BetterWork: 21ème Rapport de Synthèse sur la Conformité dans le Cadre de la Législation HOPE Haïti OCTOBRE 2019-SEPTEMBRE 2020

21 st Compliance Synthesis Report Under the Hope Legislation Haiti OCTOBER 2019-SEPTEMBER 2020 1 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Copyright © International Labour Organization (ILO) and International Finance Corpora- tion (IFC) (2020) First published (2020) ILO publications benefit from copyright under Protocol 2 of the Universal Copyright Convention. However, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For reproduction or translation rights, the 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 by 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 21st 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. Catalogs 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 2 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Acknowledgments/Disclaimer Better Work Haiti receives financial support from the United States Department of Labor (USDOL). This publication's contents are the sole responsibility of Better Work Haiti and do not necessarily reflect USDOL's views. The funding that is provided by the United States Department of Labor falls under cooperative agreement number IL-21187-10-75-K. One hundred percent of the program's total costs in 2019 were funded by Federal funds, for a total of $1.3 Million. This material does not necessarily reflect the United States Department of Labor's views or policies, nor does mention of trade names, commercial products, or organizations imply endorsement by the United States Government. 3 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Table of Contents Acknowledgements .............................................................................................................................2 List of Acronyms ................................................................................................................................. 4 Section I: Introduction and Context ................................................................................................. 5 1.1 Background .................................................................................................. 5 1.2 Haiti industry at a glance in numbers ..................................................................................... 8 Section III: Highlights of the reporting period April 2020-September 2020) ....................... 13 Country Context ....................................................................................................................................... 13 Section IV: Dismissal findings of the reporting period. October 2019-September 2020) ................................................................................................................................................... 18 Section IV: Better Work key activities and response to COVID-19 ....................................... 22 Select Areas of Aggregated Non-Compliance in the Haitian garment industry ............... 27 Factories in Detail ............................................................................................................................ 29 List of Factories ....................................................................................................................................... 29 Findings from the Factories................................................................................................................ 30 Annex 1: The TAICNAR Project and Reporting Requirements under the HOPE II Legislation ......................................................................................................................................... 34 Annex 2. Better Work’s Service Delivery Model .......................................................................... 37 Better Work Compliance Assessment Framework .................................................................... 39 Calculating Non-Compliance & Public Reporting ...................................................................... 46 Limitations in the Assessment Process ......................................................................................... 46 4 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 List of Acronyms ADIH Association des Industries d’Haïti (Haitian Industry Association) BMST Bureau de la Médiatrice Spéciale du Travail (Office of the Special Ombudsperson of Labor) 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) CTH Confédération des Travailleurs Haïtiens (Confederation of Haitian Workers) CTSP Confédération des Travailleurs des secteurs Publics et Prives (Confederation of Workers from the Public and Private Sectors) CTMO - HOPE Commission Tripartite de Mise en œuvre de la loi HOPE (Tripartite Commission for the Implementation of the HOPE Law) EA Enterprise Advisor GOSTTRA Groupement Syndical des Travailleurs-eusses du Textile pour Réexportation d'assemblage (Union Group of Textile Workers for Re-export of the Assembly) HELP Haiti Economic Lift Program HOPE Haitian Hemispheric Opportunity through Partnership Encouragement Act IOE International Organization of Employers ITUC International Trade Union Confederation MSDS Material Safety Data Sheet MAST Ministère des Affaires Sociales et du Travail (Ministry of Social Affairs and Labor) OFATMA Office d’Assurance Accidents du Travail,Maladie etMaternité (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 (Industrial Park of Caracol) PICC Performance Improvement Consultative Committee 5 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 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 SDT Table de Dialogue Social (Social Dialogue Table) ) TAICNAR Technical Assistance Improvement and Compliance Needs Assessment and Remediation USDOL United States Department of Labor Section I: Introduction and Context 1.1 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 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 must be published to indicate enterprise-level compliance performance. Further details on the components of the HOPE II law and specific requirements regarding biannual reports being published by the entity operating the TAICNAR program are quoted in annex 1 (HOPE II Legislation Reporting Requirements). This is the twenty-first report under the HOPE legislation to be published in October 2020; due to unforeseen circumstances; it is being published late this year. . 