BetterWork: 24èm Rapò Sentèz sou Konfòmite anba Lejislasyon HOPE Ayiti

24th Compliance Synthesis Report Under the Hope Legislation Haiti MAY 2021 - JUNE 2022 1 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 Copyright © International Labour Organization (ILO) and International Finance Corpora- tion (IFC) (2022) First published (2022) ILO publications benefit from copyright under Protocol 2 of the Universal Copyright Convention. However, their short excerpts 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 24rd biannual synthesis report under the HOPE II legislation / International Labour Office; International Finance Corporation. - Geneva: ILO, 2022 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 2 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 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. 92% percent of the program's total costs in 2023 were funded by Federal funds, for a total of USD 14,537,735.. 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 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 Table of Contents Acknowledgments/Disclaimer .......................................................................................... 2 List of Acronyms ............................................................................................................. 4 Section I: Introduction and Context ................................................................................ 7 1.1 Background .............................................................................................................................................. 7 1.2 Haiti Apparel Industry at a glance in numbers ........................................................................9 ................................................................................................................................................................................9 Section III: Highlights of the reporting period December 2021-June 2022 ................ 11 Country Context .............................................................................................................................................. 11 Section IV: Compliance situation in the Haitian garment industry ............................ 14 Section V: Core labor standards non-compliance findings of the reporting period (April 2021 – November 2021) .......................................................................... 20 Section VI: Better Work key activities during the reporting period ........................... 23 Factories in Detail ......................................................................................................... 29 List of Factories ............................................................................................................................................. 29 Findings from the Factories ....................................................................................................................... 31 Annex 1: The TAICNAR Project and Reporting Requirements under the HOPE II Legislation .................................................................................................................. 33 Annex 2. Better Work’s Service Delivery Model .......................................................... 36 Annex 3. The Better Work Compliance Assessment Methodology ............................. 39 Better Work Compliance Assessment Framework ...................................................................... 39 Calculating Non-Compliance & Public Reporting ........................................................................ 47 Limitations in the Assessment Process ........................................................................................... 47 Annex 4. Factories Findings .......................................................................................... 51 4 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 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 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 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 6 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 7 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 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 is 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-fourth report under the HOPE legislation to be published in April 2022 and delayed publication to July 2022; 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 the HOPE II TAICNAR program aim to strengthen the labor compliance of Haiti's industry. 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 8 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 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 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. 9 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 1.2 Haiti Apparel Industry at a glance in numbers FACTORIES THE PROGRAMME 38 ~58,571 WORKERS EMPLOYED (63% WOMEN) 8 INDUSTRIAL ZONES HOSTING 90% OF TEXTILE ~ $1Bi ( ↑ 15% in 2022) APPAREL EXPORTS IN USD MILLIONS (83% OF NATIONAL EXPORTS) BRANDS AND RETAILERS 36 INDUSTRY COMPLIANCE REPORTS 24 ACTIVE WORKERS’ ORGANIZATIONS 11 BETTER WORK HAITI STAFF 14 GOVERNMENT PARTNERS 7 YEARS IN HAITI - SINCE 2009 13 1 0 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 Better Work Haiti continues to work with industry stakeholders, namely the workers’ and employers’ organizations and the government representatives, to not only safeguard jobs in the textile and apparel sector but also to multiply them through increased productivity and demands from international buyers. Better Work Haiti continues to engage with international buyers to address the issues that concern them and the Haitian textile sector. The discussions around the renewal of the HOPE Law have given all actors an added incentive to work together to address the many non-compliance issues that may affect the sector’s growth and productivity. The non-compliances related to social security have been a key point in the discussions for the renewal of the HOPE law. According to the data published by the US Department of Commerce Office of Textiles and Apparel (OTEXA), the Haitian textile industry exported USD 433,553 million worth of products to the United States for the first five months of 2022, as compared to USD 376,715 million from January 2021 to May 2021, representing an increase of 15.09 percent. This reporting period shows 58,571 jobs in the sector, compared to 53,410 during the last reporting period. Building on the strong partnerships Better Work has developed with the government, global brands, employers, and unions, over the next 11 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)  Ministry of Economic and Finance (MEF)  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 (11)  36 brand and retail partners 1 1 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 Section III: Highlights of the reporting period May 21-June 2022 COUNTRY CONTEXT Political uncertainty remains a constant factor in Haiti, despite several rounds of discussions between government representatives and civil society opposition members. Although there have been several accords between members of civil society, including the latest one between the Montana Group and the Protocole D’entente Nationale (PEN) in January, there has not been any decision on a transitional government to replace the current prime minister. In fact, during a ministerial-level meeting convened by Canada in January to coordinate international partners’ support for Haiti, Prime Minister Ariel Henry reiterated the need for inclusive dialogue . He said that his government would continue to work toward the hold of free democratic elections, despite claims that 7 February would mark the end of his government’s term. Meanwhile, the government continues to operate and has nominated several new members in its cabinet, including a new Minister of Social Affairs and Labor (MAST), a new Director for OFATMA and a new Ombudsperson for the textile sector. The government has also increased the daily minimum wage, following a series of weekly strikes that had paralyzed activities in several parts of the country, including in the textile sector. Since February, the new minimum wage in the textile sector is 685 Gourdes per working day. Although workers welcome this increase they still feel that it is not enough to cover their needs, given the high rate of inflation that has increased the cost of basic products. Workers' representatives had wanted to increase to approximately 1400 Gourdes per day1. Amid the difficulties, in October 2021, the new Director of the Société National des Parcs Industriels (SONAPI) announced the start of sewing classes for 100 young people at the Caracol Industrial Park. Indeed, after a long period of hiatus, the Clothing Technology Training Center (CFTV) has resumed its activities at the Caracol Industrial Park (PIC), always with the objective of serving companies in the Northeast in terms of qualified human 1 https://haitiantimes.com/2022/02/10/factory-workers-strike-for-better-wages-in-port-au-prince-want- usd-14-daily/ 1 2 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 resources. These young people are already in the sights of the S&H Global Company, which intends to integrate them into an immediate hiring process. During this reporting period, the fuel crisis that had started since the last reporting period continues to impact business and life in general in Haiti. Several of the factories in the textile sector had difficulties operating due to shortages of raw materials, caused by the disruption in transportation. Gang violence continues to be a major concern for all sectors in Haiti. Gang violence and armed attacks against the population have surged, despite the Haitian National Police (HNP) efforts to curb crimes. Inter-gang clashes have caused the displacement of people in several areas of Port-au-Prince. Killings and kidnapping have become part of the daily life of the people living in Haiti, particularly in the Port-au-Prince area. On the economic front, the value of the Haitian Gourdes compared to the US dollar continues to decrease. In July 2022, the Central Bank of Haiti’s (Banque de la Republique d’Haiti) reference rate for exchange, was 114.54 Gourdes for one US dollar. However, the actual exchange rate at the local banks is usually higher, around 121 gourdes for 1 US dollar. In addition, there is still a scarcity of US dollars in the official market. This affects employers who need to make payments in US dollars, for ordered goods. Workers often complain to Better Work Haiti advisors that their purchasing power has significantly decreased. They feel that the increase in their daily wages is not nearly enough to help them meet their basic needs. Labor Roundtable Conference Towards a thriving, Inclusive, and Sustainable Garment and Textiles Sector in Haiti On May 24 and 25 2022, stakeholders from the governments of Haiti and the United States, global brands, manufacturers, worker unions, and the International Labour Organization (ILO) and the International Finance Corporation (IFC) gathered for the first time in two years. During this two-day conference which took place at the CODEVI Industrial Park, they discussed the extreme challenges that have affected the Haitian garment industry’s health and workforce: the impact the COVID-19 pandemic had on the sector, socio-political instability, and labour strikes – and they shared a roadmap for the future. The billion-dollar industry accounts for 83% of export revenue and employs almost 60,000 Haitian workers, many of whom have reported food insecurity and personal safety concerns over the last two years. Better Work Haiti along with worker organizations, the employer organizations and the government stakeholders create this unique opportunity to facilitate constructive dialogue, allow constituents to exchange views on policies and actions needed to address 1 3 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 decent work challenges and potentials and jointly discuss a short and long-term development plan to face challenges that obstruct the progress and the sustainability of the Haitian garment sector. Discussions emphasized on the recovery of the industry; thriving