Supermarket watchdog finally takes shape
13 June 2011
War on Want campaigners have taken a significant step towards stopping supermarkets exploiting their suppliers. The government has finally published a Bill which outlines what the new supermarket watchdog will look like - a tribute to all those who have taken action on this issue over the past couple of years.
The Competition Commission finished its most recent investigation into the groceries retail sector in April 2008, but successive governments have dragged their feet since then. A new Code of Practice was written and put into action but was left as a voluntary code, replacing the previous voluntary code - which failed to improve conditions for workers supplying supermarkets. This time round, the Commission also recommended a watchdog to enforce the code but it has been seriously delayed as a result of lobbying by the supermarkets and the reluctance of the government to challenge these vested interests.
Finally the government has outlined the watchdog's powers, which is great news as it was starting to look like it would be sidelined and ignored for ever. Better still, several of our demands have made it into the Bill despite opposition by the supermarkets:
- the watchdog will be able to take complaints from direct suppliers from overseas as well as in the UK
- suppliers will be able to make anonymous complaints, removing the threat of retaliation by supermarkets (like delisting them)
- the cost of investigations as well as the running costs of the watchdog will be borne by the supermarkets, so expense can't be used as an excuse not to go ahead
- the watchdog will have robust powers to uncover confidential information during its investigations, and it also covers a wide range of bad practices like making suppliers pay for 'buy one get one free' promotions
However, the proposed watchdog still needs to be stronger in some key areas. In particular, it needs:
- to be able to start investigations based on a broad range of evidence (in the draft, evidence by third parties such as trade unions or NGOs is excluded)
- to be able to fine supermarkets from the outset (at the moment, fining is the last resort and will have to be signed off by the Secretary of State)
- to have its own dedicated specialist staff (currently, it will only have some seconded from the Office of Fair Trading)
We've already had some early success from War on Want supporters taking action: the Parliamentary committee looking at the draft Bill has backed several of our demands. But there are still some months to go before the Bill becomes law, and it is crucial that we keep up that pressure until the watchdog is created. Otherwise the supermarkets could fatally undermine it as they have in previous investigations.
Please write to your MP and tell them we need a strong and proactive watchdog that will to stop supermarkets abusing their suppliers. More than five years of campaigning are starting to pay off – let's not let them off the hook now!
Comment:
