One step closer to higher wages

13 January 2010

Today the Department for Business Innovation and Skills finally responded to the Competition Commission’s recommendations to curb supermarket power.

ActionAid has been calling for stronger regulation to help protect workers in poor countries who pick and pack fresh produce for sale in UK supermarkets since 2007.

What has essentially been created by the Competition Commission is a new Code of Practice for supermarkets, which will be operational from February.

The Commission also recommended that the Government set up a watchdog to enforce the code of practice. The government has finally come out in favour of some sort of watchdog, but it claims that more consultation is needed.

Meredith Alexander, Head of Trade and Corporates for ActionAid, said: "Everyone knows that supermarkets have the power to put a squeeze on farmers, and their tactics can harm workers in developing countries too.

"The Competition Commission spent several years studying the problem and set out a clear recommendation for how to protect suppliers. Since then the government has been dragging its feet for months.

"Now that the Conservative Party have put their weight behind a watchdog, the government has finally come out in favour of curbing supermarket power. But the government is still stalling - opting for yet another unnecessary consultation rather than creating a clear timetable for establishing a watchdog.

"Workers in poor countries who supply us with our fresh fruit and vegetables live on a pittance. Another long drawn-out process will only make their lives harder."

The government’s lukewarm support was prompted by other political developments.

Last week the Conservative party voiced strong support for a watchdog. Nick Herbert MP, the Shadow Secretary of State for Environment, Food and Rural Affairs was unequivocal.

He said: "While the Government dithers, the Conservatives are clear: we will introduce an ombudsman to curb abuses of power which undermine our farmers and act against the long-term interest of consumers."

In addition, Labour MP Albert Owen has tabled a Private Member’s Bill to set up a watchdog, which is scheduled to have its second reading in March.

ActionAid has campaigned long and hard to get effective regulation of supermarket behaviour. Supporter action has been pivotal in putting the issue on the political agenda.

Supporters have contacted MPs, submitted comments to the Competition Commission, written articles for local newspapers and put pressure on supermarkets themselves.

Together with our supporters, ActionAid will continue campaigning working until workers in developing countries get the protection they deserve.

photo : ©Jess Hurd/ReportDigital/ActionAid.

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Lotty Reynolds

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