BetterWork: 12ème Rapport de Synthèse Biannuel de l'Industrie du Vêtement dans le cadre de la Législation HOPE II

- 1 - q Better Work Haiti: Garment Industry 12 th Biannual Synthesis Report Under the HOPE II Legislation Produced on 16 April 2016 Better Work Haiti is supported by the US Department of Labor. - 2 - Copyright © International Labour Organization (ILO) and International Finance Corporation (IFC) (2016) First published (2016) Publications of the ILO enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the ILO, acting on behalf of both organizations: ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: pubdroit@ilo.org . The IFC and ILO welcome such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licenses issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. ILO Cataloguing in Publication Data Better Work Haiti: garment industry 12 th biannual synthesis report under the HOPE II legislation / International Labour Office; International Finance Corporation. - Geneva: ILO, 2016 1 v. ISSN 2227-958X (web pdf) International Labour Office; International Finance Corporation clothing industry / textile industry / working conditions / workers rights / labour legislation / ILO Convention / international labour standards / comment / application / Haiti 08.09.3 The designations employed in this, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IFC or ILO concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the IFC or ILO of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the IFC or ILO, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, and Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: pubvente@ilo.org Visit our website: www.ilo.org/publns - 3 - Acknowledgements Better Work Haiti is supported by the US Department of Labor. Core donors to Better Work are: Netherlands Ministry of Foreign Affairs, Swiss State Secretariat for Economic Affairs (SECO), Danish International Development Agency (DANIDA), Australian Department of Foreign Affairs and Trade and the US Department of Labor. Funding is also provided by DFID, French Ministry of Labour, Employment, Vocational Training and Social Dialogue; Employment and Social Development Canada; Human Resources and Social Development Canada; Irish Aid; German Federal Ministry for Economic Cooperation and Development; GIZ; Royal Government of Cambodia, Garment Manufacturers Association in Cambodia and private sector donors, including The United States Council Foundation, Inc., Levi Strauss Foundation, Gap Inc., FUNG (1937) Management Ltd and American Eagle Outfitters, Inc., United States Council for International Business (USCIB). This publication does not necessarily reflect the views or policies of the organizations or agencies listed above, nor does mention of trade names, commercial products, or organizations imply endorsement by them. - 4 - Table of Contents List of Acronyms ................................................................................................................................ 6 Section I: Introduction and Methodology ........................................................................................... 7 1.1 Structure of the report ........................................................................................................................ 7 1.2. Context ............................................................................................................................................... 8 1.3. The Better Work compliance assessment methodology ................................................................. 15 Section II: Findings .......................................................................................................................... 22 2.1. Compliance Assessment Findings (11 th and 12 th round of assessments) ......................................... 22 2.2. Detailed Findings .............................................................................................................................. 24 1. Core labour standards ................................................................................................................. 24 2. Working conditions ..................................................................................................................... 25 Section III: Better Work Haiti Advisory Services and Training ............................................................ 35 3.1 Better Work Haiti Advisory Services............................................................................................ 35 3.2 Better Work Haiti Training Services ............................................................................................ 37 Section IV: Conclusions and Next Steps ............................................................................................ 38 4.1 Conclusion ................................................................................................................................... 38 4.2 Next Steps.................................................................................................................................... 39 Section V: Factories in Detail ........................................................................................................... 39 5.1 List of factories .................................................................................................................................. 39 5.2. Findings from the factories .............................................................................................................. 41 Factory Tables ................................................................................................................................. 42 Annex 1. HOPE II Legislation Reporting Requirements .......................................................................146 - 5 - List of Tables and Charts In Focus 1 : Minimum Wage ........................................................................................................................ 