The ACT Memorandum of Understanding between each member brand and IndustriALL Global Union commits corporate signatories to ensure that their respective purchasing practices support long-term partnerships with manufacturers and facilitate the payment of a living wage.
This commitment by ACT member brands is operationalised on two levels:
ACT brands have committed to improving their purchasing practises globally in five areas where the biggest impact on wages and working conditions was identified.
Commitment 1 – Brands commit that purchasing prices include wages as itemised costs.
Commitment 2 – Brands commit to fair terms of payments.
Commitment 3 – Brands commit to better planning and forecasting.
Commitment 4 – Brands commit to undertake training on responsible sourcing and buying.
Commitment 5 – Brands commit to practice responsible exit strategies.
Policy and protocol documents included below support ACT brands enact the Commitments.
Based on a consultation process ACT members have also agreed specific support commitments 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.
The ACT Accountability and Monitoring framework provides ACT member brands with an agreed set of indicators and monitoring instruments to implement their global purchasing practices commitments. ACT member brands will ensure that their purchasing practices facilitate the payment of a living wage.
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