Co-op results - Workers

Indicator 3.1 View criteria

Issue: Corporate commitment to labour standards within the company and in the supply chain

Indicator: Board-level responsibility

The Co-operative Group scored full marks for company commitment to labour standards. The company has agreed a group-wide approach to sound (ethical) sourcing which reflects the Code of Conduct used by Co-operative Retail. Their response demonstrates board level commitment and senior management posts with 100% resource time allocated to these responsibilities.

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Indicator 3.2 View criteria

Issue: Labour standards within the company

Indicator: Remuneration of supermarket employees and conditions of employment

The Co-op scored well on this indicator although there is room for improvement.

Overall, staff working as General Assistants / Checkout Operators tended to stay with the company for a reasonable length of time and the company provides some flexibility for staff over their working hours. Rates of pay exceed the National Minimum Wage and build in additional allowances for those working in expensive areas.

The company also scored well on staff benefits, available to staff from the start of their employment.

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Indicator 3.3 View criteria

Issue: Core labour standards and employee representation

Indicator: UK company employee representation

This was an area of good practice and the company score was high.

Recognised structures exist for both communication of company policies on labour rights and for consultation with retail staff over pay and working conditions. These include national and regional consultative committees, staff forums and trade unions.

Retail staff are covered by collective agreements negotiated at both trade union and staff forum levels and the company makes good provision for all staff representatives including paid time off to attend meetings and training courses. This positive approach is also reflected in pay negotiation, which is conducted at national level.

Indicator 3.4 View criteria

Issue: Labour standards in the supply chain

Indicator: Existence and application of labour standards code of conduct

Co-operative Retail has a well defined Code of Conduct modelled on the Ethical Trade Initiative (ETI) Base Code and has been a member of ETI since 1997. The code is currently only applied to own brand suppliers.

The company has a good record of providing training for suppliers, including a self-development workbook on ethical trade practice and running local seminars for suppliers, NGOs, farmers, trade unions etc. Company provision does not currently extend to any financial support to help with implementation.

At company level, key personnel take part in a training programme to brief them on the code and the specific issues it raises which include monitoring and social auditing.

Implementation of the Code is monitored both internally, externally and with assistance from trade unions and NGOs. The company records a high level of implementation with first tier, own brand suppliers but this is much reduced with second tier and primary producers. In addition, the Co-op has a commitment to external verification and is actively engaged in taking significant corrective actions although many still remain unresolved.

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Overall commentary and examples of good practice

Co-op’s high performance in the Workers’ module is a sign of real commitment to labour standards.

Company pay and conditions of employment reflect good labour standards within the company and the Co-op was particularly strong on employee representation. Recognised structures exist for both communication of company policies on labour rights and for consultation and negotiation with retail staff over pay and working conditions.

Co-operative Retail’s well-defined Code of Conduct, modelled on the ETI Base Code, has been applied to own brand suppliers since 1997. The company’s response to the questionnaire and the information in the supporting documents shows real progress made on ethical trading issues since 1996 and also demonstrates their commitment to raising awareness of these issues internally with company staff, with their suppliers and with the public.

The company has a good record of providing training for suppliers and for key personnel and implementation of the Code is monitored both internally, externally and with assistance from trade unions and NGOs. In addition, the Co-op has a commitment to external verification and is actively engaged in taking significant corrective actions with suppliers who do not comply with the Code.

Examples of Good Practice

Areas for improvement

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Supermarket comments

“Ensuring and developing working standards for our own teams and those within our supply chain continues to be at the heart of our business strategy. Developing our People Values strategy is fundamental to building on the business growth and success we have seen over recent years.

The Co-operative Group’s membership of the Ethical Trading Initiative and our work with suppliers throughout the world support workplace standards and worker rights for those providing our own range of products. This leads to improved standards, such as drinking water provision and better worker housing, and we continue to focus on areas of greatest risk within our worldwide supply chain that creates a constant challenge. Working alongside local development organisations and with our suppliers, has helped to provide confidence that international standards are met. Our aim is to continue to improve workplace conditions through our work with suppliers and through our work on Fairtrade and the support it can provide for communities, often in some of the world’s poorest countries.”

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Posted: 26-Nov-2003

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