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.” 6 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 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 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, raise awareness of workers’ rights, and train 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 to producers who – even after assistance has been provided - fail to come into compliance with the core labor standards and national labor law that are related and consistent with those standards. Removal of benefits is based on the government of the United States' determinations, 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's 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 carrying out activities covering TAICNAR component one. The Better Work program coordinates its work with the Labor Ombudsman and a tripartite Project Advisory Committee (PAC). This Committee meets with Better Work regularly to discuss the activities of the Better Work program. The PAC members represent the private sector, government and worker representatives, and the Labor Ombudsperson in line with the Committee's HOPE law's requirements. Therefore, Better Work follows this two-pronged approach at the country level to improve Haiti's garment industry's working conditions and competitiveness. On the one hand, direct factory level interventions allow 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 more substantially 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 ten years of presence in Haiti. While the program 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 program under the US HOPE legislation to Haiti, garment exporters are required to participate in Better Work as a prerequisite to export their 7 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 products to the US market. Over the past ten years, Haiti's garment industry grew significantly, from approximately 20,000 direct employees at the beginning of the Better Work program to over 51,000 in 2019, with garment exports from Haiti crossing the 1 billion US$ line. Despite the numerous challenges (Political instability and disruptions, natural disasters, con- tinuity of fuel supplies, cost of energy .etc.), the Haitian garment industry is the largest formal exporting sector and has proven to be resilient. Haitian apparel export grew annually, but the export per job declined. The garment sector pre-COVID-19 crisis employed 56,000 workers. The number of full-time equivalent workers fell by an estimated 25 percent from April to September 2020. COVID-19-related disruptions in the garment-manufacturing sector reverberate among workers and their families. Analysis of economic impact surveys among a subset of female workers in the sector revealed risks to food security, health, and livelihoods. Nine in ten re- spondents to a Better Work Haiti survey this summer reported trouble securing the usual amount of food for their household due to income shocks. Significant portions of workers surveyed have concerns about the health of themselves and their family members. 8 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 1.2 HAITI INDUSTRY AT A GLANCE IN NUMBERS 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. During this period, there was an initial decrease in the number of employed workers due to the Impact of COVID-19 on the apparel sector. However, towards the end of July, when the factories were allowed to operate fully, they started to rehire some workers. Building on the strong partnerships Better Work has developed with the government, global brands, employers, and unions, over the next five years, the program 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 labor standards will be top priorities. Key partners  Ministry of Social Affairs and Labor (MAST)  Office of the Labor 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) 36,003 WORKERS (61% WOMEN) FACTORIES IN THE PROGRAMME 37 FREE ZONES HOSTING 90% OF TEXTILE 7 765 Millions APPAREL EXPORTS IN USD MILLIONS (90% OF NATIONAL EXPORTS) BRANDS AND RETAILERS 26 BETTER WORK HAITI STAFF 14 YEARS OPERATING IN HAITI SINCE 2009 +10 INDUSTRY COMPLIANCE REPORTS 20 9 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0  Economic Forum  All Trade unions active in the garment sector  26 brand and retail partners 1.3 IMPACT OF COVID-19 ON APPAREL SECTOR General Impact: Political instability since July 2018 has compounded Haiti’s longstanding challenges and has continued to hamper growth and investment in the apparel sector mainly:  Poor organization of supply chains,  Significant dependence on imports for raw materials, equipment, and material,  The high cost of electricity and logistic,  Limited managerial knowledge in market intelligence,  A significant shortage of qualified professionals and skilled workers,  Weaknesses of the public institutions to provide appropriate responses promptly,  Unpredictable and non-concerted measures adopted by the government agencies,  Lack of dialog and concertation between stakeholders.  