ACT and Purchasing Practices

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 lay the groundwork for achieving a living wage.

This commitment by ACT member brands is operationalised on two levels:

The ACT Global Purchasing practices commitments
The ACT country support commitments

ACT Global Purchasing Practices Commitments

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.

The policy and protocol documents included below support ACT brands enact the Commitments.

ACT Global Purchasing Practices Commitments ACT Labour Costing Protocol ACT Responsible Exit Policy and Check-list

ACT Country Support Commitments

Together with employers’ representatives and trade unions, ACT member brands specify Country Support Commitments at country level to provide concrete support for countries. These commitments are to be specified through negotiations with national social partners.

ACT Country Support Commitments Binding Agreements for Cambodia

Accountability and Monitoring on Purchasing Practices

To operationalize the brand commitments on purchasing practices, ACT:

identifies the status of Purchasing Practices by surveying brands and manufacturers to understand deficiencies that negatively impact manufacturers and workers.
develops solutions by setting standards and support brands in improving their practices and complying with due diligence regulation
monitors the progress in achieving agreed goals and provides confidential communication channels and grievance mechanisms to provide access to remedy for workers and manufacturers.

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.