SPECIAL REPORT – safeguarding workers’ rights along the supply chain

Special report

From Global Worker

no 2 November 2022

  

Country: Global

Theme: Workers rights in the supply chain       

Text: Petra Brännmark

Human rights violations, including abuse of labour rights, are on the rise, as shown in the latest ITUC Global Rights Index.  Moreover, the pandemic and the current cost-of-living crisis have made many of the challenges in global supply chains even more evident. There is a need for strong regulation to effectively address and prevent violations of human rights and damage to the environment. The shocking rise in rights violations makes mandatory due diligence a top priority for trade unions. Voluntary codes of conduct and other unilateral approaches are first and foremost tools of public relations and have lost all credibility. 

According to IndustriALL assistant general secretary Kemal Özkan, very few companies have demonstrated a real willingness to adequately comply with workers’ and trade union rights on a voluntary basis. 

Trade unions are one of the main drivers of the campaign for binding due diligence legislation and transparency in the supply chains.  As representatives of workers who are the victims of rights violations all along the supply chains, unions have to be at the forefront of the debate and put all their weight to ensure they are involved in the design and implementation of due diligence policies. Workers and trade unions know the reality on the ground and are best placed to help identify, understand and address human rights risks. Their participation in the process is critical to ensure that due diligence laws and other instruments deliver for workers.  

“In fact, no due diligence approach can claim to be credible without the full involvement of workers and trade unions to safeguard freedom of association, collective bargaining, and health and safety.  Due diligence is part of the industrial relations system as a means of engagement through collective bargaining agreements, global framework agreements, protocols and any other negotiated document. It is an important tool for unions to achieve their main objectives, that is to defend and promote workers’ rights and interests,”

says Kemal Özkan.

The role of unions was obvious in the recent German act on corporate due diligence obligations to prevent human rights violations in the supply chain, the Lieferkettensorgfaltspflichtengesetz, adopted in 2021. Unions and worker representatives have managed to ensure that German works councils be more involved in human rights risk management in the future, and the German Works Council Act was amended to that end.  

In 2017, France became the first country to adopt a law on ‘duty of care’ or due diligence. For the first time, this ground-breaking legislation establishes a criminal relationship between the parent company of a multinational corporation and its subsidiaries and subcontractors in the event of human or environmental rights violations. In short, it seeks to prevent large companies from hiding behind their status as buyers. It should include an alert mechanism that collects reporting or existing risks, developed in cooperation with the trade unions in the company concerned.  

“Due diligence is a leverage for trade unions to ensure that workers’ rights, especially the right to organize, are upheld in companies and along the whole supply chain,” says Kemal Özkan.  

Global framework agreements (GFA) are tools for organizing and union building, incorporating the concept of due diligence set down in the UN Guiding Principles on Business and Human Rights.  By signing a GFA, a multinational company accepts responsibility to protect and respect fundamental workers’ rights, in particular the right to organize and bargain collectively, and to exercise due diligence concerning the impact of its operations on human rights in its production facilities and along its supply chain. GFAs are largely used to resolve problems, especially along the supply chains. In case of a conflict, for instance on organizing, GFAs can help provide remedy. 

Using global framework agreements to organize

Over a two-year period IndustriALL affiliates in Turkey and Bangladesh have successfully organized more than 50 supplier factories as part of a programme to effectively implement global framework agreements. 

Trade union networks that connect unions from different countries within a same company are also important action and coordination instruments that can help support organizing drives. Strengthening these networks is critical to ensure that companies respect the rights of workers in all countries where they operate and undertake human rights due diligence in their supply chains. 

The battery supply chain can be used as an example for demonstrating the globalization of the production process and how existing laws and other instruments, like the OECD due diligence guidelines, can be used for advancing human rights in business. 

The battery supply chain starts with the mining of raw materials like lithium, through the chemical industry with the refineries, to the end-users. It is the fastest growing supply chain, fueled by the increasing demand for electric vehicles.  Moreover, every region makes up different part of the battery supply chain, with lithium production in Latin America, most mining done in Africa, new battery investments in Asia and investments in electric vehicles in Europe and the US.  Workers’ rights violations are rising in parallel, in particular further down the supply chain where union density is low and the environmental impact devastating. 