Extreme vulnerability to natural disasters. The Covid-19 pandemic has found a very fragile and vulnerable sector and has worsened the impact on production, employment, and investment: For the apparel export industry  Uncertainties of buyers due to the reconfiguration of the apparel world market,  Loss of orders and slowdown of new orders, the shift of production from traditional garments to PPE,  Difficulties in accessing raw materials,  Increase of production costs and lack of working capital,  New rules for imports, reduction of person-hour due to the rotation of workers,  Cease of investments and expansion plans, etc. 1 0 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Impact on Exports: The major shippers report to the US Office of Textile and Apparel (OTEXA) a fall of 21.45% in volume and 24.46 million in USD between 2019 and 2020 (Statics collected for the period between January and August of each year). If we compare the same months in 2018 and 2019, exports registered a growth of 8%. Source: Monthly Report of ADIH (data collected the last working day of each month) and BMST/BW (calculation of the average number of jobs per month: Sum of daily jobs divided by the number of the working day for each factory) 1 1 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Surveys in the Apparel sector: Two (2) surveys have been undertaken in May-June 2020: The first Survey was done in May 2020 by Better Work Haiti in collaboration with ACT/EMP (Costa-Rica Office and ADIH): This Survey was conducted in May 2020, and the main results are:  A significant disruption of operations: 57% of respondents were partially active,  Adverse effects on employment (suspensions, layoffs): 53% of the factories surveyed said they had suspended some of their workers, and 40% said they had laid off or intended to lay off more than 500 workers,  The first five main challenges reported are as follows: Negatively Affected Trading Partners (89%), Declining Demand (81%), Insufficient Cash Flow (70%), Input Shortage (67%), and Raw Material Shortage or Cost Increase (63%). The second Survey was done in May-June 2020 by ADIH in collaboration with IFC: This Survey's objective was to collect data to establish a clear and precise roadmap to meet the new challenges and identify the capacity to produce new PPE orders. A report on the finding of this Survey will be published by the end of November 2020. Respondents identified the most pressing challenges they faced:  Uncertainty regarding global demand (91%)  Number of workers reduced due to measures adopted by the government (82%)  Reduction of production capacity due to preventive measures to slow the spread of the virus (82%)  Lack of working capital (79%)  Difficulty accessing raw materials (61%). 1 2 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 West 68% Nord-East 32% FACTORIES BY LOCATION West North-East 24 4 9 2 1 1 FACTORIES BY CITY Port-au-Prince Caracol Ouanaminthe Tabarre Carrefour Croix-des-Bouquets 1 3 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Section III: Highlights of the reporting period April 2020-September 2020) COUNTRY CONTEXT In March of 2020, Haiti, a country with an already fragile health system, registered its first case of COVID 19. The government suddenly faced the daunting task of preventing the spread of the virus, which was quickly becoming a difficult challenge for countries around the world. The government acted swiftly to declare a state of emergency, restricting air travels, closing the border with its neighbor, closing schools and some businesses, including factories in the garment sector. Other businesses like banks and supermarkets were functioning with limited hours. The state of emergency was subsequently reinforced through a series of government decrees and communiqués, which required businesses and the public to respect the preventive measures recommended by the government through the Ministry of Health, including an 8:00 PM curfew. On April 1st, after a series of discussions with the Association of Haitian Industries (ADIH), through the prime minister's office, the government published a letter authorizing the reopening of factories to produce exclusively medical supplies to help in the fight against COVID-19. In his letter addressed to the Ministry of Public Health and Population (MSPP) and the Ministry of Social Affairs and Labor (MAST), the Prime Minister confirmed that the factories authorized to function would be producing 1 million facemasks to donate to the government. The government also agreed to purchase additional facemasks on an as-needed basis in the future. The letter also required factories to respect social distancing of at least 1.5 meters and install hand-washing stations at the factories' entrance. Factories had to modify their workspace to implement these requirements. Some factories have installed plexiglass partitions to protect workers from one another. A COVID-19 task force was also formed with representatives from MAST, MSPP, and the Ministry of Commerce and Industry (MCI). The task force's objective was to ensure that the preventive measures were being implemented and followed by businesses in operation. Shortly after that, ADIH shared a letter with Better Work Haiti with an initial list of 12 textile factories authorized to operate. The list subsequently increased to include more factories. As the number of COVID 19 cases increased, the government took other restrictive measures to prevent the virus's spread. 