BetterWork: 27èm Rapò Sentèz sou Konfòmite Jiyè 2023 - Jen 2024

HAIT I 27th Compliance Synthesis Report July 2023 - June 2024 2 2 7 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 U N D E R H O P E - H A I T I Copyright © International L a bour Organiz a tion (I LO) and International Finance Corp oration (IFC) First publishe d (2024) 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 27th biannual synthesis report under the HOPE II legislation / International Labour Office; International Finance Corporation. - Geneva: ILO, 2023 1 v. ISSN 2227-958X (web pdf) International Labour Office; International Finance Corporation Clothing industry / textile industry / working conditions / workers’ rights / labour legislation / ILO Convention / international labour standards / comment / application / Haiti 08.09.3 The designations employed in this, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IFC or ILO concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies, and other contributions rests solely with their authors, and publication does not constitute an endorsement by the IFC or ILO of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the IFC or ILO. 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 2 7 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 U N D E R H O P E - H A I T I 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 2024 were funded by Federal funds, for a total of USD 17,137,735 during the program’s life cycle. 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. 4 2 7 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 U N D E R H O P E - H A I T I Table of Contents Acknowledgments/Disclaimer ........................................................................................................... 3 List of acronyms ........................................................................................................................................ 5 Section I: Introduction and context ................................................................................................. 7 1.1 Background ............................................................................................................................................... 7 Section II: Highlights of the report ing period July 2023 to June 2024 ............................... 9 Cou ntry con t ext ............................................................................................................................................... 9 Gar m ent industr y challenges .................................................................................................................. 10 T e chnical operations cha l lenges .............................................................................................................. 11 Section III: Milestones and key takeaways ................................................................................. 13 Ac hievemen ts high lights ............................................................................................................................ 13 Progress toward achieving results. .......................................................................................................14 Section IV: Compliance situation in the H a itian garment industry ................................. 22 Section V: Core labo ur standards non- compliance findings of the reporting period ......................................................................................................................................................... 30 Section VI: Better Wo rk key activities toward sustainability .............................................. 32 Annex 1: The TAICNAR Project and reporting require ments under the HOPE II Legislation ................................................................................................................................................ 35 TA ICNAR program component 1: co mpliance assess ments and rem e diation support ..................................................................................................................................................... 36 TA ICNAR program component 2: technical a ssista n ce to strengthen the legal and adminis t rative structures for impr ov ing compl i anc e in the industr y .......................... 36 Annex 2. Better Work’s f a ctory engagement model ............................................................. 39 Annex 3. T h e Better Work compliance assessment methodology .................................. 44 B e tt er Work comp lianc e assessment fram ework ......................................................................... 44 Annex 4: F a ctory find ings ................................................................................................................... 61 5 2 7 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 U N D E R H O P E - H A I T I List of Acronyms ADIH Association des Industries d’Haïti (Haitian Industry Association) BM ST Bureau de la Médiatrice Spéciale du Travail (Office of Ombudsperson) CA OSS Conseil d’Administration des Organes de Sécurité Sociale (Board of Social Security Bodies) CP Compliance point CSS Conseil Supérieur des Salaires (Wages High Council) CA TH Central Autonome Travailleurs Hatiens CEDATHA Centrale Démocratique Autonome des Travailleurs Haïtiens CF OH Confédération des Forces Ouvrières Haïtiennes CNOHA Centrale Nationale des Ouvriers Haitiens CS H Coordination Syndical Haitienne 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 ESP M -BO Entè Sendikal Premye Me-Batay Ouvriye GOSTTRA Groupement Syndical des Travailleurs-eusses du Textile pour Réexportation d'assemblage (Union Group