manufacturing jobs that have been boosted by the extension of the Haitian Hemisphere Opportunity through Partnership Encouragement (HOPE) and the Haitian Economic Lift Program (HELP) Acts for x years in mon-year. Stakeholders’ top-shared priorities cited focused on improving conditions for a vulnerable workforce affected by financial insecurity; strengthening institutions of social dialogue and freedom of association; and the outlook for sustainable improvement of the sector. The United States Department of Labor (USDOL) has been key in supporting Haiti in implementing the various aspects of the HOPE and HOPE II Legislation. Stakeholders signed a joint “Call to Action” statement outlining priorities for the role of both unions and employers and laying out the financial impacts and immediate needs of both workers and employers in the pandemic recovery period. The resolutions adopted at this conference will follow the priorities that stakeholders set out, including achieving a higher level of factory compliance to become a more competitive sourcing country and attract more buyers; creating more decent jobs across several industrial parks; introducing a range of social services, and engaging closely with partners for pandemic recovery and sustainable development. 1 4 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 Section IV: Compliance situation in the Haitian garment industry The overall trend of non-compliances in the Haitian garment industry This section presents an overview of the non-compliance findings in 28 participating factories, which were assessed at least twice by May 2022. The overall non-compliance rate is calculated based on the total number of factories that have at least one compliance question which caused them to be non-compliant for the cluster. Thus, while the total number of factories that are non-compliant in the cluster may be high, it does not mean that each of these factories are non-compliant for all the questions in a particular cluster. Better Work Haiti conducted hybrid as well as in-person services during this period, with the support of inspectors from the Ministry of Labor. During the hybrid assessments and hybrid advisories, labor inspectors visited factories on site and Better Work staff supported them remotely. The factories’ improvement plans were verified either in person during factory visits or virtually through requests for documentation during advisory services and conversations with bipartite committee members, including workers and management. The charts belowpresent non-compliance findings for the 28 assessed factories during the reporting period, showing non-compliance rates in brackets. Please note that these reports are issued biannually, yet assessments are done annually, so issues are reported in two consecutive reports. The highest non-compliance rates in the industry were in occupational safety and health (OSH) meaning that almost every factory had at least one violation under Emergency Preparedness and Chemicals and Hazardous substances (both at 96% non-compliance rates). Persistent non-compliance issues in compensation, particularly in relation to paid leave, remains a major concerns for both worker representatives and employer representatives, as expressed during the 2022 labor roundtable conference. Most of these non-compliance point are related to the payment of the lunch break, which according to the law is an integral part of the work day. However, workers and employers’ both have concerns about the application of this law. They fear that some advantages that were previously acquired may be lost, if the law is applied as intended. 1 5 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 The overall trend of non- compliances in the Haitian garment industry 96 % Non-compliance on emergency preparedness remains high. Under this cluster, non- compliances on having adequate fire-fighting equipment decreased slightly from 74% to 71% since the last reporting period, and factories have shown minor improvement in keeping emergency exits accessible, unobstructed, and unlocked during working hours (71%). However, these are important challenges to be addressed. 96 % Non-compliance on chemical and hazardous substance management remains high. The non-compliance on storing the chemicals properly has decreased from 22% to 14%, but 79% of factories were found non-compliant on properly labeling them. 100 % Non-compliance on social security and other benefits remains high at 100%. However, as in the compensation cluster, the non-comance point is generally related to the non-payment of the lunch break, which is not included in the calculation of the average daily salary 43 % The highest non-compliance point in the Employment contracts cluster is 43% and it is related to the questions about internal work rules. While most factories have a document outlining their internal work rules, this documents is sometimes not approved by the Ministry of Labor, as required by law. During this reporting period, Better Work Haiti noted two new allegations on core labor standards violations during assessments. Both cases fall under Forced labor, specifically related to coercion and they occurred at two sister factories in the same industrial park. During the assessment process, Better Work advisors interviewed workers and representatives of management to better understand the allegations and their root causes. The factory provided documents and an explanation for the decisions that led to these allegations. The details of those cases are described in Section V: Core labor standards non- compliance findings. The overall rate of non-compliance continues to be high in the Occupational Safety and Health cluster, particularly emergency preparedness and chemicals and hazardous substances. However, when compared to the last reporting period, there has been some inmprovement in many of the specific compliance questions that make up the OSH cluster. For example, there continues to be some decrease in the level of non-compliance for the proper storage of chemicals, form 22% to 14%, as well as the question related the adequate washing and cleansing