Idea Transcript
Media Release 15 January 2015
ALDI Response to ABC Four Corners ALDI Australia takes all allegations of misconduct by our suppliers seriously. Currently, ALDI is not aware of any exploited labour allegations facing our suppliers and is concerned by this information. If ALDI is notified of any issues within the supply chain, we will investigate immediately. ALDI Australia supports the principle of a strong and sustainable grocery industry for suppliers, retailers and their employees. Over the course of the year we engage with more than 1,000 suppliers, the majority of whom are Australian and have enjoyed growth and success as we have expanded. The recent decision to sign up to the Government’s Food and Grocery Code reflects ALDI’s dedication to Australian suppliers and our commitment to sustainable supplier relationships, which includes working with them to ensure the highest levels of workplace standards. The 2013 Nielsen Retail Barometer, quoted in ‘The Sydney Morning Herald’ (Adele Ferguson, 8 November 2013), rates ALDI as ‘Retailer of the Year’ according to 64% of suppliers, compared to 21% of suppliers who chose Coles and 7% for Woolworths. Furthermore, ALDI has the highest net rating for quality of relationship, with a 73% rating compared to 57% for Coles and 9% for Woolworths. ALDI Australia conducts its operations with the highest level of professional and ethical standards. ALDI has strict Terms and Conditions of Business for suppliers which outline expectations in the areas of compliance, including appropriate compensation and working conditions. Should any suppliers be found to be in breach of our supplier standards and Terms and Conditions, we would act swiftly to investigate and address the situation thoroughly. If necessary, ALDI has the right to suspend contracts that do not meet these obligations. As part of our supplier contracts, all suppliers in Australia commit to a Code of Conduct on social compliance covering key areas such as elimination of discrimination, Occupational Health & Safety and prohibition of child and forced labour. This is a contractual obligation that ALDI holds all of its suppliers to and expects they treat their employees with respect and meet their obligations under the law. These Terms and Conditions are based on International Guidelines, including: •
Wages paid for regular working hours, overtime hours and overtime differentials shall meet or exceed legal minimums or industry standards whichever is more stringent. ALDI Stores does not accept illegal, unauthorised or disciplinary deductions from wages.
Media Release 15 January 2015
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All ALDI Stores business partners have to comply with applicable national laws, industry standards and the ILO conventions regarding working hours
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ALDI Stores expects its business partners to establish and follow a clear set of regulations and procedures regarding occupational health and safety. Workplace practice and conditions which violate basic human rights are not tolerated.
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ALDI Stores does not tolerate child labour as defined by ILO and United Nations Conventions and/or by national law and expects its business partners to adhere to the one standard which is most stringent
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ALDI Stores will not tolerate any form of forced labour and related practices, such as lodging deposits or the retention of identity documents from personnel upon commencing employment. The use of corporal punishment, mental or physical coercion and verbal abuse is forbidden.
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ALDI Stores expects its business partners to ensure that work performed for them is carried out on the basis of recognised legal employment relationship
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ALDI stores expect our business partners to have defined and implemented a policy for social accountability. A management system must be established to ensure these standards will be achieved.
ALDI’s long-held practice with suppliers involves forging long term, sustainable relationships and working closely in partnership to provide Australian shoppers with the best quality products at competitive prices. We have a strong commitment to sustainable relationships with our suppliers and since opening in Australia in 2001 have been instrumental in providing economic security for many Australian food suppliers and manufacturers. We provide consistent, meaningful volumes and therefore viable income to those we work with. Veli-Velisha Fresh Produce has been working in partnership with ALDI for 13 years supplying Australian consumers with affordable quality fresh produce. “ALDI’s fairness and understanding in supplier issues is to their credit. Our business has always found ALDI to pay appropriate market prices and to be flexible whenever needed to help accommodate market fluctuations. They have a strict payment system that they always adhere to,” said Catherine Velisha, Co-owner of VeliVelisha Fresh Produce. Additionally, Australian fruit pre-packer, Pinnacle Fresh has built a long-term, sustainable relationship with ALDI. “Pinnacle Fresh, has shared a fantastic
Media Release 15 January 2015
relationship with ALDI for the past 6 years. In that time we have found working with ALDI simple, smooth, transparent, fair and honest. We look forward in continuing to build on this relationship into the future,” said Alf Fabris, Founder of Pinnacle Fresh. Additionally, ALDI has a Social Monitoring Program to further ensure social compliance and continuous improvement of the existing working conditions within the facilities manufacturing the goods we sell. As part of the social monitoring program ALDI requires third party social audit reports for production facilities within countries and categories that are considered at risk for insufficiently enforced social standards. The social monitoring program also supplies information to the ALDI Buying Department to allow them to consider the social aspects of the production facility in addition to quality and cost. As the first Australian Supermarket member of the Suppliers Ethical Data Exchange (Sedex), ALDI also benefits from a range of market leading reporting and risk analysis tools. These tools help identify and report on areas of high risk in the supply chain including labour standards, health and safety, the environment and business ethics, enabling staff and suppliers to take the necessary steps to address potential issues.