(2016) Better Work Haïti : 13e Rapport de synthèse semestriel

13th Biannual Synthesis Report Under the HOPE II Legislation Haiti 16 OCTOBRE 2016 BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 1 Copyright © International Labour Organization (ILO) and International Finance Corporation (IFC) (2016) First published (2016) 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 organizations: ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: pubdroit@ilo.o rg. The IFC and ILO welcome such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with 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 13th biannual synthesis report under the HOPE II legislation / International Labour Office; International Finance Corporation. - Geneva: ILO, 2016 1 v. ISSN 2227-958X (web pd7f) International Labour Office; International Finance Corporation clothing industry / textile industry / working conditions / workers rights / labor legislation / ILO Convention / international labor standards / comment / application / Haiti 08.09.3 The designations employed in this, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IFC or ILO concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the IFC or ILO of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the IFC or ILO, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, and Switzerland. 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 BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 2 Acknowledgements Better Work Haiti is supported by the US Department of Labor. Core donors to Better Work are: Netherlands Ministry of Foreign Affairs, Swiss State Secretariat for Economic Affairs (SECO), Danish International Development Agency (DANIDA), Australian Department of Foreign Affairs and Trade and the US Department of Labor. Funding is also provided by DFID, French Ministry of Labor, Employment, Vocational Training and Social Dialogue; Employment and Social Development Canada; Human Resources and Social Development Canada; Irish Aid; German Federal Ministry for Economic Cooperation and Development; GIZ; Royal Government of Cambodia, Garment Manufacturers Association in Cambodia and private sector donors, including The United States Council Foundation, Inc., Levi Strauss Foundation, Gap Inc., FUNG (1937) Management Ltd and American Eagle Outfitters, Inc., United States Council for International Business (USCIB). 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 endorsement by them. BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 3 Table of Contents List of Tables and Charts ..................................................................................................................... 5 List of Acronyms ..................................................................................................................................... 6 Section I: Introduction and methodology ...................................................................................... 8 Structure of the report ..................................................................................................................... 8 Context ................................................................................................................................................ 10 The HOPE II legislation and the TAICNAR project ......................................................... 10 Recent Developments ................................................................................................................ 11 TAICNAR Program Activities in the Reporting Period ................................................... 13 Industrial Relations in the Haitian apparel industry ....................................................... 17 The Better Work compliance assessment methodology .................................................. 19 Better Work compliance assessment framework ........................................................... 19 Calculating non-compliance .................................................................................................... 21 Better Work and public reporting ......................................................................................... 22 Limitations in the assessment process .............................................................................. 22 Better Work’s Revised Service Delivery Model................................................................ 24 Implications of the Revised Approach for Public Reporting under HOPE II ......... 25 Section II: Findings .............................................................................................................................. 26 Compliance Assessment Findings from September 2015 – August 2016 ................. 26 Non-compliance rates ............................................................................................................. 26 Detailed Findings ............................................................................................................................ 28 Core labor standards ................................................................................................................ 28 Working conditions ................................................................................................................... 29 Better Work Haiti Advisory Services ........................................................................................ 40 Better Work Haiti Training Services.......................................................................................... 44 Section IV: Conclusions and Next Steps ..................................................................................... 45 Conclusion......................................................................................................................................... 45 Next Steps .......................................................................................................................................... 47 Section V: Factories in Detail ............................................................................................................ 47 List of factories ................................................................................................................................. 47 Findings from the factories ......................................................................................................... 49 BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 4 Annex 1. HOPE II Legislation Reporting Requirements………………………………………124 Annex 2. Compliance Clusters, Points and Issues verified during Better Work Assessments ........................................................................................................................................ 