4th Annual COATS Trade Union Network Meeting Hybrid Conference held on October 05-06, 2023 in Casablanca, Morocco

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The unions and their affiliated federations from the British multinational company COATS Group PLC and IndustriALL leadership and headquarter and project coordinators met on October 05-06, 2023 at Hotel Farah, Casablanca in a Hybrid meeting to discuss the following agenda items:

  • Update on COATS Global Trade union network and IndustriALL’s key ongoing works on the TGSL sector
  • COATS Global Head office intervention-Company HR direction and business startegy
  • Updates and reports from regions on working conditions and union actions. Country representatives considered: eemployment and working conditions, union membership, workers health and safety, union and management actions etc.
  • Launch and Introduction of the COATS union network website
  • Presentations on COATS new company acquisitions
  • Consultation and drafting of the texts of the possible global framework agreement
  • Resolution and adopting the key plans for 2024
Meeting Summary- Day 01
Welcome remarks- Unity and Solidarity
The meeting was officially opened by the TGSL Sector Director Christina Hajagos Clausen, welcoming everyone to the fourth annual Coats Global Trade Union Network meeting. Atle Hoie, the General Secretary of the IndustriALL Global Union attended via zoom from Geneva and gave his welcome remarks to the attendees of the meeting. Atle emphasized the importance of the union network in the textile and clothing industry, which is largely based on outsourcing. He highlighted the need for constructive relations with multinational companies and the importance of creating common policies and solidarity among unions. Atle expressed his hopes that the meeting would bring together unions in Coats closer and increase their unity, particularly towards creating a global framework agreement with Coats Company. Christina then thanked Atle for his intervention and welcomed all participants to the meeting.
Introductions of the meeting participants
Christina gave a detailed introduction, followed by an introduction of Habib Hazimi, the newly elected TGSL co-chair, and their recent lobbying and advocacy efforts on the sector. Al-Arabi Hamouk the General Secretary of SNTTC-UMT welcomed everyone to Morocco. He thanked IndustriALL for this very interesting and beneficial work on building trade union networks around big multinational companies for the betterment of the working class people and he hoped this meeting will be very fruitful one. Habib Hazimi in his welcome words told that Trade union Networks is very important and this what IndustriALL is working which is praiseworthy. The last 4 days there were intensive meetings on establishing strong social dialogue and proper implementation of the GFA with Inditex and now the COATS union network meeting testifies the work of IndustriALL giving importance to the textile sector.

 

The participants introduced themselves, representing the plant level unions and federations from India and Bangladesh, Indonesia, Tunisia, Morocco, Turkey, Italy, Spain, Honduras and IndustriALL officials and staff from the regional offices.
Discussion on the Agenda and the Global Framework Agreement
Christina discussed a packed agenda for the two days meeting, which included presentations from around the globe and initial discussions on drafting a global framework agreement. The aim was to ensure that the sectoral work supports the trade union networks. The introduction of the Coats global HR director, Farnaz Ranjbar, was highlighted as a step closer to engaging the company in recognizing the global trade union network. The meeting also focused on the need to organize all Coats factories worldwide, improve freedom of association, and strengthen collective bargaining. In addition, there were plans to formalize the network by proposing nominations for two co-chairs.
Industrial Global Union’s Health and Safety Campaign
Christina discussed the work of the Industrial Global Union, emphasizing their focus on health and safety, supply chain industrial relations, and improving social protection for workers. She mentioned IndustriALL’s global health and safety campaign, “Garment Workers Need Safe Factories,” launched since the foundation of Industriall in 2012, in response to the Rana Plaza collapse in Bangladesh and also highlighted the problem of subcontracted factories, which often operate in unsafe conditions and have abusive working conditions. Christina talked about IndustriALL’s comprehensive thematic campaign on occupational health and safety and the ongoing renegotiation of the International Accord, a global agreement aimed at improving health and safety conditions in the textile and garment sector. She expressed the need to expand this agreement to other textile and garment production countries.
Occupational Health and Safety Discussion for Mina Region Expansion
Christina discussed the importance of occupational health and safety in the Mina region, highlighting the nervousness of brands about the upcoming expansion. She mentioned the creation of a code of practice in collaboration with the International Labour Organization (ILO), which is available in 16 languages and recognized by governments. This code was presented as a valuable tool for ensuring health and safety in factories. Furthermore, regional and national campaigns were outlined as effective organizing tools and ways to initiate social dialogue with companies. The right to refuse work was emphasized as an important right for workers. Lobbying efforts were also detailed, with a focus on the European Parliament’s due diligence law and influencing investors to ensure responsible company practices. Finally, solidarity work between trade unions in different countries was highlighted as successful and beneficial for their campaign for occupational health and safety.
Shift From Voluntary to Binding Agreements
Christina discussed the need to shift from voluntary auditing to legally binding agreements, exemplified by their International Accord with over 200 global brands. She emphasized the need for binding agreements with brands to improve purchasing practices, support collective bargaining, and increase wages. The speaker also highlighted their social protection campaign, including a successful initiative in Bangladesh with the ILO and the Bangladeshi Government, as well as global brands, to establish an employment injury insurance scheme. The aim is to make a transition of Bangladesh’s weak social safety net for workers. Christina also advocated for more active and strong participation in workplace discussions, arguing against voluntary corporate social responsibility and emphasizing the need for binding agreements to ensure decent work in their sector.
Building Workers’ Power: Coats and Trade Union Networks
Christina discussed the importance of trade union networks in building power in the supply chain, emphasizing that Coats, a large multinational company, is not a small manufacturer but has facilities in over 50 countries. The development of these networks was noted as a crucial step in increasing their footprint and building the network’s strength. The role of shop floor members was highlighted, along with the importance of making them aware they are part of a larger workers’ power in the supply chain. In addition, outreach to brands was identified as part of Industriall’s support for trade union networks, as these brands are Coats’ customers. Efforts have been made to get these brands to support the network and to engage Coats in a global social dialogue.
Progress Towards Global Framework Agreement
Christina discussed the progress towards a global framework agreement with the COATS company. The team had been able to move the company closer to their objective, with individuals from the company now willing to participate in online presentations. This marked an important step forward. Christina also emphasized the significance of global framework agreements, noting that their sector is the only one without one directly with an employer. The team aimed to change this through their global action plan. Furthermore, they highlighted their network with POU CHEN, the largest shoe manufacturer, and in the Crystal group, one of the largest garment manufacturers globally. The ultimate goal was to build more trade union networks and global agreements with these multinational manufacturers.
Worker Communication and Global Action
Christina after finishing her presentation opened the floor for questions and comments. The participants in their comments emphasized the importance of workers in supply chains having a means of communication and collective power. They discussed past actions and the need for another global action soon. They also highlighted the necessity of having a positive dialogue, not only at a national level but also globally as issues affecting workers tend to transcend national borders. Additionally, they suggested that Industriall should visit Coats factories globally to witness different worker conditions in different factories. There was also a discussion about the need for comparative statements on wages, benefits, and working conditions across all regions.
 