facility in the event of exposure to chemicals. For this question, the level of non-compliance decreased from 70% to 61%. There are other areas such as the accurate inventory of chemical products that show a minor increase in the rate of non- compliance, from 78% to 79%. The non-compliance rate for the question related to the availability of materials safety data sheets remains high. The non-compliance rate for the monitoring and prevention of workers’ exposure to chemical substances, is fairly low but still represents a major concern for Better Work Haiti. The overall rate of non-compliance in the emergency preparedness remains high at 96% for this reporting period. Violations related to preparation of workers for possible emergencies have doubled from 7% to 14% and are mostly due to the fact that many factories have not conducted two emergency drills during a 12 month period, as recommended by Better Work. Non-compliance regarding accessible, unobstructed, or unlocked emergency exits during working hours, including overtime decreased from 78% to 71% during this reporting period. Employers have made a respectable effort to train workers in the use of fire-fighting equipment, with a non-compliance rate of 39% versus 48% reported in the last report. There has also been a significant decrease in non-compliance for factories with fire detetion and alarm systems, from 48% to 36%. 1 7 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 Better Work Haiti continues to address the non-compliance issues in the OSH cluster by offering training on chemical management system and emergency preparedness. Advisors also tailor their advisory sessions to address the needs of the factories in term of Occupational Safety and Health Management Systems. In the compensation cluster, non-compliance rates related to the payment of the minimum wage is relatively low, with just 4 factories out of 28 in non-compliance. Only 2 factories out of 28 were found in non-compliance for not keeping an accurate payroll. However, the compliance points related to paid leave and social security continue to represent a point of concerns for Better Work Haiti. Both compliance points are affected in part by the law requiring factories to pay the lunch break. Although most of the factories pay all types of leave such as annual leave, sick leave and maternity leave regularly, the fact that the payment for the lunch break is not included in the calculation of the average daily salary, negatively affects those leave payments. A decision to pay the lunch break would automatically correct all those non-compliance issues. The failure to include the payment of the lunch break has a repercussion on the calculation of employer and employee’s contribution to the Office retirement insurance (ONA) as well as contributions mentioned above. The Labor Round Table Conference that was held in May allowed worker representatives and employer representatives to discuss the subject. Both workers representatives and employers representatives have made it clear that they would like the government to review the law, because of the lack of clarity in its interpretation. They have asked Better Work Haiti to stop putting factories in non-compliance for not paying the lunch break. Better Work Haiti will continue to apply the law as it stands, until there are new directives from the government authorities. However the workers’ representatives and the employers’ representatives have agreed to work together to lobby the government to find a solution to the issue. The Association of Haitian Industries (ADIH) is taking the lead to follow up with the Ministry of Labor (MAST), to address the issue related to the law regarding the payment of the lunch break. 1 8 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 4% 11% 0% 7% 0% 0% 0% 7% 0% 0% 0% 4% 4% 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 - May 2021 - June 2022 (Core Labour Standards Clusters) Non-compliance rate (n= 28) 1 9 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 0% 18% 18% 86% 0% 100% 7% 4% 0% 71% 50% 96% 96% 100% 54% 93% 0% 96% 93% 32% 7% 86% 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 - May 2021 - June 2022 (National Law Clusters) Non-compliance rate (n= 28) 2 0 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 Section V: Core labor standards non- compliance findings of the reporting period (May 2021 – June 2022) During this reporting period, Better Work Haiti noted four non-compliances findings on the core labor standards during the assessments; Two sister factories were cited for forced labor under the Coercion compliance point. The factories were found in non-compliance for restricting foreign workers from leaving the industrial park during their free time and for putting an undue burden on the foreign workers, if they decide to resign from their post during the first year of their contract. Another factory was cited for non-compliance under Freedom of Association, for refusing to grant access to union members and for violating its own internal rules in the firing of union members. The same factory was also cited for non- compliance in the discrimination cluster, for failure to protect two pregnant women’s job positions and wages during their pregnancies. Factory 1&2 During assessments, Better Work Haiti advisors found that the fixed salary paid to the foreign workers, mostly from Central America, included overtime hours although the amount of overtime was not mentioned. Under Haitian Law, overtime work is voluntary. Furthermore, advisors were not able to determine if those workers were being paid properly for overtime hours worked, since the workers did use the punch system. During assessment, advisors found that the employment contracts for foreign workers provided that they were required to fully cover the expenses to return to their home country, should they decide to resign from their post prior to completing their first year of service. Additionally, they are required to reimburse the company the cost of the airfare to come to Haiti. The factory’s management explained to assessors that it was the same type of contract they