of Textile Workers for Re-export of the Assembly) SOHSA Syndicat des Ouvriers de HANSAE Haiti S.A 6 2 7 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 U N D E R H O P E - H A I T I UT L Union des Travailleurs Libres HE LP 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 MAS T Ministère des Affaires Sociales et du Travail (Ministry of Social Affairs and Labor) OFATMA Office d’Assurance Accidents du Travail, Maladie et Maternité (Office for Work, Health and Maternity Insurance) ONA Office Nationale d’Assurance Vieillesse (National Office for Old- Age Insurance) OSH Occupational Safety and Health PAC Project Advisory Committee PAP Port-au-Prince, Haiti PIC Parc Industriel de Caracol (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) TAI C NAR Technical Assistance Improvement and Compliance Needs Assessment and Remediation USDOL United States Department of Labor 7 2 7 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 U N D E R H O P E - H A I T I Section I: Introduction and Context 1.1 Background Haiti's apparel industry in numbers Since the start of the year, Better Work Haiti has seen a decrease in the number of registered factories in the textile sector. One factory in the Northeast has closed, and two more in Port-au-Prince are temporarily closed. In March, the sector employed around 35,419 individuals, but by May, this number had dropped to 33,857. The number of jobs continued to decrease in June, to an estimated 32, 293 jobs, resulting in a loss of 3,126 jobs in less than three months. This decline has been continuous since the last report when the sector had approximately 42,500 jobs. We have lost about 10,200 jobs, which accounts for 24% of the workforce since the publication of the 26th Synthesis Report. The decline extends beyond factory closures and job losses. Trade data from the U.S. Department of Commerce's Office of Textiles and Apparel (OTEXA) reveals a concerning drop in Haitian textile exports to the United States, a key market. In May 2024, exports reached approximately $242 million, a significant 30% decrease compared to $345 million in May 2023. This downward trend is even more pronounced when considering year-end data. Looking at the period ending in May 2023 versus May 2024, OTEXA reports a decline of 25%, with exports to the U.S. falling from nearly $893 million to approximately $670 million. The closure of factories and job losses in the Haitian textile sector reflect broader economic challenges, such as reduced demand and increased global competition. The decrease in exports to the U.S. not only affects the factories and workers but also has wider implications for the Haitian economy, which heavily depends on the textile industry, which represents most of the country’s exports. The difficulties faced by the sector emphasize the need for strategic interventions to stabilize and revitalize this crucial industry. 8 2 7 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 U N D E R H O P E - H A I T I HAIT I'S APPARE L INDUSTRY AT A GLANCE 29 Active factories in the program 32,293 (24% loss) Workers employed. (63% women) 6 Active industrial zones hosting 90% of textile factories ~ $242 mi Apparel exports in USD million YTD -30% 29 Brands and retailers 7 Government partners 11 Active workers’ organizations 9 2 7 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 U N D E R H O P E - H A I T I Section II: Highlights of the reporting period July 2023 to June 2024 Country context The period between July 2023 and June 2024 was marked by a continued deterioration of Haiti's political, security, and humanitarian situation. Gang- related violence escalated dramatically, transforming Haiti into a landscape of terror. Armed groups expanded their territorial control, establishing fiefdoms and imposing their own brutal laws. Kidnappings, massacres, and sexual violence became commonplace, forcing thousands to flee their homes and seek refuge in overcrowded displacement camps. The capital, Port-au-Prince, became a perilous urban battlefield, as gangs fought for control of strategic neighbourhoods. The absence of a legitimate government and the ongoing political deadlock exacerbated the crisis. The state's capacity to provide essential services and protect its citizens crumbled, creating a power vacuum exploited by armed groups. Corruption and impunity remained endemic, undermining efforts to address the root causes of the crisis. Nevertheless, there have been tentative steps towards addressing the crisis.  Presidential Council : April 2024, a presidential council was established to tackle gang violence, political instability, and the insecurity crisis. This council, composed of political representatives, civil society leaders, and business owners, aims to develop a comprehensive strategy to restore security and promote economic growth. The effectiveness of the council's efforts remains to be seen.  New Prim e Minister : The Presidential Council elected a new Prime Minister, who was appointed in May 2024. The new Prime Minister has prioritized addressing gang violence and improving economic conditions. He has established a new government and engaging in 1 0 2 7 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 U N D E R H O P E - H A I T I multiple discussions with critical institutions. His success will depend on navigating the complex political landscape and securing cooperation from various stakeholders.  