125 Annex 3. Better Work’s Revised Service Delivery Model ......................................................130 BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 5 List of Tables and Charts In Focus 1 : Social Security and Other Benefits ......................................................................... 30 In Focus 2 : Paid Leave ........................................................................................................................ 31 In Focus 3 : Wage Information, Use and Deduction ................................................................ 32 In Focus 4 : Employment Contracts .............................................................................................. 33 In Focus 5: Chemicals and Hazardous Substances ..................................................................34 In Focus 6: Emergency Preparedness ........................................................................................... 35 In Focus 7: Health Services and First Aid .................................................................................... 36 In Focus 8: Welfare Facilities ............................................................................................................ 37 In Focus 9: Worker Protection .......................................................................................................... 37 In Focus 10: Working Environment ................................................................................................ 39 In Focus 11: Overtime ........................................................................................................................... 39 Chart 1: Non-compliance rates ........................................................................................................ 27 Table 1: Better Work compliance assessment framework .................................................... 20 Table 2 : Weighted percentage of workers on an incentive system earning at least 320 (350 Gourdes as of 1 st May 2016) per eight hours of work across all factories assessed by Better Work ....................................................................................................................................... 33 Table 3: List of factories in the Haitian apparel sector which have been assessed September 2015 and August 2016 ................................................................................................ 48 BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 6 List of Acronyms ADIH Association des Industries d’Haïti (Haitian Industry Association) BMST Bureau de la Médiatrice Spéciale du Travail CAOSS Conseil d’Administration des Organes de Sécurité Sociale (Board of Social Security Bodies) CP Compliance point CSS Conseil Supérieur des Salaires (Wages High Council) CTMO-HOPE Commission Tripartite de Mise en œuvre de la loi HOPE EA Enterprise Advisor HELP Haiti Economic Lift Program HOPE Haitian Hemispheric Opportunity Through Partnership Encouragement Act ITUC International Trade Union Confederation MSDS Material Safety Data Sheet MAST Ministère des Affaires Sociales et du Travail (Ministry of Labor 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 health PAC Project Advisory Committee PIC Parc Industriel de Caracol PICC Performance Improvement Consultative Committee BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 7 PIC Parc Industriel de 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 Social Dialogue Table TAICNAR Technical Assistance Improvement and Compliance Needs Assessment and Remediation USDOL United States Department of Labor BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 8 Section I: Introduction and methodology Better Work Haiti, a partnership between the International Labour Organization (ILO) and the International Finance Corporation (IFC), was launched in June 2009. The program aims to improve the working conditions and competitiveness of the apparel industry by increasing respect of the Haitian labor code and of the ILO Declaration on Fundamental Principles and Rights at Work and strengthening economic performance at the enterprise level. Better Work Haiti targets the apparel industry in Haiti, especially in the capital Port- au-Prince and in the north-east region of the country. In 2015, total export revenues from the textile and garment industry accounted for approximately 90% of national export earnings and 10% of national GDP. The apparel industry is also among the largest employers within Haiti, creating jobs for approximately 40,000 people. Most workers (about 65-70%) are women who support a number of family members. The program assists participating factories by conducting independent compliance assessments and providing advisory services and trainings. This report presents the results of assessments, advisory and training services provided to 26 factories in the period between September 2015 and August 2016. As part of its mandate to share information with all stakeholders in the program and encourage continuous improvement, Better Work Haiti produces twice yearly synthesis reports containing information on the performance of all participating factories in the period. 1 Structure of the report This is the thirteenth report to be produced by Better Work Haiti in the framework of the HOPE II legislation. This synthesis report provides an overview of the working conditions of 26 factories. As outlined in the tenth public biannual synthesis report, Better Work transitioned to a revised service delivery model in spring 2015 with stronger focus on advisory services. Therefore, compliance information presented in this public report is based on assessment and advisory services at the factory level. In the period between March and August 2016, fourteen out of the currently operating 26 exporting factories in Haiti, were assessed by Better Work and their updated compliance information is included in this report. For the remaining twelve factories, 1 Assessments are being conducted on an annual basis for each participating factory. Therefore, assessment information is updated in every second compliance synthesis report for each individual factory. BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 9 information from their last assessment – conducted in the previous reporting cycle - is included to present aggregated industry level compliance data. The number of factories in Haiti exporting to the United States continues to be rather stable with minor fluctuations. Over the past 5 years, the number of exporting factories has always been between 20 and 30 enterprises with rather slow growth in terms of workforce. However, with the new industrial park Caracol near Cap Haitien, there is a general trend in shift of production from the capital in Port-au-Prince to the North of the country. The combined workforce of the factories in the North represents approximately 40% of the total employment in the sector. The first section of this report gives an overview of the HOPE II legislation and the origin of the Better Work program in Haiti. This section also includes an explanation of the Better Work methodology, including the reports produced in the framework of the Better Work program and the HOPE II legislation. The second section of the report outlines the compliance assessment findings from the most recent factory assessments in all factories. As explained above, the Better Work service delivery model underwent some changes in 2015. Factories are now being assessed on an annual basis. Therefore, compliance information in these biannual public reports is drawn from the last assessment that has been conducted in each factory. For about half of the factories, this last assessment will have taken place in the past 6 months, for the other half, the most recent assessment has been conducted 6-12 months ago. The third section of the report describes Better Work Haiti advisory and training services in the period from March – August 2016 in all participating factories The fourth section of the report outlines the priorities of the Better Work Haiti program in the upcoming months. Finally, the last section describes the efforts made by the factories to correct the compliance needs identified in the Better Work Haiti compliance assessments. This section also allows for an overview of compliance of each factory (see factory tables in section V). The reporting format of this section has been revised, yet the factory tables in that section continue to correspond to the reporting requirements of the HOPE II legislation towards the entity implementing the TAICNAR program (International Labour Organization). 2 Information provided for each of the participating factories includes: identified non-compliance points for each individual factory, improvement priorities; efforts made by the factory to remedy the compliance needs 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. For factories that have not been assessed in the last 6 months but in the previous assessment cycle, additional information on their progress on 2 For the reporting requirements of the HOPE legislation, see Annex 1. BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 10 previously identified non-compliance points is stated. Also, the date of the last assessment is mentioned for each individual factory. Context THE HOPE II LEGISLATION AND THE TAICNAR PROJECT In 2006, the United States Congress enacted the Haiti Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE), expanding preferences for Haitian apparel established under the Caribbean Basin Economic Recovery Act, thus enabling the Haitian apparel industry to benefit from new duty-free preferences. In 2008, these preferences were further expanded through legislation known as HOPE II, which also established new standards and programs strengthening and monitoring working conditions in the apparel sector. On 24 May 2010, the Haiti Economic Lift Program of 2010 (HELP Act) was signed into law to expand existing preferences even more to contribute to Haiti’s economic growth and development in both the textile and apparel sectors. Among its provisions, the HELP Act extended almost all of the trade preferences established under HOPE and HOPE II and in 2015, the US Government extended the Haiti HELP/HOPE provisions until 2025. In order to benefit from HOPE/ HOPE II/HELP, Haiti was required to establish an independent Labor Ombudsman 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 ILO, to develop a technical assistance program to (i) assess and promote compliance with core labor standards and national labor law in the factories that are eligible for tariff advantages under HOPE II and (ii) provide assistance to the Government of Haiti in order to strengthen its capacity in the process of inspection of facilities. This was referred to in the legislation as the Technical Assistance Improvement and Compliance Needs Assessment and Remediation (TAICNAR) program. Finally, Haiti needed to develop a mechanism for ensuring that all producers benefiting from the HOPE II trade preferences participated in the TAICNAR program. The two components of the TAICNAR program aim at strengthening labor compliance of the industry in Haiti. The first of these element s of the TAICNAR program focuses on assessing compliance with core labor standards and national labor law, supporting remediation efforts, and publicly reporting on the progress of each factory on the Labor Ombudsman’s register. The second element of the TAICNAR program consists of technical assistance to strengthen the legal and administrative structures for improving compliance in the industry. The scope of these services is extensive, encompassing technical assistance from the ILO in reviewing national laws and regulations to bring them into conformity with BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 11 international standards, raising awareness of workers’ rights, and training labor inspectors, judicial officers and other government personnel. To encourage compliance with core labor standards and national labor law, the legislation indicates that preferential treatment may be withdrawn, suspended, or limited by the President of the United States from producers who – even after assistance has been provided - fail to come into compliance with the core labor standards and national labor law that is related and consistent with those standards. Removal of benefits is based on determinations made by the government of the United States, based primarily on non-compliance identifications made by the U.S. Department of Labor (USDOL). While Better Work Haiti reports are consulted as USDOL carries out its mandate to implement HOPE II, Better Work Haiti non- compliance findings cannot, on their own, serve to impact preferential treatment under the HOPE Act. Better Work Haiti, which is a partnership of the ILO and the IFC, is implementing the first component of the TAICNAR program while other ILO projects, in particular the ILO-MAST capacity building project work on the second component. The Better Work program is coordinating its work with the Labor Ombudsman and a tripartite Project Advisory Committee (PAC). This committee meets with Better Work on a regular basis to discuss the activities of the Better Work program. The members of the PAC represent the private sector, government and worker representatives and the Committee is chaired by the Labor Ombudsperson in line with the requirements of the HOPE law. RECENT DEVELOPMENTS This section of the report presents the changes and developments that have occurred during the last six months which have an impact on the Better Work Haiti program and broadly on the apparel sector in Haiti. ♦ Apparel exports from Haiti to the US continue to grow, rather slow but steady with an average growth of approximately US$ 50 million per annum over the past 3 years. The total export volume of apparel products from Haiti to the US in 2015 was US$ 895 million with approximately half of these exports being shipped under the trade preferences granted under the HOPE II legislation. In terms of millions, the export figures of July 2016 are slightly below the July 2015 figures (by 3.86%). However, in terms of square meter equivalents (SME), a very minor increase of 0.94% can be noted when July 2015 and 2016 are being compared. It therefore remains to be seen if the overall growth for 2016 can continue along the trend of the three previous years. 3 3 www.otexa.trade.gov BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 12 ♦ Employment figures for the apparel sector remain relatively stable at approximately 40,000. It has to be noted, that the employers association ADIH includes management staff in these calculations. Based on Better Work’s data collection over more than five years in Haiti’s apparel industry, one can say that management staff accounts to approximately 10-15% in the factories. Therefore, the number of production workers lies at around 36,000 with 65-70% being women. ADIH continues to update these figures based on statistics provided by its member companies several times a year. The biggest companies in the sector remain S&H Global (8,045 employees) and CODEVI (7,800 employees), both located in Haiti’s North. ♦ New elections are planned for October 2016. Since early 2016, an interim government has been put in place in Haiti. The first round of presidential elections held in October 2015 did not result in a selection and the planned second round could not be implemented as originally planned. Therefore, the political environment remains rather volatile. ♦ The month of May saw several protests of workers requesting the Government to publish the new minimum wage. Workers were requesting an increase to 500 Gourdes from the then existing level of 240 Gourdes per 8 hours of work. On 23 May 2016, the new minimum wage increase was published in the official newspaper “Le Moniteur”. For the apparel sector, the two tier minimum wage remains in place which continues to cause conflict and confusion among worker representatives, employers, international buyers and human rights groups. As of May 2016, the “minimum wage of reference” has been increased from 240 to 300 Gourdes for 8 hours of work while the “production wage” has been increased from 300 to 350 Gourdes for 8 hours of work. Although this is a 25% increase in terms of mere figures for the minimum wage of reference, the devaluation of the Haitian currency Gourdes continues to lower the purchasing power for Haitian citizens. ♦ Share Hope continues its program of workers’ wellbeing initiatives in the sector in Haiti. The HERHealth program in Haiti which is training factory workers on important health topics is currently implemented in five factories and is funded by Share Hope (70%) and by buyers (30%). The buyers supporting the project are Li & Fung Foundation/ F&T Apparel (a division of Global Brands Group) and Levi Strauss Foundation. Share Hope is also implementing a high school completion program as well as a new project to help factories better utilize their clinics. The project intends to help factories use the resources they already have (factory clinics, doctors and nurses) for the benefit of workers’ health and well-being. With Share Hope's worker well- being initiatives, they have joined the Sustainable Development Goals movement to work on the betterment of the livelihoods of people and the environment. BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 13 ♦ USAID’s LEVE project continues to provide targeted assistance to the apparel sector in Haiti. The project focuses on value chain enhancements (LEVE – Local Enterprise and Value Chain Enhancement). Through collaboration with lead firms and other sector stakeholders, LEVE is aiming at promoting new investment in Haitian-based production. Among the activities supported by LEVE are trainings provided to local manufacturers to increase their workforce, technical mechanics training for several companies, assistance to a supplier in their move from make- and-trim to full package production etc. ♦ On 20-21 September, Better Work organized its buyers and multi- stakeholders forum. This annual event brings together the different parties involved in Haiti’s apparel sector, such as employers, unions, Government officials from various Ministries and other government entities, international donors and international buyer representatives sourcing apparel products from Haiti. The forum provides a platform for networking and discussions on current challenges and opportunities in the sector. Buyer representatives were also offered the opportunity to visit different factories and to have one- on-one meetings with different other stakeholders, such as union or government officials. Two topics that were discussed intensely during the event were freedom of association and issues related to this in the sector in Haiti as well as the challenge to remediate persisting non-compliance issues. TAICNAR PROGRAM ACTIVITIES IN THE REPORTING PERIOD TAICNAR Program Component 1: Compliance Assessments and Remediation Support The HOPE law states that the first component of the TAICANR program is “to assess compliance by producers listed in the registry described in paragraph (2)(B)(i) with the conditions set forth in subparagraph (B) and to assist such producers in meeting such conditions.” Better Work Haiti is implementing this component of the TAICNAR program. The details of Better Work’s assessment methodology are explained in chapter 1.3 of this reports. Aggregated findings for the entire industry regarding compliance with national and international labor law are outlined in chapter II of the report. Chapter V provides the details of compliance for every factory that has been assessed. It has to be noted that Better Work offers several services that go beyond the requirements of the HOPE legislation, in particular the collaboration with international brands through sharing of factory assessment reports, joint support for factories regarding the improvement plan used during advisory services (corrective action plan), specific trainings and specific projects and or events such as the annual buyers and multi-stakeholders forum. With the introduction of fees to be paid by factories for participation in the Better Work Haiti program, it has been decided that BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 14 non-paying factories will receive all Better Work core services (advisory, training, and one annual assessment) in line with requirements of the HOPE legislation. Factories that do pay their subscription fee will have access to the full offer of Better Work services beyond core services only. TAICNAR Program Component 2: Technical assistance to strengthen the legal and administrative structures for improving compliance in the industry The HOPE law states that the second component of the TAICNAR program is “to provide assistance to improve the capacity of the Government of Haiti – (I) to inspect facilities of producers listed in the registry described in paragraph (2)(B)(i); and (II) to enforce labor laws and resolve labor disputes, including through measures described in subparagraph E.” The ILO is conducting different activities under this component. In 2014, the ILO launched a USDOL- funded project supporting the Ministry of Social Affairs and Labor (MAST). The objective of the project is to strengthen the capacities of the Ministry in order to improve apparel factories’ compliance with international and national labor laws. It is therefore another important component of the TAICNAR program required by the HOPE legislation in order for Haiti to receive tariff benefits. In the context of this ILO-MAST capacity building project, a taskforce of 18 inspectors and other Ministry officials has been set up within the Ministry. A series of different trainings for the Ministries’ mediators, conciliators and labor inspectors have been provided since June 2014 in collaboration with the Labor Ombudsperson and Better Work Haiti, such as training on international core labor standards, deontology and methodology of labor inspection, practice of labor inspection and labor administration tools, Occupational Safety and Health, the Labor Law, negotiation skills, mediation etc. The initial training curriculum was completed in mid-2016. Since the inception of the MAST capacity building project, it has been planned that these trained labor inspectors will shadow Better Work Enterprises Advisors (EAs) in conducting labor inspection visits in the apparel sector as well as other activities by Better Work EAs, such as advisory or training services. This collaboration is aiming at giving an opportunity to MAST inspectors to capitalize on Better Work’s enterprise level knowledge and methodology in their core service delivery. These shadow visits have started to take place since August 2015. The MAST inspectorate task force members will further contribute to disseminate and transfer the acquired knowledge and competencies to their other colleagues. In fall 2015 and prior to conducting joint assessment visits between Better Work teams and MAST inspectors, MAST and Better Work Haiti signed two important documents that further strengthens the collaboration between MAST and the ILO. A BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 15 general Memorandum of Understanding (MoU) on the collaboration between the two institutions aims at harmonizing and coordinating their respective interventions in the Haitian apparel industry in order to improve working conditions in the sector. The MoU particularly specifies the scope of the collaboration with regards to inspection visits in apparel factories, particularly in light of the HOPE II trade preferences. The associated “Zero Tolerance Protocol” (ZTP) relates to Better Work’s confidentiality agreement with factories. In general, Better Work shares detailed findings from factory assessments only with the factory itself and any buyers authorized by the factory. However, in the case of severe violations of workers’ rights as listed in this zero tolerance protocol, Better Work will inform the Ministry of Social Affairs and Labor and subscribed international buyers about the issues identified. 4 The ILO/ MAST project also assisted the Labor Inspectorate of MAST to develop a strategic inspection plan for the apparel sector including target inspection visits. According to this plan, 46 inspection visits are planned to be conducted in all the regions (Ouest, Fort-Liberte and Caracol) from June 2016 through December 2016. The plan has been validated by MAST. Within the 46 inspection visits planned, 22 out of 46 will be first inspection visits and 24 out of 46 will be follow up visits. The inspection visits started in June as planned. The project also assists the Ministry with practical assistance in terms of tools and equipment to be used for inspection visits. Computers, calculators, Labor Laws and the international labor standards ratified by Haiti have all been given to the MAST task force and 3 regional offices (Ouest, Fort Liberte and Caracol) in order for them to do their work efficiently. An additional vehicle will be provided to facilitate the work of the Ministry’s inspection department. The Project is also working on an inspection manual which constitutes an important tool in terms of inspection guidance. A first draft of the manual has been prepared and is currently under review. The inspection manual will also contain appendices with all the other tools identified in the Haitian labor code and also some additional suggested tools that can be used by the labor inspectors and which will allow them to fulfil their inspection role successfully. Among these tools are checklists, templates for inspection sheets, inspection reports and an observation letter, an enterprise information questionnaire etc. In March 2016, the project launched a KAP (Knowledge, Attitude and Practices) study through a local implementation partner. The objective of the study is to measure the level of knowledge about labor standards of workers and employers in the sector in Haiti. The study has been completed with several hundred participants. The final report is currently under review and results will help to put together a comprehensive 4 To access both documents, please consult the Better Work Haiti website (http://betterwork.org/haiti/?page_id=1815). BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 16 Information, Education and Communication campaign (IEC) to improve knowledge of workers and employers about the subject. Another activity under the ILO-MAST capacity building project is to assist the MAST in the modernization of a call centre which should serve as a key contact for workers and employers to bring issues to the attention to MAST. The call centre can direct any queries to the department concerned within the Ministry. The installation of the equipment for the call center has been fully completed and will now be followed by a training of the agents on the use of the equipment which will be followed by training on communication skills and the labor law. Another joint activity of the ILO-MAST project, the Better Work Haiti team and the Ministry is the elaboration of a comprehensive labor law guide. This practical guide has been elaborated between all parties over several months. The final version had been pending approval from the Ministry due to the political situation and changes in personnel at MAST. In September 2016, the guide was validated by MAST and will now be translated into 5 languages (English, French, Kreyol, Spanish, and Korean) and published as a tool for employers, workers and any other interested party in the form of a handbook and a mobile app. In August 2016, task force members were also invited to an extensive workshop organized by Better Work for all social partners in the apparel sector. The workshop focused on collective bargaining agreements (CBA). Only three such agreements exist in factories in Haiti. The workshop allowed participants to increase their knowledge on prerequisites for CBAs as well as the process of negotiating CBAs. MAST inspectors were invited as observers to the workshop to allow the Ministry representatives to equally learn about this subject. Since 2011, the ILO has been assisting the MAST in the process of a tripartite revision of the Labor Code. Political processes have delayed the finalization of this reform process. However, the tripartite partners have engaged to complete the reform through dialogue which takes into consideration the international labor standards ratified by the country and comments from the different departments of the ILO. The labor law reform represents an important revision of the law currently in force in Haiti which dates back to 1961 with a revision from 1983. The tripartite actors are aiming for compliance of the code with the international norms ratified by Haiti including the eight core labor standards. The creation of modern legal framework for the country is of utmost importance. All tripartite partners – government, employers, and workers - worked on a unilateral revision of the labour code in order to then meet in a tripartite setting to allow for a consensus on the code. In this context, a tripartite commission under the leadership of the MAST has been formed on the labour law reform process. Each of the tripartite BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 17 partners is represented in this commission and therefore the support of this process is a direct support on social dialogue in itself. It is planned to reinitiate tripartite negotiations of the Labor Code in November 2016, the MAST will shortly announce it officially. INDUSTRIAL RELATIONS IN THE HAITIAN APPAREL INDUSTRY At the time of writing this report, 10 officially recognized trade union centrals/confederations and 31 officially recognized factory level unions, are present in 19 out of the 26 currently operating factories which are part of the Better Work Haiti program. Thus, approximately 73 % of exporting apparel factories in the country now have a union presence. 5 In general, unions are quite reluctant to share information about their membership with any third party. However, Better Work Haiti estimates that total numbers of union membership still remain relatively low. In addition, the majority of unions are unable to collect union dues which makes it difficult to keep accurate statistics on membership. Strengthening industrial relations is an integral part of Better Work’s project agenda. Better Work Haiti addresses this on two levels; (i) individual factory level interventions with advisory and training services as part of Better Work’s core services to strengthen enterprise level social dialogue and sound industrial relations as well as (ii) sectoral interventions to strengthen social dialogue beyond individual factory level issues, e.g. through the Social Dialogue Table. To this end, Better Work Haiti continues to partner with other key stakeholders in the sector such as Solidarity Center, CSI/CSA, other ILO departments, and MAST in order to assist the industry on gaining more mature industrial relations. At the factory level, Better Work extended its training portfolio on relevant topics. Between May 2016 and October 2016, Better Work Haiti piloted a new bipartite training module on Industrial Relations. The Better Work team also continues to provide grievance mechanisms training to help the factories improve their existing systems to prevent conflicts at the factory level. Further relevant modules continue to be offered to factories such as trainings on workers’ rights & responsibilities, w orkplace communication, and negotiation skills. 6 During and after these trainings, the most common questions from participants relate to two areas which seem often trigger conflicts in the factories: (i) compensation and (ii) relationship between management and workers. Better Work Haiti observes that workers often mistrust management and assume that they are being taken advantage of. This is typically 5 Note that union presence in additional factories exists and has been previously reported but these additional factory-level unions have not yet attained official recognition and therefore are not included in the calculation. 6 The full Better Work Haiti training catalogue can be accessed here: http://betterwork.org/haiti/?page_id=65 6 The full Better Work Haiti training catalogue can be accessed here: http://betterwork.org/haiti/?page_id=65 BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 18 caused by misinformation or lack of knowledge about legal requirements and shows the need for mass awareness raising among factory workers. This has been raised by unions as well as employers on different occasions. The most appropriate means in Haitian culture for information sharing to such a broad audience is audio material. Better Work has therefore started to work on designing short audio spots through which different subjects can be addressed and conveyed to workers in an entertaining way. Almost all factories have audio systems which could be used for dissemination. Radio channels could also be used. The first spots are currently under preparation. As mentioned above, Better Work organized a workshop on collective bargaining agreements (CBA) with an international expert in August 2016. Fourteen factories and all 10 union organizations active in the sector participated in this extensive training. Participants gained important knowledge on CBAs, necessary prerequisites and detailed information on the negotiation process. Currently, only three factories in the sector in Haiti have a valid CBA. One of the issues resurfacing during the workshop is the fact that the union movement in the sector is quite fragmented which prevents a unified approach from worker representatives’ side. Following the release of the first report of the Conseil Supérieur des Salaires (Wages High Council – CSS) in November 2013, workers walked off the job in Port-au-Prince in early December 2013, calling for a higher increase in the minimum wage. The protests disrupted production and resulted in some violence. A number of workers from different factories were dismissed in connection with these events. Complaints from three factories for property damage by employers’ side and by workers for wrongful dismissals were filed with the MAST and remain unresolved as of the writing of this report. In the case of one factory, MAST stated that it was not the competent authority to adjudicate the case and the matter was transferred to the High Labor Court for resolution. That case continues to be pending and no decision has been taken by the Authorities. In some cases such as the one mentioned above, Better Work finds that issues stemming from a factory-level dispute are subject to an ongoing formal dispute resolution process. In such cases, Better Work holds off on making compliance findings on the issues that are directly under consideration by the authorities until the matter has been resolved. Once the dispute is resolved, Better Work determines compliance on the relevant issues in the subsequent assessment report. This practice can result in delays in reporting compliance findings on issues stemming from disputes, but it allows for Better Work’s compliance decisions to take into account the official resolution of the dispute. With the delay of the release of the third report of the CSS in 2016, workers from different unions walked again off the job in Port-au-Prince on 11 and 19 May, 2016. The protestors were calling for the government to publish the law and they equally BETTER WORK HAITI – 13 TH SYNTHESIS REPORT 19 asked for an increase of the minimum wage to 500 Gourdes. The protests disrupted production. A number of workers representatives from different factories were dismissed in connection with these events. Complaints from the union federation for wrongful dismissals were filed with the Office of the Labor Ombudsman. After mediation and negotiations between unions and factory management, and with the support of the Labor Ombudsman and MAST the dismissed workers were reinstated in August 2016. The Social Dialogue Table was formally created by representatives of the employers and the unions, and the government as an observer and with support of Better Work Haiti in July 2012 as a space for exchange, consultation and negotiation to harmonize relations between employers and workers' organizations. It is actively supported by the Office of the Labor Ombudsman. The Social Dialogue Table is serving as a forum for exchange and negotiation between employers and workers in order to strengthen the competitiveness of the Haitian apparel sector in creating employment and contributing to the Haitian economy through the promotion of decent work. Since its establishment in mid-2014, the executive secretariat of the roundtable has called for regular meetings on a monthly basis. The secretariat was supposed to be renewed after completion of a two year term. However, this renewal is still pending due to a conflict about representativity among unions which is related to the fragmentation of the union movement in the apparel sector in Haiti mentioned earlier above. The Office of the Labor Ombudsman continues to play a key role in the prevention and remediation of factory level conflicts in the apparel industry. In 2015, the Labor Ombudsman intervened and mediated in eight individual factory level dispute cases throughout Port-au-Prince. She closely coordinates her mediation work with relevant departments from the Ministry of Social Affairs and Labor (MAST). A number of cases have already been successfully remediated through this collaboration and all partners appreciate the Labor Ombudsperson as a significant support to more mature industrial relations in Haiti’s apparel sector. She is also actively involved in the Social Dialogue Table and chairs the Better Work Haiti Project Advisory Committee (PAC) in line with HOPE requirements. The Better Work compliance assessment methodology BETTER WORK COMPLIAN CE ASSESSMENT FRAMEW ORK The Better Work program assesses factory compliance with core international labor standards and national labor law. Following assessments, a detailed report is prepared and findings are shared with the factory presenting findings on eight clusters, or categories, of labor standards, half of which are based on international standards and half on national legislation. [... middle sections omitted for long document ...] BETTER WORK HAITI – 13 TH SYNTHESIS REPO RT 128 Reasons for termination. Reductions in workforce size or suspensions due to changes in operations Occupational Safety and Health Chemicals and Hazardous Substances Assessing, monitoring, preventing and/or limiting workers' exposure to hazardous substances. Chemical safety data sheets for all chemicals and hazardous substances in the workplace. Inventory of chemicals and hazardous substances used in the workplace. Labelling of chemicals and hazardous substances. Storage of chemicals and hazardous substances. Training workers who work with chemicals and hazardous substances. Washing facilities or cleansing materials in the event of chemical exposure. Emergency Preparedness Accessible, unobstructed, and/or unlocked emergency exits during working hours, including overtime. Fire detection and alarm system. Firefighting equipment. Marking or posting of emergency exits and/or escape routes in the workplace. Number of emergency exits. Periodic emergency drills. Safeguarding possible sources of ignition Storage of flammable materials Training workers to use the firefighting equipment Health Services and First Aid Annual medical checks for workers. First-aid training for workers. Health checks for workers who are exposed to work-related hazards. Medical checks for workers upon hiring. Onsite medical facilities and staff. The employer did not ensure that there were a sufficient number of readily accessible first aid boxes/supplies in the workplace. Safety and health risks to pregnant or nursing workers OSH Management Systems Assessment of general occupational safety and health issues in the factory. Legally required construction/building permits Mechanisms to ensure cooperation between workers and management on OSH matters. Recording work-related accidents and diseases and/or submitting the record to OFATMA. Written OSH policy. Welfare Facilities Certain required facilities. Eating area. Providing drinking water. Toilets. Washing facilities and/or soap. Worker Accommodation Accommodation separate from the workplace Cooking or storage facilities in the accommodation. Lighting in the accommodation. BETTER WORK HAITI – 13 TH SYNTHESIS REPO RT 129 Minimum space requirements in the accommodation. Preparation for emergencies in the accommodation. Privacy in the accommodation. Protection against disease carrying animals and/or insects in the accommodation. Protection against fire in the accommodation. Protection against heat, cold and/or dampness in the accommodation. Protection against noise in the accommodation. Toilets, showers, sewage and/or garbage disposal systems in the accommodation. Ventilation in the accommodation. Water in the accommodation. Worker Protection Ergonomic requirements Installing guards on all dangerous moving parts of machines and equipment. Installing, grounding, and/or maintaining electrical wires, switches, and/or