BetterWork: 22ème Rapport de Synthèse sur la Conformité dans le cadre de la Législation HOPE Haïti Avril 2020 – MAI 2021

22 nd Compliance Synthesis Report Under the Hope Legislation Haiti April 2020 – MAY 2021 2 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 Copyright © International Labour Organization (ILO) and International Finance Corpora- tion (IFC) (2021) First published (2021) ILO publications benefit from copyright under Protocol 2 of the Universal Copyright Convention. However, short excerpts from them may be reproduced without authorization because 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 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 22nd biannual synthesis report under the HOPE II legislation / International Labour Office; International Finance Corporation. - Geneva: ILO, 2021 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. 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 3 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 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 the views or policies of the USDOL. The funding that is provided by the United States Department of Labor falls under cooperative agreement number IL-21187-10-75-K. 89 percent of the program's total costs in 2020 were funded by Federal funds, for a total of USD 11,295,840. This ma- terial does not necessarily reflect the United States Department of Labor's views or policies, nor does mention of trade names, commercial products, or organizations im- ply endorsement by the United States Government. 4 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 Table of Contents Acknowledgements/Disclaimer.............................................................................................. 3 List of Acronyms ......................................................................................................................... 5 Section I: Introduction and Context ........................................................................................ 8 1.1 Background .................................................................................................... 8 1.2 Haiti Industry at a glance in numbers ......................................................... 10 1.3 Impact of COVID-19 on the apparel sector ................................................ 11 Section III: Highlights of the reporting period October 2020- March 2021) .................. 14 Country Context .................................................................................................... 14 Section IV: Compliance situation in the Haitian garment industry ................................ 17 Section V: Core labor standards non-compliance findings of the reporting period. October 2019-September 2020) ............................................................................... 22 Section VI: Better Work key activities and response to COVID-19 .................................. 24 Factories in Detail ....................................................................................................................... 30 List of Factories ..................................................................................................... 30 Findings from the Factories ................................................................................. 32 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 ............................................. 40 Calculating Non-Compliance & Public Reporting .............................................. 47 Limitations in the Assessment Process .............................................................. 47 Annex 4. Factories Findings ..................................................................................................... 50 5 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 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 6 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 PAP Port-au-Prince, Haiti PIC Parc Industriel de Caracol (Industrial Park of 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 SDT Table de Dialogue Social (Social Dialogue Table) ) TAICNAR Technical Assistance Improvement and Compliance Needs Assessment and Remediation USDOL United States Department of Labor 7 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 8 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 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. 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. In addition, 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-second report under the HOPE legislation to be published in April 2021 and delayed publication to July 2021; 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.” 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 each factory's progress 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. 9 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 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 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, particularly 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 also took 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. The outbreak of COVID-19 had a tremendous impact on the Haitian garment sector in 2020, as shown by a considerable decrease in exports. According to the data published by the US Department of Commerce Office of Textiles and Apparel (OTEXA), the Haitian textile industry exported approximately USD 874 million worth of products to the United States from April 2020 to May 2021, representing a decrease of 11.8 percent comparing the same period of the previous year. 