Model Code of Conduct and Sweatfree Procurement Policy
I. Purpose
The [public entity] finds that:
A.The [public entity] spends [dollars]in public funds on garments, uniforms, materials, and other equipment, materials, and supplies provided by private Contractors and Manufacturers.
B.The [public entity] recognizes a public interest in avoiding expenditures of tax dollars to Vendors and Contractors who maintain sweatshop working conditions, including below-subsistence wages; excessively long working hours; unhealthy and unsafe working environments; child, indentured, and prison labor; disregard for local and international labor laws and workplace regulations; disregard for fundamental women’s rights; and repression of workers’ rights to assemble and bargain collectively.
C.In its role as a market participant, the [public entity]seeks to assure that the integrity of the procurement process is not undermined by Vendors and Contractors who engage in sweatshop practices. Contractors and Subcontractors who use sweatshop labor are able to underbid responsible Contractors who pay fair wages and maintain humane work environments and conditions. Such practices place responsible Vendors and Contractors at a competitive disadvantage, which may dissuade them from participating in the [public entity’s] procurement process.
D.The [public entity] must be cognizant of the working conditions it may support by its actions as a major market participant. Better working conditions assure consistently better quality goods for the [public entity], by assuring fewer disruptions in the workplace due to workers' grievances, fewer absences due to illnesses, less fatigue and fewer workplace injuries, less turnover of workers, and greater incentive to perform.
E.The [public entity] recognizes the rights of its residents to information about working conditions and choice with regard to the expenditure of its tax money.
F.As a participant in the marketplace, the [public entity] seeks to protect the interests of local residents, workers, and businesses by exercising its proprietary powers to establish a “sweatfree” procurement policy and code of conduct that ensures that items of apparel, garments and corresponding accessories, and other equipment, materials, and supplies procured by the [public entity], its agencies, or its Employees through contracts, purchase orders, or uniform allowances and voucher programs, be produced in workplaces free of sweatshop conditions.
II. Scope
This policy applies to the procurement and laundering of apparel, garments and corresponding accessories, and the procurement of equipment, materials, and other supplies for the [public entity]. Procurement includes contract, purchase, rental, lease, or allowance and voucher programs.
III. Definitions
A.“Consortium” means the State and Local Government Sweatfree Consortium.
B.“Contractor” means a person or entity that provides applicable goods or services to the [public entity].
C.“Independent Monitor” means the organization that is contracted by the Consortium for the purpose of monitoring compliance with this Code. The Independent Monitor is an organization with expertise in monitoring factory working conditions that is not owned or controlled in whole or in part by, nor obtains any revenue from, any Vendor, Manufacturer, Contractor, or Subcontractor or any other entity that derives its primary income from the sale of any product or service covered by this policy.
D.“Non-poverty wage” in the U.S. is the level of wages required for a full-time worker to produce an annual income equal to or greater than the United States Department of Health and Human Services’ most recent poverty guideline for a family of three plus an additional 20% of the wage level paid either as hourly wage, health benefits, or pension benefits. Outside the United States, a non-poverty wage is a comparable nationwide wage and benefit level, adjusted to reflect the local cost of living, sufficient to raise a family of average size out of poverty.
E.“Production facility” means the facility that manufactures (including cutting and assembly by weaving, sewing, knitting or felting), finishes, applies marks, warehouses, launders, or engages in any other processes that contribute significantly to the finished apparel and other products.
F.“Subcontractor” means a person, partnership, corporation or other entity that enters into a contract with a Contractor or another Subcontractor for provision of all or some of the goods and services covered by this policy.
G.“Worker” means those workers engaged in the production of the goods or services covered by this policy.
IV. Prohibition of Sweatshop Conditions
Contractors and Subcontractors shall ensure that all production facilities adhere to or exceed the following sweatfree code of conduct in their practices and policies regarding workers engaged in the production of goods and services covered by this policy.
