FAIR LABOR ASSOCIATION

Protecting Workers’ Rights Worldwide

2010 ANNUAL REPORT JANUARY 1, 2010–DECEMBER 31, 2010

www.fairlabor.org

June 2011 BOARD OF DIRECTORS 2010

The Fair Labor Association’s Board of Directors includes an independent Chair and six representatives each from our three constituent groups: companies, NGOs, and colleges and universities.

Business Caucus NGO Caucus University Caucus

Corinne Adam Marsha Dickson Karen Daubert Gildan Inc. Educators for Socially Responsible Apparel Washington University in St. Louis Business Marcela Manubens Robert K. Durkee, Acting Chair Phillips-Van Heusen Corp. Linda Golodner Princeton University National Consumers League Caitlin Morris Joe Ebaugh Nike, Inc. Elisa Massimino University of Maryland Human Rights First Gregg Nebel Michael S. Low adidas-Group James Silk University of Notre Dame Orville H. Schell, Jr. Center for Vivienne Riggio (until August 2010) International Human Rights, Yale Law Maureen Riedel Asics School Pennsylvania State University

Nicole Tillman Karen Tramontano Craig Westemeier Outdoor Cap Global Fairness Initiative University of Texas at Austin

Lynda Yanz Maquila Solidarity Network

FLA extends its thanks to our Board members for their dedicated service to the organization and its mission.

NAME: SEDA CALISKAN JOB: LINE WORKER NUMBER OF YEARS WORKING IN FACTORY: 2

“To me, good working conditions mean having freedom at work. I have decided to attend night high school, and the management agrees that I should not work overtime anymore. In factories where there is too much pressure, workers may have psychological problems. But here, we have worker representatives who keep us informed and help us communicate with management. For instance, I informed them that I didn’t like the food and now the representatives and canteen staff are consulting about the lunch menu. I like the friendly atmosphere in the factory.’’

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 2 CONTENTS

President’s Message 4

Foreword 5

Why FLA’s Multi-Stakeholder Approach Works 7

Sustainable Compliance: An Evolving Methodology 8

FLA University Affiliates: A Catalyst for Change 11

Expanding FLA’s Reach through Innovative Solutions 12

Solving Global Issues 14

Monitoring and Verifications 16

Beyond Apparel and Footwear 23

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 3 MESSAGE FROM THE PRESIDENT

n 2010, the international labor signals and poor handling of workers’ community was stunned by the grievances. Foxconn suicides and unsettled It may well be that one of the hangovers by the Honda strike in China. of the command economies of China IThese events, while troubling, were and Vietnam is that employers expect not entirely surprising; the era of an government to run the labor market endless stream of docile workers willing and do not see human resource to labor for low wages had been coming management as an instrument for to an end for some time. The suicides greater competitiveness at the firm and strikes were but two of the most level. But the reality is that treating disturbing signs of underlying turmoil. workers well is not only the right Despite these ongoing catastrophes in thing to do, it is also an investment in the labor market, the global economy a company’s future. At FLA, among has begun its slow recovery from the other tools, we have developed a financial crisis. And while full recovery human resource management self- may be possible, I am convinced that it assessment for companies and a range will not happen without making decent of capacity building materials they working conditions and access to rights can use to fill the gaps identified by advantage by finding yet another a reality for workers across the globe. the self-assessment. By applying an low-cost sourcing base. They must Business leaders must recognize that understanding of regional and global construct supply chains based on their it will be impossible to return to the trends in labor rights and compliance, ability to produce flexibly and quickly market conditions that prevailed before FLA staff is able to work with the without compromising quality or labor the crises, where workers had no voice, companies to develop lasting solutions. standards, and can rely on the support like those at Foxconn and Honda. FLA brings companies, universities and of FLA and its NGO and university While the once silent workers are NGOs together to develop sustainable partners to chart a sustainable path. now speaking louder than ever change that is founded in respect for through demonstrations and strikes, workers’ rights. many employers seem to be deaf to Using a highly collaborative approach the workers’ grievances. Although that convenes multiple stakeholders, authorities in some countries have FLA has impacted the lives of an responded to the labor abuses and estimated 4.6 million workers this unrest by strengthening the laws AURET VAN HEERDEN past year. The efforts of FLA staff and to protect workers, these positive PRESIDENT AND CEO independent monitors in the field have and necessary actions have been led to better working conditions in undermined by weak and inconsistent factories—from better water quality enforcement and by the lack of human to opportunities for organizing and resource management capacity in collective bargaining. companies and the factories that supply them. Human resource management FLA’s multi-stakeholder approach is still a young discipline in several will be even more essential as the countries, including China and global supply chain continues its Vietnam, as evidenced by the grossly metamorphosis. Companies will no inadequate response to labor market longer be able to gain competitive