IndustriALL has embarked on a project aimed at developing an integrated supply chain approach and achieving decent work for all workers associated with the battery supply chain. 

“We have to ensure that battery production not only supports green energy, but also safeguards human rights and promotes health and environmental sustainability,” says Kemal Özkan.  

“This means that we need increase our leverage along the battery supply chain. As part of that approach, IndustriALL is building union capacity through developing effective due diligence tools to organize workers, creating platforms with multinational companies, developing communications with world’s largest battery producers in China, ensuring that gender is integrated in union activities, and focusing on sustainable industrial policy and just transition.”

In 2013, the ILO Governing Body, motivated by concerns regarding the rapid expansion of global supply chains across borders, decided to place global supply chains on the agenda of the International Labor Conference.  In 2016, the International Labor Conference adopted a resolution concerning decent work in global supply chains. The resolution formed the basis for the development of a programme of action, with a roadmap for implementation. Several technical meetings have taken place to address core elements of a comprehensive strategy on decent work in supply chains, likes decent work in export processing zones, cross-border social dialogue, decent work deficit in supply chains.  

“But so far, progress, if any, has been very slow. We see a huge resistance from employers although most governments are very supportive for a normative action in this field. There is a big risk that the ILO looses its relevance, even though it should play a central role in global governance system in the whole debate of global supply chains,” says Kemal Özkan. 

“IndustriALL will increase our efforts and continue to pressure for the adoption of an ILO convention on supply chains, which would be key for the global labour movement.”

Dialogue addresses workplace issues at AngloAmerican global operations

Around 30 participants from unions affiliated to IndustriALL Global Union in Australia, Botswana, Namibia, South Africa, Brazil and Zimbabwe met on 23-24 November 2023 in Johannesburg, South Africa. 
 
Before a session with the company management, the global network discussed strategies to improve industrial relations at AngloAmerican’s operations and to further strengthen the dialogue between the multinational and IndustriALL.
 
The global dialogue mechanism takes place at least twice a year to ensure monitoring of workers’ effective access to fundamental rights. Workers’ concerns were raised on various issues, including shift systems, which in countries like Botswana, flout the laws that protect workers against long working hours. 

Unions reported that pregnant women and mothers of newly born babies who worked offshore in Namibia were disadvantaged, and in some instances suffered the trauma of leaving their babies at home for 28 days to work offshore. 
 
On occupational health and safety and gender responsiveness, unions said AngloAmerican must provide appropriate personal protective equipment for pregnant women. Wearing trousers and gear that don’t fit makes it difficult to use toilet facilities, forcing women workers to undress each time they use the toilets. Unions argued that the company should work with unions when dealing with workplace accidents.
  
The meeting deliberated on living wages, with the Zimbabwe Union of Mine Workers saying the wages were lower for subcontracted workers.
 
When it comes to new technologies introduced, unions reported that training should be provided to enable a smooth migration from older technologies. The training should be based in workplaces.
 
Discussions were conducted on the importance of IRMA audits, as their level of social responsibility including workers’ rights, human rights and environmental responsibility, is higher than other mining standards. IRMA, which is currently auditing Unki mine in Zimbabwe, emphasizes business integrity and planning for positive legacies for mining companies.
  
The meeting noted that AngloAmerican has exited coal in countries like South Africa, while it maintains operations in Australia. In his presentation, Glen Mpufane, IndustriALL mining director, portrayed the transformation in the mining industry and acknowledged the importance of AngloAmerican’s Just Transition strategies, including the creation of sustainable jobs.

