BetterWork: 20èm Rapò Sentèz Biannyèl: Revizyon Endistri ak Konfòmite Dapre Lejislasyon HOPE II

2 0 th Biannual Synthesis Report An Industry and Compliance Review Under the HOPE II Legislation Haiti REPORTING PERIOD A p r i l 201 9 – M a r c h 2 0 2 0 I B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Copyright © International Labour Organization (ILO) and International Finance Corporation (IFC) (2020) First published (2020) 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: apparel industry 20th biannual synthesis report under the HOPE II legislation / International Labour Office; International Finance Corporation. - Geneva: ILO, 2020 1 v. ISSN 2227-958X (web pdf) International Labour Office; International Finance Corporation Clothing industry / textile industry / working conditions / workers’ rights / labor legislation / ILO Convention / international labor 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.betterwork.org II B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Acknowledgements The US Department of Labor supports Better Work Haiti. This publication does not necessarily reflect the views or policies of the organization listed above, nor does mention of trade names, commercial products, or organizations imply endorsement by them. III B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Table of contents Acknowledgements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II List of Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V Section I: Introduction and Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 Rationale for new reporting format. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.3 Haiti industry at a glance in numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Section II: Better Work’s Service Delivery Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.1 The Better Work Compliance Assessment Methodology . . . . . . . . . . . . . . . . . . . . . .9 Better Work Compliance Assessment Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Calculating Non-Compliance & Public Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section III: Highlights of the reporting period (April 2019-March 2020). . . . . . . 19 3.1 Country Context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Better Work Key Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Select Areas of Aggregated Non-Compliance in the Haitian garment industry . .23 3.2 Factories in Detail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 List of Factories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Findings from the Factories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Annex 1: The TAICNAR Project and Reporting Requirements under the HOPE II Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 TAICNAR Program Component 1: Compliance Assessments and Remediation Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 TAICNAR Program Component 2: Technical assistance to strengthen the legal and administrative structures for improving compliance in the industry . . . . . . . . . .28 IV B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T List of Tables and Charts Table 1: Better Work compliance assessment framework . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Table 2: List of factories in the Haitian apparel sector which have been assessed between April 2019 and March 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Figure 1: Employment growth in 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Figure 2: Industry investment ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Figure 3: Manufacturing products by factories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 List of Acronyms ADIH Association des Industries d’Haïti (Haitian Industry Association) BMST Bureau de la Médiatrice Spéciale du Travail 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 Labor 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 PAP Port-au-Prince, Haiti 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 Labor - Congress of Industrial Organizations TDS Social Dialogue Table (Table de Dialogue Social) TAICNAR Technical Assistance Improvement and Compliance Needs Assessment and Remediation USDOL United States Department of Labor 1 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Section I: Introduction and Context Background Better Work – a collaboration between the United Nations’ International Labour Organization (ILO) and the International Finance Corporation (IFC), a member of the World Bank Group – is a comprehensive program bringing together all levels of the garment industry to improve working conditions, respect of labor rights for workers, and boost the competitiveness of apparel businesses. The program was launched in Haiti in June 2009 as part of the global Better Work program with country operations in Bangladesh, Cambodia, Ethiopia, Egypt, Haiti, Indonesia, Jordan, Nicaragua, and Vietnam. To date, Better Work is mainly operating in the apparel and footwear industry in the countries it operates in. 1 In Haiti, the program is mandatory for all apparel producers exporting their products to the US market under the HOPE II legislation. The HOPE II law requires that Haiti in cooperation with the ILO establishes a Technical Assistance Improvement and Compliance Needs Assessment and Remediation Program (TAICNAR), which (i) assesses Haitian apparel factories exporting under the HOPE II law on compliance with international core labor standards and national Haitian labor law, (ii) assists these factories on their remediation efforts and (iii) provides capacity building to the Government of Haiti on these aspects. According to the HOPE legislation, biannual reports have to be published to state enterprise level compliance performance. Further details on the components of the HOPE