Do Voluntary Labour Initiatives Make a Difference for the Conditions of Workers in Global Supply Chains?

Abstract

Since the mid-1990s a plethora of voluntary labour initiatives has been introduced in global supply chains that serve northern-based consumer markets. The chief aim of these new systems of labour governance is to establish minimum standards and conditions for workers employed in the production of goods for export. This concern for labour follows a period of market liberalism, a major shift in the regulatory position of nation-states and the globalization of business. Voluntary initiatives, which largely draw on the International Labour Organization (ILO) core conventions, include codes of conduct, certifiable standards and International Framework Agreements (IFAs). The article explores the effectiveness of these initiatives in a highly concentrated industry: the banana trade. The banana trade is dominated on the production side by three North American agri-businesses: Chiquita Brands International, Dole Food Company and Fresh Del Monte Produce. Yet these businesses are increasingly being directed by international retailers, particularly in the UK, where the four major supermarket groups command access to the consumer, and comprise Tesco, ASDA (owned by Wal-Mart), J Sainsbury and Wm Morrison Supermarkets. The continuing increase of retail buyer power within global supply chains, coupled with supermarkets’ intent to respond to demands for social responsibility in the chains that serve them, raises the prospect of better conditions for workers. However, the article argues that although some improvements have been made, while supermarkets continue to drive down costs to benefit consumers, workers ultimately pay the price.