1 4 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 On April 3rd, companies were authorized, under certain conditions, to produce only masks, uniforms, and isolated gowns (Personal Protection Equipment – PPE) for the local market. The GOH also committed to purchasing 20,000,000 units of PPEs. Ten days later, on April 13th, 2020, the GOH issued communique 006 (https://drive.google.com/file/d/1CwaJzQbC4uF-74B28BtFpyRRlT9Nr9-U/view) and adopted a decision to allow all textile factories to reopen after April 20th with 30% of work- ers in rotation and respecting the COVID-19 directives. Factories found to violate MAST or MSPP’s directives would not be allowed to reopen or continue production. Communiqué 006 requires that companies (i) adapt their infrastructure (handwash stations, temperature checks, social distancing to access the factory and during working hours, etc.), (ii) purchase specific materials and equipment (medical supplies, cleaning, fumigation, etc.), and (iii) dis- tribute PPE to employees. Factories benefited from financial measures adopted by the GOH related to fiscal obliga- tions (extension to June 30th for certain formalities) and credit (three (3) month morato- rium on all loans, restructuring, and provisioning of loans, exemption of late fee on debts, etc.). On May 6th, the government published decree number 082, naming a new director at the head of SONAPI, the industrial park’s administrative body. On May 20th, the government published decree number 088, extending the emergency state for two months. People were required to wear facemasks in public places. They also restricted all indoor and outdoor gatherings to a maximum of five persons. On May 29th, the Ministry of Commerce (MCI) issued another communique number 003 to remind factory management that they should be operating with 30% of their staff on a rotating basis, after noticing that most factories were not following these instructions. Re- ports from the Bureau of Labor Ombudsperson also confirmed that factories were operat- ing with more than 30% of their workforce present at the same time. The factories com- plained that it is difficult to manage their production with only 30% of their staff, even though they do have less work. According to worldometers.info (https://www.worldometers.info/coronavirus/coun- try/haiti/), as of September 30th, 2020, 8766 reported cases of COVID-19 in Haiti and approximately 229 deaths. There were 1708 active cases, while approximately 7000 COVID-19 patients have reportedly recovered from the virus. After reviewing the COVID 19 related cases in July of 2020, the Haitian government decided to end the emergency state, thereby lifting all businesses' restrictions. However, the government authorities recom- mended that precautions such as wearing masks, handwashing, and social distancing should be practiced to prevent further spreading of the virus; there were no new decrees to enforce these measures. 1 5 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 35 factories adapt their infrastructure before and after working hours, (deep cleaning, fumigation, etc…) 1 6 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Schools reopened on August 10th, 2020, and have been encouraged to take additional precautions such as increasing ventilation in classrooms, assigning dedicated personnel for COVID-19 prevention, and raising awareness amongst students. Concerted efforts are ongoing to raise awareness of the virus. It has been noted by the Government’s COVID Communications committee that there is an insufficient level of public understanding and awareness of COVID-19, which is a severe barrier to prevention. False information on the virus is being circulated, including through social media, and there is a level of distrust of the public health system and government. Members of the public rarely wear facemasks, and social distancing measures are challenging for many households and are generally not respected. The Communications Sector has also reported that stigmatization is prevalent, especially in rural areas, and wearing a mask or staying in quarantine can lead to threats or violence. Many infected persons refuse the home care offered out of fear of stigmatization or mistrust. Health responders face reticence and sometimes hostility from the community. The country continued to operate in a shadow of political uncertainty. The government's executive branch nominated a new Electoral Council to carry out the next presidential and parliamentary elec- tions and a referendum to adopt a new constitution. The opposition parties qualify this move as un- constitutional because not all the critical sectors of Haitian political life were contacted to form the new electoral council. Furthermore, they claim that the new electoral council should not mandate a referendum to adopt a new constitution. On the economic front, the value of the Haitian currency increased after the central bank decided to inject approximately $150 million U.S dollars into the economy starting in August. By the end of Sep- tember, the Haitian gourdes' value has increased by approximately 50 percentage points, resulting in lower purchasing power among workers for some essential items with prices fixed to previous ex- change rates. The garment sector executives stated that this unexplained increase in the gourde's value also negatively affects them by raising costs. They fear that it may result in loss of employment for the garment sector shortly. During the reporting period, the textile industry received some good news on the international front. After approximately two years of negotiations, The United States Congress renewed the Caribbean Basin Trade Partnership Act (CBTPA), set to expire at the end of September 2020 for Haiti and other Caribbean nations. The renewed trade deal guarantees protections for Haitian/U.S. trade partners for the next ten years. The representatives of ADIH hail this news as a potential savior of the textile sector, particularly during the struggle to stay afloat because of the COVID 19 situation. 