II law as well specific requirements with regards to biannual reports being published by the entity operating the TAICNAR program are quoted in annex 1 (HOPE II Legislation Reporting Requirements). This is the twentieth report under the HOPE legislation to be published in April 2020. Detailed enterprise level data of compliance performance as required by the HOPE II legislation is included in the factory tables in the section called “factory tables”. The two components of HOPE II’s TAICNAR program aim at strengthening labor compliance of the industry in Haiti. The first of these elements focuses on assessing compliance with core labor standards and national labor law, supporting remediation efforts, and publicly reporting on the progress of each factory on the Labor 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, 1 Companies from other industries may benefit from Better Work services in some particular country contexts. In Haiti for example, a plastics factory is participating voluntarily in the program by paying a market price for the Better Work services. 2 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T raising awareness of workers’ rights, and training labor inspectors, judicial officers and other government personnel. To encourage compliance with core labor standards and national labor 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 labor standards and national labor 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 has been implementing the first component of the TAICNAR program from 2009 until 2017 while other ILO projects, in particular the ILO-MAST capacity- building project worked on the second component. As of 2018 with the start of the third phase of the Better Work Haiti project (2018 - 2022), Better Work will also take on several elements of the second component of the TAICNAR program while continuing carrying out activities covering TAICNAR component one. The Better Work program is coordinating its work with the Labor 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 Labor Ombudsperson in line with the requirements of the HOPE law chairs the Committee. Therefore, Better Work follows this two-pronged approach at country level to improve working conditions and competitiveness of the garment industry in Haiti. On the one hand, direct factory level interventions allow to have deep insight into each company`s compliance performance and assist in a tailored way. On the other hand, the program works with the tripartite constituents to address endemic challenges in a more substantial way by bringing stakeholders together, sharing industry data and offering technical assistance to address compliance challenges and capacity building needs. In 2019, Better Work celebrated its 10 years of presence in Haiti. While the programme had a difficult start due to the devastating earthquake that shocked Haiti in January 2010, the garment industry grew back to be a key pillar of the Haitian economy. As a mandatory programme under the US HOPE legislation to Haiti, garment exporters are required to participate in Better Work as a prerequisite to export their products to the US market. Over the past ten years, the garment industry in Haiti grew significantly, from approximately 20,000 direct employees at the beginning of the Better Work programme to over 50,000 in 2019 with garment exports from Haiti crossing the 1 billion US$ line. 3 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Haiti is facing numerous challenges ranging from natural disasters to poor governance. The security situation is volatile with frequent outbreaks of riots and unrest. Yet the garment industry is the largest formal exporting sector, with approximately 90% of Haitian exports being apparel products. In addition to the direct employees in the +40 apparel factories, the industry also creates indirect jobs (in transportation, food etc.). Although factories still face challenges about labour law compliance, Better Work has built strong partnerships over the years and earned the trust of workers, managers and the government. This trust allows the program to have more open conversations to get to the root causes of compliance challenges. The program has completed two phases and is currently in its third program phase (2018 – 2022). While all phases have followed relatively similar structures in the logical framework and overall strategy, the activities conducted were adjusted to the industry needs. The overall focus of the third phase is to transfer more knowledge, tools and capacities to the national partners in order to ensure that efforts result in sustainable changes. The tripartite national constituents need more technical support to govern the labour market more effectively themselves. Hence, capacity building of tripartite partners and has been made an integral part of this current phase. Rationale for new reporting format In 2020, the global Better Work programme is publishing a new annual donor report about the achievements of the programme worldwide. This new report will include sections covering each country in which Better Work operates, including Haiti. It will replace annual country level reports and streamline reporting across countries. Since Better Work Haiti is implementing the TAICNAR program and thus is required to publish biannual compliance reports to fulfil the requirements of the HOPE legislation, the Better Work Haiti programme will continue to publish these country level reports biannually in April and October of every year. The format of the reports however will be simplified, mainly focusing on the factory tables, which contain all the information that is required for publication under the HOPE legislation. More detailed information on achievements and activities will be reported in the Annual Donor Report. 