(2012) Better Work Ayiti: 5yèm Rapò Sentèz Bianyèl sou Endistri Rad anba Lwa HOPE II

- 1 - Better Work Haiti: Garment Industry 5 th Biannual Synthesis R eport Under the HOPE II Legislation Produced on 16 October 2012 Better Work Haiti is supported by the US Department of Labor Funding for additional activities is provided by the Labour Program of Human Resources and Skills Development Canada - 2 - Copyright © International Labour Organization (ILO) and International Finance Corporation (IFC) (2012) First published (2012) Publications of the ILO enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the ILO, acting on behalf of both organ- izations: ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzer- land, or by email: pubdroit@ilo.org . The IFC and ILO welcome such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences 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 : garment industry 5th biannual synthesis report under the HOPE II legislation / International Labour Office ; International Finance Corporation. - Geneva: ILO, 2012 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 con- cerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the IFC or ILO of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the IFC or ILO, and any failure to mention a particular firm, commercial product or process is not a sign of disap- proval. 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, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: pubvente@ilo.org Visit our website: www.ilo.org/publns - 3 - Acknowledgements Better Work Haiti is supported by the US Department of Labor. Funding for additional activities is provided by the Labour Program of Human Resources and Skills Development Canada. The Better Work global programme is supported by the following (in alphabetical order): the Austra l- ian Government, the Levi Strauss Foundation, the Netherlands Ministry of Foreign Affairs, the Swiss State Secretariat for Economic Affairs (SECO) and the United States Council Foundation, Inc. (funds provided by Gap Inc., Nike and Wal-Mart). This publication does not necessarily reflect the views or policies of the organizations or agencies listed above, nor does mention of trade names, commercial products, or organizations imply en- dorsement by them. - 4 - Table of Contents List of Acronyms ........................................................................................................................... 6 Section I: Introduction and Methodology ...................................................................................... 7 1.1 Structure of the report .................................................................................................................. 7 1.2. Context ......................................................................................................................................... 7 1.3. The Better Work compliance assessment methodology ............................................................. 9 Section II: Findings ..................................................................................................................... 13 2.1. Compliance Assessment Findings (5th round of assessments) .................................................. 13 2.2. Detailed Findings ........................................................................................................................ 16 1. Core labour standards ........................................................................................................... 16 2. Working conditions ............................................................................................................... 17 2.3. Compliance effort ....................................................................................................................... 24 Section III: Better Work Haiti Advisory Services and Training ....................................................... 28 3.1 Better Work Haiti Advisory Services ...................................................................................... 28 3.2 Better Work Haiti Training Services ...................................................................................... 30 3.3 Related activities ................................................................................................................... 31 Section IV: Conclusions and Next Steps ....................................................................................... 32 4.1 Conclusion ............................................................................................................................. 32 4.2 Next Steps .................................................................................................................................... 33 Section V: Factories in Detail ...................................................................................................... 36 5.1 List of factories ............................................................................................................................ 36 5.2. Findings from the factories ........................................................................................................ 37 Annex 1. HOPE II Legislation Reporting Requirements ............................................................... 120 - 5 - List of Tables Table 1: Better Work compliance assessment framework ................................................................... 10 Table 2: Number of workers in factories registered to Better Work Haiti ............................................ 36 Table 3: List of factories in the Haitian garment sector ........................................................................ 36 In Focus 2: Employment Contracts ........................................................................................................ 17 In Focus 3: Termination ......................................................................................................................... 18 In Focus 4: Chemicals and Hazardous Substances ................................................................................ 19 In Focus 5: Emergency Preparedness .................................................................................................... 20 In Focus 6: Health Services and First Aid ............................................................................................... 20 In Focus 7: OSH Management Systems ................................................................................................. 21 In Focus 8: Welfare Facilities ................................................................................................................. 21 In Focus 9: Worker Protection............................................................................................................... 21 In Focus 10: Working Environment ....................................................................................................... 