Multinational Securit y Support (MSS) : In a controversial move, in June 2024 the Haitian government authorized the deployment of a Multinational Security Support (MSS) lead by Kenya and coordinated by the Haitian National Police with the purpose of combating gang activities. The presence of foreign troops has raised mixed reactions from the Haitian public. Some citizens express hope for improved security, while others fear foreign intervention due to past disappointing experiences. The security situation in Haiti continues to be uncertain. While some reports suggest a slight decrease in gang-related violence in recent months, much of the West and Artibonite departments remain under gang control. Key transportation routes are still vulnerable to disruption, and kidnappings and extortion remain significant threats. The success of the Presidential Council, the new Prime Minister's leadership, and the impact of the MSS will all be significant factors in determining the industry's ability to recover. A long-term solution requires addressing the root causes of growing recent insecurity, fostering economic development, driving political stability, and strengthening public institutions. Garment industry challenges The Haitian garment industry is grappling with significant challenges, compounded by the country's socio-political turmoil. The recent growing insecurity has severely affected the production capacity of factories, particularly those in the metropolitan area of Port-au-Prince. Despite starting the year with optimism, the events of February 2024, which led to the resignation of the Prime Minister, have severely disrupted factory operations. Factories in Port-au-Prince were forced to suspend operations as 1 1 2 7 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 U N D E R H O P E - H A I T I armed gangs occupied the streets for days. March and April were arduous in the metropolitan area, with many factories either closed for extended periods or operating at limited capacity. Some faced shortages of raw materials, while others needed more orders from international buyers. Over the course of this year, two factories in the Northeast have been gradually reducing their operations, and one factory has permanently closed. Additionally, several factories in Port-au-Prince and the Northeast have announced plans to reduce their workforce. The permanently closed factory, which had recently started its operations with a few workers, intended to manufacture goods for a major international buyer. However, a decline in international demand, border closures, and production delays led to its closure. With the new Prime Minister's arrival, several meetings with the private sector, including ADIH (Association of Haitian Industries) representatives, have occurred. The Prime Minister has pledged support for the renewal of HOPE II and vowed to work tirelessly to restore security, which is crucial for the garment sector's operations and the confidence of international buyers. Technical oper ations challenges The security situation in Haiti, particularly in the metropolitan area of Port-au- Prince, continues to present a serious challenge, limiting the delivery of core services activities face-to-face. During this period, 76.51%of advisory services were conducted virtually, within a two and a half to three hour window. Advisors must use a strategic approach focusing on specific issues, given the limitation of time, technological issues, resources, and format, whereas during onsite visits, advisors do not have to face these issues and therefore can verify more improvement priorities during one visit. Nearly 48%of the assessments between July 2023 and June 2024, which represents all the assessments in P-au- P, were conducted virtually or in a hybrid mode. During this period, there were two factories in P-au-P that we assessed virtually, but previously were assessed in a hybrid mode. 1 2 2 7 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 U N D E R H O P E - H A I T I The challenge with the virtual assessments is that assessors fully rely on phone and internet communication to interview workers, receive documents, and conduct the factory tours. Often, sketchy internet connections cause delays in the process. Additionally, for the factory tour, Better Work staff must coordinate with factory’s staff on site or sometimes a member of the bipartite committees or union members. There are some compliance points related to temperature, light levels and noise levels that are not measured in real time on site, but instead we rely on information received during worker interviews. 1 3 2 7 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 U N D E R H O P E - H A I T I Section III: Milestones and key takeaways Achievement highlights During the reporting period, Better Work continued to make important progress towards sustaining and advancing its long-term goals. The country context brings higher difficulties that require strategic planning, resiliency and stronger commitment. Throughout the challenges, the program maintains ongoing engagement with partners to make long-term plans on how to reach sustainable levels of engagement by strengthening social dialogue, addressing non-compliance issues, and enhancing worker well-being. The following is a summary of key actions leading to sustainable achievements.  Delivering results am idst challe nges Better Work Haiti holds strong commitments throughout the challenges by leveraging collaboration with government agencies to successfully deliver core activities and achieving its targets for factory and worker outreach. The recent assessment data show a downward compliance trend in key areas such as OSH.  Sectoral grievance mechanism An increase in the percentage of complaints logged with MAST that resulted in inspections that identify, require remediation of, and, if appropriate, sanction violations of core labour standards and directly related and consistent labour laws.  