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 the risks to food security, health, and livelihoods. Nine in ten respondents to a Better Work Haiti survey in summer 2020 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. 1 0 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 1.2 HAITI INDUSTRY AT A GLANCE IN NUMBERS By 2022, 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. As of March 2021, the number of workers in the garment factories registered with Better Work stood at 51,309. 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)  Private Sector Economic Forum (PSEF)  All Trade unions active in the garment sector  26 brand and retail partners 51,309 WORKERS (61% WOMEN) FACTORIES IN THE PROGRAMME 38 FREE ZONES HOSTING 90% OF TEXTILE 7 874 Millions APPAREL EXPORTS IN USD MILLIONS (90% OF NATIONAL EXPORTS) BRANDS AND RETAILERS 26 BETTER WORK HAITI STAFF 13 YEARS OPERATING IN HAITI SINCE 2009 +10 INDUSTRY COMPLIANCE REPORTS 22 1 1 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 1.3 IMPACT OF COVID-19 ON THE APPAREL SECTOR Beyond firm-level impact, the worker survey conducted by Better Work Haiti shed light on the impact on workers and their families. From November 12 to December 2020, 3,300 workers were surveyed across 38 factories enrolled in Better Work Haiti Program. It brought insights into three main themes: take-home pay, support network, and safety and well- being.  Although take-home pay has recovered from employment disruptions in mid- 2020, financial stress remains a primary concern among workers, mainly due to increased living expenses, particularly food prices. Over 60 per cent of respondents reported “financial stress” as a concern. Eight in ten workers have spent down savings in the previous two months, and one-third have borrowed money to cover their living expenses in the same period. Well-documented challenges in the country with inflation and food price increase are also likely contributed to workers’ financial stress. Ninety-one percent of workers surveyed had to reduce the number of meals, mainly because of food price increase or a drop in household income. According to the World Food Programme, 1 a meal costs a working person in Haiti 35 per cent of their income, which is equivalent to someone in New York State paying US$74 for their lunch.  Workers reported median bi-weekly take-home pay of 6000 gourdes ($83) in February 2020; in November 2020, the median reported was 6,455 gourdes ($89).  Half of the workers regularly remit money to their families. In contrast, one-third of workers report relying on family members' support in the past two months to pay living expenses.  Beyond stresses at the workplace, the external environment affects the safety and well-being of workers. Nearly 80 percent of work workers cite personal safety concerns during their commute to work. Instability in the country was a common concern mentioned in the course of the survey interviews. 1 https://www.wfp.org/stories/haiti-coronavirus-high-food-prices-and-how-beans-became-luxury 1 2 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 Impact on Exports: According to the data published by the US Department of Commerce Office of Textiles and Apparel (OTEXA), the Haitian textile industry exported approximately USD 874 million worth of products to the United States from May 2020 to May 2021, rep- resenting a slight increase of in volume comparing the same period of the previous year. Impact on Jobs: The number of jobs was also impacted during COVID-19. It observed the most significant drop in April 2020 with the estimated number of jobs around 22,900- 38,600, but then gradually recovered to 49,000-56,600 jobs in January 2021 2 . 2 The range is provided based on the monthly report of ADIH (data collected the last working day of each month) and BWH data (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 3 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 West 65% North-East 35% SUPPLIERS BY LOCATION West North-East 21 4 9 2 0 1 SUPPLIERS BY CITY Port-au-Prince Caracol Ouanaminthe Tabarre Carrefour Croix-des-Bouquets 1 4 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 Section III: Highlights of the reporting period October 2020- March 2021 COUNTRY CONTEXT As Haiti geared up for several major political milestones in 2021, including holding a proposed constitutional referendum and legislative, municipal, local and presidential elections, divisions within its political parties had further deepened in recent months. Protests for political and social demands, which often turn to violence, remain a significant threat to public safety. Some of these protests continued for several days across the country, causing significant disruptions and delays for some of the core services of Better Work Haiti. The employers’ organization ADIH expressed concern over the general security situation in the country, including kidnapping, and urged the government to protect citizens in a press release issued on March 4, 2021. The