22 In Focus 11: Overtime ........................................................................................................................... 22 - 6 - List of Acronyms ADIH Association des Industries d’Haïti CATH Centrale Autonome des Travailleurs Haïtiens CFOH Confédération des Forces Ouvrières Haïtiennes CNOHA Centrale Nationale des Ouvriers Haïtiens CODEVI Compagnie de Développement Industriel CP Compliance point CSH Coordination Syndicale Haïtienne CTH Confédération des Travailleurs Haïtiens CTMO-HOPE Commission Tripartite de Mise en œuvre de la loi HOPE (Tripartite HOPE Commis- sion) EA Enterprise Advisor HELP Haiti Economic Lift Program HOPE Haitian Hemispheric Opportunity Through Partnership Encouragement ITUC International Trade Union Confederation MSDS Material Safety Data Sheet MOISE Mouvement des Organisations Indépendantes Intégrées aux Syndicats Engagés MAST Ministère des Affaires Sociales et du Travail (Ministry of Labour and Social Affairs) OFATMA Office d’Assurance de Travail, de Maladie et de Maternité (Office for Work, Health and Maternity Insurance) ONA Office Nationale d’Assurance Vieillesse (National Office for Old-Age Insurance) OSH Occupational safety and h ealth PAC Project Advisory Committee PICC Performance Improvement Consultative Committee PPE Personal protective equipment SOFEZO Syndicat des Ouvriers et Employés de la Zone Franche de Ouanaminthe-Codevi SOKOWA Sendika Ouvriye Kodevi Wanament (Trade Union CODEVI Ouanaminthe) SOMS Syndicat des Ouvriers de Magic Sewing SOTA Sendika Ouvriye Tekstil ak Abiman (Trade Union of Textile and Apparel Workers) SYNOTHAG Syndicat des Ouvriers Travailleurs Textiles et Habillement du Groupe GMC TAICNAR Technical Assistance Improvement and Compliance Needs Assessment and Remedia- tion USDOL United States Department of Labor - 7 - Section I: Introduction and Methodology 1.1 Structure of the report This is the fifth report to be produced by Better Work Haiti in the framework of the HOPE II legislation. The objective of the report is to describe the labour compliance performance of factories participating in the Better Work Haiti programme, including changes in compliance with international labour standards and with national labour law since the publication of the “1 st Biannual Report under the HOPE II Legislation” published on 19 October 2010. The first section of this report gives an overview of the HOPE II legislation and the origin of the Better Work programme in Haiti. This section also includes an explanation of the Better Work methodology, including the reports produced in the framework of the Better Work programme and the HOPE II legislation. The second section of the report outlines the compliance assessment findings from the fifth round of factory assessments conducted between May 2012 and August 2012. The third section of the report describes Better Work Haiti advisory and training services in the period from February 2012 to August 2012. The fourth section of the report outlines the priorities of the Better Work Haiti programme in the upcoming months. Finally, the last section of the report describes the efforts made by the factories to correct the compliance needs identified in the Better Work Haiti compliance assessments. As required by the HOPE II legislation, information provided for each of the participating factories includes: compliance needs for each compliance cluster and each compliance point; details of non - compliance; improvement priorities; efforts made by the factory to remedy the compliance needs as verified in the fifth assessment visit; and with respect to non-compliance areas that have not been remediated, the amount of time that has elapsed since the non-compliance was first reported publicly. 1.2. Context The HOPE II legislation and the TAICNAR project The United States Congress enacted the HOPE II legislation in 2008 to enable the Haitian textile and garment industry to benefit from customs exemptions and establish a new programme for strengthening and monitoring working conditions in the textile and garment sector. On 24 May 2010, the Haiti Economic Lift Program of 2010 (HELP Act) was signed into law, expanding the Caribbean Basin Economic Recovery Act and the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (Haiti HOPE II) to contribute to Haiti’s economic growth and development. Among its provisions, the HELP Act extended the HOPE trade preference program until 2020, and expanded the tariff preference level limits for knit and woven apparel. The HOPE II legislation allows for duty-free entry into the United States for a limited number of garments imported from Haiti, provided that 50% of the value of the goods and/or the costs of processing the garments originates in Haiti, the United States, or another country that has a free- trade agreement with the United States. This percentage increases to 55% in the fourth year and 60% in the fifth year of HOPE II implementation. - 8 - In order to benefit from HOPE II/HELP, Haiti was required to establish an independent Labour Ombudsperson appointed by the President of the Republic in consultation with the private sector and the trade unions. Haiti was also required to work with the International Labour Office (ILO), to develop a programme to assess and promote compliance with core labour standards and national labour law in the factories that are eligible for tariff advantages under HOPE II. This was referred to in the legislation as the Technical Assistance Improvement and Compliance Needs Assessment and Remediation (TAICNAR) programme. Finally, Haiti needed to develop a mechanism for ensuring that all producers benefiting from the HOPE II trade preferences participated in the TAICNAR programme. There are two components to the TAICNAR programme. The first of these consists of technical assistance to strengthen the legal and administrative structures for improving compliance in the industry. The scope of these services is extensive, encompassing technical assistance from the ILO in reviewing national laws and regulations to bring them into conformity with international standards, raising awareness of workers’ rights, and training labour inspectors, judicial officers and other government personnel. The second element of the TAICNAR programme focuses on assessing compliance with core labour standards and national labour law, supporting remediation efforts, and publicly reporting on the progress of each factory on the Labour Ombudsperson’s register. To encourage compliance with core labour standards and national labour law, the legislation indicates that preferential treatment may be withdrawn, suspended, or limited by the President of the United States from producers who fail to come into compliance with the core labour standards and national labour law that is related and consistent with those standards . Better Work Haiti, which is a partnership