Different Approaches to Labour Standards and HR Management Sofie Pedersen Danish Ministry of Business & Growth June 16th, 2012

Agenda What is the benefits of high labour standards and good HR Management? Approaches to labour standards and HR management How to measure the improvements?

The benefit of compliance to labour standards and good HRM  A more reliable workforce  Happy and contend employees  Easier recruitment and retention of qualified labour  Higher quality, less rejects  Higher performance/productivity  Liability  Preventive measures

Results from SUSBIZ India

Approach to good labour practices and HR management International management systems and guidance SA 8000 ISO – Guidance on social responsibility Sector specific guidelines: E.g. NICE code of conduct (fashion industry)

SA 8000 Child labour Forced and compulsory labour Health and Safety Freedom of association & right to collective bargaining Discrimination Disciplinary practices Working hours Remuneration Management systems

Approach to good labour practices and HR management Example of HR Management: Reducing overtime by changing production planning Case of textile company participating in SUSBIZ India: –Problem: Overtime in peak seasons causing overtime costs, more reject due to tired worker –Reorganising the production scheduel after dialogue with costumers: Seasonal wear produced during high seasons Standard textiles is produced in the low seasons –Results: Contend and fresh workers, less overtime costs, less rejects etc.

How to measure the improvements? When setting up HR management system: Define targets –e.g. 50% reduction in overtime over 3 years Documentation: Select indicator(s) –e.g. overtime measured in hours and KES Evaluate and make corrective actions