Agenda. Review of EICC Accomplishments. Labor Rights trends. Lessons Learned and Actions for consideration. Participation from the attendees!

Transcription

1 1

2 Agenda Review of EICC 2010 Accomplishments Labor Rights trends Lessons Learned and Actions for consideration Participation from the attendees! 2

3 EICC Membership Scope Brands Manufacturing Components Raw Materials Linking 4 Tiers of the Electronics Sector 50 member companies: Asia Americas Europe Extended reach through partnership with Global e Sustainability Initiative (GeSI) Supply Chain Workgro 3

4 EICC Members 4

5 Objectives of the EICC 1. Credible process for evaluation and management of supply chains 2. Establish a governance structure to support the organization 3. Build external awareness, participation; stakeholder engagement 4. Code of Conduct, implementation applications, change control, and continuous improvement 5. Shared training and education to improve social and environmental performance in the supply chain. 6. Reporting of progress against objectives consistent with anti trust laws in U.S. 5

6 EICC Code of Conduct Freely Freely Chosen Chosen Employment Employment Child Child Labor Labor Avoidance Avoidance Working Working Hours Hours Wages Wages and and Benefits Benefits Humane Humane Treatment Treatment Non Discrimination Non Discrimination Freedom Freedom of of Association Association Labor Environmental Permits Permits & Reporting Reporting Pollution Pollution Prevention Prevention Hazardous Hazardous Substances Substances Wastewater Wastewater Solid Solid Waste Waste Air Air Emissions Emissions Product Product Content Content Management Systems Occupational Occupational Safety Safety Emergency Emergency Preparedness Preparedness Occupational Occupational Injury Injury & Illness Illness Industrial Industrial Hygiene Hygiene Physically Physically Demanding Demanding Work Work Machine Machine Safeguarding Safeguarding Dormitory Dormitory & Canteen Canteen Health & Safety Ethics Business Business Integrity Integrity No No Improper Improper Advantage Advantage Disclosure Disclosure of of Information Information Intellectual Intellectual Property Property Fair Fair Competition Competition Protection Protection of of Identity Identity Community Community Engagement Engagement 6

7 Supply Chain Engagement Model TOOLS Electronic Industry Code of Conduct Self Assessment Questionnaire Validated Audit Aggregate Industry data analysis 7

8 Validated Audit Process Supply Supply chain chain facility facility is is assessed Validated Audit Audit Report Report is is owned owned by by the the facility facility and and is is shared shared among among multiple customers driving driving efficiency saving resources for for improvements Member Member Notification Notification Supplier Supplier Notification Notification Audit Audit Guidance Guidance Document Document Facilities Facilities Demographics Demographics Pre audit Pre audit Checklist Checklist Auditor Auditor Capability Capability & Quality Quality Auditor Selection Pre audit Communication Validated Audit Audit Checklist Audit Audit Questions Questions Scoring Scoring Audit Audit Report Report 2010 over 150 Validated Audits are being conducted in 9 countries 8

9 2010 Accomplishments New member recruitment expand scope to drive change; +10 firms 2009 Annual report 3rd party auditor training (Verite) and certification program (IRCA) Deployed Validated Audit Process (150+) to: Brazil, Mexico, Malaysia, Philippines, Singapore, South Korea, Thailand, and Taiwan (in addition to China) New e training modules: Supply Chain Management, Worker Manager Communications, and Employee Health and Safety Extractives tin source identification model (Democratic Republic of Congo) Extractives Smelter Validation Process for tantalum Membership compliance program launch Selection of next generation database for SAQ & Validated Audit Reports 9

10 EICC Communications EICC Website: EICC Weekly Bulletin 10

11 11

12 12

13 Labor Rights Trends 1. In the electronics sector, labor rights for workers is a major NGO theme 2. NGO stories focus on Tier 1 and 2 suppliers of the Brand companies 3. Many issues are related to labor rights including: working hours, wages and benefits, worker management communication, employee health and safety, and worker representation 4. In developing markets, mega trends are changing the dynamics of entry level or migrant workers especially true for the electronics sector 5. Internet, Mobile phones, on line social media has radically transformed younger workers higher expectations for a better life are the new norm 6. Workers are also customers, commentators, and critics 7. Instant global communications depicting supply chain conditions / incidents 13

14 Lessons Learned EICC member audits show improvements in labor related audit noncompliance has occurred over the past 5 years, however. In 2009, the average audit revealed 6 major and 18 minor noncompliant findings (against a set of 177 audit questions) Most frequent noncompliance: working hours, health and safety, wages and benefits, worker communications, and management systems EICC has been addressing these areas in 2009 / 2010 to help drive understanding of root causes and create programs to assist in making improvements EICC annual report has more details on the tools developed to address Electronics sector must increase its attention to resolving labor related findings we have plenty of data commitment to change is needed! 14

15 Actions for consideration End customers are increasingly desiring responsibly sourced products Changes in labor force dynamics are happening now inaction is not an option Workers want more than just money social and development needs are important Need top level management commitment and bottom up engagement Do you really know your labor force? (both direct workers and subcontractors) Do you really have effective worker management communication channels? Do line supervisors receive training and frequent feedback? Are problems readily and visibly addressed? 15

16 Actions for consideration Are you having your facilities EICC audited and applying lessons learned across the firm? Audits highlight the problems but sustained improvement is the goal Improvement plans and Management Systems are needed Ensure your purchasing teams understand social responsibility and incorporate into buying decisions Educate your sales teams on social responsibility in your firm Discuss with your customers what you are improving and where you need help Get help utilize EICC e training modules (enlist via EICC member firms) Join the EICC leverage our resources and be a visible leader in this journey! 16

17 Worker Management Communication Program

18 Worker Management Communication Training Objective: support EICC and GeSI member companies and their suppliers in implementing effective worker management communication systems and in raising worker awareness of their rights and responsibilities Training Developer: INFACT Global Partners /Fair Labor Association Core Collaborator: David Seligson, ILO EICC/GeSI members: Apple (Lead), STMicroelectronics, NSN, Dell, Flextronics. Other members providing feedback through the LCB group include Intel, Jabil, Cisco, Kodak, HP, among others. Will be a train the trainer format Target availability March

19 Worker Management Communication Training Modules Module & Trainer Audience Time Objective/Description Module 1: Worker Management Communication Basics Trainer: EICC/GeSi members or external trainers Module 2: How to set up and implement a worker training program Trainer: EICC/GeSi members or external trainers Factory Management Factory Management 1 day To provide an overview of how electronics manufacturing facilities can enhance workermanagement relations via effective communication. Deliverables include: facilitator s guide, ppt presentation, handouts, participant s guide, sample 1 day To provide an overview of how to set up and operate an effective training program for employees. Deliverables include: facilitator s guide, ppt presentation, handouts, participant s guide, sample Module 3: Worker training resources Trainer: EICC/GeSi members or external trainers Factory Management Factory Management Factory Employees ½day To help electronics factories develop and deliver essential worker and supervisor training that relates to critical Human Resource / Worker Rights / Code of Conduct issues. Deliverables include: training slides, trainer guide, evaluation tools The training is applying a train the trainer approach 19

20 Questions? 20

21 EICC Membership Information EICC Headquarters th Street, NW Suite 500 Washington, DC (202) phone Membership Contact: Richard Wong (Director of Asia Programs): 21

22 22