8 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T A P R I L 2 0 2 0 HA I TI I N D US T R Y A T A G L A NC E I N NU M BE RS Better Work Haiti strives to create a garment industry that provides decent work to a projected 65,000 workers, lifting their families and communities out of poverty, empowering women, boosting national income and improving social stability. Building on the strong partnerships Better Work has developed with the government, global brands, employers and unions, over the next five years, the programme will play a central role in realizing the full potential of the HOPE II Act – a preferential trade program with the US. Convening diverse stakeholders to tackle shared challenges and supporting institutions’ efforts to monitor and safeguard factory compliance with international labour standards will be top priorities. Key partners  Ministry of Social Affairs and Labour (MAST)  Office of the Labour Ombudsman (BMST)  National Insurance and Pensions Office (ONA)  Office for Employment Injury, Illness and Maternity (OFTMA)  Ministry of Commerce and Industry (MCI)  Office of the State Secretary for the Integration of People with Disabilities (BSEIPH)  Association of Haitian Industries (ADIH)  Economic Forum  All Trade unions active in the garment sector  25 brand and retail partners 57, 3 8 8 WORKERS (61% WOMEN) FACTORIES IN THE PROGRAMME 41 FREE ZONES HOSTING 90% OF TEXTILE 7 1 billion APPAREL EXPORTS IN USD BILLIONS (90% OF NATIONAL EXPORTS) BRANDS AND RETAILERS 25 BETTER WORK HAITI STAFF 15 YEARS OPERATING IN HAITI SINCE 2009 10 years INDUSTRY COMPLIANCE REPORTS 20 5 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T FIGURE 1: EMPLOYMENT GROWTH IN 5 YEARS Jobs PIM PIC CODEVI 2016 2017 2018 2019 2020 45,000 10,900 13,026 13,491 13,491 14,546 8,923 11,351 11,351 12,346 7,800 9,200 9,233 10,179 10,873 47,386 52,000 53,000 5 7 ,3 88 FIGURE 2: INDUSTRY INVESTMENT OWNERSHIP USA (6) KOEAN (14) DOMINICAN REPUBLIC (5) HAITIAN (12) TAIWAN (3) SRI LANKA (2) 5% 14% 29% 33% 12% 7% 6 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T FIGURE 3: MANUFACTURING PRODUCTS BY FACTORIES 16 14 12 10 8 6 4 2 0 T-shirts Knits Shirts Pants Sports apparel Others 15 8 3 5 2 4 7 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Section II: Better Work’s Service Delivery Model The key principles of Better Work’s service model are ownership, accountability, dialogue and partnership. The core services offered to factories are advisory services, an annual assessment, and training services. Better Work’s service delivery model stresses the importance of advisory services with a stronger focus on assistance on management systems, root cause analysis and continuous learning. Better Work acknowledges the fact that auditing alone cannot contribute to sustainable remediation of non-compliances. Assessments provide a snapshot of the non-compliance issues, yet alone, they do not add significant value to improvements of factories’ compliance performance. Therefore, the focus in the services that Better Work delivers to factories are on continuous learning and improvements working with factories on root causes that are underlying repeated non-compliance issues. Since 2015, a factory cycle no longer starts with an assessment on which advisory services were based, as had been the initial approach. Under the current Better work service delivery model, the cycle now starts with a period of approximately 100 days of advisory services in which the factory with its bipartite committee can conduct a self-diagnosis with support of its Better Work Enterprise Advisor and can work on immediate improvements where possible. The unannounced Better Work assessment is then conducted after the initial period of advisory and training services. Following the assessment, the advisory process continues, focusing on enabling the bipartite committee to address issues that are listed in the improvement plan. The improvement plan includes issues that the factory has self-diagnosed and those that were identified during the Better Work assessment. Factories will be supported through tailored factory visits; issue specific seminars (on topics relevant to the country/industry) with peers from other factories; and training appropriate to the factory’s specific needs. Better Work reporting has two elements – reports completed and verified by the Better Work program and those that are completed and released directly by factories. The Better Work factory reports consist of the assessment report that is released roughly 30 days after the unannounced assessment visit. Then later on in the cycle, in the 11th month of the cycle, Better Work then publishes a progress report, detailing improvements on compliance issues, as well as in-factory dialogue, continuous learning and the use of effective management systems. Better Work also provides additional recommendations in this report to further strengthen the improvement process. Factories report through the Better Work portal. This portal is the platform that is also used by Better Work to share factory data with authorized international brands that subscribed to a specific factory in 8 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T either of the Better Work country programs. The enhanced portal with the revised self- reporting function also offers the opportunity for factories to update their improvement plan themselves. The improvement plan lists a factory’s non-compliance points from the last Better Work independent assessment together with any other issues that the factory itself identified as areas for improvements. Once the factory updates its improvement plan online, the information is immediately available to buyers and Better Work. However, this feature has some limitations with regards to the factories’ editing rights as only Better Work can update the status of a non-compliance issue from “delayed”, “pending”, or “in progress”, to “completed” after verification of evidence of remediation. Factory reporting then continues with the first progress report, which is published approximately 5 months after the start of the cycle. This report includes progress to date on all self-diagnosed issues as well as those identified by Better Work during the assessment do. The synthesis report has a pre-set structure from Better Work and it is made available to authorized buyers and indicates initial progress and planned steps for the remainder of the cycle. The Better Work role for this first progress report will be limited to coaching factories on how to engage in effective self-reporting and how to ensure continued progress on closing areas of non-compliance. The Better Work Enterprise Advisors then write their own progress report towards the end of an annual cycle of each factory. An overview of the sequence of the different components of the Better Work service model under this revised approach can be found in the illustration below: Training up to 25 days per cycle Industry seminar 4 Industry seminar 1 Industry seminar 2-3 Factory visits (approx. 3) Factory visits (approx. 1) Factory visits (approx. 4) Start cycle Improve- ment plan Improve- ment plan Progress report 1 Progress report 2 Assess- ment report Assess- ment I n i t i a l a d v i s o r y E v a l u a t i o n C o n t i n u e a d v i s o r y F A C T O R Y B E T T E R W O R K Sequence and components of annual Cycle under Better Work’s revised service delivery model. 9 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T In 2017, Better Work started to differentiate factories depending on their performance. Factories that are scoring high enough in terms of compliance performance but also in the areas of dialogue and learning encompass the criteria that need to be satisfied before a factory can be qualified for “stage two”. In fact, Better Work will classify factories as being in “stage two” if they consistently demonstrate high levels of compliance, a mature level of social dialogue, effective management systems and a commitment to learning. Those criteria will be evaluated based on information collected during two consecutive assessments. Factories that have not yet met this benchmark will be classified as “stage one.” For factories that have been with Better Work for several years, service differentiation will respond to requests for greater autonomy in the day to-day advisory service, fewer assessments, and a tailored service that responds to their more advanced needs, for example relating to systems development, purchasing practices, productivity and quality, and mature industrial relations. The Better Work Compliance Assessment Methodology BETTER WORK COMPLIANCE ASSESSMENT FRAMEWORK The Better Work program assesses factory compliance with core international labor standards and national labor law. Following assessments, a detailed report is prepared and findings are shared with the factory presenting findings on eight clusters, or categories, of labor standards, half of which are based on international standards and half on national legislation. Core labor 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 labor, the abolition of child labor 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 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 labor 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 10 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T 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 CLUSTER COMPLIANCE POINT COMPLIANCE ISSUE Child Labor Child Laborers Workers under age 15 Documentation and Protection of Young Workers Age verification system Medical certificate, and/or an employment certificate or permit delivered by the Director of Labor provided by workers under age 18. Register of workers under age 18. Hazardous Work and other Worst Forms Workers under age 18 working at night. Workers under age 18 working overtime. Workers under age 18 doing work that is hazardous by nature. Discrimination 2 Gender Changing the employment status, position, wages, benefits or seniority of workers during maternity leave. Conditions of work (gender and/or marital status). Excluding maternity leave from workers’ period of continuous service Hiring (gender and/or marital status). Job announcements (gender and/or marital status). Pay (gender and/or marital status). Pregnancy tests or use of contraceptives as a condition of employment Promotion or access to training (gender and/or marital status). Sexual harassment Terminating workers or forcing them to resign if they are pregnant, on maternity leave or nursing. Termination or retirement (gender and/or marital status). 2 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 labor 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 labor law does not identify grounds for dis- crimination beyond those cited in Conventions 100 and 111. 