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Ikea has begun discussions with Unicef, the United Nations children’s agency, on countering child labour in the north Indian state of Uttar Pradesh.
The talks are connected to the Swedish-based furniture retailer’s measures to reduce child labour in India’s carpet industry, which employs an estimated 40,000 under-age workers and supplies the company with rugs.
Ikea hopes to create long-term employment for women in the state, making it less likely their children will work.The jobs may be created from its existing production needs, although no further details are available yet.
Company spokeswoman Marianne Barner told EP that Ikea was looking beyond auditing and monitoring to counter child labour. ‘Code of conduct monitoring is only one part,’ she said. ‘To make lasting change you have to tackle the root causes behind the issue of child labour.’
Five years ago Ikea set up self-help groups across India with Unicef. By paying 20 to 50 rupees (45c-$1.15, 25p-60p) a month into these groups, some women have ended their reliance on high-interest lenders and opened bank accounts, giving them greater financial security. In 2004 the company extended the initiative from 200 to 500 villages.
Ikea’s overall policy, worth $1.7million (£885,000), also offers temporary tuition for children who drop out of school. The company claims this has helped more than 80,000 children back into education. With 1600 suppliers in 55 countries, it is now considering how to replicate this programme elsewhere, particularly in south-east Asia.
Its dual approach of compliance and prevention has been welcomed by labour specialists, although pressure is mounting to develop a pan-industry approach.
‘The individual retailer model is great for [Ikea’s] own supply chain, but doesn’t really help across the industry’, said Clare Lissaman, director of Rugmark UK, a non-profit organization working in India, Nepal and Pakistan. She added that to ensure production did not involve children, companies need to sell only certified carpets.
All Ikea subcontractors are subject to spot checks by an internal compliance team of 90 auditors, in addition to regular inspections by external monitors. Ikea has so far not cancelled any contracts for non-compliance with its labour code. It is to publish the results of supply chain monitoring in its second annual CSR report, due in May.
The talks are connected to the Swedish-based furniture retailer’s measures to reduce child labour in India’s carpet industry, which employs an estimated 40,000 under-age workers and supplies the company with rugs.
Ikea hopes to create long-term employment for women in the state, making it less likely their children will work.The jobs may be created from its existing production needs, although no further details are available yet.
Company spokeswoman Marianne Barner told EP that Ikea was looking beyond auditing and monitoring to counter child labour. ‘Code of conduct monitoring is only one part,’ she said. ‘To make lasting change you have to tackle the root causes behind the issue of child labour.’
Five years ago Ikea set up self-help groups across India with Unicef. By paying 20 to 50 rupees (45c-$1.15, 25p-60p) a month into these groups, some women have ended their reliance on high-interest lenders and opened bank accounts, giving them greater financial security. In 2004 the company extended the initiative from 200 to 500 villages.
Ikea’s overall policy, worth $1.7million (£885,000), also offers temporary tuition for children who drop out of school. The company claims this has helped more than 80,000 children back into education. With 1600 suppliers in 55 countries, it is now considering how to replicate this programme elsewhere, particularly in south-east Asia.
Its dual approach of compliance and prevention has been welcomed by labour specialists, although pressure is mounting to develop a pan-industry approach.
‘The individual retailer model is great for [Ikea’s] own supply chain, but doesn’t really help across the industry’, said Clare Lissaman, director of Rugmark UK, a non-profit organization working in India, Nepal and Pakistan. She added that to ensure production did not involve children, companies need to sell only certified carpets.
All Ikea subcontractors are subject to spot checks by an internal compliance team of 90 auditors, in addition to regular inspections by external monitors. Ikea has so far not cancelled any contracts for non-compliance with its labour code. It is to publish the results of supply chain monitoring in its second annual CSR report, due in May.
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