A.Legal Requirements. Production facilities shall comply with all applicable domestic labor, employment, health and safety, environmental, and building laws, and the fundamental conventions of the International Labor Organization, including those regarding forced and child labor and freedom of association.
B.Wages and Benefits. Production facilities shall pay wages that meet the higher standard of (a) the legal minimum wage; (b) the prevailing wage in the industry in the country of production; or (c) a non-poverty wage as defined in Section III D.
C.Wage and Hour Records. Production facilities shall maintain verifiable wage and hour records for each production worker. Such records shall include the following for each production worker: (a) name and job classification; (b) a general description of the work the worker performed each day and the rate of pay (including rates of contributions for, or costs assumed to provide fringe benefits); (c) the daily and weekly number of hours worked; (d) deductions made; and (e) actual wages paid.
D.Working Hours. Production facilities shall not require hourly and quota-based workers to work more than 48 hours per week or the limits on regular hours allowed by the law of the country of manufacture, whichever is lower. In addition, Contractors shall provide at least one day off in every seven-day period, as well as holidays and vacations.
E.Overtime Compensation. Production facilities shall ensure that all hours worked beyond the limits on working hours established in Section IV D are voluntary, except when each of the following conditions exist: a) national law permits mandatory overtime; b) the facility is party to a collectively negotiated contract with a representative labor union and this contract permits mandatory overtime, and; c) mandatory overtime does not exceed the amount allowed by the collective contract. In addition to their compensation for regular hours of work, hourly and quota-based workers shall be compensated for overtime hours at such a premium rate as is legally required in the country of manufacture or, in those locations where such laws do not exist, at a rate at least one-and-one-half their regular hourly compensation rate.
F.Discrimination. Production facilities shall not discriminate in employment - including in hiring, salary, benefits, advancement, discipline, termination, retirement, or any other term or condition of employment or employer practice - on the basis of gender (including pregnancy), race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.
G.Harassment and Abuse. Production facilities shall not harass or abuse workers sexually, psychologically, or verbally, or use corporal punishment.
H.Women’s Rights. Production facilities shall not require pregnancy tests as a condition of employment, nor demand pregnancy tests of employees. Women workers shall receive equal remuneration, including equal pay, benefits, treatment, and opportunity to fill positions open to male workers.
I.Just Cause Termination. Production facilities shall not terminate workers without just cause. Contractors shall provide for a mediation or grievance process to resolve workplace disputes. For production in the United States such disputes are limited to those not regulated by the National Labor Relations Board.
J.Freedom of Association. Production facilities shall respect workers' rights to freedom of association, collective bargaining, striking or other concerted protest, and filing of grievances. Production facilities or any of its agents shall not retaliate against, intimidate, coerce, harass, or take any other adverse action against workers for exercising these rights. Production facilities or any of its agents shall not initiate, dominate, or support organizations in which workers participate or are represented. Production facilities shall allow union organizers free access to workers and shall recognize the union of the workers' choice. Production facilities shall demonstrate their commitment to freedom of association by taking such steps as:
1.Communicating to the workforce the facility’s openness to workers’ exercise of their associational rights.
2.Negotiating in good faith with any union or other representative worker body duly constituted by workers.
3.Implementing effective procedures and training programs to safeguard workers against retaliation, intimidation, coercion, harassment or other adverse action by managers, supervisors, and co-workers.
4.Remaining strictly neutral on the matter of workers’ choice to unionize or not unionize. That is, employers shall not campaign in any way against or in favor of workers’ efforts to unionize. However, employers are not barred from stating that workers have a right to unionize, in the exercise of their freedom of association.
K.Complaints of Code Violations. Production facilities shall not engage in any reprisal, coercion, intimidation or take any other adverse action against workers for filing complaints, giving evidence, or otherwise cooperating with monitoring, enforcement, remediation or other activity by the Consortium or its members, the Independent Monitor, any government agency, or other entity authorized to enforce the employers’ obligations under this Code.
