FAQ

1. How will MADE promote freedom of association?

The MADE project team, and members of the Alliance, are committed to supporting freedom of association, consistent with international labour conventions and with the Guidelines on Freedom of Association in Myanmar (‘FoA Guideline') negotiated in 2019 under the ACT on Living Wages programme.   

Member Companies which join the Alliance must also make a commitment to communicate to suppliers and other business partners that they expect compliance with the FoA Guidelines.  

The MADE project will support the implementation of these Guidelines through training in its factory programmes. Furthermore, under the SMART Factories Programme, the right of factory workers to freely associate is monitored and supported.  

Freedom of association will be an ongoing topic for MADE’s Forum on Supply Chain Conduct.  Actions could include making collective statements in support of FoA principles and labour rights defenders. 

2. Does MADE promote Workplace Coordination Committees, as a replacement for trade unions?

No. The MADE programme supports the implementation of the Freedom of Association Guidelines, and international FoA standards. MADE believes that strong and well-functioning trade unions are an essential part of a responsible apparel sector in Myanmar, including at the level of federations. 

As part of its training programme on compliance with Myanmar laws, MADE, through its SMART Factories Programme, trains factories and workers on the Myanmar legal obligation for all companies to establish Workplace Coordination Committees (WCCs). This obligation has been in place since 2012. According to the Settlement of Labour Disputes Law, factories with trade unions are required to have trade union representatives sit on the WCC to represent workers. In the absence of a trade union, management are called upon to organize an election among the workforce to select worker representatives.  

However, MADE does not believe that Workplace Coordination Committees (WCCs) are a replacement for trade unions. This is why its training seeks to empower workers to be aware of their rights to participate in trade unions and/or Workplace Coordination Committees (WCCs). Workshop training materials used by MADE for teaching on FoA and strengthening WCCs were originally developed by the International Labor Organization (ILO) for use in Myanmar. This includes the toolkit “Improving industrial relations through effective workplace cooperation: A toolkit for WCC members.” 

In principle, WCCs can be a useful and necessary mechanism for factories to receive and remediate many worker grievances at factory level, and receive employee suggestions for enterprise improvements.   However, MADE recognizes that in reality, many WCCs operate under the influence of the employer, if at all. There are multiple reasons for this which need to be addressed, including by buyers.  This will be a topic for MADE’s Forum on Supply Chain Conduct. 

When the SMART Factories Programme reviews factories’ policies and systems for workplace communications and social dialogue, including WCCs it examines: 

  • If there is an established trade union in the factory and whether they have their legally entitled seats on the WCC;
  • If worker representatives on WCCs been elected on a regular basis, normally once per 2 years.
  • If the factory has an effective policy for ensuring workers regularly elect their own WCC representatives.
  • WCC meetings are conducted using an effective approach and structure. Meeting minutes are kept and shared.
  • Ideally, the WCC jointly reviews suggestions received in the company suggestion box.
  • Worker representatives on the WCC are empowered to discuss grievances without intimidation or fear of reprisal from factory management.
  • The WCC receives feedback or reports from factory management on other systems the company uses for receiving worker grievances, such as smartphone apps or drop-ins to the HR department.
3. What is the MADE project?

The Multistakeholder Alliance for Decent Employment in Myanmar (‘MADE in Myanmar’) is a four-year project (December 2022- December 2026), formally launched in March 2023, which is primarily funded by the European Union with the objective of strengthening responsible business practices in the textile, clothing and footwear sector, achieving critical industry improvements and protecting livelihoods of hundreds of thousands of families. Specifically, it aims to:

  • strengthen economic resilience and transparency practices across the Myanmar apparel industry.

  • support worker access to functional and credible grievance mechanisms at both factory and, eventually, industry level.

  • promote industry best practices with regards to occupational safety and health, social compliance, and environmental management.

  • facilitate and nurture dialogue between employers, workers, and international stakeholders.

  • provide enhanced support to women workers to advance their positions and standing in the workforce.

    MADE has three components:

    1. The SMART Factories Programme, a series of enterprise advisory modules and workshops continuing

      from prior phases of the SMART Myanmar project (2013-2022). The SMART Factories Programme focuses on social compliance and environmental performance in the Myanmar textile, clothing and footwear industries, especially occupational safety and health, conformance with UN Guiding Principles on Business and Human Rights, and international retailer codes of conduct.

    2. The Forum on Supply Chain Conduct – This is intended to promote and nurture cross-sectoral dialogue between business associations, trade union federations and labour rights groups and international retailers for the benefit of workers in the industry and more responsible industrial development.

