That Code, soon to be renamed ‘Ethical Clothing Australia’s Code of Practice, Incorporating Homeworkers’, seeks to reduce the exploitation of textile, clothing and footwear (TCF) workers in Australia. It imposes obligations on participants in the supply chain to demonstrate that they provide award wages and conditions to TCF workers.
The ACCC comments that it regards the Code as being 'an important tool for incentivising businesses to observe their obligations to vulnerable workers in the TCF industry and take steps to manage legal and reputational risks in their outsourced supply chains'.
“By increasing industry and consumer awareness about working conditions, businesses accredited under the Code are also able to promote their ethical credentials to consumers,” ACCC Deputy Chair Delia Rickard said.
“The certification trademark for ethical textiles, clothing, and footwear, allows consumers to choose products with confidence that the businesses they are buying from aren’t exploiting workers.”
“Consumers are becoming increasingly aware of the impact of unethical practices on vulnerable workers and some are changing their buying habits as a result.”The ACCC examined the possibility that the Code could lead to anti-competitive detriment such as increased costs for businesses seeking accreditation. It concluded that
this risk of detriment is limited because the Code is voluntary. Retail signatories and accredited manufacturers are only able to agree to boycott other businesses that are not compliant with their legal obligations, and the Code contains safeguards against inappropriate accreditation or boycott decisions.Accredited businesses can display the following ethical certification trademark on their signs and products to demonstrate their compliance.
The Homeworker Code Committee Incorporated is a not-for-profit organisation and registered charity. Homeworkers are individuals and employees who perform work in the textile, clothing and footwear industry from home or at other premises that would not commonly be regarded as business premises.
The ACCC notes that the Code Committee has made minor amendments to the Code since 2013, when the Code was last authorised by the ACCC. Further changes are planned.
In order to gain accreditation under the Code, businesses must submit to audits undertaken by CFMMEU to verify that those businesses are complying with legal obligations to workers. Audits are also conducted along the supply chain of businesses seeking (or renewing) accreditation under the Code, to ensure that the accredited businesses are complying with their legal obligations to the workers involved at each stage of the production of TCF products sold by the accredited business.