of the ILO and the International Finance Corporation, is implementing the TAICNAR programme in collaboration with the HOPE Commission, a presidential tripartite commission comprising three members of the Haitian government, three members of the Haitian private sector and three members of national workers’ organizations. It is supervised by a President and guided by an Executive Director and a consultant. Since August 2011, the HOPE Commission serves as Better Work Haiti’s Project Advisory Committee. Recent Developments In the spring 2012, Prime Minister Conille resigned and a new prime minister, Mr. Laurent Salvador Lamothe, was appointed and a new cabinet was formed. The government has focused on creating an environment that brings investment in the country, with “Haiti is open for business” being the slogan of this strategy. The apparel industry is among the potential economic development sectors. As foreseen in the HOPE II legislation, the Labour Ombudsperson, Mrs Josseline Colimon Féthière, was appointed by the President of the Republic of Haiti on 3 April 2012. Better Work has held meet- ings with the US Embassy and Ms. Féthière in an attempt to improve coordination among the various entities involved in implementing the HOPE II legislation. Ms. Féthière has already started assisting garment manufacturers in their efforts to comply with the labour eligibility requirements of HOPE II, including by clarifying aspects of the Haitian Labor Code and informing manufacturers of their obliga- tions under ILO core labour standards (CLS) and conventions ratified by Haiti, as well as by mediat ing several specific workplace disputes. More recently, the former President of the industry association ( ADIH) and Executive Director of the HOPE Commission, Mr. Georges Barau Sassine, was appointed as the Director General of the National Society of the Industrial Parks (SONAPI), including the Metropolitan Industrial Park located in Port-au-Prince and the Northern Industrial Park located in Caracol. Freedom of association in the Haitian garment industry - 9 - Since the beginning of the y ear, three new unions were created and received attestation from the Ministry of Labor and Social Affairs. In addition, f ive SOTA-BO union sections were established in different factories of the capital 1 . This new situation in the garment industry in Haiti, particularly in the factories of the capital, impacts considerably the context in which the Better Work Haiti programme evaluates and promotes social dialogue. For example, since the beginning of the year the trade unions and the union sections are sharing information and issues regularly with Better Work Haiti, and this information is being taken into consideration during factory assessments. The unions are also regularly contacting the Labor Ombudsperson to request her intervention in labour issues. 1.3. The Better Work compliance assessment methodology Better Work compliance assessment framework The Better Work programme assesses factory compliance with core international labour standards and national labour law. Following assessments, a detailed report is shared with the factory presenting findings on eight clusters, or categories, of labour standards, half of which are based on international standards and half on national legislation. Core labour standards: The ILO Declaration on Fundamental Principles and Rights at Work, adopted in 1998, calls upon Member States to respect and promote these principles and rights in four areas, whether or not they have ratified the relevant c onventions. These categories, or clusters, are: freedom of association and collective bargaining, the elimination of forced or compulsory labour, the abolition of child labour and the elimination of discrimination in employment and occupation. The conventions on which the 1998 Declaration is based are Nos. 29, 87, 98, 105, 100, 111, 138, 182, and they form the reference base in assessing factory compliance with fundamental rights for all the Better Work programmes in various countries. For some issues, such as minimum legal working age, provisions in national law specify requirements for the application of international conventions . If national law is not consistent with international standards pertaining to core labour standards, the international standards are applied. Haiti has ratified all eight core Conventions listed above. According to the Haitian Constitution, ratified conventions become self- executing and therefore part of Haitian law. National labour law: The remaining four clusters refer to standards set in national legislation, and therefore vary from one country to another. These categories cover compensation, contracts and 1 The following unions are currently operating in the factories participating in Better Work Haiti: • SOFEZO: A new union formed by CATH in September 2011 at the CODEVI factory in Ouanaminthe. • SOMS: A new union formed in June 2012, specifically for the workers at Magic Sewing. The union is supported by CFOH, a union based in Port-au-Prince. • SOTA: Since the last synthesis report (April 2012), the trade union SOTA with the support of Batay Ouvriye, a local trade union organization that advocates for workers’ rights and for social justice, established union sections in five different factories in Port- au-Prince (Multiwear, Genesis, One World Apparel, Premium and Interamerican Wovens). SOTA/Batay Ouvriye officially informed the factory owners of each factory and provided the list of the workers forming the union section. An important milestone was also set when Mitial Rubin, the Secretary of SOTA who had been dismissed in the fall 2011 upon the union’s establishment, was reinstated by his employer One World Apparel. • SOKOWA: A union at the CODEVI factory in Ouanaminthe. A temporary Executive Committee was formed with the support of Batay Ouvriye, after the Executive Committee members were dismissed from the factory following work stoppages that occurred in January 2012. Elections were held on 23 August at the factory to elect a new Executive Committee. The union held a general assembly and the election results were approved. • SYNOTHAG: Another new union that was recently formed (July 2012) with the support of CATH, a union based in Port- au-Prince. CATH is also supporting the union SOFEZO in the factory located in Ouanaminthe. - 10 - human resources, health and safety at work and working time. Each of the eight categories is divided into key thematic components called “compliance points” (CPs). These thematic subsections remain the same for assessments in all country programmes. However, each compliance point comprises specific questions, which may vary from one country to another. The detailed list of compliance points for each of the clusters is shown in Table 1. The compliance assessment tool includes internal guidance notes that indicate the applicable legal standard by which to