Criteria for Sourcing requirement from external suppliers: Labour Standards

Labour Standards refer to the set of norms and criteria that establish the minimum acceptable conditions for workers in the workplace. These standards are designed to ensure that all workers are treated with dignity, respect, and fairness, and are protected from exploitation and unsafe working conditions. Key aspects of labour standards include fair wages, reasonable working hours, safe and healthy work environments, prohibition of child labor, elimination of forced or compulsory labor, non-discrimination in employment, and the right to organize and bargain collectively.

Labour standards are enforced through a combination of national laws and regulations, international agreements, and guidelines set by organizations such as the International Labour Organization (ILO). These standards aim to balance the needs of workers and employers, promoting social justice while fostering economic development. They are crucial for protecting workers’ rights, improving productivity, and enhancing the quality of life for individuals and communities.

Adhering to labour standards is not only a matter of legal compliance but also an ethical imperative for businesses. It contributes to building a positive corporate image, sustaining employee morale and loyalty, and fostering a more equitable and sustainable global economy. In the context of globalization, ensuring compliance with labour standards across supply chains has become a significant challenge, prompting companies to adopt rigorous supplier evaluation and monitoring practices.

When sourcing from external suppliers, it’s crucial to ensure that they adhere to acceptable labour standards to promote ethical practices and social responsibility throughout the supply chain. Here are key criteria to consider:

• Compliance with Local and International Labour Laws:

Suppliers must comply with all relevant local and international labour laws, including those related to wages, working hours, and workers’ rights.

• Prohibition of Child Labour:

Suppliers should strictly prohibit the use of child labour in their operations, adhering to the minimum age provisions of national laws and regulations.

• Elimination of Forced or Compulsory Labour:

Ensure suppliers do not use any form of forced, bonded, indentured, or prison labour. Workers should be employed on a voluntary basis.

• Safe and Healthy Working Conditions:

Suppliers must provide a safe and healthy work environment for their employees, preventing potential accidents and injuries and mitigating health risks related to the workplace.

• Fair Wages and Benefits:

Suppliers should compensate their workers with wages that at least meet local minimum wage laws or industry standards, along with any legally mandated benefits.

• Reasonable Working Hours:

Working hours must comply with national laws and standards, with overtime work performed voluntarily and compensated at a premium rate.

• Freedom of Association and Collective Bargaining:

Respect the rights of workers to freely associate, organize, and bargain collectively in a lawful and peaceful manner.

• Non-Discrimination:

Suppliers must ensure equal treatment and non-discrimination in employment practices on the basis of race, color, sex, religion, political opinion, nationality, social origin, or any other status.

• Regular Employment:

Encourage practices that provide regular employment and avoid excessive use of fixed-term contracts or casual labor without justifiable reasons.

• Environmental and Social Governance (ESG) Compliance:

Suppliers should demonstrate commitment to broader ESG principles, including environmental protection and community engagement, beyond basic labour standards.

• Supply Chain Transparency:

Require transparency from suppliers regarding their own supply chains, ensuring that sub-suppliers also adhere to these labour standards.

• Verification and Monitoring:

Implement mechanisms for verifying compliance with these standards, including audits, assessments, and worker feedback channels, to ensure ongoing adherence.