Severance pay secure d for 1700 workers In collaboration with BMST and MAST, Better Work Haiti supported aninternational brand to pay over $1million dollars as severance pay for workers.  Leading the charge on Gender- B ased Violence and Harassment Prevent i on The program reunited the tripartite stakeholders in initiating the development of a sectoral GBVH policy that aims to create a safer and more equitable workplace for all workers.  Leveraging digital innovation to boos t worker protection 1 4 2 7 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 U N D E R H O P E - H A I T I The program is strengthening the government's capacity to enhance grievance mechanisms by expanding accessibility to complaint handling with a public mobile app.  Proactive measures to s a fegu ard Haiti's garment industry The program facilitated productive dialogue between stakeholders on enterprise operations and labour compliance concerns related to the local insecurity situation. These conversations uncover the need to conduct a comprehensive crisis impact study (identifying potential risks, mitigation and sustainability measures) and collaborating with ILO experts on practical solutions to expand social security coverage for workers. Progres s towar d achieving results FACTORY- LEVEL SOCIAL DIAL OGUE M E CHAN ISM S GENERA TE A C TIONS TO REDUCE N O N-COMPL I AN CE WI TH HAITI A N LA B O UR LA W A N D INTE RNA T IONAL L A BOU R S T ANDAR D S, IN CLU D ING N O N-COM P LI ANCE ISSUES AFFECTING WOMEN. Despite the challenging national environment, Better Work Haiti remains dedicated to achieving its program goals. During this period from July 2023 to June 2024, Better Work Haiti facilitated activities to enhance the capacity of participating factories to foster meaningful social dialogue at the factory and sectoral levels. Participating factories received approximately 149 advisory services, involving either their management teams or bipartite committees, to address non-compliance issues, develop training plans for workers and managers, and create action plans to rectify identified non-compliances. Workers and managers in the bipartite committees as well stakeholders from the tripartite sector, participated in around 30 training sessions, where they engaged in meaningful discussions on workers’ rights and responsibilities, human trafficking and forced labour, effective communication, prevention of sexual harassment, and gender-based violence and harassment. Floor-level supervisors received training to improve their supervisory skills and foster better working relationships with their supervisees. Training modules were 1 5 2 7 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 U N D E R H O P E - H A I T I shared with participants to help them continue building their capacity for dialogue that leads to solutions for labour issues within the factories. During this period, Better Work Haiti also reviewed its Compliance Assessment Tool (CAT) with labour inspectors from the Ministry of Labour. The aim was to help factories identify non-compliance issues affecting labour rights and relations, particularly those concerning women’s issues. After aligning the CAT with current national laws and international conventions, we conducted 17 new, in-person and hybrid assessments at participating (5) factories in Port-au- Prince and (12) in the Northeast. However, there are eight factories appearing in this report, that were previously prior to January 2024. The non-compliance issues identified during these assessments were subsequently discussed with the factories during advisory sessions, enabling them to develop improvement plans that include training and remedial actions. Furthermore, Better Work advisors provided 149 advisory services to participating factories. These services focused on improving working conditions by addressing various issues, including enhancing the Occupational Safety and Health (OSH) management system, human resources (HR) management systems, and other industrial-related concerns such as employee dismissals. There were also extensive discussions on the current security situation in the country. Workers expressed concern about increasing job losses in the sector and sought ways to improve security for the sector's benefit. Additionally, there were discussions about the application of the June 2023 decree that suspended the 3*8 law and how its implementation would affect the factories' operations. TRI P AR TIT E PA RTN E RS AT THE SECTO R A L L E VE L ENGAGE IN SUST AINE D DIAL OGUE THAT G E NERA TES ACTION TO IMPROVE WORK ING CONDITIONS AND WORKER WELL- B EING , INCLUDING FOR WOMEN W O RK ERS. During this reporting period, Better Work Haiti achieved significant progress in developing a sectoral policy on Gender-Based Violence and Harassment (GBVH) to improve working conditions and workers' well-being. Engaging with tripartite social partners, Better Work Haiti organized a workshop for the Project Advisory Committee (PAC) members to introduce GBVH concepts. 