Global Wage and Benefit Structures Discussed
Raisul Islam, the IndustriALL project coordinator, discussed the wage and benefit structures of COATS in various countries. He noted that the standards often depend on national laws and stated that their network of trade unions is pushing for the submission of the latest collective bargaining agreements. He highlighted that the situation in India and Bangladesh is precarious due to the high hiring of contract workers. Moreover, he pointed out differences in wage structures in Eastern European countries as well. The company’s policies were noted to be based on the national minimum wage level standards, but also included negotiations with unions for additional benefits.
Network Upgrades and Challenges Discussed
Raisul also discussed the ongoing efforts to improve the network, including sharing analysis and progress on the website for all members to view. Union members from Bangladesh expressed gratitude to the Industrial Global Union for their involvement, which had led to significant improvements in their operations, particularly in Bangladesh. They noted that challenges still existed, particularly for countries without unions. They concluded by suggesting that sharing experiences and knowledge among all network members would be beneficial.
Group Discussion
Christina facilitated a discussion, inviting colleagues to share their thoughts and comments on her presentation on behalf of the industrial Secretariat. She also gave an opportunity for colleagues from Honduras and the new HR Director of COATS to greet the group. A half-hour break was announced, after which Farnaz from the coats management team joined the discussion, expressing her gratitude for the opportunity to participate on her day off. It was noted that the meeting was being conducted on Zoom due to translation requirements.
COATS Head Office Intervention- Farnaz Ranjbar- HR Director
Farnaz Ranjbar gave an introduction, sharing that she is originally from the Middle East, but now holds German nationality. She grew up in the UK and has also spent time living in Germany. Currently, she is located in a Surrey neighborhood in the UK, where she has easy access to both the office and customers and candidates based in London.
Farnaz’s HR Journey and Coats’ Culture Transformation
Farnaz, a qualified lawyer and consultant with extensive experience in human resources and consultancy, shared her professional journey. She highlighted her achievements in transforming DHL Express into a top global employer and discussed her current role at Coats. Farnaz also detailed the recent acquisitions of Texon and Rheno Flex in 2023, bringing together the companies under one brand and emphasizing the importance of a strong culture for a successful organization. She underscored the significance of taking care of people, as she believes that motivated employees lead to great service and ultimately, a profitable network. She concluded by discussing Coats’ partnership with Great Place to Work, a global authority on workplace culture, to benchmark their performance against other companies worldwide.
 

