Eleven years on from its first incarnation in 1997, Social Accountability International (SAI) has produced SA8000:2008. While there are several other widely applied codes of labour practice in the field (such as the ETI Base Code), SA8000 has a relatively long history and high level of international recognition. Any changes to it may be seen as a barometer of the evolution of private labour standards, their methods of monitoring and implementation.

SAI state that the level of requirements of workplaces in the new version is broadly the same, and that the majority of changes are clarifications in response to frequently asked questions. Certified companies will be expected to be in line with the new standard at the start of 2010.

While the standard itself has been updated, the accompanying Guidance Document is still under revision and drafter’s notes explaining the changes are not yet available. However, SAI’s work as part of the Joint Initiative for Corporate Accountability and Workers Rights (Jo-In), an initiative by multi-stakeholder code bodies to harmonise their requirements will no doubt have informed the change.

Definitions expanded

There are several additional definitions at the start of the standard, providing guidance on the meaning of terms such as personnel, worker, preventative action, compulsory labour, human trafficking, an SA8000 worker representative, management representative, worker organisation and collective bargaining.

Significantly, the definition of a child now goes beyond ILO Conventions in excluding the allowance of work by 14 year olds in developing countries. SA8000:2008 defines a child as anyone below the age of 15 in all countries.

A Worker organization is defined as ‘a voluntary association of workers organised on a continuing basis for the purpose of maintaining and improving their terms of employment and workplace conditions. An SA8000 worker representative is defined as someone either chosen by a recognised union or elected by non-management personnel in non-unionised worksites.

Purpose and scope more clearly defined

The purpose and scope of the standard are now more clearly defined. For example the standard now states that its intent is to “protect and empower all personnel within a company’s scope of control and influence… including personnel employed by the company itself, as well as by its suppliers/sub-contractors, sub-suppliers and homeworkers.” [Our emphasis] The clear inclusion of these categories is important since research in this field indicates that workers below first-tier supply chain are usually not reached by social compliance standards and are more vulnerable to abuse of their working rights.

Some additions, some missed opportunities?

There are new requirements for companies to meet ‘all prevailing relevant national legislation’, as well as ‘prevailing industry standards’. The list of relevant international legal instruments is significantly expanded. Relevant ILO Conventions on hours of work, maternity protection, mechanisms for agreeing minimum wage, minimum social security standards, protection of indigenous peoples as well as ILO guidance on HIV/AIDs in the workplace are now included, among other additions. However, ILO Conventions specifically pertaining to plantation, agricultural and migrant workers and rural workers’ organisations have not been added. Nor is reference made to international instruments on human trafficking.

Expanded requirements

Some sections of the requirements have been expanded to stipulate more clearly the standards contained in ILO conventions, as they relate to employers. This includes provisions on young workers, compliance on forced labour and exclusion of labour providers who engage in or support trafficking. For example, an additional clarifying clause stipulates that the company may employ young workers (i.e. between 15 and 18 years old) only outside of school hours if compulsory education provisions exist and in no case shall young workers work more than 8 hours a day or at night. These sections will be very welcome for many stakeholders.

Health and safety requirements are also much expanded on important issues such as who pays for provision of personal protective equipment, employer’s duties in relation to work-related injuries and removing hazards for new and expectant mothers. However, the terminology regarding employers’ duty to provide training on health and safety has moved to providing  instruction/ instructions’.

Employers’ duties with regard to trade union rights now include the need to effectively inform workers of those rights. Areas of potential discrimination are expanded and now cover birth, political opinion, family responsibilities, marital status and national or social origins. While discrimination on the grounds of health status is not explicitly stated (which would be relevant for workers discriminated against on the basis of HIV/AIDs or hepatitis), there is a new clause covering all other elements of possible discrimination.

Pregnancy and virginity testing is now explicitly banned, and rules against harassment have been expanded to cover residences and other facilities provided for personnel by companies. Finally, the standard also now states that companies have an active requirement to treat all workers with dignity and respect and may not tolerate (as well as the previous ‘may not support or engage in’) harsh treatment. While these may read as minor changes in wording, they would mean major changes for workers if implemented effectively across many worksites.

