EDUN embraces a fundamental responsibility to promote opportunity, economic development and humane working conditions for the individuals who help us manufacture our garments.  Although we are small, relatively new and still learning, we are committed to upholding and promoting internationally accepted human-rights and labor norms formulated by human rights organizations and international trade unions as we manufacture our garments. Accordingly, EDUN has formulated Terms of Engagement. 

EDUN's Terms of Engagement are non-negotiable practices EDUN requires its business partners uphold.  EDUN will not establish relationships with organizations that do not maintain these provisions.  These Terms of Engagement do not comprehensively represent all of the labor and development practices we expect our factories to promote.  Since factories usually produce garments for multiple apparel companies, and often each company has a different benchmark for acceptable standards, given EDUN’s size and resources, it will take some time before we have the influence to adopt our most preferred labor provisions throughout our supply chain.  Therefore, we strive to be transparent in our requirements and not to blur that which comprises our bare-minimum standards of engagement and the standards that we will work to achieve with our factories.

At the end of this document, we list Preferred Practices.  EDUN’s Preferred Practices serve as practices we want our partners to adopt and that we will work with them to achieve.  Once we expand our leverage, we seek to include these provisions in our Terms of Engagement. 

EDUN’s Terms of Engagement was modeled after recommended codes by international labor organizations and through the guidance of labor rights organizations and international instruments such as:

1. The Universal Declaration for Human Rights
2. The Convention on the Rights of the Child
3. The International Covenant on Economic, Social and Cultural Rights
4. United Nations Declaration on the Elimination of All Forms of Racial Discrimination
5. Convention on the Elimination of All Forms of Discrimination against Women
6. Abolition of Forced Labor Convention
7. Supplementary Convention on the Abolition of Slavery, the Slave Trade, and Institutions and Practices Similar to Slavery
8. Freedom of Association and Protection of the Right to Organize Convention
9. International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families

EDUN’s Terms of Engagement also rely upon the eight fundamental workers’-rights provisions provided for by the International Labor Organization (ILO), identified by ILO as the most indispensable rights of workers. The core provisions are:  

Freedom of association
• ILO Convention 87 (Freedom of Association)
• ILO Convention 98 (Right to Organize and Collective Bargaining)
The abolition of forced labor
• ILO Convention 29 (Forced Labor)
• ILO Convention 105 (Abolition of Forced Labor)
Equality
• ILO Convention 111 (Discrimination in employment and occupation)
• ILO Convention 100 (Equal Remuneration)
The elimination of child labor
• ILO Convention 138 (Minimum Age)
• ILO Convention 182 (Minimum Age)

Other conventions also relevant:

Safe and Hygenic Work environment
• ILO Convention C155 (Minimum Age)
Regular Employment
• ILO Convention C95 (Protection of wages)
• ILO Convention C158 (Termination of employment)
• ILO Convention C175(Part-time work)
• ILO Convention C177(Homework)

No Discrimination
• ILO Convention C100 (Equal remuneration)
• ILO Convention C30 (Discrimination)

Maternity Protection
• ILO Convention C183 (Maternity leave)
• ILO Convention C30 (Discrimination)
Wages
• ILO Convention C95
• ILO Convention C131
Working Hours
• ILO Convention C1 (Hours of work)
• ILO Convention C30 (Hours of work)
• ILO Convention C106  (Weekly rest)

Convention 182 additionally relates to the worst forms of child labor.

We encourage our contractors to review these instruments.

Terms of Engagement

These Terms of Engagement establish practices that EDUN expects its contractors to promote and uphold.  These apply to all EDUN divisions, affiliates, contractors, and subcontractors in the business of manufacturing EDUN’s clothes, regardless of geographical location.  Throughout the Terms of Engagement, "Companies" or "Company" shall refer to all individuals and organizations that have established a contract with EDUN and their contractors, subcontractors or manufacturers that produce EDUN's finished goods.

Contractors, subcontractors, principal suppliers and licensees found tobe in breach of one or more terms of the code or failing to implement the corrective action plan, shall lose the right to produce or organize production of goods for EDUN or to provide services for EDUN.

In addition to these provisions, EDUN's contractors are to strictly follow all international, national and local laws.  When the law and EDUN's Terms of Engagement address the same subject, the requirements that are most stringent are the ones to be applied.

1.1 The Company follows all applicable local, regional and national laws, rules, and regulations, including those that concern labor, health, safety, the environment, and children.