1 7 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 29 factories have pivoted their production to PPE following the COVID-19 Pandemic 1 8 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Section IV: Dismissal findings of the reporting period. October 2019-September 2020) `During this reporting period, Better Work Haiti conducted several investigations of allegations of wrongful dismissal of union committee members received to determine whether the factories violated any Freedom of Association Clauses (FOA). The investigations, which involved five factories, were conducted via virtual means. Better Work advisors used several different technological platforms, including regular telephone communications, Videoconference via Zoom, Google, and WhatsApp to conduct group and individual interviews with workers, management and union representatives, and reviewing documents. We had investigated the following fact” Has the employer terminated workers or not renewed a worker’s employment contract due to the worker’s union membership or activities? Factory 1 In April 2020, Better Work Haiti was called upon to investigate an incident at factory #1, which resulted in the termination of four union committee members. On March 30th, 2020, the four union committee members alleged that the factory had not implemented the COVID-19 preventive measures recommended by the government, and therefore, all the workers should stop working. Once the workers stopped, the factory’s management decided to close for the day. They sent a letter to the Ministry of Social Affairs and Labor (MAST), informing them about the factory's decision to dismiss the four workers following a work stoppage. Management claims that the four workers prevented the rest of the workers from working that day. The four union committee members accepted their termination and negotiated their severance pay through dialogue between the factory and the union's national coordinator. Thus, Better Work is not finding the factory in non- compliance. Factory 2 In July of 2020, a worker from factory #3 contacted Better Work, alleging that she had been fired because of her affiliation with a trade union organization. Our investigation revealed on May 2nd, 2020, the worker received a written warning for failure to obey her supervisor’s instructions. During the following days, she received several verbal warnings and another written warning on June 8th, 2020, for disrupting the work environment and subsequent warnings for unexplained absences on June 29th and July 2nd. Consequently, the factory decided to terminate the worker’s contract on July 8th, 2020. Considering the evidence presented by the factory and the interviews carried out with the workers, including factory-level trade union representatives, Better Work does not find that the factory violated the Freedom of Association (FOA) clauses. 1 9 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Factory 3 On July 23 rd , Factory # 4 informed the Ministry of Social Affairs (MAST) that it was terminating the contract of forty-seven workers, including forty-two union committee members, for an illegal work stoppage that occurred the previous day. Better Work Haiti launched an investigation to inquire about the event that prompted the termination of such a large number of workers. Reports from MAST, the Justice of the peace, and internal reports from the factory’s security supervisor alleges that on the day of the work stoppage, the trade union committee members blocked the entrance to the main gate, preventing people from leaving or entering the premises. The security supervisor’s report named the forty-seven union committee members. During interviews with Better Work advisors, the security officers could only confirm six individuals' identities. However, aside from these six individuals, there is insufficient credible evidence to allow for the identification of additional specific individuals involved in taking the keys and impeding passage through the factory gate. In the absence of objective, credible evidence identifying additional specific individuals involved in these acts. Better Work Haiti is finding non- compliance for anti-union discrimination. Better Work recommends reinstatement with back pay of the 41 terminated workers not identified above. Factory 4 On Saturday, August 29th, 2020, an incident occurred at Factory #2 when one worker attempted to enter a restricted area. A foreign manager who was present told the worker not to enter the restricted area. When the worker refused to obey the manager’s instructions, the manager attempted to physically stop the worker. The attempt to physically block the worker from entering the restricted area resulted in a tense interaction between the manager and the worker. Although the foreign manager was dismissed and the worker involved received a written warning, the altercation led to two unannounced and violent strikes, on August 31st, 2020, and on September 7th, 2020. There were acts of vandalism and sabotage during the strikes, as reported in reports from the Ministry of Social Affairs (MAST). The factory subsequently decided to dismiss 214 workers without pay. The factory followed proper procedures in alerting the MAST of the incidents promptly. The factory also properly solicited social dialogue when dealing with the conflict when it attempted to meet with MAST, the union representatives, and the protesting workers on September 7th. The decision to terminate the foreign manager was adequate, given the visibility and the sensitive nature of the altercation. The decision not to pay for the two days of August strikes is also supported by national labor law. 2 0 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 The evidence to date supports the termination of 189 individuals confirmed to have participated in the violence based on the video footage reviewed jointly by union representatives and the management. Absent conclusive evidence (e.g., additional video footage, eyewitness observations) identifying additional terminated individuals as having participated in the violence, Better Work recommends reinstatement with back pay of the remaining 25 terminated workers. Although the strike did not conform to legal requirements and evidence of violence during the strike, the sanction of termination is disproportionate to the workers’ failure to adhere to the legal prerequisites for