What's in it for Manufacturers and Suppliers?

Manufacturers and Suppliers can benefit from the global ACT approach to purchasing practices and through the realisation of collective bargaining agreements supported by brand country support commitments.

Through the implementation of the ACT approach manufacturers can experience stable supply chains, industrial peace and predictable wage developments supported through brand purchasing practices.

  • Strengthened social dialogue with workers, their unions and brands through ACT creates more stable and predictable supply chains. 
  • CBAs supported by country support commitments, enhance transparency, accountability, and predictability in managing labour costs for manufacturers. 
  • Improved workplace relations through collective bargaining can improve industrial peace, reduce employee turnover and support higher productivity. 
  • The ACT approach also enables manufacturers to uphold the highest standards in compliance with international due diligence regulation, allowing them and the suppliers they work with to enhance their reputation as responsible partners, offering brands the assurance that human rights risks are credibly mitigated.

In Cambodia, the implementation of the ACT approach has led to the development of the first mechanism that directly includes buyers in the wage support structure, addressing the competitive pressures in the supply chain through social dialogue and legally binding commercial commitments from brands.