26 In Focus 2 : Overtime Wages ....................................................................................................................... 27 In Focus 3 : Paid Leave................................................................................................................................. 28 In Focus 4 : Social Security and Other Benefits ........................................................................................... 28 In Focus 5: Wage Information, Use and Deduction .................................................................................... 29 In Focus 6 Termination ................................................................................................................................ 29 In Focus 7: Chemicals and Hazardous Substances ...................................................................................... 30 In Focus 8: Emergency Preparedness .......................................................................................................... 31 In Focus 9: Health Services and First Aid ..................................................................................................... 31 In Focus 10: Welfare Facilities ..................................................................................................................... 32 In Focus 11: Worker Protection................................................................................................................... 33 In Focus 12: Working Environment ............................................................................................................. 34 In Focus 13: Overtime ................................................................................................................................. 34 Chart 1: Non-compliance rate * ................................................................................................................... 23 Table 1: Better Work compliance assessment framework.......................................................................... 16 Table 2 : Weighted percentage of workers on an incentive system earning at least 300 (320 Gourdes as of 1 st May 2015) per eight hours of work across all factories assessed by Better Work ......... 27 Table 3: List of factories in the Haitian garment sector which have been assessed between March 2015 and February 2016 ............................................................................................................................. 40 - 6 - List of Acronyms ADIH Association des Industries d’Haïti (Haitian Industry Association) BMST Bureau de la Médiatrice Spéciale du Travail BW Better Work 1 BWH Better Work Haïti CAOSS Conseil d’Administration des Organes de Sécurité Sociale (Board of Social Security Bodies) CP Compliance point CSS Conseil Supérieur des Salaires (Wages High Council) CTMO-HOPE Commission Tripartite de Mise en œuvre de la loi HOPE EA Enterprise Advisor HELP Haiti Economic Lift Program HOPE Haitian Hemispheric Opportunity Through Partnership Encouragement Act ITUC International Trade Union Confederation MSDS Material Safety Data Sheet MAST Ministère des Affaires Sociales et du Travail (Ministry of Labour and Social Affairs) OFATMA Office d’Assurance de Travail, de Maladie et de Maternité (Office for Work, Health and Maternity Insurance) ONA Office Nationale d’Assurance Vieillesse (National Office for Old -Age Insurance) OSH Occupational safety and health PAC Project Advisory Committee PIC Parc Industriel de Caracol PICC Performance Improvement Consultative Committee PIM Parc Industriel Métropolitain (also referred to as SONAPI) PPE Personal Protective Equipment SC/AFL-CIO Solidarity Center/American Federation of Labour - Congress of Industrial Organisations SDT Social Dialogue Table TAICNAR Technical Assistance Improvement and Compliance Needs Assessment and Remediation USDOL United States Department of Labor 1 Better Work as a global program with country operations in several countries. - 7 - Section I: Introduction and Methodology Better Work Haiti (BWH), a partnership between the International Labour Organization (ILO) and the International Finance Corporation (IFC), was launched in June 2009. The program aims to improve the working conditions and competitiveness of the apparel industry by increasing respect of the Haitian labour code and of the ILO Declaration on Fundamental Principles and Rights at Work and strengthening economic performance at the enterprise level. Better Work Haiti targets the apparel industry in Haiti, especially in the capital Port-au-Prince and in the north-east region of the country. In 2015, total export revenues from the textile and garment industry accounted for approximately 90% of national export earnings and 10% of national GDP. The apparel industry is also among the largest employers within Haiti, creating jobs for approximately 40,000 people. Most workers (about 65-70%) are women who support a number of family members. The program assists participating factories by conducting independent compliance assessments and providing advisory services and trainings. This report presents the results of assessments, advisory and training services provided to 25 factories in the period between March 2015 and February 2016. 2 As part of its mandate to share information with all stakeholders in the program and encourage continuous improvement, Better Work Haiti produces twice yearly synthesis reports containing information on the performance of all participating factories in the period. 