2.1 The Company makes no use of forced, including bonded or involuntary prison, labor.
2.2 The Company does not require nor encourage employees to lodge deposits or identity papers with the company or company representatives.  The Company prohibits all forms of debt-bondage conditions.
2.3 Employees, including domestic and foreign contract employees, maintain the right to cease employment at any time with reasonable notice.
2.4 The employer pays for recruitment commissions and fees for foreign employees.
2.5 If employees do not have access to affordable goods, such as food, other than through the Company, the Company provides these goods at or below the market price to ensure that the employees do not accruing debt.
2.6 The Company does not require employees to unwillingly remain in the company facilities or dormitory. The Company should establish reasonable conditions such that employees can leave company facilities without penalty.
2.7 The company works to accommodate educational opportunities for all employees and promotes community development.

3. No Workplace Discrimination

3.1 The Company does not discriminate against job applicants based on their race, color, gender, age, religion, disability, political opinion, nationality, beliefs, social origin, maternity, marital status or other distinguishing characteristics.
3.2 The Company does not discriminately apply employees’ salaries, benefits, advancement opportunities, discipline measures, or terminations based on employees’ race, color, gender, religion, age, political opinion, nationality, beliefs, social origin, maternity, marital status or other distinguishing characteristics.
3.3 The Company does not subject employees to illegal pregnancy testing nor ask them about their pregnancy status during interviews.  Employees returning from pregnancy leave are able to resume their previous jobs within a reasonable time frame. 

4. No Child Labor

4.1 The Company does not engage in nor support child labor.  A child is any person less than 15 years of age. Every employee meets minimum age requirements as provided for by local law and is over the compulsory school-leaving age.  Companies located in economies that are insufficiently developed may, after consultation with the organizations of employers and employees concerned, where such exist, initially specify a minimum age of 14 years in accordance with exceptions under ILO Convention No. 138, article 2.4.
4.2 The Company refers to and maintains official documentation to verify employees’ dates of birth.  If such documentation does not exist, the Company uses reliable methods to determine employees’ ages and maintains the affiliated documentation.
4.3 The Company complies with all governing laws relating to the hiring, wages, hours, overtime and working conditions as applied to young employees. Young employees are defined as employees who are between the ages of 15-18. The Company establishes working hours for young employees considering their age and development needs.  The Company limits young persons’ overtime and avoids requiring hours that restrict their ability to attend school. The Company does not require young persons to lift objects disproportionate to their size. 
4.4 Where countries permit apprenticeship programs for children between 12-15, children in the apprenticeship program must only work a “few hours a day,” and the total number of hours spent in school and on light work must not exceed 7.
4.5 In cases where child laborers are identified, the Company provides adequate transitional education assistance to the child and the child’s family to ensure that the child attains quality education until the child reaches 15 years of age or the equivalent education as 15 year-olds.

5. Freedom of Association

5.1 The Company maintains a positive, open attitude towards the organizational and administrative activities of trade unions.  The Company establishes this in both written policy and consistent practice. The Company negotiates with unions and respects the terms of the contract for the length of its implementation.       
5.2 The Company neither prevents nor discourages any employees  from forming and/or joining trade unions or associations throughout the length of their employment.  The Company does not use severance pay or indemnification to limit employees’ associations.
5.3 The Company allows employees to bargain collectively, without interference, threat, or intimidation, to determine their salary, hours, social security, vacation, sickness, maternity leave and minimum wage. The Company does not subject worker representatives to discrimination, and those worker representatives have access to all workplaces necessary to carry out their representation functions.
5.4 Where law prohibits the formation of unions, the Company establishes a parallel means by which employees may freely associate, bargain and field their concerns.
5.5 The Company does not close operations nor shift production to punish employees attempting to form unions.

6. Wages and Benefits

6.1 The Company recognizes that wages are fundamental for providing employees and their families with fundamental, basic needs.  The Company pays employees, at the minimum, either the legal minimum wage or the local industry standard wage, whichever is greater. 
6.2 The Company provides employees with accurate, written and verbal communications about the details of their remuneration before they enter employment, in such a way that the employees comprehend nuances.
6.3 The Company pays overtime at a premium rate greater than regular hourly compensation.
6.4 The Company pays employees by check or cash, based on their respective preference and in periods that are, at the minimum, monthly.
6.5 The Company provides all legally mandated benefits.
6.6 Deductions not required by national law are only permitted if the employees involved have approved such deductions.  The company communicates all anticipated deductions orally and in writing, in such a way that the employees comprehend the nuances. The Company makes no deductions for toilet paper, lavatory soap, and clean drinking water. Deductions never bring wages below legally mandated or standard industry wages, whichever is greater.
6.7 The Company shall not avoid obligations to employees under labor or social security laws and regulations arising from the regular employment relationship through the use of labor-only contracting, sub-contracting, or home-working arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment. No apprenticeship-training schemes that pay lower than the minimum wage shall last longer than three months cumulatively.

