Company profile: Migros
Headquarters: Zürich
Country: Switzerland
Founded in: 1925
Total points of sale in Europe: 590 stores
Owned by: Some 2 million members of the cooperative
Name of CEO: Herbert Bolliger
Product description: Casual clothes for ladies, men, children including underwear, night laundry, shoes and accessories are sold in some of the Migros-supermarkt stores.
Countries of production: n.a.
General remark: Migros is cooperating internationally with other department stores to strengthen their buying power. Globus is a 100% subsidiary of Migros and has for its own an important market share in the Swiss fashion market.
Migros
Limatstrasse 152
8031 Zürich
info(at)mgb.ch
Comment from CCC and proposals for action
Migros, with its nearly 650 million Swiss francs in sales from clothing (including sports attire and shoes), is one of the largest players in Switzerland. Nevertheless, the cooperative places too much emphasis on risk-oriented business initiative BSCI (Business Social Compliance Initiative) where maintaining the company’s reputation is at the forefront. The BSCI alone is not a sufficient instrument to solve the central problems of the workers in the textile chain. The BSCI admits that their approach to auditing companies often does not uncover more "subtle" offences such as the freedom of assembly. Nevertheless, Migros does not allow its factories to be verified by an independent, and therefore credible, multi-stakeholder initiative (MSI). Beyond the BSCI membership, the following commitment from Migros for the workers in the supply chain is noticeable: In 2005/2006 Migros signed a partner agreement with the International Social Compliance Verification (ISCOM) and participated in a pilot where the ISCOM verified BSCI audits according to Fair Wear Foundation (FWF) methodology. After ISCOM and the FWF merged, it would have been a logical next step for Migros to join the FWF. However, this has not yet happened. Migros offers its own organic-cotton label (Bio Engagement) although less than 5 per cent of textiles in the Migros assortment is offered under this label (11.4 million Sfr. in 2006). Migros’s own label "Eco Engagement" is frequently regarded as an organic-cotton label. It – like Öko Tex Standard 100 – primarily certifies the lack of pollutants in the products. With its ecological program, Migros wants to make the production of textiles in the mainstream more environmentally-friendly and, in accordance with this program, 70 percent of the textiles have already been certified. These are lofty goals; however, the workers are helped to only a limited extent. From this perspective there clearly needs to be a stronger commitment.
Take action: Express your misgivings to the sales personnel about whether the standards are actually implemented correctly and encourage Migros to join the FWF. Complain to the sales personnel that the Eco-Label is insufficient and confusing. Ask for more fair trade and organic-certified clothing.
The following evaluation of the company’s performance in terms of transparency, code implementation and monitoring of labour standards is based on the company’s response to the questionnaire from the CCC and on an additional desk study conducted by the CCC in 2007. In the section “Recent developments” you can find additional information gathered after 2007.
Transparency
Migros has responded to the CCC-questionnaire and has provided some additional documents. The company works with civil society on corporate accountability issues and is in regular dialogue with NGOs and/or trade unions, including the CCC. The company is transparent with regard to many figures such as turnover, profits, sales and corporate structure. The amount of salaries of the top management is known. The information given about producer countries and the structure of the supply chain is not comprehensive. A sustainability report is publicly available that meets international reporting standards (GRI). Migros provides neither the results of factory audits nor information about verification activities. The company does not disclose general targets for future monitoring activities.
Formal commitment to labour standards
Migros has adopted a code of conduct that includes a reference to the Universal Declaration of Human Rights and requires compliances with all relevant local labour laws. The code also indicates that where local and international standards are at variance the higher standard should prevail. The company is formally committed to respecting minimum labour standards in accordance with ILO Core Conventions. These include the right to organise and bargain collectively and prohibit child labour, discrimination, and forced labour. The company does not make the code mandatory for all workplaces where its products are made. Migros’s code of conduct does not apply to all workers affected by labour practices for which the company has some measure of responsibility. Beyond the ILO Core Conventions, the company is committed to workers’ right to earn a wage for standard working hours that meets the basic needs of workers and their families but does not provide a discretionary income. It is therefore not a living wage. Overtime is stipulated to be occasional only and is paid at a premium rate. The company’s code calls for a safe and hygienic environment for the workers who produce its garments and/or sportswear. The company does not explicitly require that all workers receive a regular employment contract. Beyond the labour standards mentioned above, the company code is not precise enough on some specific issues. It does not state its commitment in relation to*:
- guaranteeing a living wage during regular working hours without overtime.
Code implementation and purchasing practices
Migros did not indicate the steps it is taking to effectively implement minimum labour standards in its supply chain. The code of conduct is translated into most of the languages of the countries the company is sourcing from. According to the information given Migros has no intention to implement the payment of living wages to workers. According to the information available, some of the production sites are in countries or zones where freedom of association is not guaranteed by law. There are no provisions to give buyers positive incentives to reward better working conditions. There are no measures that show how to improve planning and prevent excessive overtime.
Monitoring and Verification
As a member of BSCI, the company has audited 160 non-food suppliers within one year. The company was a member of the multi-stakeholder initiative ISCOM.
Violations of labour rights and public conflicts
There has been one case of a long lasting labour conflict at an Indian Migros supplier. Some trade union members have been dismissed. The workforce has been intimidated and against some of them abusive court cases have been opened. The key violations were related to freedom of association and, or the right for collective bargaining, wages, hours of work. The company reacted positively and immediately to the CCC or the reporting organisation after being informed about the violation. The violations have not been corrected at all.
Recent developments
Migros said they have directly approached producers/suppliers in India regarding problematic topics in the region. Among other things, Migros is said to have helped start a school which allows 1,000 children to become educated. Migros, however, offers no information regarding how and whether there has been a reaction to specific conflict points, such as freedom of assembly, compensation and working hours.