evaluate compliance. Where legal standards do not provide sufficient clarity to assess compliance, internal guidance has been developed to ensure consistency in reaching compliance decisions. Table 1: Better Work compliance assessment framework Compliance clusters Compliance Points Core Labour Standards 1 Child labour 1. Child Labourers 2. Unconditional Worst Forms 3. Hazardous Work 4. Documentation and Protection of Young Workers 2 Discrimination 2 5. Race and Origin 6. Religion and Political Opinion 7. Gender 3 Forced Labour 9. Coercion 10. Bonded Labour 11. Forced Labour and Overtime 12. Prison Labour 4 Freedom of Association and Collective Bargaining 13. Union Operations 14. Interference and Discrimination 15. Collective Bargaining 16. Strikes Working Conditions 5 Compensation 17. Minimum Wages 18. Overtime Wages 19. Premium Pay 20. Method of Payment 21. Wage Information, Use and Deduction 22. Paid Leave 23. Social Security and Other Benefits 6 Contracts and Human Resources 24. Employment Contracts 25. Termination 26. Discipline and Disputes 27. Contracting Procedures 7 Occupational Safety and Health 28. OSH Management Systems 29. Chemicals and Hazardous Substances 30. Worker Protection 31. Working Environment 32. Health Services and First Aid 33. Welfare Facilities 34. Worker Accommodation 35. Emergency Preparedness 8 Working Time 36. Regular Hours 37. Overtime 38. Leave 2 In Better Work country-specific questionnaires, a compliance point “Other Grounds” may be included under the Discrimination cluster. This category is intended to assess specific discrimination issues that are covered in national labour law, and are considered to be aligned with the objectives of the relevant ILO conventions (100 and 111), but which are not explicitly named in the conventions, e.g., age, HIV/AIDS status, disability, etc. The questionnaire for Haiti does not include the “Other Grounds” compliance point because the Haitian labour law does not identify grounds for discrimination beyond those cited in Conventions 100 and 111. - 11 - Calculating non- compliance In public synthesis reports, Better Work reports on aggregate non-compliance in the participating industry as shown in Chart 1. Non-compliance is reported for each subcategory (compliance point, or “CP”) of the eight main labour standards clusters. A factory is found non-compliant in a subcategory if they are found to be out of compliance on any one aspect of it. With respect to the figures presented in synthesis reports, for example, a non-compliance rate of 100% means that all participating factories were found to have at least one violation in that area. The non-compliance rate is not sufficient to fully describe the specific issues that Enterprise Advisors have observed during the assessments. Tables presenting non-compliance findings at a more detailed level are also presented in Section II (see “In Focus” tables). These tables allow the reader to fully appreciate specific challenges in compliance identified in factory assessments. In Focus tables report the number of factories found to be non-compliant with respect to each highlighted question. Better Work and public reporting The Better Work programme supports fair and transparent public reporting. In all Better Work country programmes, synthesis reports on the industry are prepared on the basis of the individual factory assessment reports and published twice a year. Evidence shows that public reporting of this kind helps encourage continuous improvement and reduces the probability of reversing compliance gains. Gathering and reporting these data over time enables factories to demonstrate their efforts to improve working conditions. In July 2010, Better W ork Haiti published an initial compliance synthesis report , which featured aggregated compliance information based on factory assessments conducted by the programme between October and December 2009. In October 2010, Better Work published its first Biannual Report under the HOPE II l egislation, the first report produced under the requirements of the legislation (see Annex 1). Subsequently, Better Work Haiti has produced the second ( April 2011), third (October 2011) and fourth (April 2012) Biannual Reports , as required by the HOPE II legislation. The current report includes aggregated industry compliance data, as well as detailed factory-level analysis of compliance needs, priorities for remediation identified by the factory and efforts actually made to remedy compliance needs. 3 Limitations in the assessment process The factory-level assessments carried out by Better Work Haiti follow a thorough checklist of 248 questions covering the abovementioned labour standards. Information is gathered through a variety of sources and techniques, including document review, observations on the shop floor, and interviews with managers, workers and union representatives. Worker interviews conducted during the assessment process are held onsite, either in a private room within the factory building or outside the building (yard, eating area). I nterviews are conducted in Creole, the primary language of the workers. Given the cultural and political history in Haiti, which has seen considerable instability, many workers feel uneasy about sharing information on their 3 Reports produced under the HOPE II legislation differ in two ways from Better Work public reporting elsewhere: they include (1) factory names and compliance information from the first assessment (other Better Work country programmes name factories after one year of engagement and two assessments); and (2) more details on compliance needs and factory remediation efforts. - 12 - workplaces with people who are not well known to them. This has affected somewhat the methodology of conducting onsite interviews with workers in Haiti. Nevertheless, after five assessments conducted in the past years, Better Work Haiti EAs have become more experienced at collecting information and interviewing workers, and they have succeeded in creat ing an environment where workers are more comfortable discussing working conditions. The detailed factory assessment reports are based on all the information collected during the assessment visit. Each factory is given seven working days before the report becomes official to provide feedback that may in some cases impact the final report language. Since the compliance assessment tool was adapted to the Haitian context, periodic revisions have been undertaken to ensure accuracy and clarity of both questions and guidance notes. Changes related to sections of the tool addressing the national law were made following clarifications from MAST on areas of the law needing further interpretation. Changes related to international labour standards were made in consultation with and upon advice from ILO technical experts. These changes may impact levels of compliance with specific questions or compliance points in the