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COVERCO enforces corporate codes of conduct for working conditions in Guatemalan maquilas (factories) and in the agricultural export industry through intensive, long-term independent monitoring.

The Commission for the Verification of Corporate Codes of Conduct (COVERCO) is a nascent independent monitoring agency formed in 1997 by members of civil society groups, including professionals in law, education, business and other fields. COVERCO currently has arrangements to monitor three maquilas, one that produces items exclusively for Liz Claiborne, Inc. (LCI), one that produces for Gap Inc., and one that combines contracts for Gap Inc. and LCI.

COVERCO first establishes a relationship with the brand (for example, Liz Claiborne) then contracts with that group to monitor their factories, for a fee. Recent public interest in conditions for factory workers abroad is making many American and European brands more eager to scrutinize the factories with which they work.

COVERCO maintains a steady presence in the maquilas it monitors, rather than conducting short-term visits and filing one-time reports. Monitors, who are often former maquila-workers themselves, visit the maquilas as frequently as once per week, meet with workers both during and outside of normal business hours in their homes or at neutral locations selected by the workers, and maintain a telephone hotline to ensure workers full access to monitors. Interviews are conducted in Spanish, and are kept in strict confidence.

Monitoring consists first of a “social audit” whereby observers characterize labor relations at the maquila – checking, for example, whether there is a grievance procedure and whether or not it works. Working conditions are documented, including the presence and handling of industrial chemicals, maintenance of bathrooms and the operation of an on-site health clinic. Monitors then undertake a thorough review of the payroll: items checked include the payment of employee benefits and production bonuses, and the amount of overtime work required. Maquila managers are required to provide COVERCO’s monitors full access to personnel files.

In its ongoing relationship with LCI, COVERCO has taken tangible steps to improve workers’ awareness of their rights and responsibilities, and to verify factory compliance with LCI’s code of conduct in a maquila near Guatemala City. The maquila is Korean-owned, and employs about 1000 people.

As a result of COVERCO’s reports, a variety of corrective measures have been taken in the maquila, including the repair of chairs after the initial finding that 40 percent of workers’ chairs had broken backs, the distribution of gloves and masks to workers handling hazardous chemicals, and the repair of toilets and washbasins. The maquila management also initiated a policy for emergency and grievance procedures, installed an infirmary and staffed it with a full-time nurse’s aide. Working together with COVERCO, LCI also devised a Spanish-language illustrated pamphlet, the “Code Comix,” outlining the LCI standards. Due to high job turnover at the factory, COVERCO has recommended that LCI hold frequent workshops on their policies and distribute the pamphlet to all new employees.

COVERCO monitors stress to workers that they are not union representatives, and they decline to take an advocacy role in worker-employer disputes. In addition, COVERCO has turned down requests from maquila management to act as an intermediary with employees. COVERCO emphasizes that it is “non-substitutive” – that it does not act as a replacement for unions, management, governmental agencies or advocacy organizations.

COVERCO also maintains neutrality in its reporting. Through document searches and multiple interviews, COVERCO seeks to verify workers’ claims of poor treatment, always includes management reaction to claims in its reports, and takes note of situations where claims cannot be substantiated.

COVERCO is an initiative of, by and for laborers, and undertakes to employ former maquila workers as monitors. It is based in Guatemala City, and has contacts with non-profit organizations throughout the country. COVERCO also maintains relations with Guatemalan human rights groups and U.S.-based labor rights organizations.

Completed January 23, 2001.

Photo credit: npatterson