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Supply Chain Management(1)

【Round-table Talk】

 Resolving Human Rights and Labor Issues
Round-table Talk  ASICS, which commissions part of its manufacturing activities to companies in China and other Southeast Asian countries, coordinates its efforts with labor organizations and NGOs to address human rights and labor issues at its partner companies.  In May 2007, the company invited Ms. Akiko Gono, the Chief of the International Bureau, The Japanese Federation of Textiles, Chemicals, Food, Commercial, Services and General Workers' Unions who also plays the role of Secretary of Textile Workers Asian Regional Organization (TWARO) under the International Textile, Garment and Leather Workers’ Federation (ITGLWF). She hosted a discussion on the company's activities addressing various human rights and labor issues in our supply chain, as well as possible future challenges.
<Participants>

Akiko Gono  Akiko Gono
Chief of the International Bureau, the Japanese Federation of Textiles, Chemicals, Food, Commercial, Services and General Workers' Unions Secretary, Textile Workers Asian Regional Organization (TWARO)





1977 Graduated from Tokyo University of Science
1977 Starts working for Mitsubishi Motors Corporation
1981 Retires from Mitsubishi Motors
1981 Starts working for the Japanese Federation of Textiles, Chemicals, Food, Commercial, Services and General Workers' Unions
1998 Secretary, TWARO
1999 Chief of International Bureau, the Japanese Federation of Textiles, Chemicals, Food, Commercial, Services and General Workers' Unions

Masaaki Koizumi
Masaaki Koizumi
Secretary, ASICS Labor Union

1988 Graduates from Tokyo Metropolitan University
1988 Starts working for ASICS
1994 Executive committee member, ASICS Labor Union
2002 Assistant Secretary, ASICS Labor Union (part-time)
2004 Secretary, ASICS Labor Union (full-time)




Yoshizumi Tanooka  Manager, ASICS CSR Team 

Difference in Wages Lies beneath the Child Labor Issue
Gono Based on the idea that the root cause of child labor is in extremely low wages for the child's parents, we are starting a movement with the objective that all workers shall be able to earn decent wages (sufficient to sustain their lives).
Tanooka The thing that worries us in terms of the issues of wages is that a significant corrective action taken by a factory may affect other suppliers in the area. Workers may transfer to other factories within the area or factories that cannot afford a pay raise may move to other areas, resulting in reduced employment opportunities in the area.
Gono No matter how small a company is, the minimum wage must be guaranteed. However, there still are problems of low wages due to the lack of bargaining power in companies without labor unions. This is the area where we must play a role in resolving the problem.


Collaborative Attitude between Workers and Employers Indispensable for Effective Education
Koizumi The labor union of ASICS is hoping that its efforts to monitor whether or not the company is addressing human rights and labor issues in the supply chain properly and providing feedback to the union members will inspire those involved in the operation of the supply chain.

Gono I think that is the ideal way of involving a labor union. I still hope that union members will broaden their awareness by taking a step forward to participate in meetings with local workers and various NPOs and NGOs. Following the example of labor/management consultations carried out by some European multi-national companies, how about setting up a meeting including partner factories?
Tanooka Right now, we are considering holding workshops on workers' rights and labor laws for factory owners, factory managers, and workers' representatives in certain areas of China.
Koizumi In order to educate those people, I think it is necessary to set up a place for the representatives of labor and management from ASICS and our partners to share ideas and establish a common understanding on the issues.


Problems and Actions for the Factory List Disclosure
Gono We are requesting companies to disclose the list of partner factories in order to resolve labor issues at those factories. Without monitoring the factories involved, it is not possible to solve the problem.
Koizumi The biggest problem about disclosing the factory list is that it could be difficult to obtain the consent of suppliers. Many factory owners have a sentiment similar to fear against the unity of workers and the formation of labor unions.
Gono We do understand the point and are having meetings with suppliers. For example, we work together with outsourcing companies to assemble suppliers while trying to clear misunderstandings about labor unions and helping them understand the fact that unions actually can contribute to improve productivity.
Tanooka Another problem for us is that, in areas like the apparel industry where business partnerships change often, the contract between ASICS and a supplier may have expired by the time people at labor organizations and NGOs use a submitted factory list. On the other hand, frequent updates to a factory list are a burden for anybody. 
Gono Although we understand your wish to provide a perfect list, we feel that it will only make disclosure more difficult. Maybe we can work around the problem by listing only the factories contracted for large volume work. In contrast, it may also be possible to find solutions together with labor organizations after analyzing problems by disclosing the complete list.

A Corporation is what its People Do  Masaaki Koizumi

 One of the elements of business operation at ASICS is the founder's management principle, "a corporation is what its people do." In order to give a physical form to the principle, not only at ASICS, but also throughout the supply chain, it is necessary to make partners understand the fact that upholding human rights and improving the status, working conditions, and terms of labor of workers will also improve productivity and result in a higher turnover. In addition, it is also important to collect as many cases as possible in which suppliers successfully addressed labor issues, to placate the mind of concerned people.
 Another important point is to build a good labor/management relationship through regular consultation, and then compete against each other in a friendly environment. By introducing such a positive labor union activity with the suppliers, we hope to clear misunderstandings about labor unions and find solutions to various problems.
 ASICS Labor Union advocates nurturing of healthy and close relationships between the management and workers throughout the supply chain by cooperating with The Japanese Federation of Textiles, Chemicals, Food, Commercial, Services and General Workers' Unions and ITGLWF.

Expects ASICS to Take a Step Forward  Akiko Gono

 We find problems such as low wages, child labor, lack of freedom of association, and long working hours at factories in China and Southeast Asia. The ITGLWF tries to create a situation in which companies can be monitored by labor unions and NGOs, by requesting outsourcing sporting gear manufacturers to implement fair working conditions and disclose their factory lists. In this situation, ASICS is known for having regular meetings directly with ITGLWF and other labor organizations, as well as carrying out CSR programs including the upstream of its supply chain. We are one of the organizations that respect ASICS' activities.
 We are going to launch a program under the slogan of "productivity improvement" to assemble representatives of management and labor unions, introducing successful cases of addressing labor issues, to promote better understanding of CSR in Asia or separately in each country with the help of the International Labor Organization (ILO). We hope that ASICS will not only continue its existing programs, but also take a step forward to implement educational and training programs for both management and workers of its suppliers for a better recognition of CSR.
Website of the Japanese Federation of Textiles, Chemicals, Food, Commercial, Services and General Workers' Unions  http://www.uizensen.or.jp/