Diversity, Women in Leadership, and Wellbeing Initiatives
Farnaz outlined the company’s initiatives to increase diversity, particularly in gender, and create a culture of belonging. She stated that the target is for at least 30% women in leadership roles by 2026 and at least 40% by 2030. Additionally, the company has learning and development programs for women in leadership, and is working on hiring and promoting more women. Farnaz also mentioned the company’s ‘Energy for Performance’ program, which focuses on employees’ physical, mental, emotional, and social wellbeing. The program is championed by the CEO, Rajiv Sharma, who shares his own journey with wellbeing in the company’s newsletter. Lastly, Farnaz highlighted the company’s CSR initiative, ‘Court Scares’, which is led by Rajeev Sharma.
Coats Cares’ Empowers Rural Indian Women
Farnaz discussed a program called ‘Coats Cares’ which provides training and employment opportunities for women in rural India. She mentioned that the program empowers women by teaching them sewing skills and basic communication skills, enabling them to set up their own businesses or become employable. Farnaz also highlighted an upcoming event where the team aims to celebrate and raise awareness of the various initiatives undertaken by the company to help the world. She also touched upon ‘Appreciation Week’ held from the 4th to the 10th of September, where the company expressed gratitude to their 17,000 employees. Klaus, the HR Business Partner for Emia and Americas for the Apparel Division, also introduced himself and expressed his willingness to work with Farnaz on initiatives related to women in the workforce.
Global Downturn Impact on Workers
Farnaz and Klaus discussed the global downturn in demand and the impact on workers in the sector. They agreed to send a report and work together on the current situation and plan to continue discussions on global issues. They also mention a new intervention from the global HR department, which has a positive vision for employees. The team hopes to meet in person next year for a global framework agreement.
Global Coats Situation Discussion- COATS Morocco
There was a discussion about the situation at Coats in different parts of the world. The conversation started with COATS union in Morrocco. The Moroccan union welcomed everyone in Morocco. The’ve set up a union office last year with the help of UMT. There was a harsh reaction by the factory general manager who is also in charge of COATS Tunisia. The palnt in Morocco works handlooms products and the company makes profits but the worker’s wages are freeze for many years. For this workers have placed demands and they went to the labour inspection department on this issue and wanted reconciliation. The company is still response on their demands. The Moroccan union requested UMT and IndustriALL’s intervention on behalf on them for fixing their legitimate wage increase.

 

COATS Tunisia:

Assil Rhouma talked on behalf of the Coats Union Tunisia. Rhouma thanked IndustriALL for the establishing the network and expected this meeting to be a fruitfull one. In Tunisia the union want to achieve more for the workers with the help of IndustriALL. COATS Tunisia union established 20 years ago. The union situation was not rosy before. We all know that the economic situation of the world is bad due to different ongoing crisis and the Tunisian union is looking forward to work through this network for the betterment of their workers. Rhouma then expressed his thanks and gratitude to the COATS Morocco union for organizing a union and suggested to have a constructive plan on increasing the membership of their union and he pointed out to have a good plan to establish social dialogue.

 

Moroccan Union on Having Social Dialogue:

Christina requested the Moroccan union delegates to reflect the situation of social dialogue in their factory. The Moroccan union delegates replied that right now there is total absent of social dialogue in their factory. The union has tried several time to establish communication with the management. Even the management didn’t allowed the union leaders to attend this meeting. The management is looking the union as a monster who will destroy their business and the union is now in a difficult situation and the’ve only a seven member union without a committee.Moroccan union leader Mohammad Halim said that right now the management is not replying in a single request they make and the general workers are not entitled to their right to speak for many years. There has been some increase of the slary of some of the workers but only to those who are in the good book of the factory HR manager. He looks the union leaders as virus and constantly pressuring workers not to join a union.

 

Assil Rhouma from COATS Tunisia:

There is absence of MENA region in COATS global HR operational activities. He pointed out the presentation made by the COATS HR Director Farnaz where there were no activities for the workers and factories from the MENA region. Farnaz was in Tunisia at the beginning of 2023 and the Tunisian union were expecting some good decisions for the workers in the region but nothing happened, The MENA region workers are experiencing significant discrimination and they are excluded in many of the company’s  CSR initiatives.

 

Ahmed Kamel- IndustriALL MENA Regional Secretary

Ahmed reflected on the issue of having difficult situation for the Moroccan union. We have to be able to move towards establishing a good relation with Moroccan factory management. There is aplan of having a COATS MENA Coincil with the union leaders from Morocco, Tunisia and Egypt. IndustriALL regional office is happy to support the Moroccan union. It is not good to see how COATS behaving when a new union is formed. Regional office will organize capacity building training for the union leaders from COATS Morocco.

 

Global Coats Situation Discussion- COATS Italy

Christina opened the floor for discussion of the COATS factory situations in Europe region. The discussion started with Turkey but there were issues with the internet connection. Italy was then discussed, with a focus on sectoral bargaining and the importance of it for the sector. It was interesting to listen what the company presented about their global HR policies. In recent time in the COATS Italian plant there are shifting of productions to other EU countries. For this we lost some professional position of the workers. The Italian federation has commitment so that the factories production remains intact and workers jobs are protected. Right now there is a big demonstration going on in Rome for the protection of unified workers rights.
Global Coats Situation Discussion- COATS Bursa

Union president Saffet Unal talked. The situation in COATS Bursa Turkey plant is going quite well from the last 5-6 months. Previuosly there was a downturn in the production. In Turkey there was a recent change in the Retirement Law that made a lot of worlers from the COATS Bursa plant to retire earlier. The union made a negotiation a settlement with the management and kept those workers employment who were getting retired earlier. This is a great victory of the union in recent time. In reply to Christina’s question the union president said the plant has 650 workers. previously the workers were morebut due to lack of orders the number came down. The union formed at that factory in 1994 and the union president is working for 14 years. The factory is very function in terms of social dialogue and the union has good relationship with the management. The factory has the best state-of-the art child care facility in that area and it is a very good kindergarten compared to the other schooling facility existing in Turkey.

