How grievance systems can increase factory productivity
Grievance mechanisms are an important lever through which workers who are affected by a company's operations can raise questions, concerns and issues with the company, and by which the company can then address them in a fair, timely and consistent manner.
While grievance mechanisms cannot be a substitute for judicial or other non-judicial remedies, when used effectively, they offer the prospect of an efficient, immediate and cost-effective form of problem resolution. Strong and trusted grievance handling at factory level can help proactively address problems before they undermine worker confidence or become intractable.
To learn more about this topic, we speak with Sustify founder Sonja Westphal and Arun Kumar, Collective Bargaining and Social Dialogue Specialist at the International Labour Organization, about the role and importance of grievance mechanisms in the garment sector.
Arun, tell us about the different types of grievance mechanisms we may see in the garment sector?
Addressing grievance is a management responsibility. However, there is no one prescribed model for how it should be done. ILO recommends that grievance procedures should ideally be agreed between the parties, often through a collective bargaining agreement or as part of a HR policy, established in consultation with worker representatives. Grievance procedures may be adapted as per the structure and size of the enterprise or follow what the national labour law says (in case the labour law specifies a certain procedure and/or timeline).
Grievance mechanisms can be set up involving only the management, or they can take the form of a bipartite Management–Union/worker committee. For example, in India, the labour law mandates that the Grievance Redressal Committee shall consist of equal number of members from the employer and the workers. Where the grievance mechanism involves only the management, the usual process is as follows:
In both cases, the fundamental principle is that workers have the right to be assisted, represented and should face no retaliation or disadvantage while raising and processing his/her grievance.
Who is usually involved as part of the grievance mechanism?
Arun Kumar: Management and trade unions are the stakeholders who need to address grievance issues. The employer/management has responsibility to respond to workers’ grievance and remove legitimate causes of dissatisfaction or conflict. However, the grievance handling procedure must be set up in consultation with trade unions/workers representatives.
Sonja, you have trained and consulted factories and worked as an SA8000 auditor in China, India, Bangladesh, Pakistan and Cambodia. What is your experience of grievance mechanisms at factory level?
I have come across the topic again and again, but unfortunately, I never experienced first-hand a grievance system that actually works. There are different reasons for this in different countries. Rather than raising a complaint, workers in China often prefer to change factories instead. In Bangladesh, grievance mechanisms seem to work well through the Accord (or now RSC), but that only applies to the brands or certain factories that are members. Then there are individual solutions, such as a local inspector or trainer whose phone number is set as the contact. This is not quite perfect, but of course better than having no complaint mechanism at all.
[Editor’s note: Accord is a body that was commissioned by European brands to ensure the safety of garment factories after the Rana Plaza disaster in 2013. In early 2020, Accord handed over its responsibilities to a new body, the RMG Sustainability Council (RSC)].
Can you describe how grievances are typically handled in practice?
Sonja Westphal: Many factories nowadays use a hotline for worker grievances, the number for which can be accessed publicly and through multiple channels (voice call or text message, for example). The best hotlines are those available 24/7, but they must at least be open during normal office hours. Training workers -sometimes with the help of an independent organization- is often useful too, as this allows them to better understand the role and purpose of the hotline as one piece of a functioning grievance mechanism. Independent management of hotline complaints is also increasingly commonplace. Complaints are documented and handled by independent specialists, and resolved in cooperation with customers, trade unions, lawyers, factory management and, of course, the complainant.
What are the biggest challenges when it comes to hotlines like this?
Sonja Westphal: Brand-initiated mechanisms can lead to duplication, for example multiple hotlines in the same factory (i.e. where that firm supplies multiple buyers). As memberships e.g. with FairWear, RSC or/and Amfori BSCI, with private providers, or as an extension of whistle blowing software, which is also used in own factories in Europe. Another difficulty is a lack of knowledge of the local culture and customs in production countries -meaning both the system and the solutions can fail.
Training workers is also challenging. Workers need to understand their rights first, and the issues on which grievances can and should be raised. If I don't know that there has to be fire extinguishers on every floor, how am I supposed to know that I have to report missing extinguishers to my supervisor? Or more generally, when is a problem serious enough for me to raise a concern? This is why both individual and group training is important, so that learning results can be measured.
Last but not least, there are often conflicts of interest. A brand or a union might train the factory management, with the request that they also train the workers. The question is whether the factory management is really interested in the workers calling the complaint hotline?
Arun, what role do trade unions play when it comes to the issue of grievance mechanisms?
One of the functions of the trade union is to assist the workers in having their grievances resolved. As part of any collective agreement, the trade union and the employer must agree on establishing a machinery for the resolution of grievances arising from the interpretation or implementation of that agreement, or from employment contracts or workplace rules (including company personnel policies). The procedure agreed (between management and trade union) should specify steps for resolution of grievances. It is important to identify and specify who from the management side is responsible and has the authority to resolve disputes and grievances. Matching ‘responsibility with authority’ is necessary for effective functioning of the grievance handling machinery.
Sonja, what are the benefits of effective grievance handling to the factory?
Grievance systems can increase factory productivity, because satisfied and motivated workers are more efficient and employee turnover also typically decreases. Where problems are identified and resolved at an early stage, the factory minimizes risks and protects its reputation, with long term impacts for profitability.
It’s also important to note that grievance mechanisms are also increasingly part of mandatory due diligence laws we see in number of garment buying countries -for example in Australia, Germany and the EU. And with trends showing that western brands may reduce their supplier bases in the long run, as factory, you clearly have a competitive advantage if you can demonstrate that you have a system in place (to handle grievances).
Arun, where can garment stakeholders learn more about grievance mechanisms ?
To understand the key principles of grievance handling and understand the associated rights and responsibilities of the various parties, see The Examination of Grievances Recommendation, 1967 (No. 130). You can also check out this ILO fact sheet.
About Sustify
The e-learning platform Sustify was founded in 2018 by social entrepreneur Sonja Westphal in Berlin. Sustify is specifically designed for workers. According to Sustify, brands can use the e-learning platform to make their supply chains more sustainable and increase sustainability in everyday factory operations. The learning algorithm ensures that workers go through the course at their own pace.