Although the previous version referred to the need for wages to provide for basic needs and to provide a discretionary income, this has been more clearly stated as the right to a living wage, as is a worker’s right to have pay information in writing. The need for overtime to be paid at a premium rate is clarified, along with a clause for action to be taken in countries with no legally mandated premium rate for overtime. Consecutive short-term contracts are now expressly forbidden. It is clarified that normal working hours may be exceeded if this has been agreed under a collective bargaining agreement.

Management systems

An SA8000 company has a new duty for all its relevant policy to now be available in writing, in workers’ own language – though surely that would be languages in many workplaces? Under the revised standard, this information must be prominently displayed at the worksite and be available to interested parties on request. There is now explicit recognition of the value of workplace dialogue. This is also manifested in an expanded definition for the ‘SA8000 worker  representative’ or relevant trade union worker representative and their role, as well as a clear statement regarding how the former is not a substitute for the latter. Reviews of relevant company policy and systems should now include worker representatives. A significant amendment is the removal of the previous reference to ‘parallel means’ in situations where trade union rights are restricted by law. The new version states that workers should be able to freely elect their representatives.

Modified rules also govern relationships with suppliers and sub-suppliers/contractors. These include keeping records of contractual agreements with suppliers, and requiring suppliers to ensure that sub-suppliers adhere to the SA 8000 standard. It is now mandatory for companies to document in writing their efforts to evaluate whether their suppliers meet this standard. They must also, within their sphere of control and influence, make a reasonable effort to ensure that these suppliers meet the standard. While this is a positive reinforcement of the previous standard, until the revised guidance document is published it is not wholly clear how far a first-tier supplier is really intended to go in this regard – how far their ‘sphere of control and influence’ extends.

Importantly, the company has a new duty to provide a confidential means for all personnel to complain to management or the worker’s representative. This has long been called for by workers’ organizations active in the field of private labour standards. There is a new obligation with regard to stakeholder engagement whereby companies must demonstrate their willingness to engage in dialogue with relevant stakeholders. Last but not least, companies are also now explicitly required to provide access for both announced and unannounced inspections.

Fundamental change?

SAI’s description of the new standard as mainly clarification with broadly the same level of requirements on companies, may be somewhat understated. The new standard certainly has plenty that is new in it, and there are significant changes from the 2001 version.The assessment model of trying to improve labour standards has its critics, and rightly so. No doubt different stakeholders will all spot gaps they’d like to see included – these should not be kept as noises from the sidelines, but communicated to SAI who welcome all comments. One point is the document’s general bias towards manufacturing and not agriculture, towards factories and not farms. There are no definitions of seasonal, casual or migrant workers, for example. Equally, there are no references to ILO Conventions relevant for agriculture. Certainly there is improvement on how standards should roll out down supply chains, but perhaps this could have been expanded considering the size and prevalence of ‘invisible producers’ in supply chains. There is mention of sub-suppliers but no mention of small farmers in this category, even though provisions for working with homeworkers are clearly referenced.

However, there is much that will be welcomed. Women workers are generally much better covered (it remains to be seen if the guidance document provides adequate detail here also) in some key areas. A living wage is included, and taking a stand on that principle is important especially where many argue that it is impossible to define and enforce. Premium rates for overtime and a confidential complaints mechanism are also an important addition and bring the standard in line with other similar standards. More clarity on forced labour and employer’s obligations regarding working with those who supply labour is also very welcome. Banning the practice of consecutive short-term contracts, if enforced, will be good news for workers.

All in all, the tone of voice is different – empowerment, dignity, respect, dialogue and stakeholders all receive much more prominence, reflecting the zeitgeist. There is more onus on companies to take certain actions and record and demonstrate them. There are explicit statements of workers rights, beyond referencing relevant conventions. There is more mention of tackling root causes and taking prompt and preventative action, not just action when they are ready. These changes take SA8000 in some important new directions.

This article first appeared in focus on labour July 2008