 

Christina on Romania:

The company has recently built a very big facility in Romania and there is a big shift of COATS production from western to Eastern Europe. We are looking towards making a COATS European Council among the network to make our works smoother.

 

Global Coats Situation Discussion- COATS Indonesia

Rizky on behalf of SPN and the union from PT Rejo COATS made the presentation. In Indonesia there is two COATS factory the and they both are quite old. The plant Rejo COATS is in East Java and is established in 1940. The union is acknowledged by the factory management and is affiliated with the National Workers Union-SPN- One of IndustriALL affiliate in Indonesia. The union is formed in 2001 and now has 412 permanent workers among whom 33 are woman. Previously there were more workerespecially contract workers but those are reduced due to order loss. For this there are also reduction of working hours. However the union and its President Denis has made the negotiation with management and now the workers wages are fixed with a decen amount. There were also lack of interest from the factory management to provide workers bonus and last year workers didn’t get their bonus. Union President Denis with other union leaders made the bargaining and was successful to achieve the payments of worlers bonuses. Denis thanked IndustriALL for establishing this union network which also helped them to do bargaining and negotiation with the management and he also thanked the COATS management for maintaining good social dialogue with union

 

  

 
COATS Bangladesh- Progress and Challenges
The meeting was briefly paused for a lunch break, after which the team from Bangladesh was set to present their work on Bangladesh. The team also acknowledged colleagues who were unable to join due to travel delays or time zone differences, and expressed their commitment to improving their communication and collaboration in future meetings. The General Secretary Md Abdul Majid of the COATS Union in Bangladesh, expressed gratitude to all present for attending the meeting. He particularly thanked Christina Hajagos Clausen and Atle, the TGSL director and General Secretary of Industrial Global Union, respectively, for their support. He highlighted the progress achieved since their first meeting in Kuala Lumpur in 2019, such as the conversion of 400 workers to permanent status, an increase in demand compared to past agreements, and the addition of medical allowances and other benefits to their collective bargaining agreement. He also underscored the challenges they continue to face, and the importance of support from their federation leader, Kutubuddin Ahmed, particularly in cases of harassment from employers. In terms of statistics, Majid shared that their union represents 1,082 workers, of which 976 are permanent and 106 are temporary. The union’s basic salary ranges from 6,640 to a maximum of 55,800.
Mr. Majid discussed several topics, including a decrease in production by 30% in the last six months, the cost containment policy making it difficult for the current COATS Management Authority to realize benefits, and a voluntary separation scheme with 40 permanent workers provided exemption from service. The union submitted a 23-point demand to the management, which is currently being discussed. The need for improved intercommunication between the network mebers was also emphasized to enhance the COATS network. The speaker also mentioned the impact of COVID-19, with two workers dying due to the virus, and the management covering all medical expenses and providing additional health protection for affected patients. Finally, they highlighted that all permanent workers in COATS Bangladesh have taken the Corona vaccine, and strict action has been taken in this regard.
Mr. Majid expressed appreciation for the efforts of the Union leader and CEO Rajiv Sharma. He discussed various events and achievements, including the submission of charter of demand, sports programs, long service awards, and global Union action campaigns. The union shared that there are now 25 executive committee members, with 13 in Chittagong and 12 in the Gazipur unit. They also mentioned the roles they hold, with some serving for up to 6 years. Lastly, they also mentioned their involvement in various organizations, including the Industrial Bangladesh Council
Unionizing Struggles and Solidarity
COATS Bangladesh union President Abdul Mannan discussed their experience in organizing the union and struggles they faced with employers to express sympathy for the newly formed COATS Morocco Union. The speaker emphasized the importance of unity and dialogue with management as tools to resolve issues. They shared their journey, which involved loss and restructuring within their Union.
Global Coats Situation Discussion- COATS India
Mr. Gangaram Gawde on behalf of IndustriALL affiliates INTWF and the COATS union in India discussed the establishment and current status of their union, including the challenges faced by contract workers who earn only the minimum wage, which is a concern for the Union. In India first COATS plant is set up back in 1885 during the British colonial period and this report is from the 4 uniot in Madurai India. Ther are 2963 workers in COATS Madurai plant. Mr. Gawde discussed the benefits received by the contract and permanent workers, including wage benefits, education allowances for children, and other benefits like medical benefits and house schemes. The contract workers also receive benefits from the wage settlement scheme, which is reviewed every 4 years. The discussion also touched on the appreciation awards given to long-serving workers and the positive response from both permanent and contract workers to the company’s current policies. Furthermore, he mentioned the launch of the COATS Sustainability Hub in 2023 in India but employing contract workers in that hub instead of permanent workers. Finally, the repesentative alluded to some challenges faced by the Union.
Workforce Reduction, Discrimination, and Transportation Concerns in India
Mr. Gawde and Mr. Gurusamy discussed several concerns related to workforce reduction, the loss of orders, and discrimination between female and male workers. They expressed their wish for more permanent workers to join the Union and for the company to allow contract workers to join as well. They also highlighted issues related to transportation, noting that the company’s decision to directly deduct money for transport from workers’ wages was causing hardships. Lastly, Gurusamy urged the company to pay equal wages for equal work, and to avoid discrimination between male and female workers. He urged IndustriALL to raise these issues in COATS head office level.
Gender Discrimination in COATS India facilities
The Indian union representatives discussed the issue of women workers not being allowed to join trade unions, even though they have been given permanent status. They mentioned that some women workers are working under separate schemes under which they may or may not continue with the company once the scheme period is over. The majority of the women workers working under these schemes are permanent workers, but 50% are on contract or under a scheme. The union is allowed to work with them, but they cannot become members of the Union.
South America Updates- COATS Honduras