1 6 2 7 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 U N D E R H O P E - H A I T I After comprehensive discussions, the PAC members have obtained a strong understanding of GBVH and have agreed to strive towards developing a sectoral policy. These discussions have resulted in a recommendation to carry out a gap analysis of Haitian labour laws about ILO Convention 190 and Recommendation 206 to assess existing gaps and propose appropriate solutions. Consequently, a Terms of Reference (TOR) has been formulated to identify a consultant who will conduct this gap analysis. The study's outcome will be shared with the tripartite partners to guide the development of the sectoral policy, marking a crucial step towards enhancing workplace safety and promoting workers' rights in Haiti. Additionally, Better Work Haiti conducted a knowledge test among stakeholders to tailor and deliver the necessary training for developing the sectoral policy. This knowledge test ensured that subsequent training would be relevant and effective in addressing the specific needs of stakeholders. The goal is to reinforce knowledge and skills, paving the way for establishing the sectoral policy expected later this year. 1 7 2 7 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 U N D E R H O P E - H A I T I Special stakeholders' gathering on country challenges and mitigation strategies. In response to the challenging country context, the Project Advisory Committee convened a crucial meeting with stakeholders in the garment industry on April 12, 2024. The primary goal was to share business updates and collaborate on strategies to address the ongoing crisis. During the meeting, two representatives from the employers’ association expressed significant concerns about the recurring situation's negative impact on the industry and the country's reputation among international buyers and partners. Although factories in the Northeast have been able to continue operations, they are still affected due to the concentration of primary government services and economic activities in the West. To mitigate the situation's impact, some factories have implemented rotations and production reductions within legal limits, which have negatively affected workers' incomes and job security amid rising living costs. Stakeholders emphasized the urgency for the government to take swift and concrete actions to restore a safe environment conducive to the resumption of business activities. 1 8 2 7 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 U N D E R H O P E - H A I T I GOV E RN MENT I N ST ITUT I O NS SU CH A S THE MAST L A BOUR INSPEC TORATE, ONA, AND OFAT MA H A VE INCREASED ORGANIZ A TIONAL CAPAC I TY TO PR OVIDE ELIGIBLE SERVICES TO WORKER S. Better Work Haiti continues collaborating with the Ministry of Labour and the Office of the Ombudsperson for the Textile Sector (BMST) to enhance its capacity to serve its constituents effectively. During this reporting period, Better Work Haiti reaffirmed its commitment to providing logistical support to the labour inspectorate division of MAST, enabling them to conduct regular inspections, including in the textile sector. Representatives from MAST and the Office of the Ombudsperson also participated in training sessions and industry seminars offered by Better Work Haiti, enhancing their knowledge of workplace communication, the prevention of sexual harassment, and workers' rights and responsibilities. Building on the success of the Digital Complaint Management System launched by BMST in 2022, Better Work Haiti is now supporting the development of a Mobile App, set to launch in the third quarter of 2024. This multi-language (English, French, Creole, and Spanish) app for Android and iOS devices aims to extend accessibility to the complaint management solution's web portal. The app will allow users to report complaints, track their status, view details, and browse other helpful information to improve user experience and accessibility significantly. It will facilitate more accessible communication with BMST and provide regularly updated, helpful information. This tool will bring all public features of the system readily accessible to the fingertips of stakeholders through their devices. BMST was instrumental in fostering a climate of social dialogue within the sector, by taking the lead in organizing bilateral meetings between representatives of workers and employers, in search of solutions to the various labour issues facing the sector. As per reports submitted by BMST, they processed 60 complaints from individual workers or from union representatives on behalf of workers. The complaints are mostly for dismissals that the workers deemed arbitrary or 1 9 2 7 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 U N D E R H O P E - H A I T I temporary suspensions that are contested by the workers. There were some other cases related to maternity leave payments that the plaintiffs did not receive from the Office for work-related accident, maternity and health insurance (OFATMA). Most of the cases are discussed and resolved through mediation. However, during this period BMST transferred six cases of arbitrary dismissals to MAST for follow up. Among the cases received by BMST, during the period, there was a case of an unannounced factory closure that left approximately 880 direct and indirect workers jobless, with no other source of income. BMST joined with Better Work Haiti to convene several meetings with the employer, the representative of the workers, the buyer, and representatives of MAST, to address the situation. In the end, with the support of resources provided by Better Work Haiti, alongside additional verification from MAST, ONA and OFATMA, BMST was able to secure the funds to pay all workers their last salary and severance pay. PART NER S HIPS WITHIN THE MULT I LATERAL SYSTEM WERE DEVELOPED TO PROMOTE AND ADVANCE POLI C Y CHANGE IN THE GARMENT SECTOR . Aware of the garment sector's challenges, Better Work Haiti has implemented several initiatives to foster sustainable changes in the industry. Better Work Haiti is conducting a sector crisis impact study, including a supply chain risk analysis, to identify, prevent, and minimize risks that could escalate into crises affecting the garment sector. This study also