COVID-19 pandemic hit the garment industry globally, and Haiti has not been an exception. The number of workers employed declined from over 57,000 to 51,309 by April 2021. The garment export to the US market decreased by 11.8 percent in value and 8.2 percent in volume for the period of May 2020 April 2021 compared with the same period in the previous year. The garment sector has been recovering since the factories received the government authorization to operate at full capacity in July 2020. However, most garment manufacturers are still experiencing significant operational disruptions because of COVID- 19 and the unstable security situation, as mentioned earlier. National Social Protection and Promotion Policy In February 2020, the government and social partners had adopted a National Social Protection and Promotion Policy (PNPPS) 3 . This policy results from a participatory and inclusive process initiated in spring 2016 at the official launch of the Sectorial Table on Social Protection (TSPS) based on the “social re-foundation” pillar of the Strategic Plan for the development of Haiti. The PNPPS defines the main functions of social protection and social promotion. The main functions of social protection are to guarantee an adequate income, provide an income replacement in case of losses related to life contingencies, give access to essential social services, and create the conditions for decent work. It has four components: i) social 3 https://www.social- protection.org/gimi/gess/RessourcePDF.action;jsessionid=bDiAHTV0ceriETjFXlw7uxKdmpvOXPLDIjqm5d 4x21olWFD-Gbgw!1750948109?id=57284 1 5 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 assistance, ii) social care for individuals, iii) social insurance, and iv) regulation of the labour market. The functions of social promotion are to build and strengthen the capacities of people or households in a situation of poverty or socioeconomic vulnerability, taken separately or in groups, to generate income independently based on production activities of goods and services. It has four components: i) policies for access to workforce training mechanisms, ii) professional integration policies, iii) policies for the direct or indirect creation of temporary jobs, and iv) policies to support businesses of poor households. The PNPPS aims by 2040 to reduce poverty, inequalities, and economic, social, and institutional injustices to build just social citizenship where the holders of rights to social protection and promotion see their rights realized and their ability to live the desired life improved. The guiding principles define the orientations to be taken into account in the PNPPS and the conditions necessary to achieve its objectives. These principles are universality, equity, equality between the individuals, solidarity in the financing, adequacy of benefits, subsidiarity and participation, coherence of policies, adaptation, an obligation of means, and results. As of 2021, the Haitian apparel sector is in the process of balancing between the losses and opportunities caused and brought by the COVID-19 born global trade and retail landscape changes. Current anchor companies in Haiti have demonstrated their agility, productivity, and value addition. In this context, IFC is strategically paying attention to Haiti's few notable factors and potentials to attract high-priced-high-quality garment manufacturers. According to the WHO dashboard 4 , there were 13,056 reported cases of COVID-19 in Haiti and approximately 254 deaths as of April 30, 2021. The country is experiencing the third wave since mid-May 2021. It was scheduled to receive its first batch - 130,000 doses - of COVID-19 vaccines through the World Health Organization's COVAX vaccination scheme in mid-June. However, it was postponed, and the vaccination campaign has not started in the country yet. 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 prevent the spread of the virus. 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 due to their cost and a lack of concern, 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 4 https://covid19.who.int/region/amro/country/ht 1 6 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 or mistrust. Health responders face reticence, hostility from the community, and even violence in some extreme cases. A medical NGO, Médecins sans frontières (Doctors Without Borders), noted that there are fears the Haitian healthcare system, which is already fragile, is ill-prepared to deal with the widening pandemic. For example, the hospitals faced a shortage of medical oxygen in the most recent COVID-19 cases. 