The meeting then covered presentations from South America region. Mr. Marco from COATS Honduras provided an update on the situation in the country, noting the ongoing struggle with the collective bargaining agreement and the company’s unwillingness to continue dialogue. In south America COATS has facilities in Honduras, Mexico and Columbia and the union through this network is now very well connected with each other. He also praised the efforts of the global network in improving the situation over the past couple of years. Honduras is small country in South America and the union has successfully negotiated a CBA before. Now they have submitted their Charted of Demands and the company is supposed to start negotiation with the union to have their 2nd CBA. The negotiation is supposed to start in early July of 2022 but nothing started until September last year. There were some initial discussion only at the beginning of this year but up until today the union could not negotiate an agreement. Marco also discussed financial issues affecting the company due to a global downturn in the economy and the acquisition of two large shoe composite companies. In 19 April the company suspended work contract of 97 workers for the maximum of 120 days granted by the Honduran Law without any consultation with the union. The union took action against it and appealed to the labour directorate. From last September the company in Honduras has again lack in production due to less order and there could be again reduction of workers. Marco told that as union they are trying to help the workers but could not do much due to lack of strength. Through this network he think this can be achieved and in terms of wage he thinks the wage levels in different countries are not equal though it should be equal as the workers from COATS are from the same employer. Marco emphasized to have a global agreement so that all worker from COATS facilities worldwide receive same level of wages. COATS is an attractive company to work in Honduras. Marco said the union always recognized good works done by the COATS management in Honduras. He again emphasize and asked industriALL and regional offices’ help to have their 2nd CBA finalized as soon as possible.
COATS- Financial Performance and Company Strategic Highlights
Raisul Islam- IndustriALL Project Coordinator discussed the financial performance of the company over the last five years. The revenue generation declined from 2018 to 2020 due to the Covid-19 pandemic, but started to recover in 2021 and 2022. The company’s profit generation and basic earnings per share also followed a similar trend. The free cash flow increased, but the net debt rose due to the acquisition of new companies. Despite these changes, the company’s internal dividend per share remained stable.
Company’s Strategic Highlights
Raisul discussed the Company’s recent strategic highlights and financial performances. Key points include the acquisition of German company Rheno Flex, the establishment of a new plant in Spain, and the sale of their businesses in Brazil and Argentina. The Company also announced its plan to sell its Mauritius and Madagascar plants and build a new sustainability hub in India. Concerns were raised about the sustainability of the workers at the new hub. Lastly, the Company sold its German plant to focus on its main business in footwear and accessories.
Strategic Projects and Financial Benefits
Raisul discussed the company’s strategic projects and their anticipated financial benefits, including the acquisition of several companies and the expected efficiencies from their integration. The projects delivered 21 million in efficiencies and overall savings, with expected savings of 70 million in 2024. The company also experienced job reductions and order crises that impacted workers in various countries, resulting in layoffs and reduced work hours. The presentation also detailed the company’s global factory mapping and union presence, with a focus on their acquisitions and upcoming projects.
Group Discussion
Christina opened the floor for questions and comments on Raisul’s presentation. On a question of the availability of the group’s financial and other data that was presented, Raisul informed the audience that the company’s financial data and strategic projects are available on their website. In response to a question about the potential closure of factories in Honduras, Christina explained that the company is consolidating its operations, but factories are being sold, not closed, and workers are being retained. They also mentioned that the company’s global strategy involves strengthening its key performing sectors. The group discussed the adoption of policies by the COATS company regarding the recruitment of a diverse workforce and the determination of base salaries in different countries. They noted that companies often follow local laws and regulations when making such decisions. There is a need for a global HR policy, emphasizing that a global framework agreement with the company could help standardize HR processes and potentially influence policies. Christina mentioned that progress towards such an agreement has been slow but steady. In addition, they discussed the financial performance of the company, noting that despite increased debt due to acquiring new companies, the company’s revenue and profits have been increasing, particularly after the pandemic.
Wage Improvement and Investor Network Discussed
Christina discussed the upcoming session regarding a framework agreement and the potential to improve wages within the company, particularly in the textile sector. She highlighted the role of a group of institutional investors, called the Living Wage Platform, that monitor and rate companies on their wages. Christina suggested tasking Raisul to liaise with the network and document whether its members are in bargaining and negotiating new CBAs. This information would be shared with the investor group to highlight the company’s efforts on wages. Christina also proposed adding this to the global work plan for 2024, emphasizing the importance of using platforms like these to outreach investors to amplify their message. They also noted the impact of market slowdown on the ready-made garment sector, but emphasized the importance of supporting jobs that sustain families.
Network Co-Chair Election Discussion
The team discussed the need for formalizing the network by electing co-chairs, with the aim of representing the global network, organizing meetings, and working on the work plan. The co-chairs would be chosen from various regions, and the role would involve consulting with the Secretariat on the meeting agenda and negotiating with the company for a global framework agreement. The team emphasized that the co-chairs would be representatives of the network and could assist the Secretariat, with the role being open to discussion and development.
Global Framework Agreements: Progress and Proposals
Christina discussed the guidelines for global framework agreements developed by the IndustrALL Global Union at their founding Congress in June 2012. These include developing cross-border recruitment, organizing campaigns using trade union networks in multinational companies, and pursuing agreements for regular social dialogue at a global and regional level. She detailed the network’s efforts over the past four years to establish these agreements with multinationals, with some receptiveness noted recently. While not guaranteeing acceptance of a global framework agreement, she expressed optimism and proposed starting drafting language for such an agreement, emphasizing the need for feedback in various languages. Lastly, Christina pointed out that any agreement signed must contain all elements listed in their detailed roadmap.
Global Framework Agreement: Rights and Standards
Christina went on discussing the essential elements of a global framework agreement (GFA), referencing the importance of including references to the rights outlined by the International Labour Organization (ILO) in its conventions and jurisprudence. She emphasized that the GFA must include freedom of association and collective bargaining, and covers all company locations worldwide. It should also contain provisions for multinational companies to ensure their suppliers and subcontractors adhere to these standards. Furthermore, the GFA must include commitments to treat unions positively and remain neutral regarding union employees’ decisions to join, remain with, or transfer their relationships with a union. Christina also highlighted the importance of the GFA being translated into local languages and that education and training about its contents should be provided to all stakeholders. Finally, it was noted the necessity of including agreed mechanisms for implementation and joint global company-union structures in the GFA, along with a charter of solidarity for confronting corporate violations of fundamental rights.
Next Steps summed up from the DAY 1 discussions
• Strengthen structures in Europe
• Prepare for meeting with Egyptian colleagues after visa issues are resolved
• Share links to Coats’ financial performances and strategic highlights on the regional network
• Discuss and decide on the nomination of two co-chairs for the network.
• Develop a plan for using investor leverage to influence global capital and wages.