use for foreign workers in other countries. The second non-compliance relates to the prohibition on foreign managers leaving the industrial park even during weekends and holidays. Management explained that due security concerns in the country, they were forced to take steps to ensure the safety of the foreign workers. During the assessment, Better Work Staff advised the factory’s management to discuss the issue with the foreign workers and inform them about the security risks, and to allow them to leave the industrial park with the understanding that they are aware of the 2 1 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 risks and aresponsible for their own safety and security once they are outside the industrial complex. Upon advise from Better Work Haiti, the factories have taken the necessary steps to review the foreign workers’ contracts, to address all the issues that were pointed out by the assessment team. They have also reviewed their policy to allow foreign workers to leave the industrial complex during their off days. Factory 3 During the assessment at factory 3, assessors were informed that thirty-five union members were fired for wearing t-shirts with the name of their union affiliation inside the factory. Upon further investigation, Better Work Haiti assessors found that some of the union members already had several warning letters in their record. The union leaders claimed that they were fired because they recently joined a union, given that those warning letter had been in their files months before they were dismissed. In addition, there were a few union members who did not have any prior warnings. Better Work Haiti found the factory in non-compliance for violating its own internal work rules, which include a temporary suspension between one and eight days without pay, prior to terminating a worker after several warnings. The factory was advised to consistently apply its own internal work rules. Better Work Haiti further recommends that the factory update its policy on freedom of association to clearly define the roles and responsibilities of both parties, to improve the quality of social dialogue and industrial relations and to train its staff on the revised policy. During the assessment at factory 3 , interviews with two breastfeeding women revealed that the factory changed their position, salary and benefits during maternity leave. The documents examined showed that their salary was lower than it was before they went on maternity leave. The factory immediately took the necessary steps to correct the issue. The women were placed in a different module where they are earning the same salary as prior to their maternity leave. 2 2 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 2 3 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 Section VI: Better Work key activities during the reporting period During this reporting period, Better Work Haiti continued to implement its mandate, in person and through a hybrid model, by delivering its core services to participating factories as well as engaging with other key stakeholders including MAST labor inspectors. Several training sessions for bipartite committees were however delivered in person as well as training on Gender Based Violence and Harassment (GBVH). During this reporting period, Better Work Haiti leadership held several meetings with the newly appointed minister of Social Affairs and Labor (MAST), the new Director of the Office for Accident, Maternity and Health Insurance (OFATMA) and the newly appointed Ombudsperson, to discuss several issues related Better Work activities in the textile sector, including the persistent non-compliance in social security contributions and the constant industrial relations problems. All the government representatives have pledged to collaborate and support Better Work activities in the sector. During this reporting period, Better Work advisors and trainers delivered several training sessions to participating factories as well as government stakeholders and union leaders, covering topics such as Freedom of Association, Understanding Gender, Human Trafficking and Child Labor, Emergency Preparedness, Prevention of Sexual Harassment, negotiation skills and Chemical Products Management. Better Work Haiti offered a total of 10 training sessions to 1052 participants, including 398 females, from 29 factories . The participants are now better prepared to face the challenges related to the aforementioned situations. In February 2022, Better Work Haiti, in collaboration with ILO Normes and the Legal Section of the Ministry of Social Affairs and Labor (MAST), held a two-day training session, in Port au Prince, on Human Trafficking and Forced Labor. Another session was held later in May in the Northeast. SUPERVISORY SKILLS TRAINING Better Work Haiti also provided a training on negotiation skills to participating factories and labor inspectors from MAST Labor Inspectorate division. During this training, 56 participants, including 19 women were introduced to the basic elements of negotiation. Participants in the training learned how improved negotiation skills can help them resolve disputes and lead to better labor relations. They have acquired the necessary skills to 2 4 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 develop the appropriate strategies for negotiations and to become more assertive negotiatiors. SUPERVISORY SKILLS TRAINING The supervisory skills training was provided to participant to help them acquire the knowledge to develop the proper strategies to become effective supervisors. The training focused on communication skills, leadership, coaching, delegation, motivation, and team building skills. A total of 16 factories took part in the training with a 115 participants including 33 women. OCCUPATIONAL SAFETY AND HEALTH Factories continue to struggle with Occupational Safety and Health issues (OSH) that are putting them in non-compliance. Realizing that the two main non-compliance points in OSH are related chemical management and emergency preparedness,] a training session on, chemical management system was delivered to the inspectors from the Ministry of Labor (MAST) inspectorate division. 