examines the employment situation from workers' and employers' perspectives, priorities, needs, capabilities, and challenges. Based on the findings, stakeholders will be provided with proposals for concrete measures to mitigate these risks. In February 2024, Better Work Haiti, in collaboration with the ILO Haiti country program, provided training on extending social security coverage to its constituents, particularly those involved in social security services. The training strengthened the capacities of ILO tripartite constituents to review and explore potentials to expand their current social security coverage to include the informal economy. Thirty-eight (38) participants attended the training from 2 0 2 7 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 U N D E R H O P E - H A I T I ONA and OFATMA, representatives from worker organizations, and other government entities. LESSO N S LEAR NED Recent activities and interactions with stakeholders in Haiti's garment industry point to a critical lesson: open and transparent social dialogue is essential for progress. This engagement between government, employers (factories), and workers (unions/representatives) has yielded clear benefits:  Smooth is sue resolution: When all parties are involved in discussions, problems can be addressed more effectively and timely. Concrete examples have shown how collaborative dialogue leads to smoother solutions.  Internatio nal buyer involvement as a catalyst: The participation of international buyers has proven to be a driving force in moving issues remediation efforts forward. Their involvement has been instrumental in resolving many problems at the factory level, such as non-compliance issues, and ensuring fair treatment for workers during factory closures, such as proper compensation and severance.  Governme nt involve m ent: The Ministry of Social Affairs and Labour and the Office of the Ombudsperson have been crucial in mediating negotiations between factory managers, international buyers, and workers during factory closures. This active participation demonstrates the government's commitment to establishing a clear, compelling, and transparent grievance system to provide remedies and ensure that companies are responsible for protecting workers’ rights.  Building trust through collaboration: Increased collaboration between the Ministry of Labour and the Office of the Ombudsperson and their frequent presence at factories during challenging situations is gradually building trust among workers and factory management. Strategic partnerships Collaboration with the different ILO offices (NORMS, 2 1 2 7 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 U N D E R H O P E - H A I T I ACTEMP, LABADMIN) is an effective way to support constituents as it fosters a comprehensive approach to addressing labour issues in country. By leveraging the ILO's extensive network, constituents in Haiti had access a wealth of resources, expertise, and best practices that are critical for developing robust labour policies and programs. These lessons highlight the importance of fostering an inclusive and collaborative environment where all voices are heard. By continuing to strengthen tripartite social dialogue, Haiti's garment industry can navigate challenges more effectively and create a more sustainable future for all stakeholders. 2 2 2 7 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 U N D E R H O P E - H A I T I Section IV: Compliance situation in the Haitian garment industry The overall trend of non-c o mpliances in the Haitian garment industry This section provides an overview of non-compliance findings in 25 factories that participated in assessments at least once between July 2023 and June 2024. The data presented reflects the latest assessment results for these factories. The overall non-compliance rate is determined by the total number of factories that show non-compliance in at least one question on at least one compliance point. From January to June 2024, Better Work Haiti conducted 17 new assessments - 14 in-person and 3 hybrid - with assistance from inspectors from the Ministry of Social Affairs and Labour. Three factories could not be assessed in the first quarter of 2024 because they were temporarily closed for security reasons during that period. However, their factory tables will include any improvements made since their last assessments. Verification of improvement plans occurred either during on-site visits or virtually through documentation requests during advisory services, with discussions involving bipartite committee members from both the worker and management sides. Additionally, two factories are permanently closed and will not be included in this report. The charts below illustrate the non-compliance findings for the 25 assessed factories, with non-compliance rates indicated in percentage. It is important to note that these reports are issued biannually, even though assessments occur annually, resulting in issues reported across two consecutive synthesis reports. 