report. Among the issues covered in Better Work’s compliance assessment tool, sexual harassment is one of the most sensitive and most difficult to detect during factory assessments. It is often unreported due to fear of retaliation, power imbalance between victim and perpetrator, and lack of resources. UN agencies and Haitian women’s NGOs have addressed sexual violence, particularly in the camps but, to date, limited attention has been given to sexual harassment even though anecdotal reports indicate that it is a concern. As a result, the assessment of sexual harassment in the workplace by Better Work Haiti is likely to underreport the extent of its occurrence. Finally, assessing compliance with freedom of association in Haiti presents some challenges, especially given the context of the emerging unions in the factories. On the one hand, as unions were not present in the factories for the past decades, workers (particularly the youngest ones) do not know them and are not aware of the unions’ role in the workplace. On the other hand, some workers reported that in the past years, co-workers who wanted to join a union were dismissed. To date, union membership is rather low and not always official. - 13 - Section II: Findings 2.1. Compliance Assessment Findings (5th round of assessments) Non-compliance rates Chart 1 presents non-compliance findings for the 22 assessed factories in Haiti, showing non- compliance rates as well as the number of factories in non-compliance in brackets. Key findings are provided below, followed by a section with additional details. In the Areas of Core Labour Standards Child Labour. There were no findings under the Child Labour cluster in the reporting period. Forced Labour. There was a finding of forced overtime in one factory, where workers were forced to work two hours of overtime per day, exceeding the quarterly legal limit of 80 hours, under threat of suspension or dismissal. Discrimination. There was a finding of discrimination in one factory where workers identified concerns about sexual harassment in the workplace. Management stated they are aware of the issue and are implementing a zero tolerance procedure, which was put in place in place a few days prior to the assessment. Freedom of Association and Collective Bargaining. Three findings are reported. One factory was found in non-compliance with strikes. As reported in previous reports, a strike occurred in May 2011. As a result, about 140 workers were terminated. Better Work Haiti has cited the factory in non- compliance because no workers had been reinstated as of the date of the assessment. However, the factory has stated its willingness to reinstate some of the terminated workers, and has indicated that it is willing to work with the Labor Ombudsperson to initiate that process. One factory was found non-compliant with Interference and Discrimination due to management staff attending a union meeting and discriminating against union members. One factory was cited non-compliant with Collective Bargaining, as the factory failed to implement some provisions of the CBA. In the Areas of Working Conditions (national law) Compensation. The largest number of findings in this category was in the area of minimum wages, due to 21 out of 22 fac tories being out of compliance with setting the piece rate at a level such that workers earn at least 250 Gourdes per day for ordinary hours of work. However, the average percentage of workers earning 250 Gourdes after 8 regular hours has increased to 28% compared to 22% in the past two cycles. Contracts and Human Resources. Two areas of concern remain for employment contracts and termination. In six factories, the internal work rules were not compliant with the Haitian labour code. In eight factories, the employment contracts were not compliant with legal requirements. Of note, this cluster has significantly improved over the past two cycles of assessments, suggesting that HR Management training provided in 2011 and the subsequent advisory services targeting HR systems may have had an impact. - 14 - Occupational Safety and Health. Similar to previous Biannual Reports, many non- compliance findings cited in this report have to do with occupational safety and health issues, particularly related to working environment, worker protection (especially due to lack machine guards), welfare facilities (e.g., eating area and number of toilets), health services and first-aid (e.g., the number of nurses and doctor’s visits), emergency preparedness and chemicals and hazardous substances. Of note is a measurable improvement in OSH management systems, the focus of considerable Better Work Haiti’s advisory services. Working Time. Non-compliance in this area is concentrated primarily in overtime, with 16 factories cited in non-compliance for exceeding the legal limit, for not requesting the authorization of the Department of Labour to perform overtime, and/or for involuntary overtime. Furthermore, 11 factories were cited non-compliant for not providing the required breastfeeding breaks. In regular hours, 10 factories were non-compliant. Five of those factories were non-compliant because the daily break periods did not meet the legal requirements, and in six of the factories, the working time records did not reflect the hours actually worked. - 15 - Chart 1: Non- compliance rates 3 3 A factory is found non-compliant in a compliance point if it is found out of compliance on any one aspect of it. 16 2.2. Detailed Findings 1. Core labour standards A. CHILD LABOUR There were no child labour findings in the current round of assessments. In all assessed factories, document review indicated that workers were at least 18 when they were hired. B. DISCRIMINATION There was one finding under the Gender CP related to sexual harassment. During interviews, work ers expressed concerns about sexual harassment in the workplace and, more specifically, on one production line. Among the five workers who indicated their concern about the issue, one victim stated that she has been asked for sexual favors from her supervisor and is under pressure from him regarding her production volume. C. FORCED LABOUR There was one finding under the Forced Labour and Overtime CP. The factory's daily schedule includes two hours of overtime, which means that workers work a total of 120 hours of overtime per trimester. Interviewed workers complained about having to work excessive overtime and not being allowed to leave the workplace during overtime. They added that they can be subject to sanctions, such as being suspended or even terminated, if they refuse to work overtime. Management acknowledged this situation and has started to take remedial action, including the posting of notices in the workplace to inform workers of the voluntary nature of overtime work. D. FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING The Collective Bargaining CP has a 5% non-compliance