8 inspectors including 2 women participated in the training session delivered by Better Work Haiti’s training officer. Consequently, they can better identify the issues during inspections. Better Work Haiti also built the capacity of 14 participants including 5 women in emergency preparedness at a factory in the Northeast. With such training, they are now able to to address non-compliance issues as they emerge during assessments. This factory had selected this training, based on conversations with its advisor and members of its bipartite committee, after noticing a non-compliance rate of 30% in the questions related to emergency preparedness in their last assessment data. GENDER Better Work Haiti puts great emphasis on addressing gender related non-compliance issues in the factories. Since 2018, BWH has worked with factories to set up remediation policies and execution of the Prevention of Sexual Harassment (POSH) training for supervisors and managers. Better Work advisors regularly help factories review their sexual harassment policy and procedures to help them identify and reduce sexual harassment in the workplace. During the reporting period, Better Work Haiti delivered four training sessions on the 2 5 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 prevention of sexual harassment to participating factories as well associations of worker representatives. There were a total of 426 participants in these sessions, of whom 155 were females. Participants in these trainings have expressed better understanding of the different forms of sexual harassment that may occur in the workplace. However, in discussions that took place during the training sessions, they often reflect on the difficulties to deal with the issue, given its sensitive nature. They feel that more workers need to be trained on the topic in order to have a greater impact. In April 2022, Better Work Haiti introduced the new training module on Gender Based Violence and Harassment (GBVH) to three factories in the Northeast. Better Work Haiti realized that the current sexual harassment prevention training did not fully focus on the wellbeing of the victim but rather tried to find a solution after the alleged harassment occurred. Furthermore, the grievance mechanism in place did not really address the reporting of other types of violence as the current mechanisms focused more on investigating the case rather than the needs of the victim. It did not include any type of psychosocial first aid or referral procedures in case the victim requested such help. Additionally, Better Work advisors did not have the necessary skills to help the factories approached the subject in a broader spectrum either; their focus was also on the prevention of sexual harassment and not on gender-based violence as a whole.As a result of this training, the participants have broadened their understanding of the concept of GBVH, which includes different types of violence based on gender, as opposed to the simpler forms of sexual harassment prevention training they are familiar with. Following the introductory course on Gender-Based Violence and Harassment, Better Work Haiti advisors performed a gap analysis of the factories’ existing grievance mechanism and discussed ways to adapt it to make it more suitable to address grievances relatated to GBVH. The factories were also introduced to the concept of Psychosocial First Aid. The participants are now better prepared to meet the needs of the alleged victims. The trainings were conducted over a four day session in which factory managers, compliance officers, human resource officers, as well as some worker representatives participated. COLLABORATION WITH THE GOVERNMENT With the support of Better Work Haiti, the Office of the Labor Ombudsperson for the textile sector (BMST) has started the implementation of its digital Complaint Management Solution aimed to improve its quality and performance in the industrial conflict handling process within the garment sector. The Office of the Labor Ombudsperson receives an average of a dozen in-person reported cases monthly on several issues such as contract 2 6 B E T T E R W O R K H A I T I – 2 4 T H C O M P L I A N C E S Y N T H E S I S R E P O R T - J U N E 2 0 2 2 disputes, working hours, payment to the social security system, and maternity leave payments, to name a few. The traditional paper-based conflict handling method/mechanism does not efficiently meet the current and future requirements of the working relationships in the mass employment environment of the Haitian apparel industry. This new system will improve the conflict handling operations, especially with distance reporting and tracking for parties and transparent centralized collaborative work within BMST, the Ministry of Labor and Social Affairs (MAST), Better Work Haiti, and other involved parties. During this reporting period, Better Work Haiti provided a training session on chemical product management in which 12 labor inspectors including three women participated. The participants have now a better mastery of the tools and good practices on how to effectively handle chemicals products. At the end of the session, participants have demonstrated greater sensibility regarding chemical product storage and labelling, exposure prevention strategies and how to allocate responsibilities for chemical product management. Two training session on human trafficking and forced labor were offered to MAST labor inspectors, represesentatives from Office Nationale d’Assurance Vieillesse (National Office for Old-Age Insurance), Office d’Assurance Accidents du Travail,Maladie et Maternité (Office for Work, Health and Maternity Insurance) conciliators and magistrates of the Special Labor tribunal. Participants in this training have acquired the necessary knowledge to help them identify cases of human trafficking and forced labor in the workplace. The participants have a good grip of the national labor laws and ILO conventions ratified by Haiti with an approach based on human trafficking and forced labor. In the session that was held in P