Chinese agree ‘capacity-building’ on factory conditions

A trade body in China has endorsed an agreement that could improve working conditions in Chinese textile and garment factories that supply European companies.

The deal has been signed by the Chinese National Textile and Apparel Council (CNTAC) and two Brussels-based groups – the Business Social Compliance Initiative (BSCI), a business-led organization that guides companies in improving their supply chain management, and the Foreign Trade Association, which lobbies for European companies on foreign trade issues.

The agreement says the three will increase ‘common capacity-building activities’ in Chinese factories and commits CNTAC members to observing more closely the BSCI’s ethical supply chain guidelines.

China is the most important source for the more than 200 retail sector members of the BSCI, which include Esprit (Germany), Ici Paris (Belgium), Kesko (Finland), Lidl (Germany), Migros (Switzerland), Otto (Germany), Superdrug (UK) and van Haren (Netherlands).

CNTAC is generally regarded as one of the most progressive of the government-backed Chinese organizations on corporate responsibility issues. It has been piloting a voluntary social management standard for the Chinese textile industry called CSC 9000T, which makes reference to BSCI guidelines and is being tested by ten local companies.

The new agreement says BSCI will become more closely involved in developing and disseminating CSC 9000T by providing advice on how it can be improved. The signatories hope the standard, which covers areas such as employment contracts, child and forced labour, working hours, wages, welfare, discrimination and collective bargaining, will be adopted by about 100 large and 1000 small Chinese businesses during the next two years.

Ferry den Hoed, president of the Foreign Trade Association, said the idea was not to coerce Chinese textile companies into action but to give them support and expertise.  

The agreement, which has the Chinese government’s support, was signed at last month’s Sino-European Union Supply Chain Leaders Summit in Beijing, which was organized by the BSCI and CNTAC.