plugs. Posting safety warnings in the workplace Providing workers with personal protective clothing and equipment. Punishment of workers who removed themselves from work situations they believed presented an imminent and serious danger to life or health. Training and encouragement of workers to use PPE, machines and/or equipment safely Working Environment Workplace cleanliness Workplace lighting. Workplace noise levels. Workplace temperature and/or ventilation. Working Time Leave payment in place of annual leave Time off for annual leave. Time off for breastfeeding breaks. Time off for maternity leave. Time off for sick leave. Overtime Authorization from the Department of Labor for overtime. Authorization from the Department of Labor for work on Sundays. Limits on overtime hours worked. Voluntary overtime. Regular Hours Daily break periods. Regular daily and/or weekly working hours. Weekly rest period. Working time records. Authorization from the Department of Labor before working at night. BETTER WORK HAITI – 13 TH SYNTHESIS REPO RT 130 Annex 3. Better Work’s Revised Service Delivery Model The key principles of Better Work’s revised service model are ownership, accountability, dialogue and partnership. The core services offered to factories - assessment, advisory and training - remain the same but the sequence of the services changed. Overall, the revised approach stresses the importance of advisory services with a stronger focus on assistance on management systems, root cause analysis and continuous learning. Better Work acknowledges the fact that auditing alone cannot contribute to sustainable remediation of non-compliances. Assessments provide a snap shot of the compliance issues, yet they do not add significant value to improvements of factories’ compliance performance. Therefore, the adjustments in the services that Better Work delivers to factories provide opportunities for the program to work with factories on root causes that are underlying repeated non- compliance issues. With the introduction of Better Work’s revised service delivery model in 2015, a factory cycle will no longer start with an assessment on which advisory services afterwards were built in the initial approach. Under the adjusted model, the cycle will now start with a period of approximately 100 days of advisory services in which the factory with its bipartite committee can conduct a self-diagnosis with support of its Better Work Enterprise Advisor and can work on immediate improvements where possible. The unannounced Better Work assessment is then conducted after the initial period of advisory and training services. Following the assessment, the advisory process continues, focused on enabling the bipartite committee to address issues that are listed in the improvement plan. The improvement plan includes issues that the factory has self- diagnosed and those that were identified during the Better Work assessment. Factories will be supported through tailored factory visits; issue specific seminars (on topics relevant to the country/industry) with peers from other factories; and training appropriate to the factory’s specific needs. Under the revised service delivery model, Better Work reporting has two elements – reports completed and verified by the Better Work program and those that are completed and released directly by factories. The Better Work factory reports consist of the assessment report that is released roughly 30 days after the unannounced assessment visit. Then later on in the cycle, in the 11th month of the cycle, Better Work then publishes a progress report, detailing improvements on compliance issues, BETTER WORK HAITI – 13 TH SYNTHESIS REPO RT 131 as well as in-factory dialogue, continuous learning and the use of effective management systems. Better Work also provides additional recommendations in this report to further strengthen the improvement process. Factory reporting starts with the use of the self-diagnosis tool introduced in the initial advisory period. The tool was introduced as a means to increase factory ownership. In fact, factories that have access to the online platform of Better Work can now directly add self-identified issues on the Better Work online portal. This portal is the platform that is also used by Better Work to share factory data with authorised international brands that subscribed to a specific factory in either of the Better Work country programs. The enhanced portal with the revised self- reporting function also offers the opportunity for factories to update their improvement plan themselves. The improvement plan lists a factory’s non-compliance points from the last Better Work independent assessment together with any other issues that the factory itself identified as areas for improvements. Once the factory updates its improvement plan online, the information is immediately available to buyers and Better Work. However, this feature has some limitations with regards to the factories’ editing rights as only Better Work can update the status of a non-compliance issue from “delayed”, “pending”, or “in progress”, to “completed” after verification of evidence of remediation. Factory reporting then continues with the first progress report which is published approximately 5 months after the start of the cycle. This report includes progress to date on all self-diagnosed issues as well as those identified by Better Work during the assessment. This report is written on a Better Work template and it is made available to authorized buyers and indicates initial progress and planned steps for the remainder of the cycle. The Better Work role for this first progress report will be limited to coaching factories on how to engage in effective self-reporting and how to ensure continued progress on closing areas of non-compliance. In 2017, Better Work will start to differentiate factories depending on their performance. Factories that are scoring high enough in terms of compliance performance but also in the areas of dialogue and learning encompass the criteria that need to be satisfied before a factory can be qualified for “stage two”. In fact, Better Work will classify factories as being in “stage two” if they consistently demonstrate high levels of compliance, a mature level of social dialogue, effective management systems and a commitment to learning. Those criteria will be evaluated based on information collected during two consecutive assessments. Factories that have not yet met this benchmark will be classified as “stage one.” For factories that have been with Better Work for several years, service differentiation will respond to requests for greater autonomy in the day to-day advisory service, fewer assessments, and a tailored service that responds to their more advanced needs, for example relating to systems development, purchasing practices, productivity and quality, and mature industrial relations.