Independent monitoring

Independent Monitoring Working Group on Mandarin Int. (El Salvador)
(Progress Report - April 1996)

Many individuals and organizations interested in the Central American apparel manufacturing industry have requested a recap of events that led to the successful start-up of independent monitoring in El Salvador. To that end, the Independent Monitoring Working Group (IMWG) is issuing this report organized chronologically.

I. Resolution: Gap and NLC

On December 15, 1995, at the request of various religious groups and labor organizations, Gap, Inc. (The Gap - a U.S. retailer of specialty apparel brands Gap, GapKids, Banana Republic, and Old Navy Clothing Co.) and the National Labour Committee (NLC - a U.S. labor organization/education fund supporting worker and human rights in Central America) met to discuss working conditions at the Mandarin International apparel factory in El Salvador. The outcome of this meeting was the now well-known December 15 resolution, in which The Gap and the NLC agreed to specific actions to uphold the welfare of workers at the plant.

As part of the resolution (attached), The Gap agreed to work with the Interfaith Center on Corporate Responibility (ICCR - a coalition of Protestant, Jewish, and Roman Catholic institutional investors from the U.S. and Canada, which uses its investments to hold corporations accountable for their effect on society and the environment) and Business for Social Responsibility (BSR - national association of businesses, which assists companies in developing policies and practices contributing to the sustained and responsible success of their enterprises) to explore the viability of independent monitoring at Mandarin International in El Salvador. This decision led directly to the formation of the IMWG.

II. Formation of the IMWG

The IMWG membres and their affiliations are:
- Aron Cramer, BSR
- Bob Dunn, BSR
- Reverend David Dyson, Lafayette Avenue Presbyterian Church (for the NLC)
- Dotti Hatcher, The Gap
- James E. Lukaszewski (for The Gap)
- Stanley P. Raggio, The Gap
- Sister Ruth Rosenbaum, TC, Research & Report Service for Ethically & Socially Responsible Investing (for ICCR)
- Reverend David M. Schilling, ICCR
- Timothy H. Smith, ICCR

On January 16-17, 1996, the IMWG formally began work at a meeting in New York.

The IMWG identified eight key issues it would seek to define in future meetings. They were:
- Definition of independent monitoring
- Values characterizing independent monitoring process
- How workers and contractors can best express their views
- How independent monitors are chosen and what competencies and skill sets they require
- Frequency of independent monitoring and a timeline to assess the project's success
- How and to whom independent monitors would present their findings, including what's made public and what happens as a result
- Ways to keep stakeholders informed and involved
- Who covers the cost of independent monitoring
The IMWG agreed to work collaboratively and on a consensus basis, speaking in one voice, and conducting all discussions in an open and transparent manner.

The IMWG immediately began to identify potential independent monitoring organizations on the ground in El Salvator.

III. Work in Process

As part of its exploration of the viability of independent monitoring, some members of the IMWG traveled to El Salvador the week of February 12, 1996. They visited the Mandarin facility, met with factory managers and workers, and conferred with representatives of various local religious, labour, government, and human rights organizations.

In an effort to develop a working model for independent monitoring in El Salvador, the IMWG also solicited input from more then 75 U.S. and international human rights, labor, religious, academic, business, and special interest groups.

The IMWG again met in February 22-23, this time in San Francisco. At the meeting, the group developed the following working definition of independent monitoring:

''An effective process of direct observation and information-gathering by credible and respected institutions and individuals to ensure compliance with corporate codes of conduct and applicable laws to prevent violations, process grievances, and promote humane, harmonious, and productive workplace conditions.''

The IMWG also set the following goals for independent monitoring at Mandarin:
- Detect violations of The Gap's Sourcing Principles & Guidelines and applicable local law
- Promote practices leading to compliance with The Gap's Sourcing Princeples & Guidelines and applicable local law
- Encourage Mandarin to educate managers and workers about The Gap's Sourcing Principles & Guidelines, applicable laws, their own responsabilities, and the rights of workers
- Deter abuses against workers
- Provide a safe, fair, credible, and efficient mechanism for dispute resolution
- Foster a productive, humane work environment
- Promote utilization of existing processes within the factory to resolve problems as possible

IV. Implementation of the December 15 Resolution

During February and March, 1996, cooperative meetings and negotiations were held in El Salvador involving various parties and individuals, including:
- Managers and current workers at Mandarin
- Former leaders and members of Sindicato de Empresa des Trabajadores Mandarin International (SETMI) an El Salvadoran trade union)
- Representatives of Centro des Estudios del trabajo (CENTRA - a labor research organization)
- Representatives of Tutela Legal (the Human Rights office of the Archdiocese of San Salvador)

These parties agreed that independent monitoring could, in fact, be implemented at Mandarin.

These positive conversations led to the Gap's re-approval of Mandarin for the production of goods.

