Label STEP Standard - Introduction
1. Background
Label STEP looks back on 15 years of substantial experience gained in promoting fair trading and improving working and living conditions of weavers and workers in the handmade carpet industry. Label STEP is the only organisation to monitor and verify working conditions in all regions where handmade carpets are produced. The verification covers a broad range of workplaces, from home based production in the informal sector to loom sheds, manufacturing plants and factories. Basis for Label STEP's activities is the Code of Conduct, integral part of the contract between Label STEP and the license holders to which they are committed.
In 2010, in order to validate this experience and further develop the STEP approach, STEP initiated a comprehensive process to create and implement the Label STEP Standard. The new Standard lays down the fundamentals in terms of specific standards and compliance criteria which define in detail the requirements to which license holders commit their companies. The Standard strives for improving working and living conditions of weavers and workers, and at the same time contributes to strengthen commitment and accountability of all actors throughout all stages of the supply chains related to the license holders.
In accordance with international norms and practice, the Label STEP Standard presents STEP's approach and implementation system in a well structured and easily understandable manner. It thus facilitates and enhances cooperation with the different actors in the carpet industry. Explicit reference is made to the underlying norms and principles of STEP's work, in particular the ILO's core conventions. This together with the unique verification and monitoring approach allows Label STEP to strengthen its position in the carpet market as well as to further develop its leading role among label organisations working in the same field.
2. STEP Standard Development and Consultation Process
The Label STEP Standard was drafted by the STEP Business Unit with external support from a standard expert. It has been further developed and discussed, first, in an intensive internal process, involving STEP countries representatives, the STEP Committee, Standard specialists and CEO as well as the Board of Max Havelaar Switzerland. During the international meeting in Bern in June, 2011, the STEP country representatives worked on the details of each specific standard and the compliance criteria. The discussion showed a high commitment and resulted in a Standard which takes into account the circumstances of differing realities in the countries and at the workplaces of handmade carpet production.
Second, following the recommendations of the best practice code of ISEAL for the definition and review of standards, STEP organised a public consultation of the Draft Standard between August 1st and November 30th, 2011. STEP invited three groups of stakeholders to provide their feedback:
- license holders: 52 were invited, 9 responded
- exporters and contractors in 5 countries were contacted by STEP country representatives: 4 responded
- organisations: 23 were invited, 2 responded.
A Label STEP Standard Committee was set up in summer 2011 by the Board of the Max Havelaar Foundation Switzerland and assessed the feedbacks from the external consultation process.
3. Feedbacks Received and Taken into Account
Most of the respondents agreed with the Draft Standard or made some minor, mostly formal suggestions.
All responding license holders - important retailers and importers in Switzerland, Austria and Germany - agreed with the new Standard. Some appreciated the comprehensiveness of the Standard, others underlined the importance to maintain STEP's strengths in the field.
The STEP country representatives collected the feedbacks of exporters, contractors and partly also weavers in one-to-one meetings. Medium and large scale exporters generally agreed with the Standard, looking forward to the implementation. Small exporters and contractors, mostly illiterate persons, remained rather cautious about the Standard, emphasized, however, the importance of STEP's work. The feedbacks, in general, confirmed the need for initiating a process to carefully introduce the Standard within the whole supply chain.
A substantial comment was received from a major Swiss advocacy organisation, a former founder member of Label STEP. Based on an in-depth analysis, the organisation proposed changes and adjustments which helped to further clarify STEP's approach as well as language and specific terms of the Standard.
The STEP Standard Committee discussed the comments received in the external consultation round. They were taken into account if they fulfilled the criteria for evaluating the feedbacks (laid down in the Work Programme for the consultation process). Some of the inputs were less directly applicable in the predominantly informal sector of handmade carpets than, for example, in the garment industry. Other inputs will be considered in the checklist of STEP's Compliance Criteria. The justifications for the decisions were communicated to the respondents.
4. Implementation of the Label STEP Standard
The Board of the Max Havelaar Foundation Switzerland has approved the new Label STEP Standard in its meeting on 13th December, 2011.
The Label STEP Standard will be an integral part of the contract between Label STEP and license holders and thus complete and specify the Code of Conduct. Training for the coordinators and auditors in the STEP countries will be organised, to introduce the Standard and changes necessary in the verification and monitoring process.
The experience gained in the process of implementation of the Standard will be evaluated in about one year's time. Based on this evaluation, the Compliance Criteria may be adjusted accordingly. A Review of the Standard is scheduled for 2016.