"This dialogue constitutes an important mechanism and model to fill the gap of trust in global mining industry. Building workers’ power through our structures, getting recognition from multinational companies and developing industrial relations for continuous improvement of working conditions are important pillars of our strategy and action. Therefore, enhancing our cooperation with AngloAmerican is in the interests of our affiliates and fellow miners on the ground.”

 said Kemal Özkan, IndustriALL assistant general secretary 

Bulgarian workers in STS Medical Group signs first collective agreement

The protest action came after several failed attempts of peaceful negotiations where workers demanded a wage increase, the first in several years. Inflation is increasing and workers are losing buying power, putting them on the edge of their survival. The union had tried to reach a collective agreement for 1,5 years, but after the protest actions and work stoppages, an additional round of wage negotiations was held. 
 
This first collective agreement means that the minimum wage for the company will increase to BGN1,000 (US$539). Workers will receive an increase in food vouchers from BGN80 to BGN200 (US$43), as well as a Christmas supplement of BGN60 (US$32). The agreement also stipulates the participation of the trade union in internal wage negotiations and working conditions. 
  
Kemal Özkan IndustriALL assistant general secretary says:

“IndustriALL Global Union congratulates our affiliate with this exemplary win. This successful campaign has clearly shown that organizing new members and reaching good collective bargaining agreements are the main priorities for the union movement in securing workers’ interests. We need more of these powerful success stories.”
 
 


 

Atle Høie: Welcome to Global Worker (#2 2022)

GS corner

From Global Worker No 2 November 2022

Welcome: from general secretary Atle Høie

If we push for a Just Transition, we will have a Just Transition. This issue’s Report focuses on how the energy crisis may provide unions with an opportunity to achieve a Just Transition sooner.

The debate on human rights due diligence is gaining momentum on both national and international levels. The shocking rise in rights violations makes mandatory due diligence a top priority for trade unions. The Special report focuses on how workers’ rights along the supply chain are safeguarded.

The world is changing, and the Union profile on Los Mineros in Mexico shows tells of as the union celebrates its 88th anniversary, labour law reform is being phased in across the country, slowly changing the so-called employer protection contracts.   

In the Interview, Swasthika Arulingam, president of CIWU in Sri Lanka, talks of the importance of young, women leaders in unions and the challenges she faces in her role. She also talks of the current economic crisis in her country, which is diluting labour laws, eliminating social protection, paying starvation wages, and busting unions, and how the unions are fighting back. 

It's been more than nine months since Russia invaded Ukraine. In the Union profile, you can read about howthe Nuclear Power and Industry Workers of Ukraine works to maintain union activities for members during the war, in a shrinking space as their members are losing their jobs. 

We are nearly at the end of 2022.  A lot of important and good work has been done during the year in every corner of the world. As trade unions, we must continue standing up for our members and guide them through a Just Transition, along the supply chains and relentlessly promoting global solidarity. But first you will hopefully be able to enjoy some time with your loved ones. I wish you a wonderful end of 2022.

Difficult circumstances – IndustriALL meets with family of unfairly jailed unionist in Madagascar

Sento is 25 years old and had been working at E-Toile S.A for six years when he was sentenced to jail over reporting on union elections, the poor food quality at the company, as well as workers’ rights to holidays and sick leave. His union, SVS, says Sento is a wrongly and unjustly imprisoned shop steward, whose rights to freedom of opinion, expression and association have been seriously violated.

Sento’s parents-in-law told IndustriALL about how they have had to indebt themselves to be able to hire a lawyer. Despite regular visits to the court, this has yet to result in any positive news on Sento’s urgently awaited release. The family describes his time in prison as very difficult, with Sento feeling deceived and disappointed.  

 

The family, including his children 3-year-old Alvin and 12-month-old Aticia, try to visit Sento in prison once a week, bringing much needed food. According to an overview of the world’s toughest prisons, the Antanimora prison, a correction facility with a horrible reputation has been found to provide only one meal per day of only boiled cassava, leading to chronic malnutrition for many prisoners.

During IndustriALL’s visit to Sento’s family. SVS handed over a food package to the family to alleviate some of the difficulties.

The day before the meeting with the family, SVS and IndustriALL tried to see Sento’s wife, who has been working at the same company for five years. However, the company informed that she could not come out during lunch time as she was busy.