1.1 Structure of the report This is the twelfth report to be produced by Better Work Haiti in the framework of the HOPE II legislation. This synthesis report provides an overview of the working conditions of 25 factories. As outlined in the tenth public biannual synthesis report, Better Work (BW) transitioned to a revised service delivery model in spring 2015 with stronger focus on advisory services. Therefore, compliance information presented in this public report is based on assessment and advisory services at the factory level. In the period between September 2015 and February 2016, eleven out of the currently operating 25 exporting factories in Haiti, were assessed by Better Work and their updated compliance information is included in this report. For the remaining fourteen factories, information from their last assessment – conducted in the previous reporting cycle - is included to present aggregated industry level compliance data. A number of factories continue to be out of operations at the time of writing this report or have even closed down completely over the past months. In total, 25 out of formerly 32 factories are exporting from Haiti and continue to be assessed by Better Work Haiti. It also has to be noted that the closure of some factories has not resulted in an overall reduction in the number of employment in the garment industry in Haiti (see section 5.1 for further details). The first section of this report gives an overview of the HOPE II legislation and the origin of the Better Work program in Haiti. This section also includes an explanation of the Better Work methodology, including the reports produced in the framework of the Better Work program and the HOPE II legislation. 2 Assessments are now being conducted on an annual basis for each participating factory. Therefore, assessment information is updated in every second compliance synthesis report for each individual factory. - 8 - The second section of the report outlines the compliance assessment findings from the most recent factory assessments in all factories. As explained above, the Better Work service delivery model underwent some changes in early 2015. Factories are now being assessed on an annual basis. Therefore, compliance information in these biannual public reports is drawn from the last assessment that has been conducted in each factory. For about half of the factories, this last assessment will have taken place in the past 6 months, for the other half, the most recent assessment has been conducted 6-12 months ago. The third section of the report describes Better Work Haiti advisory and training services in the period from September 2015 – February 2016 in all participating factories The fourth section of the report outlines the priorities of the Better Work Haiti program in the upcoming months. Finally, the last section describes the efforts made by the factories to correct the compliance needs identified in the Better Work Haiti compliance assessments. This section also allows for an overview of compliance of each factory over time since their first assessment by Better Work Haiti (see factory tables in section V). Information provided for each of the participating factories includes: compliance needs for each compliance cluster and each compliance point; details of non-compliance; improvement priorities; efforts made by the factory to remedy the compliance needs as verified in the latest Better Work Haiti assessment visit; and with respect to non-compliance areas that have not been remediated, the amount of time that has elapsed since the non-compliance was first reported publicly. For factories that have not been assessed in the last 6 months but in the previous assessment cycle, additional information on their progress on previously identified non-compliance points is stated. Also, the date of the last assessment is mentioned for each individual factory. 1.2. Context The HOPE II legislation and the TAICNAR project In 2006, the United States Congress enacted the Haiti Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE), expanding preferences for Haitian apparel established under the Caribbean Basin Economic Recovery Act, thus enabling the Haitian garment industry to benefit from new duty-free preferences. In 2008, these preferences were further expanded through legislation known as HOPE II, which also established new standards and programs strengthening and monitoring working conditions in the garment sector. On 24 May 2010, the Haiti Economic Lift Program of 2010 (HELP Act) was signed into law to expand existing preferences even more to contribute to Haiti’s economic growth and development in both the textile and apparel sectors. Among its provisions, the HELP Act extended almost all of the trade preferences established under HOPE and HOPE II and in 2015, the US Government extended the Haiti HELP/HOPE provisions until 2025. In order to benefit from HOPE/HOPE II/HELP, Haiti was required to establish an independent Labour Ombudsman appointed by the President of the Republic in consultation with the private sector and the trade unions. Haiti was also required to work with the ILO, to develop a technical assistance program to (i) assess and promote compliance with core labour standards and national labour law in the factories that are eligible for tariff advantages under HOPE II and (ii) provide assistance to the Government of Haiti in order to strengthen its capacity in the process of inspection of facilities. This was referred to in the legislation as the Technical Assistance Improvement and Compliance Needs Assessment and Remediation (TAICNAR) program. Finally, Haiti needed to develop a mechanism for - 9 - ensuring that all producers benefiting from the HOPE II trade preferences participated in the TAICNAR program. The two components of the TAICNAR program aim at strengthening labour compliance of the industry in Haiti. The first of these elements of the TAICNAR program focuses on assessing compliance with core labour standards and national labour law, supporting remediation efforts, and publicly reporting on the progress of each factory on the Labour Ombudsman ’s register. The second element of the TAICNAR program consists of technical assistance to strengthen the legal and administrative structures for improving compliance in the industry. The scope of these services is