Name: Alka Aggarwal

Roll no:21PGDMHR07

Q1. Analyze the role played by different actors in the situation? Why should a firm like M&S be
worried about such incidents?

Ans. In this case, which basically throws light on violation of labor rights in global value supply chain,
relates to two companies Marks& Spencer and Viva Global, where in Marks &Spencer is a global
company who used to import garments from this cloth manufacturing firm from Viva Global which is
situated in Gurgaon and contributed to 1% of M&S output. Viva Global was working with 500
workers and M&S more than 75000 workers.

Viva Global, being associated with such recognized brand in garments had responsibility to maintain and
ethics and integrity of M&S spencer. But, reality, at the workplace was against all the workers guidelines
issued by company, there was labor unrest as workers were working in pathetic conditions and they
were denied of minimum wages and had no job security. It was violation of various labor laws and acts
which made the situation worse as there was violence, illegal use of muscle power and no intervention
of HR, trade unions could not function independently, there was always manipulation by the
management, even the working hours were undefined and labors were made to work overtime without
any compensation for that, there were giving short breaks. This led to violation of governments policies
and created the gap between formulation and actual implementation of labor laws. For instance,
violation of minimum wages act 1936, section 59 of Factories Act 1948, Industrial disputes Act 1947.

All these conditions led to strikes and chaotic environment, so different parties involved employer,
government and trade unions inspected the situation. There was gap between the reality and required
working condition need to be. So, the tripartite agreement came into existence, so that situation can
be controlled. Intervention of labor commissioner and support from Trade unions (The Mazdoor Ekta
Manch) who raised the workers issue more strongly and APEC (Apparel promotion export council) also
came forward to extend their support and raise their issues at global level. This forced the employer
Viva Global to take necessary action and Marks and Spencer stopped their dealing with them.

Furthermore, Marks and spencer, was globally recognized firm and highly committed towards ethical
values and sustainable goals. But reality seems different, when huge labor unrest at supplier company
tarnishes the image of brand and shrink the revenues of company. This violation supplier code of
conduct, hampers the global reputation of firm so that’s why they tried to resolve the issue by quoting
they stopped their deals rather being truthful and accepting the situation which would have built the
trust. For instance, a similar incident of happened in 2020, when Apple company took strict action
against the supplier company Wistron, involved in production of phones, they failed to implement
proper working hour management processes and non -payment of wages, tis created a labor unrest but
Apple conducted the investigation and stopped the business immediately.

Similarly, recently, if we can witness in Karnataka government under trade union act 1926 and under
Industrial relations code, has approved formation trade union of IT sector employees so that they can
freely and more comprehensively can raise their issues relating to workers’ condition. Also, the govt
has passed code on wages bill for contract workers so that they can gain benefits for their efforts and
time and can get due recognition.
However, workers are the backbone of any organization, and issues of labor unrest really indicates the
gap between management, union and workers, so mutual understanding and collaborations between
different actors is necessary for maintaining the brand and provide adequate conditions workers.