BANGLADESH. Labor Conditions

Transcription

1 Worker Rights Consortium Report of Supply Chain Study for the City of Los Angeles Sweat Free Ordinance Independent Monitor Agreement (Agreement No. C ) Having collected disclosure information from the City of Los Angeles contractors, which includes both subcontractors for Galls/Long Beach Uniform and non-galls contractors, the Worker Rights Consortium (WRC) has assessed the supplier countries included in the disclosure. This report provides an overview of conditions in the countries where garments are being supplied to the City of Los Angeles. The disclosure obtained from contractors and subcontractors by the WRC revealed a total of 165 facilities in 24 countries that currently supply apparel, footwear, and accessories for the City. Of these 165 factories, eight are located in South Asia (including Bangladesh, Pakistan, and Sri Lanka), 15 in Southeast Asia (including Cambodia, Indonesia, and Vietnam), 72 in North America (Canada and the United States), 23 in China, 35 in Latin America (including Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Mexico, and Nicaragua), nine in East Asia (including Japan, Korea, and Taiwan), two in Europe (Germany and the Netherlands) and one in Egypt. Appendix 1 of this report provides a table detailing the number of supplier factories in each country and the percentage of factories per country. This report details working conditions for garment and related sector workers in the following countries and regions: Bangladesh, Cambodia, Canada, Central America and the Caribbean, China, Egypt, Germany, Haiti, Indonesia, Japan, Korea, Mexico, the Netherlands, Pakistan, Sri Lanka, Taiwan, the United States, and Vietnam. The subsequent sections of the report provide overviews for each country or region with regard to the distribution of factories, general labor rights conditions, current minimum wages, and links to additional information. As the WRC has reported in the past, serious labor rights violations occur in many of the export-apparel manufacturing countries that are currently supplying goods to the City of Los Angeles. These violations have been well documented, not only by the WRC, but also by multiple sources around the world. Given these patterns, the WRC continues to believe that there is a high likelihood that many of the factories producing for the City in

2 several countries are failing to comply with the City s Ordinance. This report prioritizes those countries where City contractors and subcontractors are currently purchasing goods for the City and where abuses are most likely to occur, including Bangladesh, Cambodia, Central America and the Caribbean, China, Haiti, Indonesia, Pakistan, and Vietnam. Likewise, the WRC will prioritize factories in these countries for its efforts related to outreach, education, and monitoring. BANGLADESH There are six factories in Bangladesh that have been disclosed as suppliers of products for the City of Los Angeles. Two of these factories were reported by each of the Galls subcontractors: 5.11 Tactical and Bates. Galls subcontractors Edwards Garment, Helmet House, and Sanmar each disclosed one factory in Bangladesh. 1 Of the six factories, two are located in the country s capital, Dhaka, a major production center for garments. Two other factories are located in Chittagong, a secondary production center, and two others are located in Colmilla, which is located halfway between Chittagong and Dhaka. Bangladesh currently supplies approximately 7% of all U.S. apparel imports. Labor Conditions Between April 2015 and April 2016, apparel exports to the United States from Bangladesh have increased by nearly 10%. With more than 4,500 factories and more than 3.5 million garment manufacturing workers, Bangladesh s apparel sector makes up 80% of the country s export economy. Bangladesh has the lowest wages of any garmentexporting country and its established minimum wage does not cover an adequate standard of living for workers who live in the cities where production occurs. In terms of quantity of apparel exports, Bangladesh is surpassed only by China and Vietnam for the number of apparel exported to the United States. This despite the safety issues that have garnered international attention in recent years. In the Rana Plaza building collapse in April 2013, 1,138 workers were killed and 2,500 were injured. Following the collapse of Rana Plaza, the IndustriALL Global Union and the UNI Global Union, in collaboration with the WRC and the Clean Clothes Campaign, established The Accord on Fire and Building Safety (henceforth, the Accord ), a legally-binding agreement that requires independent fire, building, and electrical safety inspections by certified engineers, public reporting of the engineers findings, and implementation of all necessary repairs and renovations. Chaired by the International Labour Organization, the k Page 2 of 36

3 Accord covers an estimated 1,660 factories and more than two million workers. It receives its financial backing from the signatory brands and retailers, which currently include more than 200 apparel brands and retailers from 20 countries. Signatories to the Accord also include the two global union federations, eight Bangladeshi garment workers unions and union bodies, and four international labor rights organizations participating as witness signatories. The Accord requires brands and retailers to sever business relationships with any factory that refuses to renovate and operate safely, as they have done with 36 suppliers. As of July 2016, NGOs, foreign governments, and companies have inspected 1,646 garment factories, resulting in the closure of 37 garment factories as a result of unsafe working conditions. Another remedial plan, known as the Alliance for Bangladesh Worker Safety, was also formed to address fire and building safety issues and worker rights. Following the July 1, 2016 terrorist attack in Dhaka that killed 29 people and appeared to have targeted international residents living in Bangladesh, there has been growing concern that apparel brands will reduce their sourcing from Bangladeshi factories, diminishing the progress made on workers rights in recent years. Apparel brands have informed the WRC that they are monitoring the situation in Bangladesh and, thus far, none have announced plans to remove their production from the country. In response to the attacks, the Bangladesh government has promised to provide enhanced security to both foreign buyers and workers. Registered unions have increased within Bangladesh in recent years and there has been an increase in anti-union violence. As previously reported, numerous physical assaults against union leaders in retaliation for their organizing efforts have been reported. In 2014, the International Trade Union Confederation, IndustriAll, and UNI Global Union reported more than 100 reports of anti-union discrimination in factories with newly formed trade unions. The unions have also criticized the Bangladeshi government for its lack of response to protect workers and punish perpetrators. Recent reports from the Solidarity Center of the AFL-CIO state that Bangladesh s Ministry of Labor and Employment only investigated 11 of 32 cases of anti-union discrimination that were filed with this office. In addition to intimidation and abuse, employees have been terminated, blacklisted, or subject to surveillance by the National Security Intelligence and by security forces for their involvement with a union. The current year has generated additional reports that the Bangladeshi government has refused recognition of unions in factories that have met the legal membership threshold of 30%. Data from the Solidarity Center indicates that, since 2013, fewer than half of Page 3 of 36

4 union applications filed have been approved, with only 30% of requests approved in At present, only about 10% of garment factories in Bangladesh have workplace unions. Wages Effective December 1, 2013, the government raised the minimum wage by 77%, from $0.18 per hour, or $37.50 per month, to $0.31 per hour, or $66.25 per month. Wages are significantly lower than the living wage for a Bangladeshi garment worker, which the Center for Policy Dialogue reports as $84 per month. Monitoring Notes and Priorities As reported in the past, the likelihood of serious violations at factories supplying goods to the City from Bangladesh is very high. Even though a relatively small number of factories supplying to the City are located in this country, Bangladesh will continue to be a top priority for the WRC s outreach and ongoing monitoring. Additional Resources Bangladesh: Garment Workers Union Rights Bleak, Human Rights Watch, April 21, Will the Dhaka attack halt progress for garment industry workers? Christian Science Monitor, July 5, U.S. Department of State Country Reports on Human Rights Practices: Bangladesh (2015). 9 The Accord on Fire and Building Safety in Bangladesh. EU should call out Bangladesh on workers rights, EUObserver, April 29, Page 4 of 36

5 CAMBODIA One factory in Cambodia, Roo Hsing Garment Company, was disclosed by the Galls subcontractor, 5.11 Tactical. Roo Hsing is located in Cambodia s capital of Phnom Penh, a major hub for garment production. Cambodia represents almost 4% of all apparel exports to the U.S. Labor Conditions Cambodian garment factories face a number of obstacles in achieving compliance with local labor law and international standards. These include, among others, violations of harassment and abuse, working hours and overtime, freedom of association, and minimum wage and benefits. The Cambodian government makes limited or inconsistent efforts to enforce labor laws, including the right to collective bargaining, and there are numerous documented cases of anti-union discrimination. In , the Cambodian military responded to worker protests for higher wages with violence that led to the death of four of the protestors. 35 other workers were injured and union leaders were arrested and detained as a result. In retaliation to the worker protests, the Cambodian government engaged in criminal prosecution against garment union leaders who were banned from attending public gatherings or entering the industrial parks where factories are located until their trials; these trials continue to remain unscheduled. The organization Human Rights Watch has referred to the criminal charges levied against the worker leaders as trumped-up and politically motivated. Another obstacle for worker rights in Cambodia previously reported by the WRC is the continued use of short-term contracts (known as fixed duration contracts or FDCs ). Employers in as much as 80% of the country s garment factories use these illegal contacts to employ regular, fulltime employees, which impairs the rights of the workers to freedom of association and other legally-mandated benefits, including sick leave and maternity benefits for female workers. Furthermore, Cambodian factories frequently fail to comply with health and safety standards. The factories tend to be overcrowded and poorly ventilated and to expose workers to toxic chemicals, thereby threatening the workers health and safety. As a result, during recent years, thousands of workers have reported fainting in Cambodian garment factories. According to the National Social Security Fund (NSSF), during the Page 5 of 36

6 first half of 2015, 896 workers fainted in factories during their work shifts. During the same time period, the NSSF recorded 6,594 cases of work-related injuries, including 51 deaths. Many factories are not compliant with fire safety standards emergency exits are frequently locked or obstructed making it difficult for workers to leave the building quickly in the case of a fire or other emergency. Wages Effective January 2016, the minimum wage was raised from $128 to $140 a month. While important for garment workers, the increased wage does not allow workers to meet the basic cost of living. Monitoring Notes and Priorities Based on the WRC s extensive monitoring work in Cambodia, together with outside reports, the WRC feels that there is very high probability of occurrence of labor rights abuses in the country. Monitoring of the Roo Hsing facility will continue to be a priority for the WRC in the current monitoring period for the City. Additional Resources U.S. Department of State Country Reports on Human Rights Practices: Cambodia (2015). 0 ILO Says Factory Conditions Improving, The Cambodia Daily, July 4, Cambodian Garment and Footwear Sector Bulletin, Issue 3, Better Factories Cambodia, March 25, A Short Term Solution: A Study of the Use of Fixed-Duration Contracts in the Cambodian Garment Industry, Fair Action, September Work Faster or Get Out: Labor Rights Abuses in Cambodia's Garment Industry, Human Rights Watch, March Page 6 of 36

7 html Cambodia: Protests Decry Anti-Worker Labor Law, Solidarity Center, March 30, CANADA There are two factories disclosed for production for the City in Canada. Nordica Plastics, located in Mississauga (Ontario), was disclosed by the Galls subcontractor Fox 40; and Calko Group, located in Montreal (Quebec), was disclosed by the Galls subcontractor, Hatch. Labor Conditions As reported previously, Canada continues to consistently comply with national labor law and international standards. The government is generally respectful of workers rights and enforces remediation of violations that are identified. Canada s workers have the right to organize a union and to engage in collective bargaining and strike. Health and safety standards are effectively regulated by the Canadian Centre for Occupational Health and Safety. Employers and workers join together to form health and safety committees to identify and address workplace hazards. These committees also provide education, training, and prevention programs in the workplace. There have been limited reports of workplace violence and wage theft in Canada. Wages Hourly minimum wage in Canada ranges between $10.00 and $ Although, in some cases, this wage may not fully support a worker and his or her family, the minimum wage in Canada is substantially higher than those found in other countries included in this report. Page 7 of 36

8 Monitoring Notes and Priorities Canada continues to be a low priority for the WRC s monitoring efforts given its high levels of compliance with national and international labor standards and the low occurrence of serious worker rights violations. Additional Resources U.S. Department of State Country Reports on Human Rights Practices: Canada (2015). 7#wrapper CHINA A total of 23 factories have been disclosed for the production of goods supplied to the City of Los Angeles in China. Galls subcontractors disclosed the following number of factories: 5.11 Tactical, one factory; A+ Career Apparel, one factory; Bates, two factories; Hatch, one factory; Helmet House, five factories; LaCrosse, one factory; Lion Apparel, one factory; M.L. Kishigo, one factory; Neese, two factories; Otto Cap, one factory; Patch Supply, one factory; SanMar, one factory; Tact Squad, one factory; Thorogood, two factories; and Tri-Mountain, one factory. The supplier BUI (Sportek) also disclosed one factory as a supplier. Seven of the 23 factories are located in the province of Guangdong, an important hub for garment production in China. Three factories are located in China s capital city of Beijing. China is responsible for 39% of all apparel imports to the United States. Labor Conditions Chinese law does not guarantee freedom of association and all union activity must be conducted under the All-China Federation of Trade Unions (ACFTU). The ACFTU is affiliated with the Communist Party and often sympathetic to management. Workers who seek to organize to defend their rights outside of the ACFTU structure often face repression from the government. Local labor NGOs and other civil society actors play a major role in supporting and defending workers rights in China. According to the Human Rights Watch, China has more than 500,000 registered NGOs, though many are reportedly run by the government. NGOs and independent labor organizers provide workers with legal and educational Page 8 of 36