1 7 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 Section IV: Compliance situation in the Haitian garment industry Selected areas of aggregated non-compliance in the Haitian garment industry This section presents an overview of the results of assessments, advisory, and training services provided to the 28 participating factories, which were assessed at least twice before May 2021. Due to the Better Work staff's inability to conduct an in-person assessment, the factories’ improvement plans were verified virtually through requests for documentation during advisory services and conversations with bi-partite committee members, including workers and management. The charts present non-compliance findings for the 13 assessed factories in Haiti during the reporting period, showing non-compliance rates in brackets. Please note that these reports are issued biannually in April and October, yet assessments are being done annually, so issues are reported in two consecutive reports. In this report's individual factory tables, progress on the remediation of non-compliance issues can be followed in further detail. The highest non-compliance rates in the industry were in occupational safety and health (OSH). Persistent non-compliance issues in compensation (social security) and OSH (Chemicals management, emergency preparedness, and worker protections) continue to concern the sector. This is where Better Work’s role as convenor of industry stakeholders is essential. It allows the program to discuss challenges that affect many companies in the industry. 1 8 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 Highest non-compliance rates in the industry 100% All the factories assessed during the period were non- compliant on the emergency preparedness. Under this cluster, non-compliances on having adequate fire-fighting equipment, marking and posting emergency exits and escape routes clearly in the workplaces, and keeping emergency exits accessible, unobstructed, and unlocked during working hours are high. 100% Non-compliance on chemical and hazardous substance management remains at 100%. The non-compliance on storing the chemicals properly is relatively low at 23%, but all factories found non-compliant on properly labeling them. 77% Under OSH, 10 of the 13 assessed factories did not meet the requirement to take appropriate measures to respect the physical and social distancing. 92% Non-compliance on social security and other benefits remains high at 92%. 0% No no-compliance was found on the freedom of association and collective bargaining cluster and forced labor cluster. During this reporting period, Better Work Haiti noted three allegations on the core labor standard violations during the assessments; two cases in the discrimination cluster (one sexual harassment case and one pay discrimination against pregnant women), and one case in the child labor cluster on documentation and protection of young workers. Besides those three cases, no other violations are noted under core labor standards. This will be elaborated on in the next section. 1 9 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 As an overall trend for non-compliance with national labor laws, occupational safety and health and compensation, particularly social security and other benefits, remain high. For example, non-compliance on unlabeled chemicals and hazardous substances stays at 100 percent, although the non-compliance rate on storing the chemicals properly is relatively low at 23%. Better Work Haiti enterprise advisors have observed that awareness of the requirements to the management of chemicals and substances as well as commitment to follow appropriate procedures are still insufficient. It also requires building culture and practices to double-check and verify the storage and labelling. In some cases, factories have a verification system in place, but factory personnel in charge of monitoring and reporting have not followed the procedures consistently. To facilitate understanding on typical OSH issues and solutions as well as to support factories in implementing and improving OSH management practices, Better Work Haiti provided virtual training on OSH during the reporting period with 79 participants from 8 factories. Under the emergency preparedness cluster, 12 factories were cited non-compliance on the availability of adequate fire-fighting equipment. Non-compliance regarding accessible, unobstructed, or unlocked emergency exits during working hours, including overtime, remains high at 85% in the emergency preparedness area. It is both due to the factories’ structures as well as lack of awareness. In some cases, the factories are overcrowded, creating a constraint to manage space for unobstructed emergency exits. The cultural shift is necessary for both the management and worker levels to create a safer workplace. Emergency preparedness is often an under-prioritized area. Factory management does not see the immediate need to fix the problem or invest employees’ time for training on this topic, raising awareness among workers to follow the necessary procedures. In the compensation cluster, the highest rates of non-compliance persist in the compliance point of Social Security and Other Benefits (92%). Non-compliance on collecting and for- warding workers’ contributions to OFATMA and ONA and paying employers’ contributions are consistently high in this area. This is owed to the fact that 10 out of 13 assessed factories have not subscribed to the maternity and health insurance which the government entity OFATMA is offering since December 2016, or several factories are making the payments late. 10 factories are in non-compliance for collecting and forwarding workers’ contributions to OFATMA on time. In addition, ten factories have also been non-compliant for workers’ and employers’ contri- butions to ONA (pension funds), respectively. Among these, the majority of non-compli- ances identified relate to late