L.Cut and Run. Contractors, Subcontractors, or production facilities shall not shut down or reduce orders to a production facility in order to deny workers any right or standard protected by this Code, including their right to freely associate.
V. Phase-In Period
During the first full fiscal year after the effective date of this Chapter, the [public entity] shall target for enforcement only purchases and contracts for apparel, garments and corresponding accessories, materials, supplies or equipment, and laundry services. Agreements for other goods and services shall be targeted for enforcement in accordance with the procedure set forth in Section VII E 4.
VI. Requirements – Contractor Affidavits, Public Records and Reporting
A.Refusal to Contract. The [public entity]shall not enter into contracts with a Contractor if (a) based on information submitted by the Consortium, its Independent Monitor, or other Employees or agents authorized to assist in the implementation, administration, or enforcement of this Chapter, the [public entity]finds the Contractor or one of its Subcontractors violates any requirement enumerated in this Code and that the Contractor or Subcontractor refuses or fails to expeditiously remedy the violation; or (b) the Contractor fails to submit the information required in the affidavit described in Section VI (B). However, during the first three years during which this Chapter is in effect, the [public entity] shall contract with a non-compliant bidder according to the requirements in Section IX if the [public entity] receives no bids or proposals that are fully compliant with the provisions of this Chapter.
B.Affidavits. After final award of a contract for production of goods or provision of services covered by this Chapter, the Contractor or Vendor must submit affidavits that include the information set forth in Sections VI B. 1., 2., 3., 4., 5., and 6. to the Purchasing Agent. To ensure public access and confidence the Purchasing Agent shall post this information on its internet website as soon as possible but not more than 14 days after final award of a contract. The information shall include:
1.The names, addresses, phone numbers, and contact persons of each production facility involved in the production of goods or provision of services.
2.Where applicable, the names, addresses, contact persons, and phone numbers of any agent or parent company of each facility involved in the production of goods or provision of services
3.The amount to be paid each Subcontractor. Amounts to be paid Subcontractors may be reported in increments. This information shall be updated in writing to show changes in the amount to be paid any Subcontractor or amounts to be paid Subcontractors added after submittal of the most recent statement to the Purchasing Agent.
4.The names of any association or organization in which workers participate or are represented for purposes of collective bargaining in the facilities. The Purchasing Agent may also request to be furnished with copies of any current collective bargaining agreements covering workers in the facilities.
5.A statement by the Contractor indicating the following:
a.The Contractor and Subcontractors understand their obligation to ensure that all applicable production facilities adhere to the sweatfree code of conduct as defined in Section IV;
b.The Contractor and Subcontractors understand their obligation to conduct their business operations in a way that facilitates the achievement and maintenance of compliance by production facilities, as enumerated in Section VII below.
c.The Contractor and Subcontractors understand that if the [public entity], the Consortium, and/or its Independent Monitor find any of its production facilities to be out of compliance with any of the provisions of Section IV, and the facility fails to remedy the non-compliance within a time period specified by the [public entity], the Consortium, and/or its Independent Monitor, the Contractor and/or Subcontractors will be deemed out of compliance with the sweatfree code of conduct as defined in Section IV.
d.The Contractor or Subcontractor, as applicable, has furnished a copy of this sweatfree code of conduct to each covered production facility.