2 3 2 7 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 U N D E R H O P E - H A I T I 0% 0% 0% 8% 0% 0% 0% 0% 0% 0% 36% 4% 0% 0% 0% 8% 0% 52% 92% 12% 84% 40% 8% 0% 88% 84% 92% 92% 100% 80% 76% 4% 84% 80% 28% 56% 52% 0% 20% 40% 60% 80% 100% Child Labourers Documentation and Protection of Young… 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 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 Child Labour Discrimi nation Forced Labour Freedom of Association and Collective Bargaining Compensation Contracts and Human Resources Occupational Safety and Health Working Time Non-compliance rates by Compliance Point - July 2023 - June 2024 Non-compliance rate (n= 25) 2 4 2 7 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 U N D E R H O P E - H A I T I Although the Occupational Safety and Health (OSH) cluster has the highest non-compliance rate, a closer examination of specific compliance questions reveals a decrease in non-compliance rates. Nearly every factory exhibited non- compliance on at least one question within the respective compliance point. While initial data showed a low overall compliance rate (92%) for the "Chemicals and Hazardous Substances" section of our factory assessments, a deeper dive reveals a more nuanced picture:  Improper Labelling Most Common Issue : Most factories (60%) fell short of adequately labelling chemical products. This often involves missing labels entirely or labels lacking crucial information like pictograms.  Safety Data Sheets Missing in Many Factories: Another key area of non- compliance (60%) involved the absence of chemical safety data sheets for on-site products. These data sheets provide vital information on handling the products safely, including accident response procedures.  Inventory Management Shows Improvement: Positive progress was observed in maintaining an inventory of chemicals and hazardous materials, with a non-compliance rate of 68%. This is a significant improvement from historical rates of around 80%, suggesting factories are making a concerted effort in this area.  Other Are a s with Lo wer Non-Compliance: Encouragingly, other aspects of chemical safety showed lower non-compliance rates. Only a few factories (3 out of 25) improperly stored chemicals, and an even smaller number (2 out of 25) failed to train workers on handling hazardous substances. Additionally, 8 out of 25 factories lacked adequate measures to prevent worker exposure to chemicals. These findings highlight both areas needing improvement and positive trends in chemical safety practices within Haitian garment factories. Continued efforts are needed to ensure proper labelling, readily available safety data sheets, and robust worker training and protection measures. The progress in inventory 2 5 2 7 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 U N D E R H O P E - H A I T I management is a promising sign; similar improvements will be observed in other areas. The chart below outlines the questions in the Chemical, Hazardous Substances compliance point, and the non-compliance rate for each question. Emergency preparedness is a crucial compliance point within the OSH cluster, comprising eleven compliance questions, and it exhibits a high non-compliance rate. The question regarding emergency exits and escape routes and adequate fire-fighting equipment show the highest non-compliance rates at 68% and 52%, respectively. All other questions in this compliance area have non- compliance rates below 50%, with the questions about flammable material 68% 60% 60% 48% 32% 12% 8% 0% 20% 40% 60% 80% 100% Does the employer keep an inventory of chemicals and hazardous substances used in the workplace?… Are chemicals and hazardous substances properly labelled? Does the employer have chemical safety data sheets for all the hazardous chemicals used in the workplace? Does the employer provide adequate washing facilities and cleansing materials in the event of exposure to hazardous chemicals? Has the employer taken action to assess, monitor, prevent and limit workers' exposure to chemicals and hazardous substances? Are chemicals and hazardous substances properly stored? Has the employer effectively trained workers who work with chemicals and hazardous substances? Non-compliance rates in Chemical and Hazardous Substances 2 6 2 7 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 U N D E R H O P E - H A I T I storage and worker preparedness for emergencies showing a non-compliance rate of 0%. During the reporting period, Better Work assessed all factories under the June 2023 decree, modifying the Compliance Assessment Tools (CAT) to incorporate all labour code articles that have resumed enforcement. Some questions, particularly on compensation and working time, were added to the CAT at the beginning of the year and reflected assessments conducted from January to June 2024. The assessments revealed that not all factories fully comply with the reinstated labour code articles. Despite efforts to implement the new decree, some articles still need to be addressed, mainly due to a lack of understanding or misinterpretation. Although Better Work provided training on national labour laws to factory managers in the Northeast in September 2023, the data indicates a continued need for additional training on this topic. Better Work Haiti has planned several training sessions on labour law for the remainder of 2024.  Compensation priorities: While initial data for the "Compensation" cluster suggests overall non-compliance issues, a closer look reveals specific areas requiring immediate attention: overtime wages, paid leave, and social security benefits.  Overtime pay discrepancies: 63% of factories were found to be incorrectly compensating workers for overtime work after 6 p.m. This means that workers are not being paid the correct amount because the overtime rate is not being applied to their correct base salary.  