V. Resolution Declatation: Mandarin

On March 22, 1996, representatives from the above-mentioned groups (managers and current workers at Mandarin, former SETMI union leader, and members IDHUCA, CENTRA, and Tutela Legal) signed a resolution to focus on worker-management relations at Mandarin and to work toward creating a productive, stable, and successful business. The signing was conducted in a public ceremony in the factory.

The signatories to the Mandarin resolution (attached) agreed that a team of independent monitors comprised of representatives of the Secretariat of the Archdiocese of San Salvador, Tutela legal, IDHUCA, and CENTRA would be formed immediately to ensure that all operations at the Mandarin factory are in compliance with Salvadoran laws and Gap's Sourcing Principles & Guidelines.

It was determined that the independent monitoring process would be managed by the Independent Monitoring Group of El Salvador (IMGES) and coordinated by Mark Anner of CENTRA. The IMGES is now engaged in implementing the procedures and goals of independent monitoring at Mandarin.

VI. Implementation of the Mandarin Resolution

The success of this approach to independent monitoring now depends on orders being placed at Mandatin. The Gap has placed new orders with the factory. At this time, however, more orders are essential to the success of the pilot.

Members of the IMWG and all U.S. and El Salvadoran stakeholders have expressed their satisfaction with the initial implementation of the independent monitoring pilot, and remain hopeful that the process will result not only in humane and productive working conditions at Mandarin, but also increased orders for the factory and the subsequent rehiring of workers.

VII. Next Steps

Much remains to be learned about independent monitoring. The IMWG is keenly interested in progress at Mandarin and hopes to draw from this pilot important learnings that can be used to develop the independent monitoring process.
Specifically, the IMWG is committed to:
- Actively assisting the IMGES in developing a workable, achievable independent monitoring process at Mandarin
- Commencing an analysis of the viability of independent monitoring in Honduras, beginning with an IMWG visit to that country in September.

VIII. Feedback

The IMWG values and invites your questions or comments. Please write, fax, or e-mail:
IMWG
c/o Interfaith Center on Corporate Responsability
475 Riverside Drive, Room 566
New York, NY 10115

+1-212-8702928 (office)
+1-212-8702023 (fax)
ICCRNY@aol.com (e-mail)

Statement of resolution made on December 15, 1995 among GAP, NLC and others

The Gap and the NLC, acting on the desires of a variety of religious groups and labor organizations have resolved the core issues that separated them, and will work to uphold the welfare of workers.

1. Mandarin International has agreed to meet face to face with non working union officials and workers to negotiate and resolve their differences. This meeting will take place at the Ministry of Labor in the presence of a representative from the Ombudsman's office.

It is the fervent hope of the Gap and the NLC that this meeting will result in the offer of reinstatement to the seven non-working union leaders and other members.

2. Gap has agreed to work with groups such as the Interfaith Center for Corporate Responsability and Business for Social Responsibility to explore the viability of an independent industry monitoring program in El Salvador.

In the meantime, Gap and the NLC feel that it will be helpful to use the Human Rights Ombudsman offices in El Salvador and other Central American countries to monitor factory compliance with the Gap's ''Sourcing Principles and Guidelines.''

3. Gap will agree to reapprove the Mandarin factory for production of Gap garments when:
- Gap is confident that its orders will result in humane and productive employment in El Salvador.
- Gap is confident that the El Salvador government, by means of potential enactment of pending legislation, is moving in the right direction towards its ability to effectively resolve labor disputes justly, fairly, and promptly.
- Gap is confident that Mandarin can meet or exceed its' Sourcing Principles and Guidelines on an ongoing basis.

Resolution Declaration made by Mandarin International and the Team of Independent Monitors on March 22, 1996

The goal of this resolution is to resolve the current impasse so that we can focus on worker-management relations at the Mandarin International factory. We believe that the principles and ideas in this resolution will help create a productive, stable, and successful business.

The signatories below commit to the following:

1. That the six former SETMI leaders be the first employees to be hired by Mandarin International when the factory receive sufficient orders to do so. All parties commit theme selves to ensure that Mandarin International will have sufficient orders before may 1, 1996. The Monitoring Team will evaluate the situation. If it concludes that Mandarin International has not received sufficient orders to rehire the six by May 1, it will propose a new hiring date.

2. When the necessity to hire more people comes about with sufficient new orders, the first employees to be hired will come from a list of 250-400 workers who lost their jobs at Mandarin International during 1995 and 1996, and who wish to return. After the rehiring of the people on this list who have indicated their wish to return, Mandarin International can proceed to hire other people.

3. A Team of Independent Monitors will be formed by representant of the Secretariat of the Archdiocese of San Salvador, Tutela Legal of the Archdiocese of San Salvador, IDHUCA, and CENTRA, to ensure that the parties conform first to the Salvadorean Laws and second to Gap's code of conduct.

The monitoring team would begin work immediately.

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