6. A statement by the Contractor indicating the following:
a. As to each covered production facility, the facility’s current compliance or non-compliance with each requirement of Section IV-A through IV-L.
b. For each non-compliance indicated in the previous provision (Section VI-A (6) (a)), a plan of corrective action indicating the steps to be taken to remedy the non-compliance, and the time period within which each step will be taken. This plan of corrective action in no way replaces or limits the Consortium’s and/or its Independent Monitor’s authority and responsibility to formulate remediation plans under Section VIII of this Chapter or to take any other action set forth in this policy.
c. Agreement that, following the awarding of a contract, as to each remedial step indicated in the previous provision (Section VI-A(6)(b)), a statement shall be submitted indicating whether the step has been taken and the non-compliance remedied, at the time the step is taken. If no such statement is filed by the time indicated in the corrective action plan, it shall be presumed that the facility has failed to implement the step by that time. Fulfillment of this requirement shall not exempt the Contractor or Subcontractor from its responsibility to cooperate with worksite investigations of the Consortium and/or its Independent Monitor or to take remedial action required by the [public entity], the Consortium, or the Independent Monitor as stipulated in Section VIII-E.
7. Any other information deemed necessary by the Purchasing Agent for the administration and enforcement of this policy.
C.Updated Information. If any information provided by the Contractor or Subcontractor pursuant to this section changes during the specified time period of the contract, the Contractor shall submit or cause to be submitted to the Purchasing Agent affidavits with the updated information.
D.Certified Payroll Records. Each Contractor and Subcontractor shall maintain weekly certified payroll records from each of their applicable production or service facilities for submission to the [public entity] upon demand. The Contractor shall be responsible for submitting the payroll records of its Subcontractors and their facilities, although Subcontractors shall submit such records directly to the [public entity] upon request. All certified payroll records shall be accompanied by a statement signed by the Contractor, or Subcontractor if requested by the [public entity] to submit the records, stating that the records are complete and correct.
VII. Verification and Compliance
A.It shall be the responsibility of Contractors to ensure compliance with the sweatfree code of conduct as defined in Section IV of this Chapter in all production facilities. Contractors and Subcontractors must establish and implement managerial systems, rules, procedures, and audits sufficient to effectively ensure such compliance. Contractors and Subcontractors must also ensure that prices paid to production facilities for goods or services are sufficient to enable the facility to meet the costs of compliance with this Code; that dates for delivery of products or provision of services and other logistical requirements imposed on Subcontractors do not induce violations of hours, overtime, or other provisions of this Code; and that the Contractor’s relationship with Subcontractors is sufficiently stable to enable the Subcontractors to fully comply with this Code.
B.Refusal of a Contractor, Subcontractor, or production facility to permit monitoring by, or to cooperate fully in the monitoring process of, the Consortium and/or its Independent Monitor shall result in disqualification for bidding, in termination of a contract, or in other sanctions enumerated in VIII (F) of this Chapter.
C.Each Contractor and Subcontractor shall cooperate fully with any investigation of the [public entity's relevant enforcement official or agency] or the [enforcement official’s or agency’s designee], including without limitation the Consortium, its Independent Monitor, and other [public entity] Employees and agents authorized to assist in the implementation, administration or enforcement of this Chapter. Such persons or entities shall, in the performance of their duties, have the right to engage in unannounced inspections of any worksite where the contract or any subcontract is performed, interview any manager, supervisor, or worker, and view and copy any document that is relevant to the inspection or other activity of the [public entity], the Consortium and/or its Independent Monitor.
D.The [public entity] shall join the State and Local Government Sweatfree Consortium in order to work together with other public entities for the purpose of ensuring the most effective enforcement of the labor standards enumerated in Section IV of this Chapter.
E.The [public entity] shall establish a Sweatfree Procurement Advisory Group to assist in the implementation and enforcement of this Chapter. The Sweatfree Procurement Advisory Group shall consist of advocates for garment workers and other workers experiencing sweatshop working conditions, uniformed unions of Employees of the [public entity], representatives of agencies that employ uniformed personnel, administrators responsible for implementing this law, and other interested parties. The purpose of the Sweatfree Procurement Advisory Group shall be to:
1.Receive and assess evidence of Bidders’, Contractors’, and Subcontractors’ non-compliance with the Sweatfree Code of Conduct from the Consortium, its Independent Monitor, workers, labor unions, governments, businesses, non-government organizations, or human rights advocates.