9 services and often direct support to workers during collective labor disputes with employers. Local sources report that the Chinese government does not look favorably on the work of NGOs and closely monitors the activities of local labor organizations. NGOs are often targets of government intimidation and repression. In December 2015, police arrested labor activist Zeng Feiyang for gathering a crowd to disturb social order, along with six other worker rights defenders who are being detained under similar charges. Labor NGOs suspended operations, providing information, training, and legal support to workers on collective bargaining and dispute resolution, leaving informal self-organized worker groups to help themselves. Labor activists including Cao Baoyin, Chen Yong, Liu Jiacai, Liu Jian, Memet Turghun Abdulla, Wang Miaogen, Xing Shiku, and Zhou Decai, who were detained in previous years, remained in detention at the end of Occupational health and safety standards are under-enforced in China. Many workrelated illnesses and injuries are reported, particularly in labor-intensive sectors. In factories producing leather goods and footwear, workers are exposed to toxic chemicals, often without protective clothing and equipment. They also suffer from improper ventilation, risk hearing loss from hazardous noise exposure levels that result from heavy machinery, and are threatened by the excessive heat generated by the process of forming the soles of shoes. In factories using hazardous materials in their production process, workers are generally not properly trained on the handling of the hazardous materials and on the nature of substances or their impact on workers health. As a result, workers often find it very difficult, if not impossible, to prove that an illness is directly attributable to their occupation. Furthermore, workers are often required to sign training forms, indicating that they have received safety trainings, even if workers have not received the training. Workers who suffer work-related injuries and illnesses struggle to receive the compensation they are legally owed by their employers and/or the government since occupational safety committees are usually nonexistent or inactive at Chinese factories. Workers often lack the means to pay for these injuries. Excessive overtime continues to be one of the most prominent issues in garment factories in China. Workers suffer damaging mental and physical consequences from excessive overtime, including exhaustion and repetitive stress injuries, which occur at a high rate in the export garment sector. Workers report average schedules of hours per week, which is significantly higher than the 40-hour legal workweek. Overtime work is often forced and either under- or un-compensated. Despite the steady increase of wages over the past decade, wages remain low in comparison to rising prices. Most garment workers are paid piece rate; however, workers are often unable to meet the high quotas and Page 9 of 36

10 therefore unable to meet the legal minimum. Nonpayment of wages, including insurance contributions is another ongoing issue for Chinese workers. In the case of relocation or abrupt factory closures, employees often have no recourse. Wages The minimum wage in China is determined in each province, with municipal governments establishing rates according to local conditions and adhering to a mandatory nationwide increase every two years. In 2016, the monthly wage in Shanghai increased to $327 per month, while most major cities raised monthly wages to $239. In some poorer areas, the monthly wage was raised to only $149. Additional Resources China Labour Bulletin. U.S. Department of State Country Reports on Human Rights Practices: China (2015). 5 CENTRAL AMERICA AND THE CARIBBEAN (COLOMBIA, COSTA RICA, DOMINICAN REPUBLIC, EL SALVADOR, GUATEMALA, HONDURAS, AND NICARAGUA) City of Los Angeles contractors and subcontractors disclosed a total of 20 factories in Central America and the Caribbean, including the countries of Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. One factory was disclosed in Colombia by the Galls subcontractor, Leventhal. One factory was disclosed in Costa Rica by the Galls subcontractor, Edwards Garment. Two factories were disclosed in the Dominican Republic, one of which was disclosed by City contractor Hot Shots and the second by the Galls subcontractor Leventhal. In El Salvador, a total of four factories were disclosed, one by Hot Shots, one by Lion Apparel, and two by Fechheimer. Ten factories were disclosed in Honduras, five of which were disclosed by two contractors or subcontractors. These City suppliers included BUI, Ameripride, and Hotshots and the Gall s subcontractors Atlanco, Dickies, Edwards Garment, Fechheimer, Lion Apparel, Red Kap, and SanMar. The Galls subcontractor Dickies disclosed one factory in Guatemala and one factory in Nicaragua. Page 10 of 36

11 Labor Conditions Labor standards in Central America and the Caribbean are generally strong, but enforcement of the law remains poor. Violations in the areas of freedom of association and collective bargaining, including blacklisting, suspension, and dismissal, are common. Employers frequently use subcontracting, corrupt and employer-sponsored unions, socalled collective pacts, and solidarity associations to undermine independent worker organizing. Colombia and Central America continue to see the highest rates of anti-union violence in the world, despite some improvement in Colombia in recent years. Factory owners utilize local armed groups, most notably Central American street gangs and Colombian neoparamilitary groups, to perpetrate violence against workers. Guatemala, where workers often receive death threats for organizing, experiences a very high rate of anti-union violence. Impunity for anti-union violence is high throughout the region. In Colombia, the U.S. State Department reported in 2015 that only two of the 200 anti-union violence cases since 2011 had resulted in convictions. In Honduras, at least 15 union members under protective measures were killed between October 2015 and October Antiunion violence in Nicaragua and Costa Rica is considerably lower than the rest of the region. Freedom of association, while protected under the law, is routinely violated throughout the region by both legal and extra-legal means. In Colombia, employers use pactos colectivos (collective agreements allowing employers to unilaterally determine pay rates and working conditions), so-called worker cooperatives (characterizing all workers as owners, prohibiting union membership) and subcontracting to prevent the establishment of independent unions. In Guatemala and the Dominican Republic, burdensome laws require high membership rates, considered excessive by the ILO, to establish a union or engage in collective bargaining. Governments in the region routinely fail to enforce laws penalizing labor rights violations, including through failure to identify, prosecute, and punish responsible employers. In Costa Rica, courts have been slow to resolve anti-union discrimination cases, allowing the practice to thrive. The International Trade Union Confederation reports that reinstatement for unfairly dismissed Costa Rican workers lasted an average of 2.5 years. According to Guatemalan government statistics, even in those rare cases where workers obtained a reinstatement order after being illegally dismissed, Guatemalan Page 11 of 36

