(Burton, Dorothy Perkins, Evans, Miss Selfridge, Topshop, Topman, Wallis, BHS)
Responded to survey: yes, updated summary based on comments
MSI involvement: no
Grade 2.5: Can offer concrete examples of steps to increase wages in the supplier base, but pilot projects are limited in scope and have significant omissions. [what's this?]
Summary
Arcadia appears to have done little to build on the work outlined in its previous submissions, although the mapping of homeworkers is now under way. Its work is still largely focused on fact-finding and assessment of supply chains.
Position on living wages
‘Arcadia supports the principle of a living wage…This remains one of our four interlinked strategic labour priorities (along with FOA, purchasing practices and vulnerable workers).’
On AFW Arcadia told us, ‘We note the progress that they [the Asia Floor Wage Alliance] …have made with the question of how to calculate a living wage… We are however concerned about aspects of the methodology. For example we would like to understand the reason for selecting a food basket of 3000 calories, which exceeds other benchmarks, and why the methodology excludes employee and state benefits...’
‘In our view the most effective change would be for governments to review minimum wages, adjust them to a living wage where appropriate and enforce these.’
Living wage benchmark
Based on research from War on Want carried out in 2009, Arcadia is benchmarking a living wage at 5333 taka in Bangladesh. This is roughly half the figure calculated by the Asia Floor Wage. War on Want’s most recent report ‘Stitched up’ estimates that the average monthly household expenditure in 2011 has increased to 8896 taka.
Position on Freedom of Association
‘We are aware that issues… take place partly due to the absence of worker representation in factories. This leaves workers with either a lack of awareness of what they are entitled to or the inability to claim it.’
Work so far on living wages
Arcadia has continued work on a wage survey in Bangladesh outlined in our 2009 report, although this is still not completed. Results so far suggest that 4996 taka is a typical salary and is sufficient for workers to save. Arcadia has also been monitoring the implementation of the new minimum wage in Bangladesh, including use of downgrading to avoid new minimum wage rates.
As part of a DFID sponsored programme (see below), Arcadia has been carrying out factory needs assessments in India and Bangladesh.
Work on freedom of association included the issuing of right to organise guarantees with help from the ITGLWF. This was included in payslips, and posted on notice boards and monitored in audits.
Work on homeworkers’ wages was mentioned, including a mapping exercise on the use of home working in supply chains, measuring of wage levels, and support for workers in accessing artisan cards to allow the claim of state benefits.
Some work on purchasing practices was detailed, including a training programme for buying, design and merchandising teams, and supplier reviews.
Plans on living wages
Arcadia will be working with a number of other retailers on a DFID sponsored programme to develop management skills in supplier factories, allow workers to communicate their views, enable managers to understand needs and aspirations of workers, and support negotiation of improved wage packages.
Some starting details of a separate project, incorporating purchasing practices, open costings, freedom of association, and the living wage were also provided.
Other significant information
Arcadia is working to support vulnerable workers through a project with suppliers in Mauritius and UAE to improve recruitment and employment practices with migrant workers.
Arcadia is also looking to develop best practice guidelines on the use of contract labour in India. Their work in Mauritus, India and Bangladesh on the recruitment of migrant and contract labour included work with government stakeholders.
Our comments
Arcadia deserve credit as one of the few companies to have taken a concrete step to support freedom of association through the issuing of Right to Organise guarantees. However, this needs to be supported by more proactive work with local trade unions if it is to move beyond a paper exercise.
Aside from this, the work being done on living wages is somewhat underwhelming, and seems largely limited to surveys and assessments. For example, given that Arcadia has a very small sourcing base in Bangladesh, it is telling that it has yet to complete a simple survey begun almost two years ago.
Arcadia continue to question the Asia Floor Wage methodology, claiming the calorie measurement for food needs is too high and that state and employee benefits should be included in the calculation. The fact is that few workers are entitled to such benefits and those working at least 45 hours a week should not be dependant on state support to meet their basic needs. The calorie calculation takes into account the fact that the ‘average’ person doesn’t work such long hours and is able to consume a more varied diet. Workers will require a slightly higher intake, particularly as their diet is usually very limited in protein.
We agree with Arcadia that government have a role to play in setting minimum wages at a livable level. For this to happen, though, the buying decisions of big brands would have to change to support a race to the top rather than a race to the bottom. Arcadia cite their attendance at stakeholder meetings with government officials in Bangladesh, Mauritius and India. The extent to which these platforms were used to push for government-led increases in local minimum wages is however unclear. Arcadia gave little evidence of addressing its own buying practices to support such a change.
Given that none of its projects have gone past the research stage, or beyond one or two suppliers, it is difficult to judge Arcadia’s commitment to intensifying the company’s focus on living wages. The two projects Arcadia outline for next year, however, do look interesting. We hope this is a sign that Arcadia is planning to move from good rhetoric to concrete action.