rate. As in previous reports, this refers to CODEVI, which is the only factory in Haiti with a collective bargaining agreement (CBA). The non- compliance finding is due to a failure to implement provisions of the CBA in force, particularly referring to medical services and the provision of space for food vendors. There is a 5% non-compliance rate in Interference and Discrimination. This refers to one factory punishing workers for engaging in union activities by changing the union representatives from a set salary to piece rate wages (thereby reducing their pay) shortly after they presented a letter confirming their union affiliat ion to the management (other workers were not affected). In a ddition, when the trade union representatives tried to meet with workers during lunch time, after having received the approval from management to hold the meeting, management attended the meeting, so it was cancelled. As a result, the factory also was found noncompliant for not allowing workers to meet without management present. One non-compliance finding relates to Strikes. The finding relates to a strike that took place in May 2011, which was covered in the previous Biannual Report. Although the events underlying the non- compliance—the termination of some 140 workers for their participation in a strike declared illegal 17 by MAST—did not recur, Better Work Haiti continued to find non-compliance because n o workers had been reinstated as of the date of the assessment. However, the factory has stated its willingness to reinstate some of the terminated workers, and has indicated that it is willing to workwith the Labor Ombudsperson to initiate that process. 2. Working conditions E. COMPENSATION The 95% non-compliance rate in Minimum Wages is due to 21 factories being out of compliance with setting the piece rate at a level such that workers earn at least 250 Gourdes per day for ordinary hours of work. This is an issue that was noted in previous Biannual Reports. The share of workers currently earning 250 Gourdes after 8 hours of regular work time is 28%, compared to 22%, 22% and 12% in the three previous reporting periods, from most recent to least. One factory was non - compliant with the payment of the minimum 150 Gourdes per day to full-time workers who are not working on piece-rate. Overtime Wages has a 5% non-compliance rate, referring to one factory not paying workers correctly (50% above the normal wage) for all overtime hours worked. The evidence was reported to the EAs by the interviewed workers. When reviewing the documentation related to overtime, the EAs observed that overtime was not reported in the payroll. The Paid Leave non-compliance rate (18%) refers to factories not paying workers correctly for sick leave (one factory) and weekly rest days (three factories). The Social Security and Other Benefits CP has a 41% non-compliance rate. This is an area of considerable improvement, as further discussed in Section 2.3 below. Paying the required contributions to the national social security agency (ONA) remains a problem in eight factories. Workers’ contributions to ONA are not collected in three factories, while forwarding workers’ contributions is a problem in five factories. Wage Information, Use and Deduction has a 14% non-compliance rate. Three factories were found to have one accurate payroll record and another payroll for payments made in cash, particularly for overtime performed on Sunday. In another factory, workers were not properly informed about their wage payments and deductions. F. CONTRACTS AND HUMAN RESOURCES The Employment Contracts CP has a 36% non-compliance rate. This refers to two issues, as shown in the In Focus table below. In three factories, contracts did not comply with the labour code, collective agreements or internal work rules. In six factories, internal work rules were not compliant with legal requirements. In both cases, non-compliance refers to contracts and internal work rules that provide a daily break of less than 90 minutes. According to the Haitian labour code, a daily break shorter than 90 minutes is possible if the workers are consulted. Better Work Haiti EAs have advised the factories to conduct surveys or consultations with workers to choose the length of the daily break. These consultations have not been implemented to date for these non-compliant factories. In Focus 1 : Employment Contracts Question # factories out of compliance 18 Do the employment contracts specify the terms and conditions of employment? 0 Do the contracts comply with the labour code, collective agreement and internal work rules? 3 Do workers understand the terms and conditions of employment? 0 Do all persons who perform work for the factory, both on the premises and offsite, have a contract? 0 Do the internal work rules comply with legal requirements? 6 There is a 27% non-compliance rate with Termination. A s shown in the In Focus table below, three factories terminated workers for reasons that were not valid or compliant with legal requirements . In particular, in two factories, the workers’ files did not provide any information regarding the reasons for termination. In one factory, management stated that most terminations were caused by a lack of orders and that workers were terminated based on two main criteria: workers with fewer than three months employment with the factory and workers with less than a year with poor performance. However, during the review of a sample of 50 terminated worker files, EAs found workers who had worked in the factory for more than three months, who were terminated without receiving any previous written warnings, in violation of the internal work rules. In one factory, workers mentioned that they were not given an opportunity to defend themselves before being terminated. Two factories were found non-compliant as they failed to inform the Department of Labour prior to reducing the size of the workforce due to changes in operations. Finally one factory was cited in non-compliance for not compensating the workers for their unused paid annual leave, while two factories did not pay the right amount of the bonus to workers upon termination. In Focus 2 : Termination Question # factories out of compliance Does the employer only terminate workers for valid reasons? 3 Do workers have an opportunity to defend themselves before they are terminated based on their conduct or performance? 1 Has the employer complied with any orders to reinstate or compensate workers who were found to be unjustly terminated? 0 Does the employer provide workers proper notice of termination when required, or pay workers during the notice period? 0 Does the employer comply with legal requirements before reducing the size of the workforce due to changes in operations? 2 Does the employer compensate workers for unused paid annual leave when they resign or are terminated? 