striking. Factory 5 During August and September, several unannounced work stoppages occurred at factory #5. According to reports from the Ministry of Social Affairs (MAST), the workers did not want the factory to deduct their paychecks for social security contributions. The factory has not submitted those contributions to the government for several months. The workers further claim that the factory should reimburse them for their contributions because the government cannot provide them with the necessary health services they need. The inspectors from the Ministry of Social Affairs (MAST) and Justices of the Peace attempted to explain to the workers that the factory was obligated by law to withdraw these deductions. During one such meeting on September 15th, 2020, several workers became verbally abusive towards management. As a result, management threatened to terminate 43 workers. According to the MAST report, management offered to pay the workers their full benefit if they agree to terminate their contract with the factory. Several other workers joined in and decided that they no longer wanted to work for the company. Two Hundred and eighty-four (284 workers decided to accept management’s offer to resign with full benefits. During other subsequent visits on September 16th, 17th, and 18th, the Justices of Peace, who intervened at the factory, noted that several workers were protesting because they were denied entry to the factory premises. They stated that their benefit payments were not yet sent to MAST as promised. The factory eventually paid the workers their severance payment as agreed. BWH succeeded in conducting 25 virtual interviews from the entire list of 284 terminated workers. Many workers did not want to participate in a virtual interview, limiting the exercise's investigative reach. All the workers interviewed confirmed that the factory's non- compliance with social security payments was the root cause of the work stoppages. All workers confirmed that they received all of the termination payments, as reported by the factory's H.R. manager. In particular, one worker confessed that she regrets taking the payments and wishes to return to work. Eleven workers said that those who opted to take 2 1 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 the payments were hoping to get into some micro-enterprise sort but failed. These workers also want to return to the factory. BWH reviewed the termination payments of the 25 workers interviewed. The calculation method used for an annual bonus, leave balance, and notice payments were correct. This is supported by the fact that none of the interviewed workers complained about the amounts received in these payments. Based on the information available at this time, BWH finds no non-compliance relating to the 43 workers fired with full compensation (since this is what they were demanding); the 23 workers fired with bonus and annual leave balance but without notice payments (since these workers were seeking to be terminated, and the non-payment of notice is justified under Labor Code Arts. 30 and 42), and the remaining 218 voluntary resignations with full payment of compensation. Better Work Haiti does not find the factory in non-compliance because the workers voluntarily agreed to terminate their contract in return for their benefit payments. The factory paid all the legal benefits to the workers, as mandated by the labor laws. 2 2 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 Section V: Better Work key activities and response to COVID-19 Better Work is committed to supporting workers, employers, and government partners in the garment sector during this period of unprecedented disruption due to the COVID-19 pandemic. Better Work Haiti has been remotely supporting the factories and workers on crucial health and safety and industrial relations issues and coordinating information campaigns and national partners training. In collaboration with the ILO regional office, Better Work Haiti has shared policy briefs published by the ILO to the national partners. Better Work Haiti liaised with all stakeholders to limit negative impacts on workers and businesses and identify a collective approach to support the industry. Throughout the crisis, Better Work Haiti has maintained regular contact with employers, workers, and MAST remotely to promote social dialogue and compliance at the individual factory level and, in parallel, increase constituents` capacities by providing most of its services remotely. The core services operations were affected by the restrictions imposed on UN staff during the pandemic. As a result, twenty-one scheduled assessments were tentatively postponed to the 4 th Quarter. The program was able to verify all improvement plans during advisory services and made the necessary recommendations. Specific questions related to the factories’ preparedness for COVID 19 were discussed with each factory, and non- compliance issues were included in their improvement plans. The sessions with factory management, workers, bi-partite committees, the Ministry of Labor were held virtually using the methods appropriate for each group. (Zoom, Whatsapp group, telephone, and SMS) Highlights are summarized below. Between April and May 2020, Better Work Haiti, in collaboration with the Bureau for Employer’s Activities (ACTEMP) and ADIH, surveyed employers to assess the COVID 19 pandemic's impact on the textile industry. The Survey's specific objective was to understand the businesses' status, the types of challenges they face because of the pandemic, their financial situation, and their accessibility to their financial support. The survey results revealed that most manufacturers in the garment sector faced severe disruptions in their business operations because of COVID 19, which resulted in suspensions and dismissals of workers. (see attached) Business Impact