7. Hours

7.1 The Company uses effective and reliable mechanisms to record employees’ working hours.  The Company diligently uses these hours to calculate wages and discloses wages to the employees.  The Company does not fraudulently represent working hours.
7.2 The Company does not require work hours, including hours dedicated to piecework or homework, greater than 48 hours per week.  The Company provides employees one free day within seven consecutive days of work.  Overtime work, including take-home piecework, does not exceed 12 hours per week and the Company does not demand such overtime, even when the work week is less than 48 hours. 
7.3 The Company provides employees paid annual leave and holidays as required by law. 
7.4 The Company provides employees legally mandated breaks or at least a 30-minute break daily, whichever is greater.
7.5 All overtime work is voluntary (unless otherwise noted in the employment contract or collective bargaining agreement) even in cases where production quotas are not met.  In rare and exceptional cases, given production demands, employees may work more than 12 hours overtime, but only on a voluntary basis. The Company imposes no penalties for refusing to work overtime.

8. Dormitories

8.1 The Company provides employees safe, sanitary and decent accommodations.  This includes fire extinguishers and alarms, waste management facilities, clean water, showers and bathrooms.  
8.2 The Company does not limit the movement of migrant employees, including on the company ground and dormitories.  All residents have the freedom to enter and exit the dormitory without hindrance.

9. Harrassment & Abuse

9.1 The Company does not employ physical abuse, corporal punishment, physical contact, or intimidation as disciplinary measures.
9.2 The Company does not tolerate sexual harassment.
9.3 The Company provides safe methods for employees to report verbal abuse or harassment without fear of retaliation.

10. Health & Safety

10.1 The Company provides a safe and healthy working environment, using prevailing industry-specific knowledge and best practices.   The Company’s policies and practices address management systems, protective gear, machine safety, chemical safety and labeling, explosion hazards, personal protection, combustible areas, medical service availability, evacuation procedures, exits, electrical wiring, ventilation, lighting, noise levels, emergency systems, sanitation, and waste management.
10.2 In cases where OSHA laws are more rigid than local and national laws governing health and safety, the Company uses OSHA as the prevailing standard.   
10.3 The Company regularly trains all employees and re-assigned employees on safety arrangements. The Company trains new employees in a timely manner.
10.4 The Company makes available in the local language a written record of all health and safety policies.
10.5 The Company establishes a system to detect, avoid and respond to occupational hazards. Accident reports are complete and fully available to auditors and the Company maintains them for three years.  The Company also documents actions taken to prevent accident recurrence.
10.6 Each building has safe drinking water.
10.7 The Company provides all employees  sanitary lavatories, toilet paper, and hand soap.
10.8 On-site cafeterias maintain clean facilities and sanitary food, dishes and utensil handling.
10.9 The Company takes special cautions to ensure that pregnant women do not engage against their will in work that will harm their health.
10.10 The Company involves employees in safety planning.

11. Implementation

11.1 Employees understand the EDUN Code of Conduct.  Training is conducted regularly and in languages comprehensive of employees spoken languages. 
11.2 Contractors, subcontractors, principal suppliers and licensees (franchise-holders) undertake to support and co-operate in the implementation and monitoring of this code by: 
i. providing Edun with relevant information concerning their operations;
ii. permitting inspection at any time of their workplaces and operations by approved inspectors, whether the visits are announced or un-announced;
iii. maintaining records of the name, age, hours worked and wages paid for each worker and making these available to approved inspectors on request;
iv. informing, orallly and in writing, the employees concerned of the provisions of this Code; and,
v. refraining from disciplinary action, dismissal or otherwise discriminating against any worker for  providing information concerning observance of this code. The provisions of this code constitute only minimum standards.  Edun does not intend, will not use, and will not allow any contractor, subcontractor, principal supplier or licensee to use these minimum standards and conditions as maximum standards or as the only conditions permitted by (name of company) or to serve as the basis for any claim as to what standards or conditions of employment should be provided.

Preferred Practices

11. Children

11.1 If the Company’s workforce is predominantly female, the Company arranges day care for children below school age.

12. Wages

12.1 Wages are always sufficient to meet the basic needs of employees (that standard for which is to be identified), their families, and to provide some discretionary income. 
12.2 The overtime rate is at least 150% of the established hourly wage.