Report Issued on Efforts to Improve Apparel Factory Conditions in Central America  

Rev. David Schilling, (212) 870-2928
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(September 6, 2001) - IMWG News.  The Independent Monitoring Working Group (IMWG) released a report today on the history and development of independent factory monitoring initiatives in El Salvador, Guatemala and Honduras. 

The IMWG is comprised of representatives from the Business for Social Responsibility Education Fund (BSREF), Center for Reflection, Education and Action (CREA), Interfaith Center on Corporate Responsibility (ICCR) and Gap Inc.

When labor problems at the Mandarin International factory in El Salvador became widely reported in 1995, most apparel companies doing business at the factory stopped sourcing their brand-name products from the facility.  But Gap Inc. agreed to stay and explore the creation of an independent factory monitoring program in El Salvador.   Gap Inc. agreed further to work with Business for Social Responsibility Education Fund (BSREF), the Interfaith Center for Corporate Responsibility (ICCR) and later, the Center for Reflection, Education and Action (CREA) towards that goal, and the Independent Monitoring Working Group (IMWG) was formed.

"As a result of this first-of-its-kind project we demonstrated that companies and non-governmental organizations from Central America and the US can join forces to enhance efforts to respect workers' rights.  During this five-year collaboration, we have learned a great deal about how different perspectives can enrich efforts to create fair, harmonious and productive working conditions," said Rev. David M. Schilling, Director, Global Corporate Accountability Program, Interfaith Center on Corporate Responsibility.

The IMWG's main goal was to explore the viability of independent monitoring in Central America.  A first step towards that goal was to identify local organizations in El Salvador to serve as monitors at Mandarin, now called Charter.   

In El Salvador, the IMWG engaged four local organizations that formed the original the Independent Monitoring Group of El Salvador, or GMIES. The primary objective of monitoring was to promote harmonious and productive working conditions through an innovative process of verifying factory compliance with national labor laws, international conventions and Gap Inc.'s own Codes of Vendor Conduct in participating Gap-contractor facilities.

The IMWG began its efforts to pioneer independent monitoring in Honduras in 1999.  The IMWG has worked with Episcopal Diocese personnel in San Pedro Sula to train monitors and to launch a factory monitoring program with four factories.  Hurricane Mitch and changes in sourcing have delayed monitoring but a new monitoring initiative with other local organizations will soon be underway.

In June 2000, the IMWG expanded the monitoring project to Gap Inc. supplier factories in Guatemala.  The Commission for the Verification of Corporate Codes of Conduct (COVERCO) was engaged to provide independent monitoring and verification of corporate codes of conduct at two plants sourcing Gap Inc. products.

As a direct result of the IMWG's work, independent factory monitoring conducted by knowledgeable local organizations is in place.  The report details noteworthy aspects of IMWG's experience over the past five years.  Key findings in the report include:

* The IMWG succeeded in establishing the first independent monitoring project in the apparel and footwear industry, demonstrating that a diverse range of civil society organizations and businesses can work in a transparent, collaborative manner to promote the observance of fair working conditions to promote a productive and harmonious workplace. The Independent Monitoring programs focused attention on the rights of workers in global supply chains, providing workers a new channel through which to raise concerns about their treatment and the conditions under which they work.  Originally designed to respond to a crisis, independent monitoring has evolved into a method of providing consistent, systematic, on-going compliance with applicable national law and Gap Inc.'s. Code of Vendor Conduct.

* The IMWG's work played a role in catalyzing the formation of independent monitoring coalitions in Central America.

* Independent monitoring, including its initial establishment and implementation, is a time-intensive process, and additional work remains to create a fully sustainable model that can be replicated broadly.

* Independent monitoring works best when it is joined with effective internal factory systems that allow workers to express their concerns without fear of retaliation.

* The independent monitoring process provides for a third party to act as intermediary or negotiator, when problems or concerns arise.

* As independent monitoring expands throughout Central America, there has been a spectrum of responses from factory managers.  Some factory managers have seen the presence of independent monitoring in their factories as a marketing tool that can be used to attract apparel companies committed to ethical sourcing.  At the other end of the spectrum are factory managers concerned that the presence of independent monitors may suggest that theirs are bad factories.

In the near future, the independent monitoring groups in Guatemala and El Salvador will issue reports on specific problems identified in factories.  These reports will detail how factory management in each location addressed problems.

In late 2000, members of the IMWG agreed that the group successfully met its initial goal of exploring the viability of independent monitoring in Central America. It was agreed that the IMWG would cease its formal operations at the end of 2001, though the monitoring will continue.