Modern Day Slavery is an international crime, affecting an estimated 45.8 million people around the world. It’s a growing issue, affecting men, women and children. At Arco, we are committed to making a difference. We pride ourselves on having an ethical supply policy and being the first and only safety distributor to become members of the Ethical Trading Initiative.
The Supply Chain Reaction
The 36 million people bound by Modern Day Slavery cannot all speak for themselves, so we’ve created a short film on their behalf. Meet Tuan and find out how you too can begin to make a difference.
Does Modern Day Slavery exist in your Supply Chain?
By choosing Arco, you can be assured of ethically sourced products. You may however be surprised by the extent of slavery in supply chains you may be familiar with, including clothing, footwear and gloves.
Bonded labour is the most common form of slavery today. Individuals are compelled to work in order to repay a debt and unable to leave until the debt is paid. This often leaves workers stranded overseas, unable to return to their homes and families.
Click on the images below for just a few examples of these poor practices.
Every year the Uzbekistan government forces over 1 million citizens, including doctors and teachers to grow and harvest cotton.
Uzbekistan is the fourth biggest exporter of cotton globally, and its government uses one of the largest state-sponsored systems of forced labour to harvest it. Every year, farmers are forced to grow cotton and deliver production quotas. Failure to comply can lead to loss of land, public harassment, criminal charges and fines. The dangerous, intensive work leads to ill-health and malnutrition. Some people have died as a result of the work they have been forced to do.
In India up to twenty thousand children make footwear in appalling conditions in the slums of Bombay.
India’s leather and footwear industry is an industry largely built on the back of children. In the slums of Bombay, thousands of children, mainly six and seven-year-old boys, are making shoes in tiny manufacturing units. The boys are trafficked from the rural villages of Rajasthan, and go to Bombay for ten months at a time, working from 5am until 11pm each day. The children get no wages, instead their parents receive a payment ranging from 500 to 5,000 Rupees.
In Malaysia and Thailand thousands of migrant workers making gloves are being exploited. Every day they face a range of health and safety risks for hours on end.
In both Malaysia and Thailand, migrant workers are often given 'dirty, dangerous and difficult' jobs. They face specific hazards, like
exposure to aerosolised latex powder which puts workers at risk of allergic lung disease. Boiler areas and inadequately stored chemical products can lead to fire and burn risks, while working temperatures on production lines often exceed 45C and can reach 70C. Workers are also at risk of hearing loss, as machinery regularly emits noise as high as 90-100 decibels.
In Tamil Nadu, women millworkers are subject to severe labour exploitation and dangerous conditions.
Tamil Nadu in southern India is the powerhouse of India’s garments and textiles export sector. Yet it’s mainly female workforce has been subject to severe labour exploitation, including bonded labour. The women millworkers experience many forms of ill treatment, including excessive working hours, poor living conditions in hostels and illness caused by exposure to cotton dust. Withholding wages and paying below minimum wage is common practise, while workers have no access to grievance mechanisms.
Cotton Supply
Footwear Manufacturing
Glove Chain Supply
Clothing
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The Modern Day Slavery Act, 2015
The Modern Slavery Act is an Act of the Parliament of the United Kingdom. It is designed to tackle slavery in the UK and consolidates previous offences relating to trafficking and slavery. The act extends to England and Wales.
From 29th October 2015 the Transparency in Supply Chain Provisions require businesses to publish an annual statement if they have an annual turnover above £36 million. The statement must confirm the steps taken to ensure that slavery and human trafficking are not taking place in the business or in their supply chain.
The Modern Day Slavery and Human Trafficking report
For a Copy of our Modern Slavery and Human Trafficking Statement 2016/17 download below:
How Arco Can Help You?
The task of auditing a complex supply chain with multiple suppliers can be arduous. By ensuring you only work with ethical suppliers such as Arco, this task is simplified. The measures we take and the assurance we offer to our customers, backed by our membership of the Ethical Trading Initiative, mean peace of mind for procurement teams.
Vendor Ethical Compliance
Arco has created a process to ensure the ethical compliance and capabilities of all vendors manufacturing products which carry an Arco brand.