1 Does the employer notify the labour ministry when suspending operations due to lack of materials, force majeure, or accident resulting in an immediate work stoppage? 0 Does the employer pay workers their annual salary supplement or bonus upon termination? 2 Does the employer pay judicially ordered damages for wrongful termination? 0 The Discipline and Disputes non-compliance rate is 14% , with findings relating to workers being bullied, harassed or subjected to humiliating behaviour. Specifically, in three factories, workers 19 complained about supervisors yelling at them when they are unlikely to meet the production quota or when they make mistakes. G. OCCUPATIONAL SAFETY AND HEALTH This continues to be the cluster where most non-compliances have been found. Each CP—with the exception of Worker Accommodation, where no non-compliance was found 4 —is detailed in In Focus tables to highlight the key non -compliance areas at the question level. All factories have at least one non-compliance finding under Health Services and First Aid. Eighteen out of 22 factories continue to have non-compliance findings in Chemicals and Hazardous Substances. In particular, the non-compliances for ten of the assessed factories relate to the absence of labels clearly identifying the chemicals and hazardous substances being used. Half of the factories assessed had non-compliance findings for chemical safety data sheets that are either not available or not in a language that users can read, and half were found non-compliant for not providing adequate washing facilities and cleansing materials in the event of exposure to hazardous chemicals. In Focus 3 : Chemicals and Hazardous Substances Question # factories out of compliance Are chemicals and hazardous substances properly labelled? 10 Are chemicals and hazardous substances properly stored? 1 Does the employer have chemical safety data sheets for the hazardous chemicals used in the workplace? 11 Does the employer keep an inventory of chemicals and hazardous substances used in the workplace? 3 Does the employer provide adequate washing facilities and cleansing materials in the event of exposure to hazardous chemicals? 11 Has the employer effectively trained workers who work with chemicals and hazardous substances? 3 Has the employer taken action to assess, monitor, prevent and limit workers' exposure to chemicals and hazardous substances? 1 Emergency Preparedness remains high in non-compliance, as shown below. The main issues are marking of emergency exits and escape routes, emergency drills that are not performed regularly, fire detection and alarm systems that are either not well functioning or missing, and fire-fighting equipment that is obstructed or not maintained on a regular basis. More than half of the participating factories are non-compliant in the recommended number of workers trained to in use of fire-fighting equipment. The Haitian labour code does not state a legal requirement in this matter, but based on good practices and recommendations from the ILO, Better Work Haiti recommends that 10% of the workforce be trained. 4 No factory participating in Better Work Haiti provides accommodation for workers. 20 In Focus 4 : Emergency Preparedness Question # factories out of compliance Are emergency exits and escape routes clearly marked and posted in the workplace? 8 Are the emergency exits accessible, unobstructed and unlocked during working hours, including overtime? 4 Are there enough emergency exits? 1 Does the employer conduct periodic emergency drills? 7 Does the workplace have a fire-detection and alarm system? 5 Does the workplace have adequate fire-fighting equipment? 7 Has the employer trained an appropriate number of workers to use the fire-fighting equipment? 13 Regarding Health Services and First Aid, 20 factories are non-compliant with the provision in the Haitian labour code that requires one on-site nurse for factories with between 50 and 200 workers, two nurses for factories with between 200 and 500 workers and one additional nurse for every additional 200 workers in the factory . Moreover, factories should provide weekly doctor’s visits for factories with fewer than 200 workers, permanent on-site medical service for factories with more than 200 workers. This relatively demanding requirement with regard to medical facilities and staff may contribute to the high non-compliance on this matter. In addition, there is significant non - compliance in relation to medical exams not bein g performed upon hiring and annually for all workers or bi- annually for workers exposed to risks. Better Work Haiti EAs have advised the factories to contact OFATMA, the Haitian institution responsible for performing these medical exams. Consequently, in some factories OFATMA has started providing medical exams. The examination of the whole workforce will however require some time. In eight factories, EAs requesting to open the first- aid boxes found that it took an excessive amount of time to locate the person in charge of the boxes, leading to non-compliances related to accessibility of first-aid boxes in an emergency. Finally, similar to training in the use of fire -fighting equipment, first-aid training is not required by law. Based on good practices and recommendations from the ILO, Better Work Haiti recommends that 10% of the workforce be trained. In Focus 5 : Health Services and First Aid Question # factories out of compliance Do workers who have been exposed to work-related hazards receive free health checks? 11 Does the employer address safety and health risks to pregnant or nursing workers? 3 Does the workplace have required onsite medical facilities and staff? 20 Has the employer ensured there are a sufficient number of readily accessible first aid boxes/supplies in the workplace? 8 Has the employer provided first-aid training for workers? 19 Do workers have a medical check within the first three months of hiring and annual medical checks? 17 The OSH Management Systems compliance point shows considerable improvement compared to previous synthesis reports. The key non-compliance point in this cluster refers to eight factories failing to forward the work-related accidents and diseases record to the Haitian institution OFATMA. [... middle sections omitted for long document ...] 116 The Willbes Haitian III S.A. Location Port-au-Prince No. of workers 546 Registration date 27 August 2010 Advisory Services and Training 27 March 2012: Management introduction meeting. 28 April 2012: Worker training (14 workers) including awareness rising on potential health and safety issues in the workplace. 2-3 May 2012: OSH Assessment Training for OSH committee 3 May 2012: Follow up visit on the progress of issues chosen as priority in the improvement plan, Discussion with the General Manager and Compliance Manager on the implementation of the sexual harassment policy. On the spot interviews with workers on the implementation of the sexual harassment policy and their ability to punch their card at the end of the work shift and OSH tour with Compliance Officers. 