What is ETI?

What is ETI?

ETI stands for the Ethical Trading Initiative, an acronym for the British organization dedicated to ethical trade.

The proposal, drafted by the UK, aims to improve working conditions for global workers by establishing a forum for corporate social responsibility in procurement from developing countries.

ETI is composed of representatives from companies, unions, and other parties. Its fundamental code of conduct is similar to SA8000, both based on the United Nations Basic Agreement on Labor. ETI was established with funding from the UK Department for International Development and the private sector, and the few initial audits currently being conducted are driving the establishment of operational guidelines. Companies and organizations participating in ETI include C&A, Sainsbury's.S, the Co-operative Wholesale Society, and organizations such as Save the Children and Fair Trade Association.

The difference between ETI and SA8000 lies in that SA8000 is a global standard, while ETI is primarily composed of UK companies; the aim of ETI is to improve the system through comparing different approaches to worker rights, whereas SA8000 is an operational certification system. Both SA8000 and ETI were formed after extensive consultations.

Section II: Basic Principles of the Ethical Trade Alliance

　　1.

Freedom to Choose a Profession

　　1.1

No forced labor, slavery, or involuntary prisoner labor shall be employed.

　　1.2

Employees are not required to pay a "deposit" or hand over their identification documents to their employer. After providing the employer with a reasonable notice period, employees are free to resign.

　　2.

Respect for freedom of association and collective bargaining rights

　　2.1

Employees have the right to join or form labor unions and engage in collective bargaining at their own discretion, without suffering any discrimination as a result.

　　2.2

Employers must adopt an open attitude towards the activities and internal organizational activities of the union.

　　2.3

Labor representatives must not be discriminated against and may carry out their representative duties at the workplace.

　　2.4

If freedom of association and collective bargaining rights are restricted by law, employers must provide convenience and assistance in developing complementary channels, rather than adopting a obstructive attitude.

　　3. 

Safe and Sanitary Workplace

　　3.1

Employers must provide a safe and hygienic work environment and be aware of industrial safety knowledge and hazards relevant to their industry. Employers must take adequate measures to minimize potential dangers at the workplace in a reasonable and feasible manner, to prevent accidents that may cause health damage to employees while performing their duties, under relevant circumstances or during the performance of their duties.

　　3.2

Employers must provide regular health and safety training and keep records of such training. This training should be reoffered to newly hired workers or those transferring to new positions.

　　3.3

Employers must provide clean toilet facilities and drinking water for employees. If necessary, they must also provide hygienic storage facilities for food.

　　3.4

If employers provide housing for employees, the living conditions must be clean and safe, and meet the basic needs of the employees.

　　3.5

Compliant companies must appoint a supervisor to represent them, responsible for labor health and safety.

　　4. 

No Child Labor Employed

　　4.1

No child labor to be employed.

　　4.2

The company is required to develop and assist in formulating policies and plans, providing transitional services for children found to be child laborers, enabling them to receive a good education until they reach adulthood.

　　4.3

No employment of children under 18 years of age is permitted, nor should they work at night or in hazardous locations.

　　4.4

The aforementioned policies and procedures must be in alignment with the relevant provisions of the International Labour Organization standards.

　　5. 

Basic Living Wage

　　5.1

Each normal working week's salary and benefits must at least meet the local legal standards or the industry's reference standards, with preference given to the higher of the two. Under no circumstances should an employee's salary be sufficient only to cover basic needs; there should also be a surplus for discretionary spending.

　　5.2

All employees should receive written notification prior to their employment, clearly outlining the terms of salary, and should receive a written statement regarding the salary for the pay period with each payroll distribution.

　　5.3

Prohibition of wage deductions as disciplinary punishment; wage deductions without local legal basis or employee consent are strictly prohibited. All disciplinary measures should be documented and archived.

　　6. 

Work hours should not be excessive.

　　6.1

Work hours must comply with local laws and industry reference standards, with the larger ones being the guiding principle.

　　6.2

Under no circumstances may employers require employees to work more than 48 hours per week, and employees must be granted at least one day off every 7 consecutive working days. Overtime work must be voluntary, not exceed 12 hours per week, and should not be considered a regular arrangement. Additionally, higher overtime pay should be provided as compensation.

　　7. 

No Discrimination of Employees

　　7.1

Employees shall not be discriminated against in matters of employment, compensation, training, promotion, termination, or retirement on the basis of race, class, nationality, religion, age, disability, gender, marital status, sexual orientation, union membership, or political affiliation.

　　8. 

Normal Labor Relations

　　8.1

In all cases, employees' work must be based on labor relations recognized by local laws or customs.

　　8.2

It is not permissible to evade the employer's responsibilities under labor laws or social welfare regulations by utilizing labor contracts for only manual work, subcontracting agreements, home-based manufacturing, or through apprentice training programs that inadvertently impart skills or fail to provide normal labor relations, or by exploiting expired regular labor contracts.

　　9. 

Prohibit the harsh or inhumane treatment of employees

　　9.1

Employees are strictly prohibited from experiencing physical abuse or corporal punishment, threats of physical abuse, sexual harassment, or any other form of harassment and verbal or other threats.

The provisions listed in this code of conduct are set at a low standard, not a high one, and the company should not use this as a reason to reject exceeding the standard. Companies applying this code must also comply with local and other applicable laws. If both the law and the provisions of this basic code make provisions for the same matter, the one offering greater protection shall apply.