• Draft language for a global framework agreement
 

DAY 2

 

Meeting Summary for IndustriALL 4th Annual Hybrid meeting of the COATS GLOBAL TRADE UNION NETWORK
Establishing Global Framework Agreement
Christina welcomed everyone to the 2nd day of the 4th Annual COATS network Hybrid meeting. She started the discussion by highlighting the procedures and requirements for establishing a global framework agreement (GFA), emphasizing the importance of close collaboration with unions representing workers in the company. The President and General Secretary of IndustriALL have the authority to negotiate and sign the GFA in cooperation with these affiliated unions. Christina explained that the process involves extensive consultation, drafting, review, and approval from both the union representatives and the Executive Committee. A key aspect is ensuring that the agreement meets the needs of workers while also adhering to the requirements set by the Executive Committee of IndustriALL Global Union.
GFA Translation and Expansion Discussion
Christina led a discussion about the Global Framework Agreement (GFA), its content, and the translation process into agreed languages for the signatories. There was consensus that the GFA must be available in the native languages where COATS has their production globally. The attendees agreed to finish pending presentations about the website and new company acquisitions. Afterwards, they planned to have a detailed discussion on what additional elements they wanted to include in the GFA, with the Secretariat to draft the document for review. The aim was to have a comprehensive document that includes elements beyond what is required, such as gender-based violence and occupational health and safety.
COATS Network Website Functionality and Accessibility
IndustriALL Project Coordinator Raisul Islam discussed the importance and functionality of the newly built website for the COATS Union Network. It was stated that the website had a public and private part, each serving different purposes. The public portion can be accessed by anyone, providing information about the network, ongoing activities, campaign and education materials, news and articles etc. while the private part acts as a social media site for network members, allowing them to communicate and share information. The speaker also emphasized that the website contains resources and meeting minutes, and it is constantly updated with new campaign materials. The website is available in multiple languages through Google’s translation service.
Union Members’ Online Registration Process for Social Media
Raisul explained the process of registering on their social media site. The site is exclusively for members of the Trade Union Federations and workers of the Coats facilities worlwide. To register, individuals need to fill out a form on the website, providing their name, email address, affiliated Trade Union Federation, and factory names and addresses. The form also requires users to specify their country. Once the form is submitted, an activation link is sent to the user’s email, which they must click to activate their account. Once activated, users can upload a profile picture and cover photo.
Platform Profile Creation and Connectivity
Raisul explained the functionalities of an account in the websites social media platform. The users can create profiles, add details about their work or union positions, and connect with other users. Users can also create groups, message each other, and search for other accounts by name. Additionally, users can upload statuses, pictures, videos, or links, and edit their profile settings including language preferences.
The network Website: Multilingual and Interactive
Raisul presented and showed the audience the coatsunion.net website, explaining its features and content. The website includes multiple languages, a map of manufacturing facilities, news, upcoming events, resources, and a photo and video gallery. The website also features a social media page where users can create a profile, share updates, search for friends, and edit their profile.
Encouraging Network members on Website Usage
Christina and Raisul encouraged the factory unions and union federations, including union members and leaders, to create accounts on the website developed by IndustriALL. They were also encouraged to use the website for ongoing communication. In response to a question about the use of email addresses, Raisul clarified that only those within the trade union network could use the website, and those without email addresses would be looked into. Christina suggested to develop a QR Code for the website login and searching for smooth and easier usage of the network members. Additionally, the group discussed the need for active participation on the platform, including posting regular updates. There was also an agreement to register for the website and encourage other members to do the same
COATS New Acquisitions- Rheno Flex and Texon