11 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Race and Origin Conditions of work (race, color, origin) Harassment (race, color, origin) Hiring (race, color, origin) Pay (race, color, origin) Promotion or access to training (race, color, origin) Recruitment materials (race, color, origin) Termination or retirement (race, color, origin) Religion and Political Opinion Conditions of work (religion or political opinion) Harassment (religion or political opinion) Hiring (religion or political opinion) Pay (religion or political opinion) Promotion or access to training (religion or political opinion) Recruitment materials (religion or political opinion) Termination or retirement (religion or political opinion) Forced Labor Bonded Labor Debts for recruitment fees owed to the employer and/or a third party Coercion Coercive tactics. Delaying or withholding wage payments. Forced labor to discipline workers or punish them for participation in a strike Free exit from the workplace at all times, including during overtime. Freedom of movement (dormitories or industrial park). Freedom to terminate employment with reasonable notice and/or to leave their jobs when their contracts expire Threats such as deportation, cancellation of visas or reporting to the authorities Violence or the threat of violence. Workers’ access to their personal documents (such as birth certificates, passports, work permits and ID cards) Forced Labor and Overtime Forced overtime under threat of penalty Prison Labor Prison laborers Freedom of Association and Collective Bargaining Collective Bargaining Access to collective bargaining agreement. Collective agreement less favourable for workers than what is required by national law. 12 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Collective bargaining/bargaining in good faith. Implementation of collective agreement. Freedom to Associate Freedom to form and/or join a union Requiring workers to join a union. Interference and Discrimination Attempt(s) to interfere with, manipulate or control the union(s). Freedom to meet without management present. Incentives to refrain from joining a union or engaging in union activities. Punishment of unionists Termination or non-renewal of worker’s employment contract due to union membership or activities Threats, intimidation or harassment of unionists. Unequal treatment of multiple unions. Union membership or union activities factoring into hiring decisions Strikes Hiring of replacement workers during a strike. Preventing workers from participating in a strike. Punishing workers for participating in a strike. Security guards, the police or armed forces called on to break up a peaceful strike or arrest striking workers. Union Operations Deduction of union dues upon workers’ request. Union representatives’ access to workers in the workplace. Compensation Method of Payment In-kind wage payments. Regular and timely payment of wages. Wage payment directly to workers at the workplace on working days Wage payment in legal currency. Minimum Wage Correct payment of piece rate workers when their piece rate earnings exceed minimum wage. Payment of minimum wage for apprentices. Payment of minimum wage for temporary workers. Overtime Wages Payment for ordinary overtime. Payment for overtime hours worked on holidays. Payment for overtime worked at night. Payment for overtime worked on weekly rest days. 13 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Paid Leave Payment for annual leave. Payment for breastfeeding breaks. Payment for legally mandated holidays. Payment for maternity leave. Payment for sick leave. Payment for weekly rest days. Premium Pay Payment for regular hours worked at night. Payment for regular hours worked on holidays Payment for regular working hours worked on weekly rest days Social Security and Other Benefits Collecting and forwarding workers’ contributions for social insurance funds to ONA. Employer contribution to OFATMA for maternity and health insurance. Employer contribution to OFATMA for work-related accident insurance. Employer contribution to ONA. Forwarding of workers’ contributions to OFATMA. Payment of annual salary supplement or bonus. Wage Information, Use and Deduction Deductions from workers’ wages. Informing workers about wage payments and deductions. Payroll records. Contracts and Human Resources Contracting Procedures Limits on the trial period for apprentices. Dialogue, Discipline and Disputes Bullying, harassment or humiliating treatment of workers. disciplinary measures Resolution of grievances or disputes. Employment Contracts Contracts for all persons performing work for the factory. Employment contracts’ compliance with the labor code, collective agreement and/or internal work rules. Internal work rules. Specifying terms and conditions of employment in written employment contracts. Workers’ understanding of the terms and conditions of employment. Termination Annual salary supplement or bonus upon termination. Notice of termination. 14 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Orders to reinstate or compensate unjustly terminated workers. Payment for unused paid annual leave upon resignation or termination. Reasons for termination. Reductions in workforce size or suspensions due to changes in operations Occupational Safety and Health Chemicals and Hazardous Substances Assessing, monitoring, preventing and/or limiting workers’ exposure to hazardous substances. Chemical safety data sheets for all chemicals and hazardous substances in the workplace. Inventory of chemicals and hazardous substances used in the workplace. Labelling of chemicals and hazardous substances. Storage of chemicals and hazardous substances. Training workers who work with chemicals and hazardous substances. Washing facilities or cleansing materials in the event of chemical exposure. Emergency Preparedness Accessible, unobstructed, and/or unlocked emergency exits during working hours, including overtime. Fire detection and alarm system. Firefighting equipment. Marking or posting of emergency exits and/or escape routes in the workplace. Number of emergency exits. Periodic emergency drills. Safeguarding possible sources of ignition Storage of flammable materials Training workers to use the firefighting equipment Health Services and First Aid Annual medical checks for workers. First-aid training for workers. Health checks for workers who are exposed to work- related hazards. Medical checks for workers upon hiring. Onsite medical facilities and staff. The employer did not ensure that there were a sufficient number