Before any products are produced the vendor must comply with Arco's Ethical Compliance Procedure which requires them to prove have the capability and systems to meet the requirements of the ETI Base Code.
When a vendor wishes to use subcontractors or outworkers for Arco production then this must be approved in advance by Arco Ltd. It is the vendor’s responsibility to ensure and provide evidence that any subcontractor or outworker used conforms to the standards outlined in the 'Ethical Guide for Vendors' document, download below.
Ethical Auditing
Manufacturers of Arco own label products are independently audited for Ethical compliance and corrective plans agreed to resolve breeches of national and local laws and the ETI base code. The corrective action plans are managed by the Arco Product Assurance Team, Arco Xiamen team (based in China) and the manufacturer themselves.
Manufacturers are periodically visited by Arco Category and Ethical personnel who have been trained by the ETI in the application of the ETI Base Code. During the visit breeches of the ETI base code are identified and recommendations for improvement agreed.
Arco contract one of the world leading social compliance audit companies to independently assess our factories. The audits are based upon the ETI base code and the fundamental international labour standards as defined by the International Labour Organisation (ILO).
Any vendor failing seriously or consistently to adhere to the standards detailed in the ‘Ethical Guide for Vendors’ document will be removed from the approved vendor list.
Our Man Overseas
To demonstrate our commitment to trading ethically, we have our own Ethical Auditor Rick who is based in the Far East.
He is responsible for:
• Ethical auditing of suppliers
• Developing, monitoring and advising of corrective action plans
• Conducting health and safety training with suppliers
• Developing open communication with suppliers
Making a Difference
Don’t just take our word for the difference we make to the people and the factories we use, to manufacture our range of Arco clothing, footwear, gloves and other personal protective equipment.
Click on each of the examples below to hear from our vendors themselves.
New fire system and evaluation process drive teams' commitment and motivation
Improved dining facilities and workplace hygiene enhances people welfare
New fast response procedure creates a renewed sense of involvement for employees
Upgraded bathroom and sun protection facilities increase employee wellbeing
Team building and skills training boosts employees engagement
Ethical Trading – The Arco Approach
Improvements to employee welfare in glove manufacturing facilities
One of Arco’s key glove suppliers, based in Pakistan, has improved ethical and quality audit scores and attitudes with Arco’s support. This has significantly impacted upon the employee experience at the company with a safer and healthier working environment for all. The supplier has been producing various cotton gloves since 2010 but has now become a supplier of Arco’s new premium Glove Range as a result of these improvements.
In addition to state of the art fire hazard systems and effective evacuation layouts that exceeded non-compliance standards, the supplier encouraged worker responsibility. By assembling a team within the company, alongside the services of a consulting firm, they were able to successfully revamp policies related to product quality, social responsibilities and employee benefits.
Increases in working space and improvements to employee welfare facilities has led to greater employee commitment and motivation which in turn has enhanced the quality of products produced by the Pakistan based manufacturer.
CEO, Muhammed Haseeb said: “We feel things are now being steered in the right direction. Employees are more comfortable with the new system and this path is now helping us to attract new potential clients.”
Following the introduction of the Modern Day Slavery Act 2015, UK organisations are now required to show how they have taken steps to ensure modern slavery is not taking place in their business or supply chains. As a result, Arco is keen to ensure that workers in its supply chain are benefitting from a high standard of working conditions and consequently brought on board Intertek Group plc, a multinational inspection, product testing and certification company. Intertek carried out Ethical (WCA) and Quality (SQP) audits between 2014 and 2015 at the manufacturer’s facility.
Due, in part, to the ethical and quality requirements highlighted in the initial audit, manufacturing moved to an alternative factory in 2015 which was then followed with a further WCA audit by Intertek. The supplier showed a huge commitment to resolving the non-conformances raised in the audit and with Arco’s support, this resulted in a fantastic result of 86% for health and safety at the end of 2015 as well as gaining a contract to supply Arco’s new premium range.
Ultimately Arco strives to avoid loss of work due to poor health and safety standards which can put jobs and livelihoods at risk. Instead, it is far more beneficial for all involved to implement a support system that leads to successful improvements.
