate or condone any human rights abuses within any part of our business or supply chain. We have also identified forced labour as one of our salient human rights issues and specifically in India we have also highlighted recruitment practices of migrant workers as cause for concern. Our Global Sourcing Principles, which are contractual, prohibit forced labour in all its forms. They also require suppliers to respect the right of workers to leave the workplace after their shift and workers’ accommodation arrangements must not restrict workers’ freedom of movement. In 2017, we published our Modern Slavery Toolkit for Suppliers and Partners and in 2018 we published our Forced Labour Toolkit for International Suppliers and Partners where we provide further guidance on our expectations. This includes stating that forced labour extends to scenarios where workers are restricted in their movements or confined to a workplace or accommodation.
Given the general and anonymised information in the report and a lack of factory name, we used our best judgement and our Regional Compliance Managers and independent auditors visited several factories that we thought it could be but found no evidence of any of the issues raised in the ICN report.
We went back to ICN again to ask more firmly that they needed to provide us with more details about the factory to allow us to more fully investigate, verify allegations and, if required, provide appropriate remedies to affected workers. ICN unfortunately refused our request once again.
Whilst this is unfortunate, we do feel the ICN report was balanced, and as explained was “to raise systemic issues rather than point fingers”. It gave useful recommendations for the Indian Government, supplying factories, NGOs and trade unions and brands like M&S. Research and reports such as this are important in highlighting issues and especially if differences are found in the treatment of different categories of workers.
Subsequently we have carried out the following actions:
- Carried out a baseline assessment of the workers in each of our factories to better understand the proportion of migrant workers in our supply chain;
- Played an active part of the Ethical Trading Initiative’s (ETI) Tamil Nadu Multi-Stakeholder Initiative (TMNS) which focusses on migrant workers in Southern India and are working collaboratively with many of the brands mentioned in the report to tackle some of the systemic issues within the garment industry;
- Reviewed our policies and management systems to help prevent issues raised by ICN from reoccurring. We have asked our compliance teams and independent auditors based in India to be extra vigilant about the issues raised by ICN and incorporated hostel checks within our compliance audits and have adopted the Hostel Guidelines published by the Tirapur Stakeholders Forum. These Guidelines would also inform the development of any corrective or remedial action plans should we find issues during the course of our checks or indeed if we become aware of issues by other means; and
- Launched our M&S Forced Labour Toolkit for International Suppliers and Partners at our first ever international human rights conference in Delhi in January 2018 with over 250 attendees from our retail partners, M&S international retail and sourcing offices as well as logistics, IT, facilities, Food and Clothing & Home suppliers.
We will continue to oversee and enforce the implementation of our requirements and take on board the information and the findings in the report on the employment conditions of migrant workers, and work with brands to ensure good recruitment practices for migrant workers within our supply chain.
2016
We have also reviewed our management systems to identify lessons learned and improvement opportunities. As a result, we developed a relationship with a non-profit foundation called United Work which provides support for refugees regarding their fundamental needs (educational advice, recruitment, working permits and on-the-job-training), this is free and sponsored by the Dutch Government. We require our suppliers to let us know when they would like to recruit a refugee and we then introduce the factory and United Work to each other. Since the beginning of 2018, we have successfully helped 17 Syrian refugees into legal employment in our supply chain in Turkey.
We have also continued to carry out training with all our suppliers to highlight the legal process to employ Syrians with work permits. All our formal compliance audits continue to check work permits routinely.
We have also recently partnered with MUDEM, a Refugee Support Centre, and signed a Cooperation Protocol on Remediation of Working Conditions of Refugees. This provides a confidential mechanism for Syrian (and other refugees) to raise complaints or issues in our factories anonymously. Should this happen MUDEM will liaise with us to resolve and remedy any issues. As of May 2019, we have had no issues raised with us via MUDEM.
In addition, we continue to be members of the in-country Ethical Trading Initiative (ETI) Turkey Working Group, working collaboratively with other Brands on a best practice and due diligence approaches to protecting Syrian refugees seeking work in the garment industry but given the scale of the plight of Syrian refugees, and the sheer scale of the issue of informal workers in all industries, not limited to the garment industry, we also recommended a convening of all brands sourcing from Turkey, to establish a multi-industry wide collective action plan and next steps.
In October 2018, at our second human rights and modern slavery conference in Turkey we took the opportunity to publicise our Modern Slavery Toolkit for Suppliers and Partners. We translated this document into Turkish and sent it to all our suppliers. The conference was attended by 172 attendees including Government officials, Turkish employer’s association, other brands and Syrian employment agencies. A highlights video of the conference can be viewed here.
With teams from other brands, ETI representatives, the Turkish Government and Employer Associations, we believe we have a great opportunity to help improve the situation for employment of the Syrian Refugees.
2015
In October 2015, a media investigation brought to light issues at a fruit packhouse in Kent, which supplies a number of leading food retailers, including M&S. The issues were centred on the standard of accommodation provided, and worker-management communication. Whilst other brands ceased or suspended supply we worked closely with the supplier to understand the root causes of the issue, funding additional consultancy support to improve the site’s human resources, labour provider and accommodation management systems. We also supported the supplier to help roll-out more effective workplace communication.
The site continues to make progress in addressing these issues and we receive regular updates. In addition, partly as a result of this case, in March 2016 we ran an ethical trade training session for all our UK produce suppliers, which included detailed guidance materials on ensuring adequate workplace communications, and on minimum accommodation standards. In order to demonstrate full commercial support for the agenda, this session was delivered by our buying teams, as well as ethical specialists.
2014
The above have all been received from the media, trade unions or labour and human rights advocacy groups. They are distinct from issues we identify through other processes which include our own due diligence or complaints that we may receive directly from employees in our business or workers in the countries where we source product (e.g. through worker hotlines). The specific details of the complaints or the parties to the complaint are not disclosed, unless both the complainant and the subject of the complaint have agreed to this being made public, or where the complaint has already been made public by advocacy groups or through other channels such as the media. In some circumstances, our ability to be transparent may be restricted as a result of legally binding duties of confidentiality.
Over the next few years we will continue to publicly report on the performance of our M&S Group grievance channels / mechanisms.
We welcome the views of stakeholders who can help us in this task. You can share your views or open dialogue with us at [email protected].