    3. The Centres for Women’s Advancement – This will support two Women’s Community Centers to provide special outreach and educational and social support to women workers, in particular young migrants.

4. What will MADE do to improve grievance handling and complaints?

MADE believes that, in accordance with the UN Guiding Principles on Business and Human Rights, companies have a responsibility to provide for, or cooperate through legitimate processes in, the remediation of adverse human rights impacts where they identify that they have caused or contributed to these impacts.   

To underpin this, Member Companies of the Alliance are expected to commit to supporting freedom of association; to have, and require business partners to have, effective grievance handling mechanisms; to monitor their effectiveness; and to ensure rapid action once grievances are raised.  

Furthermore, MADE will be an opportunity for companies to share current practices for grievance handling and worker engagement and lessons learned with other companies, as well as with trade unions and labour organisations, in MADE’s Forum on Supply Chain Conduct. 

5. Who funds the MADE project?

Core funding of 3 million euro is provided by the European Union. Larger private sector apparel retailers (brands, buyers) which join the Alliance are expected to co-fund with additional contributions ranging from 10,000 to 50,000 EUR annually, based on company size and size of operation in Myanmar. Companies with smaller volumes in production (e.g. sourcing from 3 or fewer factories in Myanmar or own manufacturers) can participate vis-à-vis their membership in EuroCham. Retailer contributions are used to co-fund the entire project and, eventually, to expand the scope of enterprise advisory services, training workshops and services on offer by the project’s women’s centres.

6. Will MADE establish a sector-wide grievance mechanism?

Given that not all brands and their suppliers are expected to be a part of MADE, a sector-wide grievance mechanism is unlikely to be achievable.  Nonetheless, MADE and Member Companies will explore the scope for sectoral approaches to grievance handling and worker engagement, drawing on lessons from other initiatives, e.g. Fairwear Foundation, and advice from trade unions and labour rights organisations 

7. Who are the implementing partners?

Implementing partners are sequa gGmbH and EuroCham Myanmar.

MADE has a Steering Committee chaired by the EU Delegation in Myanmar with membership from sequa, EuroCham and the Myanmar Centre for Responsible Business, and a Secretariat provided by the MADE team. Additional independent members may be invited to join the Steering Committee.

8. What will MADE do to keep participating workers safe?

MADE emphasises workplace safety, through a variety of methods and approaches, including technical evaluations, and training which involves workers in creating a safety culture in the workplace.  

Staff of MADE/SMART Factories Programme provide their business cards to workers participating in interviews and focus groups and encourage them to get in contact if they experience any problems related to participation in the programme.   In reality, this has rarely, if at all, been the case for workers in the hundreds of factories with whom SMART has previously engaged.   Indeed, participation usually empowers workers to raise issues with management and secure improved conditions, through better access to, and understanding of, their legal entitlements.  

A more systematic grievance hotline will be established for the MADE project, to include the Factories Programme. Retailers participating in MADE must commit to ensure the safety of complainants within their supply chain. 

9. What is the relationship between the MADE in Myanmar project and SMART Myanmar?

MADE continues and expands on the earlier SMART projects; incorporating 'SMART 3', the Factories Programme. However, it introduces two new components (the Forum on Supply Chain Conduct, and the Women's Centres), and a new 'Alliance' between the project and participating brands. This is based on feedback from stakeholders and intended to address the current situation in Myanmar since the 1 February 2021 coup.

10. How will MADE support improvements in social compliance?

The SMART Factories component of MADE improves working conditions in garment factories through a combination of assessment, advisory, and training services. One way that SMART Factories improves social compliance in factories is by conducting assessments to identify areas where factories are not meeting local and international labour standards. The assessments cover areas such as wages and benefits, working hours, occupational health and safety, and freedom of association. The findings from the assessments are shared with factory management, workers, and other stakeholders, and used to develop action plans to address the identified issues. SMART Factories also provides advisory services to factories to help them implement the action plans and improve their social compliance performance. 

Another way that SMART Factories improves social compliance in factories is by providing training and capacity building to workers, factory management, and other stakeholders. The training covers topics such as labour laws and regulations, workers' rights, workplace safety, and environmental sustainability. SMART Factories also works with factory management to develop policies and procedures to address social compliance issues and helps them to implement these policies effectively. The training and capacity building programs aim to create a culture of continuous improvement in factories, where workers and management are empowered to identify and address social compliance issues proactively. 

Full-time technical experts in the SMART Factories programme are experienced and qualified factory assessors and engineers, with strong technical knowledge in their subject areas.  

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