payments of these contributions. The Haitian Labour Code requires that payments (six percent of the basic salary to be paid by employees and 6 per- cent of the employers' basic salary) are being made within the first ten working days of each month for the previous month. Factories rate with high non-compliance does not count the break time in the normal work- ing time in accordance with article 3 of the law on the organization and regulation of working 2 0 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 time over the duration of twenty-four hours divided into three shifts of eight hours. In ac- cordance with the provision of the same article, the break time will be at least half an hour and must be fully remunerated, regardless of its duration. Better Work Haiti’s actions on those points are elaborated in Section VI: Better Work key activities and response to COVID-19. 0% 8% 0% 15% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Child Labourers Documentation and Protection of Young Workers Hazardous Work and other Worst Forms Gender Race and Origin Religion and Political Opinion Bonded Labour Coercion Forced Labour and Overtime Prison Labour Collective Bargaining Freedom to Associate Interference and Discrimination Strikes Union Operations Child Labour Discrimination Forced Labour Freedom of Association and Collective Bargaining Non-compliance rates by Compliance Point - April 2020 - April 2021 (Core Labour Standards Clusters) Non-compliance rate (n= 13) 2 1 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 8% 15% 8% 69% 8% 92% 15% 31% 15% 62% 54% 100% 100% 100% 31% 85% 0% 92% 77% 15% 0% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Method of Payment Minimum Wages/Piece Rate Wages Overtime Wages Paid Leave Premium Pay Social Security and Other Benefits Wage Information, Use and Deduction Contracting Procedures Dialogue, Discipline and Disputes Employment Contracts Termination Chemicals and Hazardous Substances Emergency Preparedness Health Services and First Aid OSH Management Systems Welfare Facilities Worker Accommodation Worker Protection Working Environment Leave Overtime Regular Hours Compensation Contracts and Human Resources Occupational Safety and Health Working Time Non-compliance rates by Compliance Point - April 2020 - Apr2021 (National Law Clusters) Non-compliance rate (n= 13) 2 2 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 Section V: Core labor standards non- compliance findings of the reporting period. October 2020- April 2021) During this reporting period, Better Work Haiti noted three allegations on the core labor standard violations during the assessments; two cases under discrimination cluster (one sexual harassment case and one pay discrimination against pregnant women), and one case under child labor cluster on documentation and protection of young workers. Factory 1 During the assessment visit, the assessors discovered a case of sexual harassment. A female worker, who is employed at the factory since February 2021, revealed that she was the victim of sexual harassment perpetrated by her immediate supervisor. The worker met the supervisor through her sister while looking for a job, and the supervisor introduced her to the factory. The supervisor started to wake around her and texted her to share his feelings for her shortly after joining the factory. She initially ignored the messages due to the fear of losing the job, and at the same time, she was grateful for his support in getting the job. However, the supervisor changed his behavior in early April, including asking her a sexual favor and using vulgar words, saying she did not work fast enough. The worker and the supervisor went to the human resources office, and she explained to the HR manager the case of harassment. No disciplinary action was taken on the spot. However, the HR manager told the supervisor that he would be subject to disciplinary action if the case is valid. Three days later, the worker shared the messages she received from the supervisor with HR. During the assessment, the HR manager explained to the assessors that he would finalize his investigation during the week. The factory has a zero-tolerance policy on sexual harassment. The supervisor admitted that he was the author of the messages and should never have behaved this way. He said he is ready to face the consequences of his actions. However, he denies having made any vulgar comments, as claimed by the worker. During the exit meeting, management said it would continue the investigation and issue appropriate disclosure actions after a full investigation. The assessors did not receive any investigation report from the factory while drafting the assessment report. Therefore, Better Work marked it non-compliance because the factory did not take adequate measures to fully address the sexual harassment case once they received the complaint. BWH coordinates its support through targeted advisory services, sexual harassment awareness training to identify root causes and improve the system to help ensure that the issue does not arise again, including incorporating confidentiality and 2 3 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 non-retaliation provisions in grievance mechanisms. BWH also requested management's formal commitment to ensure that the victim is protected from further incidents and treated with respect. After the assessment, the following actions have been taken by the factory. 