Networked regulation as a solution to human rights abuse in global supply chains? The case of trade union rights violations by Indonesian sports shoe manufacturers

Abstract

This article analyses the capacity of global networks of civil society actors to supplement effectively weak state regulation in reducing human rights abuse by multi-national companies (MNCs). The effectiveness of non-government organizations as part of a network of control finds support both in the radical criminological literature as well as those explicitly advocating for a networked regulatory approach. This case study of the Indonesian sport shoe industry demonstrates that networked regulation has had a positive short-to medium-term impact on respect for trade union rights among some manufacturers producing for western MNCs. However, inconsistent approaches by the MNCs and ongoing resistance by manufacturers has made this influence difficult to sustain. Critically, the Indonesian state apparatus emerges as a powerful and primarilybut far from completely-complicit set of actors: applying criminal sanctions for trade union rights violations but failing to enforce them, and influencing networked regulation in complex, contingent ways. This case study suggests both that advocates Downloaded from 198Theoretical Criminology 17 (2) and practitioners of networked regulation need to find more effective ways to respond to the corporate drive to maximize profit and that networked regulation's long-term usefulness will likely depend on the extent to which it draws from and operates to strengthen progressive regulatory elements within Asian states.

Responsibility and neglect in global production networks: the uneven significance of codes of conduct in Indonesian factories

“…For example, according to Oxfam, there are frequent reports of employers refusing to recognize factory-level unions, declining to sign collective bargaining agreements and threatening or dismissing suspected union members (Connor and Dent 2006). This is further supported by several scholars arguing that the Indonesian labour inspection regime is weak with a shortage of labour inspectors and lack of effective sanctions (Connor and Haines 2013;Warnecke and De Ruyter 2012).…”

“…Indeed, Indonesian unions and labour NGOs have been involved in discussions over codes of conduct since the late 1990s (Connor and Haines 2013). In addition, anti-sweatshop activists have sometimes promoted Indonesia as a site for increased labour union involvement in GPNs and as a democratic alternative to production in China and Vietnam (cf.…”

“…87) (Caraway 2004). This led to the emergence of multiple independent labour unions, federations and confederations, which was a major departure from the previous dominance of the state-sanctioned union (SPSI), which had closer relationships with factory managers than workers (Connor and Haines 2013).…”

“…Due to the weak position of labour unions, the limited support for labour from the state, recurring worker rights violations and a labour repressive history, labour organizations in Indonesia can be expected to be interested in international support (Murillo and Schrank 2005) and codes of conduct may be especially relevant as a means of improving labour conditions. Indeed, Indonesian unions and labour NGOs have been involved in discussions over codes of conduct since the late 1990s (Connor and Haines 2013). In addition, anti-sweatshop activists have sometimes promoted Indonesia as a site for increased labour union involvement in GPNs and as a democratic alternative to production in China and Vietnam (cf.…”

“…Our findings are far less optimistic. This is likely due in part to the comparatively weaker Indonesian inspection regime (Connor and Haines 2013;Warnecke and De Ruyter 2012) and the unique features of the 'Latin' model of labour inspection (Schrank 2013). One should also remember, however, that private and public regulation of labour conditions have rarely been compared directly, so many questions remain about their relative impacts and the conditions under which they make a difference.…”