Raisul discussed two companies, first one is Rheno Flex, a German based sustainable reinforcement solutions manufacturer for the footwear industry. The company was acquired by COATS in 2022 and has production facilities in several regions, including Europe, Africa, North America, Asia Pacific, and South Africa. The second company, Texon, is UK- based large multinational company that manufactures various parts of shoes, including upper, linings, heel counters, toe puffs, and insoles. Texan has operations in Asia and Europe and is a supplier to several leading shoe brands. The company has factories in multiple locations, including China, Vietnam, Italy, the UK, Germany, and Taiwan.
Coats’ Recent Acquisitions and Sales and Potential Changes
The group discussed the recent acquisitions and sales of production locations by Coats, the company they work for. Christina clarified that despite these changes, workers in these locations are still employed, albeit now by different companies, and are still covered by collective bargaining agreements they have signed in past with their past management. Christina identified the need for further verification and possible organization of those locations COATS became the new employer through acquisition. She also mentioned the company’s plan to position itself as the largest components company in the sector.

 

The group discussed the recent acquisitions of the two companies by COATS and the potential changes that may occur as a result. They expressed interest in knowing whether these companies are represented properly by trade unions and if there have been any changes to their product lines or branding after the acquisition. Christina mentioned that some factories might be merged or new product categories might be added. They further noted that the newly acquired companies have already started integrating their product portfolios, and some might retain their specific brands.
Globa Framework Agreement (GFA) Negotiation Preparation- All affiliates
Christina and the group discussed the possibility of being part of a network and the potential to advance their work through this network. The focus then shifted to addressing challenges raised by Union participants, with the aim of finding solutions. They proposed a global framework agreement between Coats Group and IndustriALL Global Union. The agreement would apply to companies under the Coats Group’s direct control. Christina emphasized that the provisions of the agreement would take precedence over local and national laws if they were less favorable. The group discussed the need for language to protect against corporate restructuring and suppliers, contractors, and subcontractors being required to comply with the principles of the agreement. Lastly, the need to include home workers in the scope of the agreement due to the company’s increasing work-from-home policy is post-COVID period is also discussed.
GFA Expanding Scope: Discussing Migrant Workers’ Challenges
Follwing a question raised by the Indian delagtes, Christina discussed the addition of various groups, such as homeworkers, migrant workers, and contract workers, to their scope. There was particular emphasis on the situation of migrant workers, who often face challenges in their employment relationships. Christina also noted that there might be confusion about whether these workers are direct employees of the contracting company or of the temp agency. The discussion concluded with a suggestion to strengthen the language in their agreement to better reflect the responsibility of their suppliers and contractors.
 

Inclusion of women and Guarantee Gender Diversity
Christina discussed showed the group a draft agreement, at first pointing out the inclusion of more women workers. There was consensus that the scope of the agreement needed to be clarified, with a potential focus on increasing diversity. There was also talk about the need for stronger language in the agreement regarding suppliers, contractors, and subcontractors, and their responsibilities. The conversation concluded with the need for the agreement to require more than just expectations from suppliers, contractors, and subcontractors, with the potential for non-compliance to lead to discontinued business relationships.
India’s Policy Amendment on Contract Workers Discussed
The Indian delegates clarified a recent policy amendment in India that allows companies to employ workers on fixed-term contracts for a specific period. The workers are then expected to lose their jobs if the company doesn’t get orders for their product. They also demanded eliminating this policy that requires contract workers to work for six years before becoming full-time. During the GFA negotiation there has to an inclusion of languages where the company makes a commitment to limit the use of contractual workers and focus on employing permanent workers.
Modern Slavery and Unfair Labor Practices Discussed
Christina and the group discussed the mandatory laws and regulations related to modern slavery and unfair labor practices in the EU and UK, highlighting the potential for businesses to be held accountable for their actions. They detailed the elements that should be included in the GFA  are such as adherence to basic labor rights, trade union rights, and various international guidelines and declarations. They also mentioned the possibility of adding more specific regulations, such as those pertaining to occupational health and safety.
 