1. The supervisor that was involved in this incident has been terminated on June 08, 2021. 2. To prevent issues related to abuse and harassment, the factory conducted sexual harassment training for all supervisors. In addition, the participant's list was shared with BWH. 3. The factory asked all supervisors to sign an agreement about the sexual harassment zero-tolerance policy. Factory 2 At the time of the assessment, the assessors could not interview any pregnant women because they were not present at the factory. However, the interview with management confirmed that the pregnant women were sent home upon receipt of the pregnancy certificate to protect the fetus during the Covid-19 time but with a remuneration of 50 percent. Management explained the decision came from their headquarters. On June 22, the management received approval from headquarters to bring the pregnant women back. All the pregnant women will start working on July 5. Factory 3 Assessors did not see any workers who appeared to be underage. During the assessment, the assessors found copies of a national photo ID in several worker's files. However, one employment file was missing the government-issued IDs indicating the worker was above the minimum age requirement. Such practice confirms that the employer does not have a reliable age-identifying system before recruiting. As a result, management said they would reinforce their recruitment procedure by verifying the age of workers before hiring. Since the assessment, the factory took the following actions to avoid recurrence. 1. All the employee personal files are updated. 2. The factory’s compliance team has started a monthly random check. 3. The file of the worker whose government-issued ID was missing was shared with the BWH advisor. 2 4 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 Section VI: Better Work key activities and response to COVID-19 Better Work is committed to supporting workers, employers, and government partners in the garment sector despite the disruptions caused by the COVID-19 pandemic and political instability. Better Work Haiti has been remotely supporting the factories and workers on crucial health and safety issues and engaging the tripartite partners to enhance the social dialogue between employers and workers. In addition, we continued to engage with the government and stakeholders, particularly the labor inspection division of the Ministry of Labor, to ensure the sustainability of the 'program’s core services activities. 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. Better Work Haiti continued to deliver all its core services virtually throughout the last quarter of 2020. At the beginning of 2021, Better Work Haiti started to conduct in-person assessments in factories in the North East , while training, industry seminars, and advisory services are still delivered virtually. Better Work Haiti continues to regularly update its training modules to fit the virtual delivery format. The advisory services and training focused mainly on ensuring compliance with the recommendations to prevent the spread of COVID-19. However, several training sessions were delivered on subjects covering the prevention of workplace discrimination and abuse that may occur because of the current pandemic situation. COVID-19 RESPONSE In response to the emerging needs related to COVID-19, Better Work Haiti conducted relevant seminars and training, including virtual seminars on labor law, socially responsible transitioning, and OSH-related topics. In addition, specialized training for doctors and nurses in the factories was conducted in collaboration with ILO/AIDS project. Furthermore, based on the module developed by the Ministry of Public Health (MSPP), in collaboration with the World Health Organization (WHO), the participants learned detection methods, infection prevention and control (IPC) applied to the novel coronavirus, clinical management of severe acute respiratory infections (SARI) and occupational health and safety in the context of COVID-19. 2 5 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 OCCUPATIONAL SAFETY AND HEALTH Given high non-compliance on OSH, Better Work Haiti continued to work on this topic during the pandemic, often linking the COVID-19 specific challenges and pre-existing issues. Training and seminars are delivered on OSH, chemical management, COVID-19 Emergency Preparedness and Hygiene and Prevention against COVID-19. 