Ethical Trading – The Arco Approach
Chinese clothing manufacturer provides safer and healthier working conditions with Arco’s support
Based in Northern China, one of Arco’s safety clothing suppliers has significantly improved employee experiences at the company with a safer and healthier working environment for all involved following support from Arco. The manufacturer had been producing high-vis waistcoats since 2008 and has now become Arcos main vendor for these products following its implementation of the Ethical Trading Initiative (ETI)s Ethical Trading Guide.
Arco’s influence has ensured there is a greater respect for workers’ rights throughout the company; employee welfare has further improved with the introduction of enhanced staff accommodation, dining facilities and food hygiene which has provided them with a comfortable overall living and working environment.
General Manager, Gao Jun said: “The quality control has led to stronger competitiveness and increased commercial benefits for the company. In 2014, we were assessed as an ‘Excellent Enterprise’ by our local administrative office.”
Alongside regular safety training and emergency evacuation drills, the clothing producer has strengthened its inspection and maintenance of machinery and equipment so that employees can work safe in the knowledge that potential risks are being avoided.
Following the introduction of the Modern Day Slavery Act 2015, UK organisations are now required to show how they have taken steps to ensure modern slavery is not taking place in their business or supply chains. Loss of work due to poor health and safety standards puts jobs and livelihoods at risk, so Arco commissioned Intertek Group plc, a multinational inspection, product testing and certification company, to carry out Ethical (WCA) and Quality (SQP) audits at the producer’s facilities in 2013. These audits identified areas for improvement and working with the factory owners, Arco supported developments in all areas of the ETI Base Code, including health and safety for which the company is now above the global, industry and country average.
Arco became the first company within its industry to join the ETI in 2007 as part of its commitment to improve conditions for all workers across its supply chain. The Ethical Trading Guide enabled their supplier to adopt a far more productive approach to sustainable development, while the changes made to the overall management of the company have brought with them a higher level of satisfaction from employees. This in turn has led to improved productivity and a lower staff turnover rate.
Ethical Trading – The Arco Approach
Chinese glove supplier gives workers renewed sense of involvement
The largest single vendor of Arco’s own label gloves, based in central China is reaping the benefits of having improved its ethical and quality compliance with support from Arco and its implementation of the Ethical Trading Initiative (ETI)’s Ethical Trading Guide.
As a result of the company’s work with Arco, the Shaanxi-based manufacturer has implemented a Fast Response Procedure in order to track the progress of quality and production projects as well as holding regular meetings across all departments to ensure everybody is aware of any problems, that these problems are then dealt with and a report is submitted on completion of any improvements. Employees now feel a renewed sense of involvement and this commitment has led to the factory being comparable to the best performing factories within their country and industry.
General Manager, Wang Xianhua said: “We are so lucky to have co-operated with Arco. We have made a lot of progress in all aspects and we will continue to work with Arco in the future.”
Co-operation with Arco for more than 10 years has advanced the company’s understanding of the Ethical Code and encouraged them to increase worker responsibility. Arco’s Quality Control team united the manufacturer’s R&D, production and quality departments in an active collaboration to analyse and discuss the best course of action to improve production quality and employee working conditions. The introduction of the Modern Day Slavery Act 2015 means that UK organisations are now required to show how they have taken steps to ensure modern slavery is not taking place in their business or supply chains.
The Central China based producer began working as a vendor of Arco Own Label gloves in 2005 and had previously seen the value of Arco conducting annual Ethical and Quality audits at its factory prior to 2013. This had enabled the company to improve in all areas of the ETI Ethical Base Code. In addition, Arco commissioned Intertek Group plc, a multinational inspection, product testing and certification company, to carry out Ethical (WCA) and Quality (SQP) audits at the manufacturing facility in 2015.
Ethical Trading – The Arco Approach Chinese Footwear Provider Improves Working Conditions with Arco’s Ethical Trading Policy
With the support of Arco’s ethical trading policy, the Eastern China-based footwear manufacturer, is improving working conditions for its employees and reducing loss of work due to poor health and safety standards, which would otherwise put jobs and livelihoods at risk. Arco’s support has led to an improved sense of wellbeing for all employees at the Xiamen facility which has been manufacturing the Arco essentials range of footwear since 2009.