12 employers failed to comply with 79% of those orders. In the Dominican Republic, employers take advantage of the slow legal system by appealing cases determined in favor of workers, extending the legal limbo for years and depriving harmed workers of a legal remedy. Throughout Central America, violations of freedom of association and collective bargaining rights result in fines too low to deter future violations. For example, in Guatemala, fines for labor law violations range from only 50 quetzal ($6.50) to 5,000 quetzal ($650), and in Honduras from 200 to 10,000 lempira ($9 to $450) inconsequential sums for almost any employer. While fines in Colombia are much higher, up to 1.1 million USD, they are rarely collected. Enforcement of labor standards in Honduras is so poor that in 2015, the U.S. Department of Labor issued a damning 143-page report identifying serious concerns with respect to the Honduran government s response to requests for labor inspections, failure to gain access to worksites, failure to conduct adequate inspections, failure to impose fines in a manner that effectively deters future violations, and lack of enforcement of remediation orders. While the right to strike is recognized throughout the region, strikes are often declared illegal, resulting in retaliatory dismissals of striking workers. In the Dominican Republic, a strike is only legal if the workers overcome all of the following hurdles: obtain the support of an absolute majority of all workers, engage in a prior attempt to resolve the conflict through mediation, provide written notification to the Ministry of Labor, and comply with a 10-day waiting period following notification before proceeding with the strike. In other countries in the region, Guatemala for example, the government defines essential services very broadly, denying postal workers, teachers, transport, and energy workers the right to strike. In export-processing or free trade zones, efforts to organize are often met with harsh employer response, including illegal terminations, threats, intimidation and blacklisting. Workers in these zones reported frequent wage and overtime violations in Costa Rica, anti-union intimidation in the Dominican Republic, and sexual harassment of women in El Salvador. Workplace discrimination continues to be a problem throughout the region. Persons with disabilities, migrant workers, people with HIV/AIDS, people of African descent, and the LGBTI population experience frequent discrimination. Employers in Honduras and Page 12 of 36

13 Colombia in particular pay female workers less than their male counterparts. Forced pregnancy testing remains common in certain sectors, including the Honduran textile export industry. Employers in the Dominican Republic pay Haitian migrant workers 60% of what Dominican workers earn on average, according to government statistics. Workers continue to face occupational health and safety violations across many industries. In Honduras, violations in this area were most notable in the construction, garment assembly, and agricultural sectors. Workers across the region are often not provided adequate protective gear, work in high temperatures with poor ventilation, and have inadequate access to clean restrooms. Monitoring of workplace health and safety is inadequate throughout the region, where government labor inspectors are frequently insufficient in number and inadequately trained. In some countries, like Guatemala, the law does not provide the right for workers to remove themselves from work environments that endanger health or safety without facing consequences. Wage theft and forced overtime occur throughout the region. In the Dominican Republic, mandatory overtime was common in the manufacturing sector, and failure to work overtime was punished with loss of wages or employment. In Honduras, forced overtime was common in the garment industry. Denial of paid leave and sexual and verbal harassment also continue to occur throughout the region. Workers in the informal sector are often deprived of any labor protections. This is particularly problematic in countries with large informal sectors, including Colombia (51.5% informal), Dominican Republic (58% informal), and Guatemala (74% informal). Wages Across the region, minimum wages are well below the living wage. For example, the Dominican Republic has 14 different minimum wages, based on sector. The current minimum wage for workers in free trade zones is 8,310 pesos ($183) per month. Outside the zones, wages range from 7,843 pesos ($173) to 12,873 pesos ($284) per month. The minimum wage for the public sector is 5,884 pesos ($130) per month. A living wage in the Dominican Republic is estimated by the WRC and labor confederations to be approximately 27,897 pesos ($616) per month, nearly four times the free trade zone wage. The Ministry of Labor, in a tripartite agreement with unions and the private sector, approved a 14% private sector minimum wage increase in May Page 13 of 36

14 In Colombia, the 2016 minimum wage is 689,455 pesos ($217) per month, representing a 7% increase over the prior year. Women were paid 20.2% less than men on average. In Costa Rica, the minimum wage varied by sector, with the highest set at $1,150 per month. Apparel assembly workers in El Salvador earn $7.03 per day. In Guatemala, the minimum wage is quetzal ($10.20) per day for most industries, but only quetzal ($9.40) per day for work in export-sector-regime factories. Honduras maintains 42 categories of minimum wage, differentiated by industry and number of employees. These wages vary from 5, lempiras ($245) to 8,882.3 lempira ($404) per month. Nicaragua has ten wage categories, organized by sector, with an average wage of 4,259 cordoba ($153) per month. The Nicaraguan Ministry of Labor reports that this amount covers 35% of the cost of basic goods. Monitoring Notes and Priorities Central America, the Caribbean, and Colombia continue to be high priorities for the WRC s outreach and monitoring efforts, due to both widespread and ongoing violations and given the significant number of factories supplying goods to the City in this region. Additional Resources U.S. Department of State Country Reports on Human Rights Practices: Colombia (2015). 1 U.S. Department of State Country Reports on Human Rights Practices: Costa Rica (2015) U.S. Department of State Country Reports on Human Rights Practices: Dominican Republic (2015). 9 U.S. Department of State Country Reports on Human Rights Practices: El Salvador (2015). Page 14 of 36