extensive, encompassing technical assistance from the ILO in reviewing national laws and regulations to bring them into conformity with international standards, raising awareness of workers’ rights, and training labour inspectors, judicial officers and other government personnel. To encourage compliance with core labour standards and national labour law, the legislation indicates that preferential treatment may be withdrawn, suspended, or limited by the President of the United States from producers who – even after assistance has been provided - fail to come into compliance with the core labour standards and national labour law that is related and consistent with those standards. Removal of benefits is based on determinations made by the government of the United States, based primarily on non-compliance identifications made by the U.S. Department of Labor (USDOL). While Better Work Haiti reports are consulted as USDOL carries out its mandate to implement HOPE II, Better Work Haiti non-compliance findings cannot, on their own, serve to impact preferential treatment under the HOPE Act. Better Work Haiti, which is a partnership of the ILO and the IFC, is implementing the first component of the TAICNAR program while other ILO projects, in particular the ILO-MAST capacity building project work on the second component. The Better Work program is coordinating its work with the Labour Ombudsman and a tripartite Project Advisory Committee (PAC). This committee meets with Better Work on a regular basis to discuss the activities of the Better Work program. The members of the PAC represent the private sector, government and worker representatives and the Committee is chaired by the Labour Ombudsperson in line with the requirements of the HOPE law. Recent Developments This section of the report presents the changes and developments that have occurred during the last six months which have an impact on the Better Work Haiti program and broadly on the apparel sector in Haiti.  Apparel exports from Haiti to the US continue to grow, rather slow but steady with an average growth of approximately US$ 50 million per annum over the past 3 years. The total export volume of apparel products from Haiti to the US in 2015 was US$ 895 million with approximately half of these exports being shipped under the trade preferences granted under the HOPE II legislation.  The employment figures now regularly published by ADIH for the garment sector passed the 40,000 margin in August 2015 and remained more or less at the same level until February 2016. It has to be noted, th at ADIH includes management staff in these calculations. Based on Better Work’s data collection over more than five years in Haiti’s garment industry, one can say that management staff accounts to approximately 10-15% in the factories. Therefore, the number of workers lies at around 36,000 with 65-70% being women. Also, Better Work data shows a slight increase in employment figures for the North while the number of workers employed in the garment sector in the capital has slightly - 10 - decreased. In Port-au-Prince, several factories have ceased operations over the past months, while employment in the industry in the North is steadily increasing.  On 25 October 2015, presidential elections were held in Haiti together with local elections and the second round of legislative elections. None of the presidential candidates received a majority in this first round of presidential elections. Therefore, a runoff was scheduled for 27 December 2015. However, the Provisional Electoral Council postponed the runoff elections shortly before the scheduled date. In January 2016 President Martelly then announced that elections would be held on 24 January, yet elections could not be held. The president left his office on 07 Feb 2016 as foreseen. An interim government was put in place and elections are now scheduled for April 24th, 2016.  The Wages High Council (Conseil Supérieur des Salaires – CSS) has not yet officially submitted their third report with recommendations to the Government of Haiti about the minimum wage revision. The Council has been foreseen by law since 1983 but has only been established in August 2013. The first two reports of the CSS which have been submitted to the Government in the past have resulted in an increase in the minimum wage for the garment sector in Haiti as of 01 May 2014 and 01 May 2015 respectively. Not all members of the tripartite council have signed the current draft of the CSS report yet.  Share Hope continues its program of workers’ wellbeing initiatives in the sector in Haiti. The HERHealth program in Haiti which is training factory workers on important health topics is currently implemented in five factories and is funded by Share Hope (70%) and by buyers (30%). The buyers supporting the project are Li & Fung Foundation/ F&T Apparel (a division of Global Brands Group) and Levi Strauss Foundation. In September 2015, Share Hope also launched a high school completion program. This program provides an opportunity for 40 garment factory workers in and around SONAPI who failed the final year of high school to prepare for and take the exam (Baccalaureat II). Share Hope wants to give these workers an opportunity to finish what they started and complete their studies. Share Hope's program is following the national Haitian curriculum. At the time of writing this report, the High School completion program has passed the half-year mark with final exams coming up in June. HR managers are regularly updated about their workers' progress and are supportive of the workers' commitment to finishing High School while working. At present, this program is fully funded by Share Hope. A third program on factory clinic improvements has been launched in February 2016 in partnership with Better Work and with support from Levi Strauss Foundation. The project intends to help factories use the resources they already have (factory clinics, doctors and nurses) for the benefit of workers’ health and well -being. The clinics are being assessed and systems are improved. Additionally, nurses undergo a continuing education program which will equip them to better assist workers in their factory on health-related topics. With Share Hope's worker well-being initiatives, they have joined the Sustainable Development Goals movement to work on the betterment of the livelihoods of people and the environment .  