SVS has appealed to the Ministry of Labour and the Prime Minister in Madagascar, reporting a clear violation of ILO Conventions 87 and 98. Many other organisations, including IndustriALL, ITUC and ITUC Africa and the ILO have approached the Malagasy government for Sento Chang’s unconditional release, so far without success.

Atle Høie, IndustriALL general secretary says:

“We are appalled by this conviction and jailing of a trade unionist for reporting to co-workers about discussions at a meeting with management. This is unacceptable, and we would like to remind E-Toile management and the government of Madagascar that they must respect national and international labour standards on freedom of association and trade union rights. The employer and the government should engage in social dialogue with trade unions instead of intimidating workers with trumped up charges and imprisonment.”

New ILO agreement on the future of work in the oil and gas sector

Late on Friday, 2 December, negotiations between representatives of workers, governments and employers concluded in an agreement on the future of work in the oil and gas sector after a week-long technical meeting at the ILO headquarters in Geneva.

Meetings of this kind provide guidance on how to address issues in a sector. They are particularly important as new sectors arise, or existing sectors face major changes due to the twin transitions of climate and technology. Oil and gas, as a major contributor to greenhouse gas emissions, will be very heavily impacted by the need to decarbonize. For unions, it is essential that this happens in a planned and structured way, so that new jobs can be created before old jobs disappear.

The union delegation were experts from the oil and gas sector, democratically elected to represent unions from the USA, Brazil, Colombia, Nigeria, Iraq, Norway, Australia and Indonesia. They were supported by the ITUC, IndustriALL Global Union and industriAll European Union. 

The ILO office developed a report that served as a basis for discussion. At the beginning of the week, questions about challenges, opportunities, good practice and demands were raised. The negotiators presented their points of view and main demands. Based on these inputs, the ILO office drafted the first text, and the parties negotiated amendments over the course of the week.

For the workers’ representatives, the key demands were:

The union delegation was unsatisfied with both the process of the meeting and the outcome. An opportunity to address many pressing issues was missed, particularly the problem of outsourced workers. This was due to a lack of commitment by the employers. None of the major companies in the sector attended the meeting, and the employers’ chief negotiator, from the International Organization of Employers (IOE), had no specific sector experience, since the IOE negotiates agreements in tourism, education, agriculture, transport and energy and other sectors. 

Because the outcomes were not as prescriptive as unions had hoped, the possibility of developing a sector-specific just transition guide will be raised after the ILO governing body meeting next summer. 

IndustriALL energy and just transition director Diana Junquera Curiel said:

“When it comes to just transition in this industry, the concerns of workers include the financing of the transition, social protection and the quality and number of decent jobs that will be available. If the transition doesn’t happen through social dialogue, with social protection, collective bargaining and inclusiveness, the future will be unsustainable for all.”

In a closing statement, the chair of the workers’ group, Mike Smith of the USW, said:

 “We are pleased to have reached agreement on this document after a week of robust negotiation. We trust that the conclusions will be a step in the long road to a just transition in the oil and gas industry, with the maintenance of a healthy and productive industry that facilitates the creation of decent work to replace any jobs lost with jobs of equivalent or better value.

“We regret that no reference is made to outsourced workers in this document. It is a great concern to us that outsourcing is prevalent in the oil and gas sector, that this practice undermines conditions, and that outsourced workers lack an institutional voice to address their concerns. 

“We will continue to work to ensure that all those working in the oil and gas industry, whether direct or outsourced workers, enjoy freedom of association, health and safety at work, and good working conditions won through collective bargaining agreements.”

International Safety Accord that made history in Bangladesh expands to Pakistan

See below the statement from IndustriALL and UNI:

“We have managed to successfully expand the Accord to a second country. Pakistani garment workers will now face a safer future in their workplaces – preventable deaths and accidents will rapidly decrease as the programme is implemented, workers will receive training on occupational health and safety, which will empower them and hopefully they will see the benefit of joining a trade union to fight collectively for their rights,”

says Atle Høie, General Secretary, IndustriALL Global Union.