15 3 U.S. Department of State Country Reports on Human Rights Practices: Guatemala (2015). 7 U.S. Department of State Country Reports on Human Rights Practices: Honduras (2015). 3 U.S. Department of State Country Reports on Human Rights Practices: Nicaragua (2015). 9 U.S. Department of Labor, Public Report of Review of U.S. Submission (Honduras) (2015). Honduras_Submission_022715_redacted.pdf International Trade Union Confederation, ITUC Global Rights Index: EGYPT One factory was disclosed in Egypt. This factory, Ruby Red Garment SAE, was disclosed by the Galls subcontractor Edwards Garment. The factory is located in the denselypopulated city of Alexandria. Labor Conditions More than half of Egypt s ready-made garments are exported to the U.S. and Egypt s garment sector employs approximately one-third of the working population. Wages in Egypt are generally higher than those in Southeast Asia and Central America, but freedom of association and other fundamental worker rights are frequently denied in both law and practice. Egyptian workers often face repercussions for demanding their rights and criticizing the government. Page 15 of 36

16 While freedom of association, collective bargaining and the right to strike have been enshrined in Egyptian law since 2011, the government has enacted multiple laws that conflict directly with these rights since that time. In 2015, ILO Director General Guy Ryder criticized Egypt s enforcement of freedom of association, noting a ban on the recognition of independent trade unions that went into effect that year. The ban, in clear violation of ILO Conventions 87 and 98, prohibited collective bargaining and exposed workers to arbitrary dismissal and arrest for organizing. Egyptian authorities periodically arrest labor organizers following the end of a strike or other labor action. In January 2016, Dr. Taher Mokhtar of the Egyptian doctors union and two of his friends were arrested for possession of subversive documents. The documents in question were leaflets denouncing inadequate medical care in Egyptian prisons, an issue his union had been working on actively. The three men remained in jail for three months. Migrant workers from Southeast Asia and Africa are frequently victims of forced labor in many sectors of the Egyptian economy, as laws prohibiting compulsory labor are not enforced. The Egyptian government reports child labor is also a problem across industries, including factory work in urban areas. Egypt s anti-discrimination laws are broad, but do not specify sexual orientation, gender identity, HIV-positive status, or other communicable diseases. Employment discrimination against women and persons with disabilities is well documented. The law does not require equal pay for equal work. Wages There is no minimum wage for private sector workers. In 2014, women workers in the private sector earned an average of 419 Egyptian Pounds ($23.28) for an average 60-hour workweek and male workers earned an average of 529 Egyptian Pounds ($29.40). The monthly minimum wage for government and public sector workers has been LE 1,200 since January 2014, though most public sector workers reportedly earn above the minimum. Monitoring Notes and Priorities Due to the fact that only one factory is supplying goods to the City of Los Angeles, Egypt will not be a significant focus of WRC monitoring efforts. Additional Resources U.S. Department of State Country Reports on Human Rights Practices: Egypt (2015). 1 Page 16 of 36

17 International Trade Union Confederation, ITUC Global Rights Index: International Labour Organization, ILO Director-General expresses concern over freedom of association in Egypt. en/index.htm Daily News Egypt, Weekly average salary reached EGP 806 in 2014: CAPMAS, May 13, capmas/ GERMANY One factory in Germany was disclosed for production for the City of Los Angeles. This factory, Haxi Schuhe Produktions und Vertriebs GmBH, located in Mainburg, was disclosed by the City contractor Allstar Fire Equipment. Labor Conditions The basic rights of workers in Germany are protected under the law and adequately enforced. With the exception of public servants and those engaged in essential services, workers have the right to organize, engage in collective bargaining, and strike. There are few reported violations of freedom of association, and discrimination against workers for participation in union activities is prohibited. Germany is one of only a handful of countries given the highest rating for worker rights protection by the International Trade Union Confederation. This rating indicates countries where freedom of association and collective bargaining are effectively guaranteed and where violations against workers do not occur on a regular basis. Where violations do occur in Germany, remediation efforts are sufficient. Enforcement of occupational health and safety standards is conducted through a variety of public and private entities and employees have the right to sue employers who do not comply with OSH regulations. There were reports of forced labor in 2015, but investigations and prosecutions were adequate to deter future abuses. While German law prohibits discrimination in any form, there are reports of employment discrimination against persons with disabilities. The government took steps to incentivize hiring of persons with disabilities in 2015 and fined companies who failed to meet hiring quotas. Foreign workers also face employment discrimination and earn, on average, 28% less than non-foreign workers. Page 17 of 36

