“When we came together as companies in ACT to collectively work on the topic of living wage, we did so with the clear understanding that we, as businesses, have also contributed to the downward spiral on standards.. As businesses we have come to the conclusion that we also have to look internally at own commercial practices and behaviour. This is a pillar of ACT – responsible purchasing practices”.
Thomas Linemayr, CEO, Tchibo
“Brands and retailers will ensure that their purchasing practices facilitate the payment of a living wage.”
ACT Memorandum of Understanding
RESPONSIBLE PURCHASING PRACTICES TO SUPPORT CHANGE
Purchasing practices are the way that global retailers & brands interact and do business with the manufacturers that supply their products. Purchasing practices encompass strategic planning, sourcing, development, purchasing (buying) and the underlying behaviours, values and principles which impact workers.
Improvements in purchasing practices and new forms of collaboration between all relevant stakeholders create the space for substantial and continuous wage growth, and a sustainable development of the garment, textile and footwear sector.
GLOBAL PURCHASING PRACTICES COMMITMENTS
ACT member brands have committed themselves to working globally – across all sourcing countries – towards changing purchasing practices that are impediments to progress towards living wages and good working conditions. Through the global purchasing practices commitments, ACT member brands commit to improve their purchasing practise in five essential areas where the biggest impact on wages and working conditions were identified.
COUNTRY-SPECIFIC SUPPORT COMMITMENTS
The ACT Country Support Commitments provide specific support for countries that are the first to sign a collective bargaining agreement at industry level.
Countries can benefit from these support commitments if they have a collective agreement at industry level in place that ensures wage growth exceeding inflation and productivity growth, full respect of freedom of association and a monitoring mechanism.
ACCOUNTABILITY & MONITORING OF PURCHASING PRACTICES
The ACT Accountability and Monitoring framework provides ACT member brands with an agreed set of indicators and monitoring instruments to implement their purchasing practices commitments. ACT member brands will ensure that their purchasing practices facilitate the payment of a living wage.
THE ACT PURCHASING PRACTICES SELF-ASSESSMENT: A TOOL FOR ENGAGEMENT
ACT has created the Purchasing Practices Self-Assessment tool (PPSA), an online questionnaire for brands to assess their purchasing practices, pioneer change and support the move towards living wages on an industry level. The PPSA is a tool for brands to assess the weaknesses and strengths of their purchasing practices and a starting point to identify the need for change to support the move towards living wages on an industry level.
ACT Responsible Exit Policy and Check-List
ACT brand members have agreed a Responsible Exit Policy and Check List to support a common approach to the implementation of the Global Purchasing Practices Commitment 5 on practices responsible exits. All ACT member brands have agreed that that their internal policies and processes on responsible exit, at a minimum, meet the standards outlined in this document.
LABOUR COSTING PROTOCOLS
The ACT labour costing protocol provides guidance to brands for implementing the Purchasing Practices commitment to cover wages and wage growth in brand purchasing prices as outlined in the ACT Memorandum of Understanding.