“It has long been our goal to expand the successful model established in Bangladesh to other countries. With the Pakistan Accord, we will improve safety and save lives and increase our reach from the garment sector to home textiles and accessories. International retailers and brands that source from Pakistan that want to be committed to safety should sign up and take responsibility for the workers in their supply chains,”

says UNI Global Union General Secretary, Christy Hoffman.

Signatories to the International Accord for Health and Safety in the Textile and Garment Industry are establishing a comprehensive workplace health and safety program in Pakistan covering signatories' garment and textile suppliers. The new Pakistan Accord on Health and Safety in the Textile and Garment Industry is a legally binding agreement between global unions, IndustriALL and UNI Global Union, and garment brands and retailers for an interim term of three years starting in 2023.

Building on widespread safety improvements in Bangladesh, the Pakistan Accord includes all key International Accord features: independent safety inspections to address identified fire, electrical, structural and boiler hazards, monitoring and supporting remediation, Safety Committee training and worker safety awareness program, an independent complaints mechanism, a commitment to broad transparency, and local capacity-building to enhance a culture of health and safety in the industry.

“I am pleased to see the International Accord signatories reach agreement to establish a workplace safety program covering the signatories’ garment and textile suppliers in Pakistan. We are committed to working closely with Pakistani stakeholders to ensure our collective efforts are beneficial to the industry and its workers,”

says Joris Oldenziel, Executive Director, International Accord Foundation.

The successful experience in Bangladesh prompted the signatories to expand the workplace safety program to at least one other textile and garment producing country. Through signatory surveys, extensive research, and local stakeholder consultations, the Accord Secretariat assessed the feasibility of expanding based on key factors. Pakistan emerged as a priority country, in part because of its importance as a garment and textile sourcing country for the Accord brands.

The International Accord has undertaken extensive engagement in Pakistan with federal ministries and provincial governments, industry associations, suppliers, trade unions and civil society organisations. The Pakistan Accord programs will be implemented in phases, in close collaboration with these key stakeholders and through the establishment of a national governance body.

The Pakistan Accord covers Cut-Make-Trim (CMT) facilities, namely Ready-Made Garment (RMG), home textile, fabric and knit accessories suppliers (including vertically integrated facilities). Fabric mills within the supply chains of the signatories are also covered, with implementation scheduled for a later stage in the program. The program aims to incrementally cover more than 500 factories producing for more than 100 Accord signatory companies throughout the Sindh and Punjab provinces, where most of Pakistan’s $20 billion in garment and textile exports are manufactured annually.

The decision to expand to Pakistan was announced during a signatory brand caucus meeting held on 14 December 2022. Brands will receive an information package on the Pakistan Accord and will be invited to sign from 16 January 2023.

Background

The International Accord, devised by global unions together with international garment brands after the Rana Plaza industrial homicide in 2013, has been instrumental in making Bangladesh’s garment and textile industry safer. Nine years and thousands of factory inspections later, close to 200,000 potentially deadly traps in 1,600 factories have been fixed.

Photo: Garment workers in Pakistan © ILO

Pakistan’s mines have killed at least 150 workers this year

According to data compiled by IndustriALL Global Union, unsafe mining in Pakistan has claimed the lives of more than 150 workers and injured more than 20 others this year alone.

Most accidents are caused by mine collapses, gas leaks, and flooding. Mining continued throughout the disastrous rains that struck the country earlier this year, killing numerous worekrs. Unregistered mines and unregulated work further add to the hazardous working environment.

Miners work in dangerous conditions that lack proper warning systems to alert workers of gas leaks or flooding. With only a dim light affixed to their helmets, miners are forced to work in almost complete darkness. Effective supervision is also lacking at mining sites, and workers receive little to no training on safety precautions to take in an emergency. And as there is no proper attendance register, it is unclear how many workers are present in the mine when accidents occur.

The law requires one doctor and an ambulance at each mining site, but this is not implemented, and several deaths occur on the way to hospitals. In case of death or serious injuries, workers’ families do not receive adequate compensation.

