It found that supermarkets transfer "excessive risk and costs" onto suppliers by:
- forcing down the prices they pay to suppliers,
- demanding payments from them for marketing and other costs,
- insisting that suppliers take the hit when consumer demand changes,
- leaving orders to the last minute.
These pressures get passed on to workers in the form of low wages, poor conditions and long hours.
At the moment the four biggest supermarkets are governed by a voluntary Code of Practice, introduced in 2001, but the Competition Commission's findings show that this is simply not working and that instances of abuse have actually increased.
The Commission wants to implement a tougher new code which will be expanded to include the 11 biggest retailers:
- Aldi
- Asda
- The Co-op (including Alldays)
- Iceland
- Lidl
- Marks & Spencer
- Morrisons
- Sainsbury's
- Somerfield
- Tesco (including One Stop)
- Waitrose
However, it's pointless improving the Code of Practice if there is no effective enforcement, which is why a watchdog is needed.
The Competition Commission cannot establish a watchdog on its own. It is currently working with supermarkets to try and get them to sign up of their own accord. If the supermarkets don't, then the government would have to act in order to see the watchdog created as part of UK law. That is why our campaign is designed to target both supermarkets and MPs.
We are asking our supporters to show supermarkets and politicians that they care about the people who produce our food and want to buy food knowing it has been produced without exploitation.