18 Wages The minimum wage is currently set at 8.50 euros ($9.50), but employers have until January 2017 to come into compliance with this wage. Monitoring Notes and Priorities As Germany s rates of compliance with relevant labor standards are among the highest in the world, Germany will remain a low priority for WRC monitoring and enforcement. Additional Resources International Labour Organization, National Labour Law Profile: Federal Republic of Germany. U.S. Department of State Country Reports on Human Rights Practices: Germany (2015). 1 HAITI Two factories were disclosed by City of Los Angeles contractors in Haiti. Both factories, one of which is disclosed by Ameripride and the other of which is disclosed by Hot Shots, are located in Haiti s capital of Port-au-Prince, an important center for garment production in Haiti. Labor Conditions Labor rights violations are widespread in Haiti and the government fails to adequately enforce labor law. In October 2016, the ILO reported that Haitian garment factories were noncompliant with local and international labor standards, most notably in the following areas: paid leave (76% of factories noncompliant), social security and other benefits (88%), health services and first aid (84%), worker protection (84%), chemicals and hazardous substances (72%), and overtime (64%). A smaller, though significant, number of factories was also noncompliant in OSH management systems (40%), provision of premium pay (24%), compliance with minimum wages and piece rates (16%), payment of overtime wages (36%), and use of legal employment contracts (28%). This is consistent with NGO reports of widespread compulsory and unpaid overtime, wage theft, and failure to comply with minimum wage laws. Page 18 of 36

19 While the Haitian labor code protects the right of workers to form and join unions and to strike, it only allows for collective bargaining when a union represents at least two-thirds of the workers. While the labor code prohibits firing workers for union activity, it does not require that they be reinstated if illegally fired. Unions must obtain prior authorization from the government to be recognized and the right to strike is greatly limited in practice. Penalties for interference with union activities are rarely collected and far too low to deter violations, ranging from 1,000 to 3,000 HTG ($19 to $57). Anti-union discrimination is common, including through retaliatory suspensions, terminations, and other actions. The International Trade Union Confederation reports that a government-sponsored union, the Front Syndical Haitien (FSH), was used to thwart independent unions in The leader of the union, Joseph Montes, is also a director of the state transport company and reportedly dismissed all union representatives of the independent transport workers union. As of October 2016, only three garment factories had a valid collective bargaining agreement. Haitian law prohibits discrimination against women, but does not prohibit discrimination based on disability, language, gender identity, sexual orientation, or HIV-positive status. Better Work Haiti, an Initiative of the International Labour Organization and the International Finance Corporation, launched a project in 2009 to improve working conditions and factory performance in the Haitian garment industry. The program is involved in factories that employ a total of 36,000 garment workers, representing 95% of the Haitian garment sector. In 2016, the project reported seeing improvements in the areas of gender pay equity, reducing verbal abuse in factories, and providing workers with expanded access to healthcare. Wages Haiti has a two-tier minimum wage. In May 2016, the minimum wage of reference (non-production workers) for eight hours of work was raised from 240 to 300 Haitian gourdes ($3.62 and $4.52, as of October 2016 exchange rate) and the production wage was increased from 300 to 350 Haitian gourdes ($5.28). While this represents a 25% increase in gourdes, significant devaluation of Haitian currency has resulted in decreased purchasing power for workers. For reference, the lower, non-production wage prior to the wage hike (240 Haitian gourdes) was worth $5.71 per day in U.S. dollars in 2015, indicating that the increase in wage has corresponded to an actual decrease in income. Monitoring Notes and Priorities Given the ongoing, significant risk of abuses in the City s Haitian supplier factories, Haiti will remain a high priority for ongoing monitoring and enforcement activities by the WRC for the City of Los Angeles. Page 19 of 36