of readily accessible first aid boxes/supplies in the workplace. Safety and health risks to pregnant or nursing workers 15 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T OSH Management Systems Assessment of general occupational safety and health issues in the factory. Legally required construction/building permits Mechanisms to ensure cooperation between workers and management on OSH matters. Recording work-related accidents and diseases and/or submitting the record to OFATMA. Written OSH policy. Welfare Facilities Certain required facilities. Eating area. Providing drinking water. Toilets. Washing facilities and/or soap. Worker Accommodation Accommodation separate from the workplace Cooking or storage facilities in the accommodation. Lighting in the accommodation. Minimum space requirements in the accommodation. Preparation for emergencies in the accommodation. Privacy in the accommodation. Protection against disease carrying animals and/or insects in the accommodation. Protection against fire in the accommodation. Protection against heat, cold and/or dampness in the accommodation. Protection against noise in the accommodation. Toilets, showers, sewage and/or garbage disposal systems in the accommodation. Ventilation in the accommodation. Water in the accommodation. Worker Protection Ergonomic requirements Installing guards on all dangerous moving parts of machines and equipment. Installing, grounding, and/or maintaining electrical wires, switches, and/or plugs. Posting safety warnings in the workplace Providing workers with personal protective clothing and equipment. 16 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Punishment of workers who removed themselves from work situations they believed presented an imminent and serious danger to life or health. Training and encouragement of workers to use PPE, machines and/or equipment safely Working Environment Workplace cleanliness Workplace lighting. Workplace noise levels. Workplace temperature and/or ventilation. Working Time Leave payment in place of annual leave Time off for annual leave. Time off for breastfeeding breaks. Time off for maternity leave. Time off for sick leave. Overtime Authorization from the Department of Labor for overtime. Authorization from the Department of Labor for work on Sundays. Limits on overtime hours worked. Voluntary overtime. Regular Hours Daily break periods. Regular daily and/or weekly working hours. Weekly rest period. Working time records. Authorization from the Department of Labor before working at night. CALCULATING NON-COMPLIANCE & PUBLIC REPORTING 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 labor 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-compliance rate of 100% means that all participating factories were found to have at least one violation in that area. The Better Work program supports fair and transparent public reporting. In all Better Work country programs, synthesis reports containing aggregated information on the industry are 17 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T prepared based on the individual factory assessment reports and published twice a year. Better, Work is currently expanding its reporting in the other Better Work countries to include individual factory-level compliance information, as is already the case for Haiti. Evidence shows that public reporting of this kind helps encourage continuous improvement and reduces the probability of reversing compliance gains. Gathering and reporting these data over time enables factories to demonstrate their efforts to improve working conditions. The factory-level assessments carried out by Better Work Haiti follow a thorough checklist of about 230 questions covering the above mentioned labor standards, and gathering general information about the factory. 3 Information is gathered through a variety of sources and techniques, including document review, observations on the factory floor, and interviews with managers, workers union representatives, bipartite committee members or any other relevant witness. The information collected is compiled and analysed to produce a detailed assessment report. Before the reports become official, factories are given seven calendar days to provide feedback. Worker interviews conducted during the assessment process are held onsite, either in a private room within the factory building or outside the building (yard, eating area), and take place either in small groups or individually. Interviews are conducted in Creole, the primary language of the workers. Workers may be suspicious and feel uneasy about sharing information on their workplaces with people who are not well known to them and coaching of workers by factory management is a possible issue in the industry in general. Nevertheless, after over ten years of assessments, Better Work Haiti Enterprise Advisors have improved their investigative approach, consistently innovating in the fact gathering process and implementing worker interview best practices. Enterprise advisors cumulative experience, and the positive reputation Better Work has built through factory activities, have contributed to an environment where workers are more comfortable discussing working conditions. Interviews with workers cover many aspects of life at work and last approximately 20 minutes. On average, 40 workers representing different sections of the factories, as well as union representatives, are interviewed. The assessment visits usually last two days and because it is a picture of the moment, some situations that might lead to non-compliance points in the future are not reported. It is also important to keep in mind that non-compliance issues might be identified during the advisory cycle through the self-diagnosis process. Better Work supports factories in order to reinforce their capacity to conduct a self-diagnosis and to develop an improvement plan that includes points that go beyond the Better Work assessment. For all the issues included in the improvement plan, additional information is stated, such as the action to be taken and the person responsible for it within the company. All of this information in return as well as the remediation efforts are then documented in the progress reports. 