He is an auditor of the 'social' kind. While most auditors pore over
accounts to ensure that companies remain profitable, Charles Santiago
social audits the often unpleasant conditions of factories on behalf of
workers.
His 'clients' are multinational corporations that range from coffee (and coffee-mug) producers and garments manufacturers to those producing high-technology components such as computer chips for automobiles and electronic goods.
Santiago, who is attached to an international non-profit organisation and who usually audits factories located in Southeast Asia, also checks factories that produce for the world's largest hypermarkets and stores.
He spends two to three days at each factory - conducting interviews with workers and managers, checking medical records, the work environment and state of equipment - to assess compliance with the International Labour Organisation's (ILO) core labour standards.
Standards that make up the first component of his audits relate to the right and freedom to associate and to organise; collective bargaining; equal remuneration; and prevention of discrimination, forced labour and child labour.
The second and third components pertain mainly to health and safety standards and practices; the rights of women and migrant workers; and environmental disposal mechanisms in place.
"We just try to ensure that working conditions are humane, because working conditions in labour-intensive jobs, generally, are horrendous," said Santiago, who is also director of the Petaling Jaya-based Monitoring Sustainability of Globalisation, in an interview.
He explained that social compliance auditing came about because of pressure from consumers, trade unions, and civil society in Europe and US in demanding ethical sourcing and production from companies and their contract manufacturers.
"Companies are vulnerable to consumers. There are always these major campaigns such as against Wal-Mart Stores and so on. For them, it's important that you follow the labour standards. There's no way out of this any more," he said.
"As a result of pressure from Europe and US, companies feel that they and their contract manufacturers have to hold to some standards in order to assure consumers and say, 'Hey, look, we're following some standards here'."
Violation of standards
What are some of the labour standards violations that he has seen during the course of his work?
They range from manufacturers under-paying (or not paying) workers for overtime work, pressure or outright discrimination against unionised workers, and exploitation and abuse of contract workers recruited by a labour contractor.
These contract workers are employed on irregular basis. They suffer the brunt of abuses as they are not covered by employment terms or given any regular benefits or increments, said Santiago.
Many companies go for the absolute minimum of compliance if they fulfill the labour standards at all, he noted.
More serious violations include forcing factory-workers to operate in crowded premises and in such hot, humid, and poorly-ventilated halls that two to three people faint daily and have to be sent to hospital.
Santiago describes factories where the workers are monitored closely and discouraged from taking any breaks - even to use the toilet - that many developed urinary tract infections.
Cases also abound of contract manufacturers who entice foreign workers with attractive terms of employment and remuneration, but present them with drastically different contracts upon arrival in the country.
"These are serious violations," said Santiago in reference to one factory that he had audited.
"Right away, I got on the phone and I called the (parent) company abroad and said, 'Look, you have to come down here'. Someone arrived within 48 hours and had a discussion (with the local manager). There was no union, but the workers got their back wages."
While conceding that social audit compliance on the part of companies are essentially public relations exercises to assuage consumers, Santiago said these can still result in better terms and conditions for workers.
His 'clients' are multinational corporations that range from coffee (and coffee-mug) producers and garments manufacturers to those producing high-technology components such as computer chips for automobiles and electronic goods.
Santiago, who is attached to an international non-profit organisation and who usually audits factories located in Southeast Asia, also checks factories that produce for the world's largest hypermarkets and stores.
He spends two to three days at each factory - conducting interviews with workers and managers, checking medical records, the work environment and state of equipment - to assess compliance with the International Labour Organisation's (ILO) core labour standards.
Standards that make up the first component of his audits relate to the right and freedom to associate and to organise; collective bargaining; equal remuneration; and prevention of discrimination, forced labour and child labour.
The second and third components pertain mainly to health and safety standards and practices; the rights of women and migrant workers; and environmental disposal mechanisms in place.
"We just try to ensure that working conditions are humane, because working conditions in labour-intensive jobs, generally, are horrendous," said Santiago, who is also director of the Petaling Jaya-based Monitoring Sustainability of Globalisation, in an interview.
He explained that social compliance auditing came about because of pressure from consumers, trade unions, and civil society in Europe and US in demanding ethical sourcing and production from companies and their contract manufacturers.
"Companies are vulnerable to consumers. There are always these major campaigns such as against Wal-Mart Stores and so on. For them, it's important that you follow the labour standards. There's no way out of this any more," he said.
"As a result of pressure from Europe and US, companies feel that they and their contract manufacturers have to hold to some standards in order to assure consumers and say, 'Hey, look, we're following some standards here'."
Violation of standards
What are some of the labour standards violations that he has seen during the course of his work?
They range from manufacturers under-paying (or not paying) workers for overtime work, pressure or outright discrimination against unionised workers, and exploitation and abuse of contract workers recruited by a labour contractor.
These contract workers are employed on irregular basis. They suffer the brunt of abuses as they are not covered by employment terms or given any regular benefits or increments, said Santiago.
Many companies go for the absolute minimum of compliance if they fulfill the labour standards at all, he noted.
More serious violations include forcing factory-workers to operate in crowded premises and in such hot, humid, and poorly-ventilated halls that two to three people faint daily and have to be sent to hospital.
Santiago describes factories where the workers are monitored closely and discouraged from taking any breaks - even to use the toilet - that many developed urinary tract infections.
Cases also abound of contract manufacturers who entice foreign workers with attractive terms of employment and remuneration, but present them with drastically different contracts upon arrival in the country.
"These are serious violations," said Santiago in reference to one factory that he had audited.
"Right away, I got on the phone and I called the (parent) company abroad and said, 'Look, you have to come down here'. Someone arrived within 48 hours and had a discussion (with the local manager). There was no union, but the workers got their back wages."
While conceding that social audit compliance on the part of companies are essentially public relations exercises to assuage consumers, Santiago said these can still result in better terms and conditions for workers.
"(Contract manufacturers) could potentially lose the contract. If they
do not follow the recommendations and are quite aggressive about it, and
there is no middle ground, the parent company can also cut down on the
quota and the volume of supply.
"Any one contract manufacturer will produce goods for five or six companies. Once one main company pulls out a contract, the others will follow."
Although many factories continue to violate labour standards despite being told by their parent companies to change, there are also those who implement changes recommended in social audit reports.
"(In my work), I go back to the company after a year or more, and I've seen changes. Small gains can happen," he added.
"Any one contract manufacturer will produce goods for five or six companies. Once one main company pulls out a contract, the others will follow."
Although many factories continue to violate labour standards despite being told by their parent companies to change, there are also those who implement changes recommended in social audit reports.
"(In my work), I go back to the company after a year or more, and I've seen changes. Small gains can happen," he added.
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