Abuse of workers packing fair trade bananas in the UK, on Today programme this morning

May 23, 2007

There was a flutter of intrigue in the Impactt office this morning over the allegations made in the Today programme expose of labour conditions at a fair-trade banana supplier. The investigation alleged that Polish migrant workers in Luton, packing bananas for Tesco and Waitrose, were working excessive hours and had no breaks. Supervisors were recorded shouting and bullying the workers. During the investigation a pregnant women had a miscarriage after the management failed to allocate her lighter duties. What made this story particularly piquant was the fact the plant was packing fair-trade bananas!

More on the Today Website.

This raises some interesting points about the relationship between fair-trade and ethical trade. Impactt have been concerned for some time that whilst fair-trade guarantee a better price for farmers, it does not necessarily mean labour conditions through out the supply chain are upheld.

The packing plant may have been considered low risk by retailers – it was UK-based and supplying fair-trade, however this is no guarantee that labour standards will be ok. The UK like many other countries is a destination for migrant workers. And as Impactt’s experience the temporary labour working group demonstrated, migrant workers are vulnerable to abuse as they are completely dependent on one employer: the farm or labour provider that hired them.

Retailers and fair-trade organisations need to be aware of the issues relating to labour standards as well as the issues relating to terms of trade. Whilst these are certainly connected one does not guarantee the other.


Nike sacks Pakistani football maker over long-term failure to improve labour standards

May 23, 2007

Last month sportswear giant Nike ended its contract with Saga Sports, a production site in Sialkot, Pakistan, following an investigation that revealed they had been outsourcing Nike production to homeworkers. It was found that these workers were stitching the Premiership footballs in their homes. Nike stated that this prevents them from being able to monitor and ensure safe labour standards, and creates the potential for the use of underage labour.

The Premier League was fully briefed by Nike about its decision, and there will be a shortage of footballs while Nike switches production to China.

Nike is reported to have made significant efforts to work with the factory, including regular meetings and remediation plans to improve labour standards. Hannah Jones, Nike’s vice president of corporate responsibility, stated that ‘In this case, remediation didn’t work. In fact, we saw a further significant deterioration of working conditions due to a lack of commitment by management to address the problems. We also are deeply concerned about the broader conditions and practices we saw in home-based settings.’

Nike is also engaging with a group of governmental, non-governmental and industry stakeholders to ensure support for affected workers and explore sustainable approaches to manufacturing in Sialkot. Jones also said that the company’s efforts are now focused on securing the rights of those Saga Sports employees affected, and exploring with stakeholders the possibility of turning this into a ‘catalyst for change in manufacturing methods’ and contributing to sustainable development. Oxfam have praised the move by Nike saying that it is a positive step in the right direction, but that the company still has much to do with regard to trade unions and the right to organise. Source: Nike Inc press release; The Guardian