Discussing Employee Handbook and Code of Conduct
Christina discussed the need for a health and safety handbook and code of conduct for employees. It was confirmed that the company does not have a formal handbook, but they do have a code of conduct. Christina suggested that this code of conduct could be included in the global framework agreement. A copy of the company’s worldwide employment standards was shared, which outlined ethical employment standards and legal obligations. The standards included provisions against discrimination, for adequate training, and for a healthy working environment, among others. The group noted that some provisions in the standards align with the company’s commitments. The discussion ended with plans to take a break.
Wage Rates and Policy: A Controversial Discussion- what to include in the GFA
The team discussed the company’s obligations and practices regarding wages and benefits. Christina highlighted that the company’s policy states it will fulfill all its legal obligations, but the issue of wage rates was controversial. The team considered the problem of the company potentially following only the minimum wage rate, which could lead to disparities, and decided to add more language to the GFA drfat to rectify this. The discussion also considered the concept of a grievance mechanism to be established by the GFA. The team agreed to continue working on the document to strike a balance between global and local concerns.
Drafting GFA Text Document Discussion
There was a discussion about the GFA text document. Christina suggested inclusion of the elements that are stated in COATS documents such as Key people principles and their business code of conduct around issues on diversity, worldwide employment standards, equal opportunity, working hours policy, harassment, bullying and discrimination, whistle-blowing, pay and benefits, training and development, and wage policy. These documents also outlines the company’s commitment to paying employees a fair and competitive wage, complying with any minimum wage requirements, and ensuring that pay rates are at least at the level of a local living wage, which is reviewed annually. The discussion also touched on the importance of collective bargaining agreements and negotiations, particularly in relation to wage rates around the level of living wage established on a country by country basis and have strong languages about these issues to be included in the GFA text.
Health, Safety, and Gender Equality
They group considered adding specific language to emphasize the priority of health and safety, as well as the Coats’ code of practice, which includes work-life balance and continual improvement of safety performance. The discussion also touched on the importance of women’s safety in the workplace, with the suggestion to include a policy on gender-based violence and the establishment of women’s welfare committees in some countries. Christina also agreed to include a reference to the International accord in the document.
Training, Posting, and Whistleblower Policies Discussed
The group discussed the need for clear training programs and an internal and external job posting system. They also highlighted the importance of having sections on anti-discrimination and social dialogue. The meeting involved a detailed look at the company’s whistleblower policy, with Christina explaining that it allows employees to raise concerns about misconduct or suspected violations of laws, and outlines steps for responding to such disclosures.
COATS Union network Progress and Future Plans
Christina later facilitated a discussion about the progress and future plans of the Network. The group agreed on finalizing the draft of a global framework agreement. There is a need to reach out to trade unions regarding newly acquired factories and the potential for these locations to be unionized by IndustriALL affiliates. A decision was made to add the drafting of the global framework agreement to their 2024 work plan. Furthermore, the idea of a global day of action was suggested for 2024 to strengthen the network and potentially include activities such as signing into the website and making it more popular among the workers of the COATS supply chain.
Co-Chairs for Trade Union Networks
Christina and the group discussed the possibility of having co-chairs for their trade union networks. Christina clarified that according to the IndustriALL statutes, there isn’t a specific statute about co-chairs for trade union networks, but there is language about co-chairs in the sector. She also clarified that the role of co-chairs is to work in the sectors to implement policies and decisions of the Executive Board. The participants agreed on the importance of co-chairs, and it was confirmed that each of the IndustriALL affiliated unions and federation will send their nominations for Co-Chairs upon the written request of the IndustriALL secretariat.
Next Steps
• Coats employees will inquire about the availability of the Employment standards and Ethics Code document in their native language.
• The group should consider discussing further the wage rate around the level of living wage established on a country by country basis during collective bargaining agreement negotiations.
• Add language to the draft global framework agreement regarding health and safety, including references to work-life balance and anti-discrimination and social dialogue.
• Review living wages and wages for Coats employees in the work plan for 2024.
• Map new acquisitions and reach out to trade unions regarding organized factories
• Draft a global framework agreement and include it in the 2023-2024 workplan.
• Add a QR code for the website for smooth usage.
• IndustriALL Secretariat will propose a system for establishing co-chairs for the Coats network and send it to the network for consideration.
• The Secretariat will work on a global framework agreement and share a draft with the network by the end of November.
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