3 Better Work Haiti Compliance Assessment Tool (CAT) including their legal references can be accessed here: http:/ / betterwork.org/haiti/?page_id=1731 18 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T As Better Work is moving into a differentiated approach where services for advanced factories will be different from those for factories who still require more assistance, the evaluation of the performance of a factory will not only be limited to the assessment data but will also include information gathered in those progress reports. Non-compliance issues related to core labour standards are usually more difficult to detect, for example sexual harassment, which is included in Better Work Haiti’s compliance assessment tool. Similarly, to other countries, it is one of the most sensitive and most difficult issues to detect during factory assessments. The assessment of sexual harassment in the workplace by Better Work Haiti is likely to underreport the extent of its occurrence. However, sexual harassment remains an issue of concern in the industry in general. As mentioned, Better Work is basing its assessment findings on triangulation of facts, which requires sufficient evidence in order to find a factory in non-compliance on a particular compliance point, and some issues are not always easy to detect. Although concerns regarding sexual harassment persist, Better Work Haiti has seen positive developments on the topic with factories acknowledging the issue as a potential problem and demonstrating an increased openness to address it. Gender issues including addressing sexual harassment has therefore become an integral part of Better Work`s strategy to improve compliance in the garment industry globally. Simple auditing of factory compliance has been widely acknowledged limited in rectifying compliance issues. Factories wishing to not disclose certain information are able to do so without focusing on the long-term business benefits of improving their working conditions. This is why Better Work’s approach at the factory level is much broader in its scope focusing on continuous improvements through advisory and training services, emphasizing the importance of effective systems and the involvement of workers. 19 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T Section III: Highlights of the reporting period (April 2019-March 2020) Country Context Since February 2019, the economic, social, and political situation in Haiti has deteriorated. Haiti’s currency has depreciated and inflation is at over 20% per the Haitian Institute of Statistics latest figures. Elections for the houses of parliament scheduled for October 2019 were postponed, meaning members of parliament whose terms had expired were not replaced. Social unrest peaked in October and November 2019. Workers throughout the country missed many days of work due to civil unrest. Some businesses were forced to close their doors entirely for extended periods. The textile sector was able to continue limited operations with reduced personnel, with factories in the Northeast less affected than those in Port-au-Prince. In addition, in November, the government announced an increase in the minimum wage (from 420 gourdes to 500 Gourdes) for workers in the textile industry. Trade Unions were discontent with the increase, stating that it was not enough to compensate for inflation. Employers also expressed concerns, noting that the salary increase came in challenging economic conditions. For the better part of the reporting period, the country was functioning with an interim Prime Minister. The government and the national political actors, encouraged by the international community, engaged in several rounds of negotiations in the hope of finding a prime minister before the departure of the senators. Indeed, as of the second week of January 2020, they did not settle on a new Prime Minister and the parliament was left to function with only 11 senators. Due to this lack of senatorial representation, the executive branch of the government no longer needed to negotiate with the opposition to nominate a new Prime Minister. Therefore, at the beginning of March 2020, the president chose a new Prime Minister, Mr. Joseph Jouthe, who was the caretaker Minister of Environment. The new government moved quickly to install new ministers since the approval of the legislative body was not needed. Haiti now has new ministers for the Ministry of Social Affairs and Labor and the Ministry of Commerce and Industry. The country’s situation, however, did not dampen the vision of the Haitian Manufacturers’ Association (Association des Industries d’Haïti - ADIH), which was still optimistic about growth in the textile sector. In October, a delegation headed by the president of ADIH, travelled to Taiwan to attract investment. In a subsequent interview with National newspaper, Le Nouvelliste, the ADIH president stated his belief that up to 30,000 jobs can be created in the coming two years. Despite the volatile situation, the industry remains a vital source of income for Haiti. According to OTEXA, in the last trimester of 2019, estimated 20 B E T T E R W O R K H A I T I - 2 0 T H C O M P L I A N C E S Y N T H E S I S R E P O R T revenues from the industry grew by 11.59% from the previous year, and exports to the U.S. market were worth approximately $1.012 billion. As of March 1