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Although the Uruguay round addressed
the issue of Technical Barriers to Trade
by introducing the Agreement on TBT,
but still it provides sufficient room to
impose quality standards, both product
specific and process specific.
FTB
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. Foreign Buyers provide theircode of conduct and the local Textile Industryhas to make compliance of their standards. The auditors deputed by the foreign
buyers verify the implementation status to qualify trade relationships. Mostly the
issues are derived from local and international Labor Laws Health and Safety
Standards and Environment Standards viz.
1. Child Labor 8. Disciplinary practices2. Forced & bonded labour. 9. Harassment and abuse
3. Health & Safety 10. Trans-shipments quota
verifications
4. Collective bargaining 11. Security concerns
5. Compensation and benefits 12. Custom compliance
6. Working hours. 13. Drug interdiction
7. Discrimination 14. Country of origin
Thus, slowly and steadily compulsion is taking form of business advantage.
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FTB
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For social compliance the buyers under compulsion
from the pressure groups in their society asked the
supplier company in the developing as well as under
developed countries to comply with following law :-
Local Laws :
oLocal labour law.
oLocal Factory act.oLocal Environment Standards
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FTB
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Internationalinstrument:a. ILO conventions 29 and 105 (forced & bonded labour)
b. ILO conventions 87 (Freedom of Association)
c. ILO convention 98 (Right to collective Bargaining)
d. ILO conventions 100 and 111 (Equal remuneration for male and
female workers for works of equal value: Discrimination.
e. ILO convention 135 (workers representatives convention)
f. ILO convention 138 Recommendation 146 (Minimum Age
Recommendation)
g. ILO convention 59 (Vocational Rehabilitation &Employment/Disabled persons.
h. ILO convention 177 (Home work)
i. Universal Declaration of Human Rights
j. The United National Convention on the Rights of the Child.
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Product and process Standards: refer to the quality andspecification of a particular product and also processes.
Social Accountability: pertains to the responsibility of
manufacturers and industrialists to provide due social
protection to the workers including hygiene protection at the
work place, proper working environment etc.
Environment:- probably the broadest area imposing
restrictions on processes and certain intermediate processing
products which are detrimental to the overall environment.
Therefore, slowly and steadily compulsion is
taking form of business advantage.
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Problems of Value Added Textile Sector :
The problems of Value Added Textiles Sector
especially the (Knit & Woven) and Garment Export Industry
are little different from the industries which cater to home
market, they need to have separate labour laws as practicedby countries like Bangladesh and Sri Lanka who are very
strong in garment export. Thus they propose to amend the
following laws:
Condition of employment ordinance (the contract workers
to be incorporated) wages ordinance.Definition of contract workers to be incorporated and
different treatment of contract labour to be incorporated.
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They have proposed amendment in theclause of condition of employment act/wages act and
to incorporate appropriate definition of contract work
men engaged on club salary basis as under :-
1. The said provision is requested to be added as
them (ii) in section (4) sub section (n) of proposed
condition of Employment Ordinance 2002 as
under : Contract basis individually or through acontractor on the basis of club salary which includes
all benefits accruable to him as defined in the wages
ordinance 2002.
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The second change is connected with
daily, weekly hours and overtime. In section:14, the
No. of daily working hours be increased to 12 instead
of 9 and weekly hours be increased to 72 instead of
60. However, overtime hours will be calculated on
weekly basis after completion of 48 hours of regular
work/week The above change is being requested to
make overtime hours more flexible/day/week to
enable employee to earn more and also to meet the
compliance conditionality of the buyers.
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Section: 12 regarding weekly holiday. Thecondition that every establishment shall remain entirely closed
for one day/week be replaced with one day leave per week to
every worker, for the industry running round the clock
continuously. Sub section:4 of section:12 be made non
applicable to club salary contract/piece rate workers as
suggested above.
The spread over hours be also increased to 12 in
both winter and summer case of adult workmen in section:17.
Section:13: Sub section:4 women workers be
allowed to work up to 10 p.m. on two shift basis with opening
of establishment from 6 a.m. to 10 p.m. provided transport
facility for out going at 10 p.m. is made available to all womenworkers.
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Conclusions :
y The subject ofNon-Tariff Barriers currently appears
to have no clear cut demarcation and there exist a lot of
grey areas.
y The agreement on Technical Barriers to Trade
(T.B.T.) in WTO clearly says that market access can or
should only be restricted through imposition of standards
based on scientific findings and rationale. Practically the
developed countries are at freedom to immediately imposetrade restrictions even to investigate a particular case or an
export consignment.
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y Over the past few years numerous measures have
been adopted by the developed countries that have put
extra pressure on the firms in under- developed
countries to comply with environment & health
standards.
y There is need to develop awareness amongst all
the stakeholders about the Social Health - Safety
and Environment related issues, the local &
international laws and a commitment to comply with
required standards.
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Conclusions ( cont..):
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y The Government Deptts/Ministries/Institution have to
synergies their thinking policies & action plans to meet the up
coming global requirements and develop clearly spelled out
laws facilitating industry to become compliant to W.T.O./ILOregulations on one hand & remain as competitive global
player on the other.
y Establishment of regulatory and institutional infrastructure
for the protection of environment in the country is a step in the
right direction but an integrated approach with concrete
development programme is needed.
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Conclusions ( cont..):
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y The industry mostly exists as SMEs and is likely to face
difficulties in complying with social and environment
regulations. These SMEs are not in a position to comply with
any of the present local Social Environmental Laws, because of
their existing contractual system of production to achieve productivity levels. Similarly the processing industry also is
unable to meet the high cost of water treatment plants.
y The Provincial Government and City Govt. should take
initiative to develop Wastewater Treatment Plants oncooperative basis or alternatively can recover the cost over a
certain period of time from the industry. The treated water should
not be used for agriculture and not thrown in the usual disposal
mullahs.
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Conclusions ( cont..):
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Recommendations:
1. The Industrial Relation Ordinance Factories Act
Condition of Employment Act etc. be amended by Ministry of
Labour & Manpower in consultation with the select
Committee representing Textile Sub-Sector in synergy withfuture trading environment.
2. The regulations concerning environment effluent
disposal laws and relevant procedures for industry need to bestandardized. Federal Environment Division should take
initiative & standardize regulations in consultation with
Provincial Governments and Stake-holders on environment.
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3. An awareness campaign be launched at
Federal & Provincial level to develop awareness on
Compliance of Social Health Safety and
Environment Standards amongst the Stake-holders.
4. Pakistan Compliance Initiative as a
body needs patronage & Support by Federal &
Provincial Governments to develop awareness andbuild a credible programme for verifying the integrity
of the supply chain in Pakistan in line with globally
recognized standards.
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Recommendations ( cont.):
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5. Government functionaries (Labour Environment
Health etc.) should be educated to understand the future rules
for trade and their role should be re-defined to synergies with
the national approach of industrialization and export
promotion rather than restrictive archaic & regulative.
6. The processing industry needs to be facilitated by
development of concrete Environment Compliance
Programmes as the industry mostly exists as SMEs and likely
to face difficulties in complying with environment
regulations. The reasons include lack of awareness, lack of
compliance capacity due to limited managerial capability,
lack of technical know how and most importantly limited
financial resources.
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Recommendations ( cont.):
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7. The Provincial Government and City
Govt. should take initiative to develop
Wastewater Treatment Plants on cooperativebasis or alternatively can recover the cost over a
certain period of time from the industry. The
treated water should be sued for agriculture and
not thrown in the usual disposal nullahs.
SOCIAL COMPLIANCE ISSUES
FTB
Recommendations ( cont.):