Paid leave shortfalls: We have identified significant non-compliance with paid leave at the assessed factories. Out of the 17 factories assessed, 10 failed to compensate workers for legally mandated holidays properly. Instead of paying workers based on their average daily salary, these factories paid them based on the minimum wage, resulting in underpayment. Moreover, 11 factories did not correctly pay workers for the weekly rest day, as they also paid based on the minimum wage 2 7 2 7 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 U N D E R H O P E - H A I T I instead of the average daily salary. These underpayments for rest days and holidays have a ripple effect, affecting maternity and sick leave pay. Our data also reveals that 56% of factories failed to compensate for maternity leave adequately, and 40% were non-compliant with sick leave compensation. During this reporting period, data shows that 68% of the factories did not collect and forward the appropriate contributions to OFATMA for Social Security compliance, while 64% were non-compliant regarding contributions to ONA. Additionally, 52% of the factories failed to pay for OFATMA work-related accident insurance properly. Non-compliance related to OFATMA and ONA payments often results from deducting contributions based on the minimum salary instead of the basic salary, which includes all types of earnings, such as production quota, except for overtime. There are also cases where payments were sent to ONA or OFATMA late. Some factories only contribute the employers’ portion to OFATMA for maternity and health insurance, and the workers’ contribution is not deducted and sent to OFATMA, hence the non- compliance. Unlike previous data reviews, this period revealed that 28% of factories did not correctly pay workers the annual salary supplement or bonus because it was not based on their average daily earnings. The suspension of the 3*8 law led to widespread violations of factory labour regulations, including exceeding overtime limits, unauthorized Sunday labour, and lack of Ministry of Social Affairs and Labour approval for overtime. Additionally, some factories consistently surpassed legal workweek limits and needed more authorization for night shifts. The assessment data from this period highlights specific questions in the compensation cluster presented in the chart below that require close attention. 2 8 2 7 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 U N D E R H O P E - H A I T I Key compliance progress high lights the Haitian labour regulations In recent years, Better Work Haiti has prioritized Occupational Safety and Health (OSH) initiatives to address persistent compliance challenges within the sector. To this end, the program has conducted industry-wide seminars and targeted training programs focusing on areas such as chemical management systems and inventory management. While the number of factories included in this report is slightly lower than in the previous report, the chart below illustrates an overall downward trend in key OSH indicators during this period, on some key OSH questions. 81% 75% 44% 100% 92% 63% 0% 20% 40% 60% 80% 100% Authorization from the Department of Labour before working overtime Comply with limits on overtime hours Daily or weekly working hours exceed the legal limit Pay workers correctly for legally mandated holidays Pay workers correctly for weekly rest days Pay workers 100% above the normal wage for all overtime hours worked at… Compliance issues arising from reinstated labor laws post-3x8 suspension. 2 9 2 7 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 U N D E R H O P E - H A I T I 50% 45% 84% 84% 45% 23% 39% 81% 13% 28% 36% 60% 68% 36% 8% 12% 64% 0% 0% 20% 40% 60% 80% 100% Health cards provided within the first 3 months of hiring First-aid training provided to workers Properly labelling of chemicals and hazardous substances Keep an inventory of chemicals and hazardous substances Equip with fire detection and alarm system Adequate workplace eating area Provide workers enough free safe drinking water Provide workers with all necessary personal protective clothing and equipment Safety warnings posted in the workplace Health Services and First Aid Chemicals and Hazardous Substances Emergen cy Prepared ness Welfare Facilities Worker Protection Key compliance progress on Occupational Safety and Health between June 2023 to July 2024 27th, July 2024 26th, June 2023 3 0 2 7 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 U N D E R H O P E - H A I T I Section V: Core labour standards non- compliance findings of the reporting period FREEDOM OF ASSOCIATION: VIOLATIONS OF COLLECTI V E BARGAINING AGREEMENT During this reporting period, Better Work Haiti assessors identified non- compliance with one or more articles of the collective bargaining agreement in all factories in an industrial park in the Northeast. Assessors discussed the violations with each factory during the assessments and provided recommendations. FREEDOM OF ASSOCIATION: F R EEDOM TO JOIN A UNION FAC T RO RY 1 A factory in Port-au-Prince was cited for a violation of Freedom of Association. This issue was first identified in April 2023, but during the assessment in February 2024, the factory was cited again for failing to take remedial action. The factory was initially found to have wrongfully terminated union members. Better Work recommended that the factory reinstate the dismissed workers. As of May 2024, the factory had reached an agreement with the union to reinstate all six workers that were dismissed. However, until this report, five workers were reinstated and attempts to join the other worker were unsuccessful (unverified information indicates that he/she would be already employed elsewhere). The reinstated workers received back pay for eight months and were place back in a line similar to where they had been working prior to their dismissal. FACTORY 2 This case dates back to a wrongful dismissal that Better Work Haiti found at a factory in April of 2022. Initially, several union members were fired at the end of 2021. After se