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We were intrigued to read today that Scotland’s aspirations to become the first Fairtrade country, have received a major blow.  An investigation by BBC Scotland has revealed that five firms supplying Scottish local authorities have been accused of serious labour rights abuses.As part of Scotland’s aspiration to become the first Fairtrade nation, the country has committed to

• Increasing awareness of Fairtrade and the surrounding issues
• Increasing the sales of Fairtrade products
• Contributing to greater trade justice
• Engender a meaningful commitment to Fairtrade from Parliament and executive bodies

The BBC investigation, centred on the supply of computers, found that millions of pounds of taxpayers’ money had been paid to companies accused of serious labour rights abuses, including child labour.

John McCallon, Chairman of the Scottish Fairtrade Forum said: “If our politicians went to the TV cameras and said we are proud that Scotland is one of the first Fairtrade Nations, then we discovered that the National Health Service was sourcing goods from sweatshops in South East Asia, then it would make Scotland a laughing stock.” 

Although some public sector organisations are working hard on the issues of labour standards in supply chains; from Impactt’s experience the public sector in general is five to ten years behind the leaders in the private sector. If the public sector were to commit to such standards, the estimated £160billion spent on procurement by public sector bodies in the UK could be a significant lever for change.

As with the private sector, public sector organisations must realise that they cannot eliminate poor labour conditions in their supply chains overnight; instead they must with suppliers to build their capacity to manage labour standards. Scandals like this are likely to continue until politicians and managers can respond with credible and concrete actions, rather than headline-grabbing slogans.