survey.pdf Better Work Haiti held a virtual meeting with the trade unions representing the textile workers to share an update of its activities related to the 2018-2022 strategic plan and the union's participation in implementing said strategy. The union members expressed their willingness to support Better Work in the implementation of its strategy. They agreed to submit to Better Work a proposal with their immediate needs related to activities they 2 3 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 would like to undertake during the COVID 19 pandemic. Better Work Haiti also discussed its activities related to the COVID 19 pandemic, the unions’ priorities in response to the pandemic's threats, and the support the unions would require from Better Work to help them deal with the situation. Virtual meeting with the Project Advisory Committee (PAC) in April to brief the group on its current work situation during COVID 19 pandemic. The PAC members of the Committee also received an update from Better Work Haiti of BWH-registered factories and their current work situation and an overview of the 20th Synthesis Report, which focused on the most notable points of non-compliance in the workplace. During this reporting period, our training officer, with the support of Better Work Global, revised several training materials to be delivered virtually through online platforms. They were adapted to reflect the safety and procedure changes imposed by the COVID 19 pandemic and modified to be delivered within a maximum of two hours. Better work Haiti developed a critical and comprehensive set of guidelines to help employers, workers, and respective bipartite committee members ensure and maintain safe and healthy workplaces. The management OSH guide was translated and shared with all factories, MAST, ADIH, and workers' organization's leaders. Following its publication, to ensure effective implementation, a set of questions was included in factory improvement plans to operationalize the guide and monitor progress. Better Work Haiti continues to strengthen the ability of industry stakeholders to influence ' workers positively.' Through its partnership with ILO/AIDS, UNICEF, and PROFAMIL, Better Work Haiti provided awareness-raising sessions on HIV and the prevention of COVID 19 to approximately 9406 workers, including 7250-women. From July to September, eighty- eight (88) pregnant women who participate in the program benefited from a wide range of prenatal services, including medical screening for HIV, Syphilis, and obstetrical ultrasound services. Through another collaboration with the ILO/AIDS, Better Work Haiti started to provide specific COVID 19 prevention and infection control training to factory medical personnel. The project started in the Northeast and will continue next Quarter for factories in Port au Prince. The training is delivered in interdependent modules developed by the Ministry of Public Health (MSPP), collaborating with the World Health Organization (WHO) in Haiti. At the end of the training, we expect that participants will be able to:  Describe the fundamentals of emerging respiratory viruses and how to respond effectively to an epidemic.  Describe the current epidemiological situation of COVID-19, including in particular case definitions, signs, and symptoms. 2 4 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0  Describe the PCI measures that the WHO recommends to healthcare establishments, especially when dealing with suspected or confirmed cases of COVID-19.  Provide clinical management of Severe Acute Respiratory Infections (SARI)  Know the basic principles of occupational health and safety in the context of COVID-19 Better Work Haiti collaborated with Gap Inc. to deliver two training sessions to various Gap suppliers that are part of the Better Work Haiti portfolio. Better Work Haiti also received the support of Better Work Nicaragua to deliver a training session on sexual harassment to Spanish speakers. 98 Virtual advisory sessions to 38 participating factories Covering a wide range of topics, including the prevention of COVID- 19. Advisory services are conducted with the bipartite committee members' participation, including representatives of workers and management. During the advisory services, workers’ representatives are encouraged to speak freely and discuss relevant issues. Better Work Haiti also ensures that women are represented in the bipartite committees. 49 Training sessions to 32 factories (38% women) Better Work Haiti and its staff delivered 49 training sessions to 32 factories in Port-au-Prince and the Northeast. These training sessions covered approximately 11 different subjects, of which 966 workers and management staff participated, of which 366 were women, and 600 were men. Among the 11 topics covered, one sexual harassment training was developed for managers and supervisors only. Better work Haiti held several individual meetings with the national stakeholders, namely representatives of the government, representatives of ADIH, and representatives of the workers' organizations to discuss the global call to action ( https://www.ilo.org/global/topics/coronavirus/setoral/WCMS_742343/lang-- en/index.htm) to encourage them to work together to develop a national action plan. Better Work Haiti also facilitated a bipartite meeting with the representatives of the workers' 2 6 B E T T E R W O R K H A I T I - 2 1 S T 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 O C T O B E R 2 0 2 0 organizations, ADIH representatives, Better Work Global team, and IOE and Industrial representatives to clarify specific issues relating to the Global Call to Action. Better Work Haiti provided logistical support to MAST to conduct inspections and monitor the Better Work Haiti participating factories. The Western Regional department (BRO) performed 20 inspections during the period, and 15 w