Ms Wang Yan, sales manager for the producer, who understands the value of trading ethically stated: “We appreciate Arco’s commitment to its ethical policy and therefore the inspection of our ethical and quality control processes. In order to improve the accommodation for our workers, we have upgraded the bathroom facilities and sunstroke prevention equipment. It makes them feel they are part of one big family and they now have more enthusiasm and self-discipline at work.”
“Not only does this make us more efficient but it also ensures that we maintain the high standards that Arco expects. Since we have been operating the Ethical Trading Initiative, our factory can compete much more effectively for international business.”
In light of the Modern Day Slavery Act 2015, UK organisations are required to ensure that modern day slavery is not taking place in any of their factories or those of their supply chain. To ensure Arco’s Ethical policy was being followed and the strict standards met, annual ethical and quality audits were conducted at the factory, along with advice and support provided for any areas of improvement required.
Arco carried out Ethical and Quality audits at the manufacturing facility prior to 2013. Due to its engagement and enthusiasm for the process, the company made enhancements to a number of areas in its working environment.
The commitment from the entire team meant that when Arco commissioned Intertek Ethical (WCA) and Quality (SQP) audits in 2015, the audit score for the Xiamen producer was higher than country, global and industry averages, with the health and safety score being one of the highest recorded.
Ethical Trading – The Arco Approach
Bangladesh-based glove supplier goes above and beyond in critical audit
As a supplier of various dipped gloves used for chemical protection since 2012, a Bangladesh-based manufacturer has benefitted from Arco’s support to achieve higher standards of employee welfare.
Employees of the glove supplier benefitted from improved bonding and engagement activities, as well as motivational training, a decentralization of authority further skills training and particular focus on improving employee health and safety. This has all been achieved as a result of the company undertaking an Ethical and Quality audit for which it is now committed to completing the remaining improvements during 2016.
The supplier’s key account manager said: “The audits are one of the best occasions to improve, particularly when the company mind-set is open to receive an external measurement. People accept the auditing activity as a challenge, a way to grow and, eventually, to exceed expectations.”
Arco is driven to ensure that loss of work due to poor health and safety standards is avoided as this puts jobs and livelihoods at risk. Instead Arco prefers to support its suppliers in improving working conditions for employees as well as product quality. UK organisations are now required to show how they have taken steps to ensure modern slavery is not taking place in their business or supply chains following the introduction of the Modern Day Slavery Act 2015.
Arco became the first company within its industry to join the ETI in 2007 as part of its commitment to improve conditions for all workers across its supply chain. The results of Intertek’s audit and Arco’s support encouraged the supplier to not only meet the suggested improvements, but go above and beyond with teams questioning and improving multiple other areas.
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Walking the Talk
The Ethical Trading Initiative (ETI)
The ETI is a leading alliance of companies, trade unions and NGOs that promotes respect for workers' rights around the globe.
Their aim is to improve the lives of workers around the world by eradicating exploitation and discrimination, so they can enjoy conditions of freedom, security and equity.
Arco became members of The ETI in 2007 and remain the only safety distributors to be member. We are committed to the ongoing and continual improvement in ethical trade in line with the ETI Base Code. Arco have a strategic plan in place with the ETI which aims to improve the welfare of safety of workers.
The ETI 9 Point Base Code
The ETI Base Code is founded on the conventions of the International Labour Organisation (ILO) and is an internationally recognised code of labour practice.
Continual ImprovemenT
As part of our ETI membership we are required to submit an annual report detailing our ethical trade efforts, for the ETI to review and check that they are happy with our work. Last year we received positive feedback from the ETI for our efforts:
“ETI has been consistently impressed with the high level of meaningful engagement in ethical trade efforts and collaborations demonstrated by Arco”
What Can You Do?
- Ask your suppliers about their supply chain and the factories providing your goods.
- Ask your suppliers about their ethical assurance measures and auditing processes.
- If your company has a turnover greater than £36m and falls under the Modern Day Slavery Act, prepare and publish your statement.
- Be sure about your own supply chain by using suppliers that are members of the Ethical Trading Initiative
Help us make a difference and start your own Supply Chain Reaction today.