20 Additional Resources U.S. Department of State Country Reports on Human Rights Practices: Haiti (2015). 1 International Labour Organization, Better Work Haiti: 13 th Biannual Synthesis Report Under the HOPE II Legislation (October 18, 2016). International Trade Union Confederation, ITUC Global Rights Index: INDONESIA The City of Los Angeles Galls subcontractors Helmet House and Hatch each disclose one factory as a supplier of goods to the City. One of these factories, Dong Yang Illust (DYI), is located in Purwakarta, Indonesia, and the other factory, PT Surabaya Noor, is located in Surabaya. Labor Conditions Indonesian law protects workers right to strike, join independent unions, and bargain collectively and prohibits anti-union discrimination. Enforcement is often insufficient, due in part to an overburdened and inefficient legal system. Labor unrest in late 2015 resulted in repressive tactics by the government and workers report widespread employment discrimination and violations of fundamental worker rights. Freedom of association, the right to strike, and the right to collectively bargain are restricted by law in some areas. The government may petition the courts to dissolve a union if it conflicts with the ideology of the Indonesian state or the constitution, or if leaders or members have committed certain crimes against the security of the state. Both the ILO and the ITUC have declared that government dissolution in these cases is a disproportionate penalty. In order for a strike to be declared legal, workers must give the government and the employer written notice seven days in advance, signed by union leaders, and engage in a lengthy mediation with the employer. Strikes by public sector workers and workers employed in the interest of the general public, a broadly defined concept, are prohibited from striking. Workers report employer discrimination against union members by dismissal, transfer, and, in some cases, filing false criminal charges. Other employer tactics include suing union leaders for production losses following industrial actions, using companysponsored unions to thwart independent organizing, and engaging in illegal subcontracting as a cover for anti-union activity. According to a 2012 report by the Page 20 of 36

21 International Textile, Garment and Leather Workers Federation (ITGLWF), as many as 85% of employees in 83 sportswear factories in Indonesia were employed on short-term contracts or on a temporary basis. Short-term workers are not entitled to severance and other benefits and are not protected from discrimination. In October 2015, the Indonesian government announced changes to the process of establishing the minimum wages, reducing the participation of worker representatives. In response, unions organized a peaceful protest of more than 35,000 workers in front of the Presidential Palace. Police attacked the workers with water cannons and tear gas and arrested 23 workers and one union member was beaten. Following the demonstrations, police occupied the offices of the metal workers union federation. Charges against the 23 workers, including the general secretary of the Confederation of Indonesian Trade Unions (KSPI), are still pending. Most forms of employment discrimination are prohibited by law, with the notable exception of discrimination based on sexual orientation, gender identity, national origin and HIV-positive status. Women, migrant workers, persons with disabilities, transgender persons, and persons with HIV/AIDS frequently experience discrimination. The U.S. State Department reports that child labor is common in light industry and manufacturing. Sexual harassment is also common and workers report they are often terminated in the event of pregnancy. Approximately 70% of workers in Indonesia work in the informal sector and government enforcement of health and safety regulations, minimum wage laws, and other worker protections is nonexistent for those workers. For the 30% of workers in the formal economy, enforcement is inadequate. It is estimated that only 10% of workers receive the social security benefits to which they are entitled by law. Wages Under the new wage regulation, governors are authorized to set minimum wages for their provinces, based on either national inflation rate or the decent living standard index. Wages in most Indonesian provinces increased by 9-12% from 2015 to The province of Central Java has the lowest minimum wage at 1,100,100 rupiah ($82) per month, and the capital city of Jakarta has the highest at 3,100,100 rupiah ($232) per month. Monitoring Notes and Priorities Due to ongoing and widespread violations in Indonesia, Indonesia will remain a high priority for the WRC s monitoring and enforcement. Page 21 of 36

22 Additional Resources U.S. Department of State Country Reports on Human Rights Practices: Indonesia (2015). 5 International Trade Union Confederation, ITUC Global Rights Index: JAPAN Two factories are disclosed for the production of garments and other goods supplied to the City of Los Angeles. Both of these factories, one of which is located in Ibaraki and the other of which is located in Iwate, were disclosed by the Galls subcontractor Helmet House. Labor Conditions The basic rights of workers in Japan are protected under the law and adequately enforced. Japanese law protects workers right to strike, form independent unions, and bargain collectively. The Japanese government generally enforces labor standards, and penalties for worker rights violations are generally sufficient to deter violations. However, employers continue to use such tactics as employing workers on short-term contracts and changing their form of incorporation to holding company status in order to deprive workers of associational rights. Workers providing certain essential services must notify the government ten days in advance of a strike and some do not have the right to bargain collectively. A large number of cases of death by overwork and work-related suicides continue to be reported. This is attributed to a prevailing work culture of self-sacrifice and employers expectation of long hours. In October 2016, the government released the results of a survey determining that one-fifth of workers were at risk of death by overwork based on the number of hours worked. Japanese authorities are reportedly taking some measures to address this problem through public education, but have not addressed the legal issue of permitting excessive working hours. Japanese law prohibits most forms of employment discrimination, with the exceptions of sexual orientation, gender identity, HIV-positive status, and language. The law uses quotas to ensure employment of persons with disabilities and mandates equal pay for men and women. In practice, however, sexual harassment is widespread. Women earn only 70% as much as their male counterparts and, in some cases, employers forced pregnant workers to leave their jobs. Forced labor, particularly of migrant workers, persists in manufacturing and other sectors. Page 22 of 36