The BMST/ CTMO-HOPE continues to provide support to the sector: Their office building inside the Metropolitan Industrial Park SONAPI (Building 48) is used by several stakeholders for various meetings and trainings. Share Hope’s initiatives mentioned above are largely taking place inside this building as well as a number of BWH trainings for factories. BWH also holds meetings with union representatives in this facility. Moreover, CTMO-HOPE grants access to its facility to the Association of Lawyers.  Better Work Enterprise Advisors and inspectors from the Ministry of Social Affairs and Labour (MAST) started to go on joint assessment visits to factories in Port-au-Prince and the Northern region in December 2015. These visits had been long prepared in the framework of a collaboration between the - 11 - ILO and the MAST as part of the HOPE legislation. Further information on this collaboration can be found in the next section. TAICNAR Program Component 1: Compliance Assessments and Remediation Support The HOPE law states that the first component of the TAICANR program is “to assess compliance by pro- ducers listed in the registry described in paragraph (2) (B) (i) with the conditions set forth in subpara- graph (B) and to assist such produ cers in meeting such conditions.” Better Work Haiti is implementing this component of the TAICNAR program. The details of Better Work’s assessment methodology are explained in chapter 1.3 of this report. Aggregated findings for the entire industry regarding compliance with national and international labour law are outlined in chapter II of the report. Chapter V then provides the details of compliance for every single factory that has been as- sessed. TAICNAR Program Component 2: Technical assistance to strengthen the legal and administrative structures for improving compliance in the industry The HOPE law states that the second component of the TAICNA R program is “to provide assistance to improve the capacity of the Government of Haiti – (I) to inspect facilities of producers listed in the registry described in paragraph (2)(B)(i); and (II) to enforce labor laws and resolve labor disputes, including through measures described in subparagraph E.” The ILO is conducting different activities under this component. In 2014, the ILO launched a USDOL-funded project supporting the Ministry of Social Affairs and Labour (MAST). The objective of the project is to strengthen the capacities of the Ministry in order to improve garment factories’ compliance with international and national labour laws. It is therefore another im- portant component of the TAICNAR program required by USDOL in order for Haiti to benefit from HOPE preferences. In the context of this ILO-MAST capacity building project, a task force of 18 inspectors and other Ministry officials has been set up within the Ministry, and a series of different trainings for the Ministries’ mediators, conciliators and labour inspectors have been provided since June 2014 in collaboration with the Labour Ombudsperson and Better Work Haiti, such as training on international core labour standards, deontology and methodology of labour inspection, practice of labour inspection and labour administration tools, Occupational Safety and Health, the Labour Law, negotiation skills, mediation etc. Since the inception of the MAST capacity building project, it has been planned that these trained labour inspectors will shadow Better Work Enterprises Advisers in conducting labour inspection visits in the apparel sector in 2015 as well as other activities by Better Work EAs, such as advisory or training ser- vices. This collaboration is aiming at giving an opportunity to MAST inspectors to capitalize on Better Work ’s enterprise level knowledge and methodology in their core service delivery. The first round of joint visits has taken place in August 2015 during Better Work advisory services. In December, the first joint visits during BW assessments were equally conducted. The MAST inspectorate task force members will further contribute to disseminate and transfer the acquired knowledge and competencies to their other colleagues. - 12 - In fall 2015 and prior to conducting joint assessment visits between Better Work teams and MAST inspectors, MAST and Better Work Haiti signed two important documents that further strengthen the collaboration between MAST and the ILO. A general Memorandum of Understanding (MoU) on the collaboration between the two institutions aims at harmonizing and coordinating their respective interventions in the Haitian garment industry in order to improve working conditions in the sector. The MoU particularly specifies the scope of the collaboration with regards to inspection visits in garment factories, particularly in light of the HOPE II trade preferences. The associated “Zero Tolerance Protocol” (ZTP) relates to Better Work’s confidentiality agreement with factories. In general, BW shares findings from factory assessments only with the factory itself and any buyers authorized by the factory. However, in the case of severe violations of worke rs’ rights as listed in this zero tolerance protocol, Better Work will inform the Ministry of Social Affairs and Labour about the issues identified. 