Apoorva Kaiwar, IndustriALL south Asia regional secretary, says:

“Neither the employers nor the government are enforcing adequate safety measures at mining sites. Most of the time, miners are dying in accidents that can be prevented by regulation.”

While safety mechanisms are not being enforced at the workplace, occupational diseases are neglected even further. Silicosis, lung fibrosis, lung cancer, asbestosis, mesothelioma, and other debilitating diseases frequently result in death or permanent disability.

It is challenging for workers to access healthcare because of their extremely low wages and lack of social protection. Employers take no responsibility to provide care and treatment to these workers.

Kemal Özkan, IndustriALL assistant general secretary, says:

“The Pakistani government must ratify ILO C176 immediately and fulfil its responsibility towards providing workers engaged in mining with a safer workplace. The government must effectively implement the safety to protect miners’ lives.”

NXP Thailand must reinstate sacked workers

The NXP Manufacturing Workers' Union’s congress in October 2019 passed a resolution assigning a representative to act on the company’s failure to respect the collective agreement. In August 2020, the union filed a lawsuit over NXP’s non-compliance with the collective agreement at the central labour court.

In February this year, the union’s case was dismissed and the court ruled that the union did not have the right to sue.  

Focusing on improving the relationship with the employer, the union decided not to appeal the ruling. In return, NXP accused the union members of having falsified the congress minutes, a serious violation of company regulations, and dismissed 13 members of the union committee.  

“NXP Thailand should respect the workers' right to take the dispute to court, a grievance procedure protected under the Labour Relations Act 1975. Since the union had withdrawn the lawsuit with the aim of maintaining a harmonious relationship, the company should act reciprocally,”

says Prasit Prasopsuk, CILT president.

IndustriALL general secretary Atle Høie sent a letter to NXP in October, calling on the company to immediately reinstate the 13 union leaders with back pay and seniority.  

“Industrial harmony is only possible when employers are willing to negotiate in good faith. This trade dispute could have been prevented if NXPThailand had respected the collective agreement.” 

In November, participants at the NXP South East regional network participants expressed full solidarity with their colleagues in Thailand. The network members will address the Thai management and urge them to find a fair solution of the conflict, including reinstatement of the dismissed activists.

NXP Semiconductors is headquartered in Netherland with over 30 production facilities across the global, and specializes in processors, microcontrollers, interfaces, peripherals and logics. Customers include Apple, Bosch, Denso and Delphi.

Dutch cement workers strike for new agreement

As the time for response to the collective bargaining demands issued by IndustriALL affiliate Federatie Nederlandse Vakbeweging (FNV) to the Heidelberg Materials companies Mebin (concrete mortar plants) and ENCI (cement plant) expired in November, the union warned of potential strike.
 
Among the union demands are automatic price compensation, travel expenses scheme, as well as changes to the pension scheme. Mebin has introduced a pension scheme that would result in higher contributions from workers, while reducing those of the employer. 
 
Employers did not make it clear why they rejected the demands; Heidelberg Materials is still turning profits in the current economic situation and providing generous dividends to their shareholders.

FNV construction & housing director Margreet Pasman says: 

“It is incomprehensible that employer at Mebin are is really pushing us to industrial actions and strikes. Their final offer was so bad that we were out of negotiations and had to issue an ultimatum.”

Earlier this month, union members at ENCI agreed to a bid from the employer, while members at the Mebin plant voted strongly against and launched their first strike on 6 December at the Mebin mortar plants in A’dam, Hoorn en Alkmaar. 
   
IndustriALL cement director Alex Ivanou says:

"It is unfortunate that ENCI and Mebin employer is are reluctant to negotiate in good faith. In Heidelberg Materials code of conduct the Group committs to honest and fair interaction with employees’ representatives, but this is neither honest nor fair attitude of the company. ENCI and Mebin management must return to the negotiating table and negotiate a collective agreement that provides a fair and just solution to the FNV demands.”

Heidelberg Materials produces and sells cement and mortar for the Netherlands’ construction industry. In total, its subsidiaries Mebin and ENCI employ 700 people in the Netherlands.