15-16 May 2012: OSH training for 2 managers and 2 OSH committee members organized by the Inter-American Development Bank. 31 May 2012: Follow up visit on the progress of issues chosen as priority in the improvement plan and OSH tour with Compliance Manager and Compliance Officers. Discussion with the Compliance and HR Manager on the implementation of the sexual harassment policy. 2 July 2012: Follow up visit on the factory action plan with compliance Manager and OSH tour with Compliance Officers. 12-13 July 2012: Training on ILO Core Labour Standards provided by the ILO NORMES Department for one manager. Compliance cluster Compliance point Assessment Details of non-compliance Improvement Priorities Remediation Efforts # of months 1* 2* 3* 4* 1 Child Labour Child Labourers     Documentation and Protection of Young Workers     Hazardous Work     Unconditional Worst Forms     2 Discrimination Gender     The factory implemented a policy on sexual harassment. Other Grounds     Race and Origin     Religion and Politi- cal Opinion     117 3 Forced Labour Bonded Labour     Coercion     Forced Labour and Overtime     The punching machine is turned on all day, including during overtime. Moreover, the facto- ry owner has posted signs on the floor stating that overtime is voluntary. Prison Labour     4 Freedom of Associ- ation and Collective Bargaining Collective Bargain- ing     Interference and Discrimination     Strikes     Union Operations     5 Compensation Method of Payment     Minimum Wages     Piece rate level. Set the piece rate at a level where workers earn at least 250 Gourdes per day for ordinary hours of work. 18 Overtime Wages     Paid Leave     Premium Pay     Social Security and Other Benefits     The factory forward workers’ contributions for social insurance funds to ONA on a monthly basis. The employer forwards his contributions for social insurance funds to ONA on a monthly basis. Wage Information, Use and Deduction     6 Contracts and Human Resources Contracting Proce- dures     Discipline and Dis- putes     118 Employment Con- tracts    A survey among the workers was conducted. The internal work rules with 1 hour daily break are approved by MAST. The internal work rules with 1 hour daily break are approved by MAST. Termination     Reasons for termination are added to workers’ files. 7 Occupational Safe- ty and Health Chemicals and Hazardous Sub- stances   Washing facilities or cleansing mate- rials in the event of chemical expo- sure. Keep an inventory of chemical sub- stances Label all chemicals and hazardous sub- stances. Have chemical safety data sheets for all chemicals and hazardous substances in the workplace. Provide adequate washing facilities or cleansing materials in the event of chemical exposure. The factory keep an inventory of chemical substances All chemicals and hazardous substances are labelled. All MSDS are available and displayed. The factory installed eye wash station in all point of usage/ storage of chemicals but need to replace one. 18 Emergency Prepar- edness   Training workers to use the fire- fighting equipment. Increase the number of workers trained in fire fighting. Mark or post emergency exits and/or escape routes in the workplace. The factory organized training in fire fighting for workers. The escape routes were also repainted. 18 Health Services and First Aid   Onsite medical facilities and staff. First-aid training for workers. Increase number of nurses and doctors’ visits. Increase the number of workers trained in first-aid The factory organized training in first -aid for workers. 18 OSH Management Systems     The factory has an OSH policy and OSH assess- ments are being carried out on a monthly basis. The OSH committee was re-established and now meets every month. The factory has records related to accidents and ensures to send them to OFATMA on a monthly basis. 119 Welfare Facilities   Toilets. Fix all toilets and maintain them in good working condition. Provide adequate hand washing facili- ties and/or soap. Provide an adequate eating area. The factory provides adequate hand washing facilities and/or soap. The employer provides an adequate eating area. 18 Worker Accommo- dation     Working Environ- ment     Workplace temperature. Improve temperature in the workplace. Worker Protection   Installing guards on all dangerous moving parts of machines and equipment. Chairs with backrests. Install guards on all dangerous moving parts of machines and equipment. Provide chairs with back rests. All standing workers have fatigue mats or foot- rests. PPE are available in mechanical shop. 18 8 Working Time Leave     Time off for breastfeeding breaks. Provide time off for breastfeeding breaks. 6 Overtime     Voluntary overtime. Workers should be able to leave the workplace during overtime. 6 Regular Hours     A survey among the workers was conducted. The internal work rules with 1 hour daily break are approved by MAST. 120 Annex 1. HOPE II Legislation Reporting Requirements SEC. 15403. LABOUR OMBUDSMAN AND TECHNICAL ASSISTANCE IMPROVEMENT AND COMPLIANCE NEEDS A S- SESSMENT AND REMEDIATION PROGRAM. [...] (D) BIANNUAL REPORT. — The biannual reports referred to in subparagraph (C)(i) are a report, by the entity oper- ating the TAICNAR Program, that is published (and available to the public in a readily accessible manner) on a biannual basis, beginning 6 months after Haiti implements the TAICNAR Program under this paragraph, covering the preceding 6-month period, and that includes the following: (i) The name of each producer listed in the registry described in paragraph (2)(B)(i) that has been identified as having met the conditions under subparagraph (B). (ii) The name of each producer listed in the registry described in paragraph (2)(B)(i) that has been identified as having deficiencies with respect to the conditions under subparagraph (B), and has failed to remedy such deficiencies. (iii) For each producer listed under clause (ii) — (I) a description of the deficiencies found to exist and the specific suggestions for remediating such deficiencies made by the entity operating the TAICNAR Program; (II) a description of the efforts by the producer to remediate the deficiencies, including a description of assistance provided by any entity to assist in such remediation; and (III) with respect to deficiencies that have not been remediated, the amount of time that has elapsed since the defi- ciencies were first identified in a report under this subparagraph. (iv) For each producer identified as having deficiencies with respect to the conditions described under subparagraph (B) in a prior report under this subparagraph, a description of the progress made in remediating such deficiencies since the submission of the prior report, and an assessment of whether any aspect of such deficiencies persists. [...]