3 The ILO/ MAST project also assisted the Labour Inspectorate of MAST to develop a strategic inspection plan for the garment sector including target inspection visits. Up to date, 22 visits have been conducted out of which 14 were unannounced visits by the inspectors in factories and 8 were joint visits with Better Work teams. These visits covered the capital and also the North of Haiti with its two industrial sites in Ouanaminthe and Caracol. Logistical support for the work of the labour inspectors was equally provided to the Ministry through the ILO-MAST project. Computers, calculators, Labour Laws and the international labour standards ratified by Haiti have all been given to the MAST task force in order for them to do their work efficiently. Beyond the strengthening of the technical capacities of the labour administration, the project also focus- es on aspects of human resources in the Ministry’s inspectorate and to assist on issues such as labour inspectors ’ recruitment criteria, career planning, initial and continuing training programs etc. A thor- ough human resources review including the elaboration of a comprehensive job profile for labour in- spectors has already been completed in the first year of the program. The intention of this effort is to help increase motivation, reduce rotation of staff and to allow for vertical career progression within the labour inspectorate of MAST. Beside these activities related to the labour inspection services, the project is also aiming at supporting MAST’s conciliation services and the Office of the Labour Ombudsperson for the garment sector. Several trainings on conciliation and mediation methodology and ways to implement different technical and practical tools were conducted since the inception of the program in spring 2014. The project also works on promoting mechanisms of collaboration between the ministry’s conciliation services and the Office of the Labour Ombudsperson in the garment industry. In March 2016, the project launched a KAP (Knowledge, Attitude and Practices) study through a local implementation partner. The objective of the study is to measure the level of knowledge about labour standards of workers and employers in the sector in Haiti. The results of this study will help to put to- gether a comprehensive information and education campaign to improve knowledge of workers and employers about the subject. 3 To access both documents, please consult the BWH website (http://betterwork.org/haiti/?page_id=1815). - 13 - Another activity under the ILO-MAST capacity building project is to assist the MAST in the modernization of a call centre which should serve as a key contact for workers and employers to bring issues to the attention to MAST. The call centre can direct any queries to the department concerned within the Minis- try. Another joint activity of the ILO-MAST project, the Better Work Haiti team and the Ministry is the elabo- ration of a comprehensive labour law guide. This practical guide has been elaborated between all parties over a 6 months period. Numerous meetings were held to develop the guide which is currently undergo- ing a validation process within the Ministry of Social Affairs and Labour. The objective is to publish the guide as a tool for employers, workers and any other interested party in the form of a handbook and a mobile app. The guide will be available in 5 languages (English, French, Kreyol, Spanish, Korean) later on in 2016. Since 2011, the ILO is assisting the MAST in the process of a tripartite revision of the Labour Code. Differ- ent political conflicts have delayed the finalization of this reform process. However, the tripartite part- ners have engaged to complete the reform through a process of dialogue which takes into consideration the international labour standards ratified by the country and comments from the different departments of the ILO. The labour law reform represents an important revision of the law currently in force in Haiti which dates back to 1961 with a revision from 1983. The tripartite actors are aiming for compliance of the code with the international norms ratified by Haiti including the eight core labour standards. The creation of mod- ern legal framework for the country is of utmost importance. Currently, all tripartite partners – government, employers, workers - are working on a unilateral revision of the labour code in order to then meet in a tripartite setting to allow for a consensus on the code. In this context, a tripartite commission under the leadership of the MAST has been formed on the labour law reform process. Each of the tripartite partners is represented in this commission and therefore the support of this process is a direct support on social dialogue in itself. Industrial Relations in the Haitian garment industry At the time of writing this report, 9 officially recognized trade union centrals/confederations are present in 18 out of the 25 currently operating factories which are part of the Better Work Haiti program. Thus, approximately 70% of those exporting apparel factories in the country now have a union presence. 4 The Haitian labour movement continues to benefit from international support from Solidarity Center/AFL-CIO. The office of Solidarity Center/ AFL-CIO in Port-au-Prince is open 7 days a week in order to facilitate access for Haitian unions. In the Center, visitors have access to computers, printers and internet for their work as well as a meeting room that is frequently used, in particular on weekends. Between October 2015 and February 2016, Solidarity Center/AFL-CIO provided continuous support to 6 organizations in the continuous process of unionization. Additionally, training workshops were offered in 4 Note that union presence in additional factories exists and has been previously reported but these additional factory-level unions have not yet attained official recognition and therefore are not included in the calculation. - 14 - Ouanaminthe and Port-au-Prince. Topics covered were conflict identification and resolution, proliferation of trade unions, collective bargaining, ONA. Besides that, Solidarity Center actively supports unions organizing campaigns in the Haitian garment industry and offers