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March 03, 2000

Verité Calls Companies to Conscience on Factories

The humanitarian research organization brings to light accurate data on the global assembly line for the education of manufacturing companies with overseas operations.

SocialFunds.com -- Workers in approximately 20 percent of the factories in countries from El Salvador to Taiwan, from Mauritius to Bangladesh, report serious verbal, physical, or sexual abuse on the job. The statistic for such abuse in Sri Lanka is 70 percent, and fear of reprisals makes that a conservative estimate. But this abuse is only the most obvious pattern of mistreatment in overseas factories, a growing concern among shareholders of multinational corporations and the general public.

Visit the
Prospectus Ordering CenterOne of the reasons we know anything at all about physical abuse in Sri Lankan factories, child labor in China, and health hazards in Mexican maquiladoras, is a research and monitoring organization called Verité. Founded in 1995 to address some of the social consequences of globalization on children and factory workers worldwide, Verité now has operations in 46 countries.

"Through a process of humanitarian inspections, Verité ensures that products are made under fair and legal working conditions and in compliance with international human rights standards," said Heather White, founder and Executive Director of Verité. "Our operational model involves linking with local organizations for research, worker interviews, and capacity building."

The goal of Verité is to educate companies that have manufacturing operations overseas, or contract with local vendors, about the conditions experienced by their factory workers. As the public becomes more aware of, and outraged by discrimination, health and safety hazards, inadequate pay, child labor, and outright abuse, corporations are well-advised to learn more about conditions in their own or their vendors' factories.

Relying on their worldwide network of auditors and NGOs, as well as their experienced staff, Verité produces a series of Country Notebooks that describe labor laws, standard of living, human rights, and worker conditions in the most exacting detail. These publications are compiled for countries that companies rely on for production, and are updated annually.

Verité also produces a series of Issues Reports, addressing timely subjects in the world of labor conditions. Their current reports focus on contract labor, a phenomenon of the new global market in which large numbers of mobile workers travel internationally for factory jobs where they do not speak the language, making them very vulnerable to maltreatment.

Last year a class action lawsuit filed on behalf of 50,000 contract workers from China, the Philippines, Bangladesh, and Thailand, for human rights violations and poor factory conditions on Saipan, ended in a settlement by U.S. apparel retailers. Verité was chosen to be the independent monitor of the factories as part of this pioneering lawsuit settlement, recommended by their unsurpassed experience on this issue.

Anyone familiar with the reputation of overseas factory management has to wonder how Verité and their local NGO partners conduct audits of such prickly issues as harassment, child labor, safety violations, and worker abuse, without interference. But the management must agree to cooperate with the audit process as a condition of doing business with their buyers, the multinational corporations that hire Verité.

Most of the information that Verité gathers is only for the eyes of their clients, mainly U.S. and European companies, and is covered by confidentiality agreements. But general findings on overseas factory conditions can also help raise awareness and understanding among shareholders and other members of the public.

"Our work is raising general understanding of problems and consequences created by our rapidly globalizing world," said White. "We point out labor and human rights hot spots in industries and by geographical region to assist investment advisors looking at individual companies."

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