2.Provide advice on bidding guidelines, dissemination of information to Workers, and collaboration with other public entities.
3.Evaluate the implementation of this Chapter.
4.Evaluate industries engaged in manufacture and sale of goods other than apparel and garments to determine whether procurement of goods, in addition to apparel and garments, should be subject to this Chapter. To determine whether a particular good shall be targeted for enforcement, the factors that the Sweatfree Advisory Group shall consider shall include, but not be limited to: (a) the amount the [public entity] has spent and anticipates spending for such good; (b) evidence of sweatshop labor or other conditions prohibited by this Chapter in the manufacturing, assemblage or distribution of such good; and (c) any financial impact that targeting the good for enforcement will have on the [public entity].
VIII. Violations and Enforcement
A.Complaints. Any person may complain that the sweatfree code of conduct of this Chapter is being violated. The [public entity], the Consortium, and/or its Independent Monitor shall receive complaints and investigate the merits of each complaint. At the request of the party submitting the complaint, or when deemed necessary by the [public entity], the Consortium, and/or its Independent Monitor in cases where the complainant has not explicitly so requested, the [public entity] agrees to keep confidential the name and contact information of the complainant.
B.Ongoing Monitoring. The [public entity], the Consortium, and/or its Independent Monitor may also conduct proactive, ongoing monitoring for compliance with this Code. When information gathered in the course of ongoing monitoring indicates a likelihood of non-compliance by an applicable facility, [public entity], the Consortium, and/or its Independent Monitor shall initiate an investigation.
C.Investigations and Monitoring. Investigations and monitoring under Sections VIII-A and VIII-B may include but are not limited to confidential interviews with workers, conducted outside of the workplace; interviews with local non-governmental organizations or labor unions; ongoing monitoring of local media and government reports regarding labor conditions at the production facilities; physical inspection of production facilities; and interviews with management or supervisors.
D.Access to Factories. Any Contractor or Subcontractor shall provide the [public entity], the Consortium, and/or its Independent Monitor immediate access to the facility or operation where the violation or alleged violation has occurred for an inspection of the facility, inspection and copying of all relevant documents, interviews with managers, supervisors, workers and other personnel, or other activity of the [public entity], the Consortium, and/or its Independent Monitor.
E.Remediation. Upon determination of a violation of the sweatfree code of conduct at a production facility of a Contractor or its supplier, including all Subcontractors, the [public entity], the Consortium, and/or its Independent Monitor, the Contractor, and relevant Subcontractors shall consult for the purpose of agreeing to a remediation plan. However, in the event of disagreement about a remediation plan, the Contractor and Subcontractors shall not have authority to veto the remediation plan formulated by the [public entity], the Consortium, and/or its Independent Monitor, which retains ultimate authority in the matter. The intention is for the situation to be corrected in order to comply with the sweatfree code of conduct. Corrective action includes all steps necessary to correct the violations, including, but not limited to:
1.Paying back wages to workers who made manufactured products or provided services supplied to the [public entity].
2.Reinstating any worker who has been unlawfully dismissed.
3.Training on worker rights and best practices education for managers and workers at the facility or operation where the violation occurred to ensure future compliance. Any such training and education shall be at the expense of the Contractor or Subcontractor. Upon request by the [public entity], the Consortium, and/or its Independent Monitor, the Contractor or Subcontractor shall submit such materials for training and education for the [public entity’s], the Consortium’s, and/or its Independent Monitor’s review and approval prior to distribution to managers and workers.
F.Follow-up monitoring. After formulating a remediation plan, the [public entity], the Consortium, and/or its Independent Monitor may, as they see fit, engage in any follow-up inspections, monitoring, interviews, and viewing and copying of documents, to ensure that the Contractor or Subcontractor implements the remediation plan in a timely manner. The [public entity], the Consortium, and/or its Independent Monitor may collaborate with the Contractor or Subcontractor to solve problems encountered in remediation and to ensure that remediation is complete and sustainable.