legal assistance to unions in factory dispute cases. Solidarity Center is also an advocate of the social dialogue table for the garment industry by supporting the representatives of workers in the social dialogue table and regularly participates in all of its meetings as an observer itself. Following the release of the first report of the CSS in November 2013, workers walked off the job in Port- au-Prince in early December 2013, calling for a higher increase in the minimum wage. The protests disrupted production and resulted in some violence. A number of workers from different factories were dismissed in connection with these events. Complaints from three factories for property damage by employers’ side and by workers for wrongful dismissals were filed with the MAST and remain unresolved as of the writing of this report. In the case of one factory, MAST stated that it was not the competent authority to adjudicate the case and the matter was transferred to the High Labour Court for resolution. That case continues to be pending as no decision has been taken by the Authorities yet. The Social Dialogue Table was formally created by representatives of the employers and the unions, and the government as an observer and with support of Better Work Haiti in July 2012 as a space for exchange, consultation and negotiation to harmonize relations between employers and workers' organizations. In March 2014, a formal Memorandum of Understanding was signed between its members and observers and in summer 2014, the secretariat of the table was put in place. In 2015, the table then registered as an association and therefore became a legal entity. Its executive secretariat consists of four members, two employer representatives and two union representatives. It is actively supported by the Office of the Labour Ombudsman. The Social Dialogue Table is serving as a forum for exchange and negotiation between employers and workers in order to strengthen the competitiveness of the Haitian garment sector in creating employment and contributing to the Haitian economy through the promotion of decent work. Since its establishment in mid-2014, the executive secretariat of the roundtable has called for regular meetings once a month. In 2016, Better Work is supporting the table in the elaboration of a comprehensive project proposal with a concrete work plan for the table for the next 5 years. The project proposal is supposed to help secure some funding for the table in order to implement the planned activities and more effectively fulfil its mandate. Since January 2015, Better Work Haiti has designated a full-time Industrial Relations Officer. This person is liaising with national partners to assist the sector in these efforts and to further strengthen social dia- logue and promote greater compliance with freedom of association issues. The Better Work Haiti Industrial Relations (IR) Officer is working closely with the Social Dialogue Table, the Labour Ombudsman, employers and all the unions of the garment industry in Haiti. Overall, the sector has seen an increase in communication between unions and employers, more meetings are being held, in some factories protocols are being signed on production quotas between management and union cells. In general, more information exchange between all stakeholder is being noticed which speaks for evolving industrial relations with a clear intent by all parties involved to improve cooperation. Strengthening industrial relations is an integral part of BW’s project agenda. BWH addresses this on two levels; (i) individual factory level interventions with advisory and training services as part of Better Work’s core services to strengthen enterprise level social dialogue and sound industrial relations as well as (ii) sectoral interventions to strengthen social dialogue beyond individual factory level issues, e.g. through the Social Dialogue Table. - 15 - As part of this objective to strengthen industrial relations in the garment sector in Haiti, BW is planning different activities to increase the capacities of trade unions. These activities will build the capacity of the federations and the union cells to have a better understanding of industrial relations and the way in which rights to freedom of association and collective bargaining can operate in practice at the workplace level and to be able to identify good practices that they can use to prevent and resolve workplace disputes and come to common understandings and to understand appropriate channels through which to discuss and resolve issues at the workplace level and how to communicate these properly. Between October 2015 and March 2016, the IR Officer held a number of meetings and trainings with union representatives updating them on the evolution of the bipartite committees, the public biannual synthesis reports under the HOPE II legislation and other issues related to industrial relations. Better Work Haiti also launched an industry seminar on effective grievance mechanisms in which Performance Improvement Consultative Committee (PICC) members from different factories participated. Follow up of the learnings from this seminar at the factory level is provided through regular BW advisory services through the team of Enterprise Advisors. In January 2016, Better Work put together a comprehensive union capacity building plan for the entire year and presented the plan to the unions for input and comments. In this plan, Better Work has planned for a monthly meeting with the union leaders as well as a monthly meetings/ trainings with factory level union cells. Topics cover a wide range of topics such as labour law, collective bargaining, workers rights’ and responsibilities, communication in the workplace etc. Activities will also cover unions operating in the North of the country. The Office of the Labour Ombudsman continues to play a key role in the prevention and remediation of factory level conflicts in the garment industry. In 2015, the Labour Ombudsman intervened and mediated in eight individual factory level dispute cases throughout Port-au-Prince. A number of cases have already been successfully remediated and all partners appreciate the Labour Ombudsperson as a significant support to more mature industri al relations in Haiti’s garment sector. In general, the Labour Ombudsperson cooperates with all stakeholders in the sector and is particularly involved in all efforts of coordination and mediation as well as training activities that are being held jointly with officials from the MAST. Equally, the Ombudsman’s Office is trying to establish a more formal relationship with the Ministry’s (MAST) Conciliation Service. The Labour Ombudsperson is also providing support to the Social Dialogue Table. 