Background

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In the wake of high-profile wage theft cases and sudden factory closures during the COVID-19 pandemic, and foreseeing mass job losses resulting from trade wars, climate related impacts and mitigation measures, the call for a global severance guarantee fund has gained traction as a solution to the exploitative “cut-and-run” business model. This session will stage a live debate on whether such a fund—pooled and financed by global brands—can effectively address the recurring crisis faced by garment workers who experienced wage and severance theft and no access to social security.

 

Supporters of this scheme point to successful precedents like the International Accord on Health and Safety, and argue that negotiated agreements that come with enforceable mechanisms can institutionalize accountability. In addition, the scheme can strengthen national social safety nets and encourage governments in production countries to adopt more robust unemployment and severance schemes. Skeptics point to the administrative & financial costs, and complexity in governance, and foresee negative impacts on national social security systems.

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Key Objectives

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• Enhance the knowledge of the audience on addressing one of the most pervasive and recurring human right risks in supply chains: wage and severance theft following (sudden) closure.

• Build a shared understanding on what is needed from supply chain actors to tackle this problem, considering the ILO standards and learning from successful models like the Accord.

• Engage with the audience to improve and enhance the proposal for a Global Severance Guarantee Fund.

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Guiding Questions

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• Why does severance- and wage theft keep occurring? How come social security mechanisms, CSR initiatives and other programmes keep failing workers?

• How can actors be held accountable, and what is needed for workers to achieve concrete and timely remedy?

• What are the risks and pitfalls of the proposal, how can it be improved? What is needed for brands and public authorities to engage on the proposal? What are serious alternatives to the proposal to consider?

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Format

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The session will follow a structured Oxford-style debate, where audiences would vote on the motion in the beginnings, followed by debate from both sides (enabling audience members​

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Session Partner