G.Sanctions. The [relevant enforcement official or agency] may impose sanctions if the [public entity], the Consortium, and/or its Independent Monitor finds (a) that the Contractor or one of its Subcontractors violates any requirement enumerated in this Code and (b) that the Contractor or Subcontractor refuses or fails to expeditiously remedy the violation. As sanctions, the [public entity’s relevant enforcement official or agency] may, in their discretion, terminate the contract without notice and without liability for unpaid amounts that otherwise would have been payable, impose a monetary penalty not to exceed [amount] for each violation, or remove the Contractor from the bidder’s list for a period of [time], in accordance with the [public entity’s laws and regulations for imposition of sanctions on Contractors that violate conditions on contracting].
IX. Award of Contract Absent a Sweatfree-Compliant Bid or Proposal
A.It is the [public entity’s] goal to achieve full compliance with this Chapter. However, in the absence of bids or proposals that are fully compliant with the sweatfree code of conduct as defined in Section IV of this Chapter, the [public entity] shall award contracts to bidders or proposers that are most compliant or will be most expeditiously compliant with this Chapter. This exemption from full compliance with this Chapter will expire after the third full year that this Chapter has been in effect. During the first three years that this chapter is in effect, the Purchasing Agent will work to assemble a list of fully compliant bidders, which may consist of vendors immediately compliant, and vendors that become fully compliant through the process defined in paragraph B. After three years, it is expected that vendors will be drawn from this fully compliant list.
B.If, in response to a solicitation for bids or a request for proposals, the [public entity] receives no bids or proposals that are fully compliant with the sweatfree code of conduct as defined in Section IV of this Chapter, the [public entity] is authorized to enter into a contract with a noncompliant bidder or proposer, according to the following requirements:
1.Notwithstanding the determination of low bid or highest ranked proposal, the Purchasing Agent shall have the authority to determine which bidder or proposer most substantially complies with this Chapter, and award the contract to that bidder or proposer. No contract awarded under this section may exceed one year in term unless the Purchasing Agent determines, no later than 6 months prior to the expiration of the original term of the contract, that the Contractor has achieved an additional level of compliance with the terms of this Chapter that warrants exercise of an option to extend the contract for an additional year.
2.Standards for determining most substantial compliance and additional levels of compliance under subsection (a) shall be adopted by the [relevant official or agency] following consultation with the Sweatfree Procurement Advisory Group. Such standards shall become operative on the date they are adopted by the [relevant official or agency].
3.A noncompliant Contractor shall provide a plan for corrective action, according to Section VI-B(6), implement the corrective action plan in a timely manner, and provide timely updated statements accounting for each remedial step that it has taken, according to Section VI-6(c). As provided in Section VI-B(6), the requirements for submission of and follow-up to corrective action plans in no way replace or limit the [public entity’s], the Consortium’s, and/or its Independent Monitor’s authority and responsibility to formulate remediation plans under Section VIII of this Chapter or to take any other action set forth in this policy, nor exempt the Contractor or Subcontractor from its responsibility to cooperate with the [public entity’s], Consortium’s, and/or its Independent Monitor’s investigations of worksites or to take remedial action required by the [public entity], the Consortium, and/or its Independent Monitor, as stipulated in Section VIII.
4.Nothing herein shall remove the [Purchasing Agent’s] authority to reject all bids or take any other action within his or her authority under this Chapter.
X. Preemption
Nothing in this Chapter shall be interpreted or applied so as to create any power or duty in conflict with any federal law. Nothing in this Chapter shall be interpreted to preempt any law of a political subdivision of the [public entity].
XI. Severability
If any part or provision of this Chapter, or the application of this Chapter to any person or circumstance, is held invalid, the remainder of this Chapter, including the application of such part or provisions to other persons or circumstances, shall not be affected by such holding and shall continue in full force and effect. To this end, the provisions of this Chapter are severable.