79 participants from 8 factories participated in OSH training and improved their understanding on typical OSH issues and solutions to implementing and improving OSH management practices. With specific focus on emergency preparedness, the COVID-19 Emergency Preparedness training was participated by 107 participants from 12 factories. Participants gained practical knowledge on definition, types and core elements of emergency preparedness to make improvements in their workplaces and to develop effective accident investigation procedures. Moving forward, it is essential to ensure the participation of key personnel who are responsible for emergency preparedness and OSH systems. Better Work Haiti also developed a targeted plan to improve OSH compliance in 7 factories that recently joined the program. Better Work Haiti planned to implement this strategy starting from March 2021; however, this was postponed until further notice due to COVID- 19 and the security situation. Separately, a survey on OSH compliance/ performance is planned among factory management this semester to understand better their challenges in improving compliance on OSH standards and requirements. ‘A COVID-19 Management Guidance with Self-assessment checklist for RMG factories in Haiti’ was developed and used in advisory services. During the advisory meetings, the Better work advisors helped the factories develop procedures and share the template used in other Better Work factories. GENDER As women, particularly pregnant women, faced additional challenges during the pandemic, Better Wok Haiti continued its collaboration with ILO/AIDS, UNICEF, and PROFAMIL (Association pour la Promotion de la Famille Haïtienne) to improve access to health services. PROFAMIL, as the implementing partner, provided a series of awareness-raising sessions to factory workers, including pregnant women, on HIV and COVID-19 prevention. In addition, they continued to provide medical checkups for pregnant women in their clinics and in mobile clinics that were set up to facilitate the women's access to the services. Better Work Haiti also continued to make the workplace free from violence and harassment, including through virtual training on sexual harassment awareness and prevention, attended by 48 participants (35 male and 13 female). Similar to the previous years, BWH 2 6 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 joined forces on “16 Days of Activism against Gender-based Violence” in November and December 2020. In addition, Better Work shared key message cards to raise awareness and encourage reflection on gender-based violence and harassment exerted both inside the workspace and within the community. 2 7 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1 Examples of message cards Workers reading cue cards messages posted at factory entry Better Work also supported the Inter-Union Committee of Haitian Women (CISFH), whose mission includes advocating and promoting respect for the rights of Haitian women at work, particularly those in the textile industry. Through this collaboration, CISFH conducted training and awareness-raising activities to reinforce women's leadership capacity within the CISFH; encourage more women to join a trade union; and raise awareness among women and girls on their rights, including fundamental norms such as Convention 189 and Convention 190. COLLABORATION WITH EMPLOYERS During the reporting period, Better Work Haiti, in collaboration with ACTEMP, worked with the Association of Haitian Industries (ADHI), representing the employers in the garment sector in developing the association’s national action plan and their engagement plan with the BWH program. The plans highlighted the association's commitment to work towards the following goals:  Promote compliance with standards and COVID-19 preventive actions by ADIH member companies following the Ministry of Public Health and Population guidelines. 2 8 B E T T E R W O R K H A I T I - 2 2 N D 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 M A Y 2 0 2 1  Work with ADIH members of the textile sector and other stakeholders at the national level to develop a vision for the sector and recommend the government to recover and grow the sector.  Work with the trade unions of the textile sector to make recommendations to the government on the decisions to be taken for the retention and growth of employment in the textile sector. It is also planned that ADIH and Better Work Haiti will work together to assess the feasibility of developing a sectoral Collective Bargaining Agreements (CBA) or multi-enterprise level and conduct training sessions to promote the understanding and implementation of the collective bargaining agreements at the factory level. COLLABORATION WITH TRADE UNIONS Better Work Haiti regularly engaged with garment trade unions to disseminate critical information on COVID-19, HR, and advice for workers. In addition, Better Work Haiti has launched a WhatsApp group for broader sensitization of workers and relevant stakeholders about labor norms, workers' rights during the pandemic, and the promotion of social dialogue. Better Work Haiti seeks to influence labor market governance to improve compliance in a more sustainable way. To this end, the program established a collaboration with workers' organizations in the garment sector, particularly Confederation des travailleurs Haitiens (CTH) and Confederation des travailleurs et travailleuses des Secteurs Publics et Privé (CTSP), to train their leaders at the factory level, who will train other union members. Training modules (Hygiene and Prevention during COVID-19, Labor Law, OSH guidelines for COVID-19) were translated into Creole, and printed documents were shared with the leaders to facilitate more workers' training. A total of 30 members (17 men, 13 women) from various affiliated union organizations participated in the training sessions. COLLABORATION WITH THE GOVERNMENT During this reporting period,