1.3. The Better Work compliance assessment methodology Better Work compliance assessment framework The Better Work program assesses factory compliance with core international labour standards and national labour law. Following assessments, a detailed report is shared with the factory presenting findings on eight clusters, or categories, of labour standards, half of which are based on international standards and half on national legislation. Core labour standards: The ILO Declaration on Fundamental Principles and Rights at Work, adopted in 1998, calls upon Member States to respect and promote these principles and rights in four areas, whether or not they have ratified the relevant conventions. These categories, or clusters, are: freedom of association and collective bargaining, the elimination of forced or compulsory labour, the abolition of child labour and the elimination of discrimination in employment and occupation. The conventions on which the 1998 Declaration is based are Nos. 29, 87, 98, 105, 100, 111, 138, 182, and they form the - 16 - reference base in assessing factory compliance with fundamental rights for all the Better Work programs in various countries. For some issues, such as minimum legal working age, provisions in national law specify requirements for the application of international conventions. If national law is not consistent with international standards pertaining to core labour standards, the international standards are applied. Haiti has ratified all eight core Conventions listed above. According to the Haitian Constitution, ratified conventions become self-executing and therefore part of Haitian law. Working Conditions: The four other clusters assess conditions at work, including compensation, contracts and human resources, occupational safety and health, and working time. The compliance points covered in these clusters are largely consistent across countries; however each compliance point contains specific questions that may vary from country to country due to differences in national legislation. National legislation is used as a reference point even if it is not in accordance with the international conventions that have been ratified by the country. In countries where national law either fails to address or lacks clarity around a relevant issue regarding conditions at work, Better Work establishes a benchmark based on international standards and good practices. Table 1: Better Work compliance assessment framework Compliance clusters Compliance Points Core Labour Standards 1 Child labour 1. Child Labourers 2. Unconditional Worst Forms 3. Hazardous Work 4. Documentation and Protection of Young Workers 2 Discrimination 5 5. Race and Origin 6. Religion and Political Opinion 7. Gender 3 Forced Labour 8. Coercion 9. Bonded Labour 10. Forced Labour and Overtime 11. Prison Labour 4 Freedom of Association and Collective Bargaining 12. Freedom to Associate 13. Union Operations 14. Interference and Discrimination 15. Collective Bargaining 16. Strikes Working Conditions 5 Compensation 17. Minimum Wages 6 18. Overtime Wages 19. Premium Pay 20. Method of Payment 21. Wage Information, Use and Deduction 5 In Better Work country-specific questionnaires, a compliance point “Other Grounds” may be included under the Discrimination cluster. This category is intended to assess specific discrimination issues that are covered in national labour law, and are considered to be aligned with the objectives of the relevant ILO conventions (100 and 111), but which are not explicitly named in the conventions, e.g., age, HIV/AIDS status, disability, etc. The questionnaire for Haiti does not include the “Other Grounds” compliance point because the Haitian labour law does not identify grounds for discrimination beyond those cited in Conventions 100 and 111. 6 Since the 8 th Better Work Haiti synthesis report, Better Work Haiti only reports non-compliance with the minimum wage of reference of 240 Gourdes (as of 1 st May 2015). The reporting on the production wage of 320 Gourdes will be done with specific details on each factory’s percentages of workers’ average earnings in the factory tables in section V of the report. - 17 - 22. Paid Leave 23. Social Security and Other Benefits 6 Contracts and Human Resources 24. Employment Contracts 25. Termination 26. Dialogue, Discipline and Disputes 27. Contracting Procedures 7 Occupational Safety and Health 28. OSH Management Systems 29. Chemicals and Hazardous Substances 30. Worker Protection 31. Working Environment 32. Health Services and First Aid 33. Welfare Facilities 34. Worker Accommodation 35. Emergency Preparedness 8 Working Time 36. Regular Hours 37. Overtime 38. Leave Calculating non-compliance In public synthesis reports, Better Work reports on aggregated non-compliance in the participating industry as shown in Chart 1. Non-compliance is reported for each subcategory (compliance point, or “CP” ) of the eight labour standards clusters. A factory is reported as non-compliant in a subcategory if it is found to be out of compliance on any issue addressed within the subcategory. With respect to the figures presented in synthesis reports, for example, a non-compl