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 4 I N T R O D U C T I O N

FOREWORD

THE FAIR WAGE YEAR: DEVELOPING THE FAIR WAGE APPROACH

BY DANIEL VAUGHAN-WHITEHEAD, CO-CHAIR OF THE FAIR WAGE NETWORK; PROFESSOR AT SCIENCES-PO, PARIS

here is no doubt that 2010 further than that. In fact, even if a data on almost all fair wage dimensions will be remembered as an factory pays the minimum wage, there at hundreds of suppliers in Asia, South important year for wage can still be wage inequality and disparity America and Europe. This confirmed the developments along the or alienating pay systems. The strength depth of the wage problem. According Tsupply chain. A number of international of the Fair Wage approach lies in its to the 2009 data, fake records on wages campaigns, mostly focusing on the multidimensional nature; in other words, were found at 40 percent of suppliers; living wage, helped to put the question it focuses on a series of interrelated 46 percent reported having problems of wage-level sustainability back on variables in order to capture the full paying overtime; and nearly 30 percent enterprises’ agenda. After years of “wage story” in each enterprise and had problems ensuring minimum development, an initiative also emerged better grasp the reality and complexity of wage compliance. Nearly 50 percent to help enterprises address the issue in the wage-setting process. of suppliers were not using wage grids a sustainable, effective and mutually- to link wage-setting to skills, and 25 I developed the Fair Wage approach to beneficial way. This initiative—called percent had not adjusted wages upwards ensure that it reflects the interests of the Fair Wage approach—is aimed for inflation. Not surprisingly, the supply workers and can be applied globally. The precisely at helping enterprises identify chain was characterized in 2010 by a Fair Labor Association is implementing wage issues in their supply chains and series of social conflicts and strikes that the approach on a large scale, which support the design and implementation undermined the previous stability of the represents a decisive move that should of tangible solutions. production process, and also affected help all enterprises to progress rapidly in the relationship between suppliers and To date, the attention paid to wage issues this rather complex area. brands. has been focused on whether employers Development of the Fair Wage approach comply with the legal minimum wage During the testing phase of the began in 2009, when it was integrated or overtime payments in operating Fair Wage self-assessments, several into FLA’s annual auditing process. This countries. But wage fairness goes much brands completed a questionnaire allowed us to collect information and

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 5 GLOBAL FAIRNESS INITIATIVE

complemented by a series of interviews approach will address fair wage levels, Vaughan- with the workers. This exercise was pay systems and adjustments, but it will carried out for PUMA, among other also encourage and support the ongoing Whitehead brands. social dialogue with regard to wages. developed While the pilot phase confirmed If enterprises ever doubted the important the strength of the approach, it also benefits of fair wages, they became highlighted the difficulties in changing enlightened in 2010. They are recognizing the Fair Wage wage practices of suppliers without more that competition based solely on cheap brands following the same approach. labor is not sustainable—not only in our approach to In a move typical of FLA, affiliates have current deteriorating social climate, but agreed to examine the global issue of also in terms of quality and productivity. ensure that fair wages and the possible benefits of In fact, this past year the Fair Wage wage assessments. This will allow us Network was created (www.fair-wage. it reflects the to complete an even more thorough com), to bring stakeholders together assessment of wage issues by examining to exchange ideas and best practices. interests of practices of suppliers and brands on Recognition and initiating action on wage common ground. issues will likely strengthen the stability of the production process and profitability workers and As important as self-assessments are in the long-run—a powerful incentive for to this process, they should not be businesses to participate. can be applied considered the final destination. Rather, this is the initial stage of a long-term I am confident that the Fair Wage globally. process, which will allow brands to approach and Fair Wage Network deliver what workers, consumers, will lead to the creation of individual NGOs and the general public expect road maps for enterprises, and lead from them: concrete remedial measures to improvements in wage practices to improve wage practices in the field; that will benefit factory workers assurance, together with suppliers, of everywhere. The next year will decent living standards for workers; be decisive, and I look forward to and respect for all legislation on the continuing to work with FLA and its minimum wage and payments for stakeholders toward improvements in hours worked. Indeed, the Fair Wage wage practices in the field.

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 6 WHY FLA’S MULTI-STAKEHOLDER APPROACH WORKS

COMPANIES, UNIVERSITIES & NGOs—WORKING TOGETHER, 2010 FLA Factory Audits and Workers Impacted HAVING AN IMPACT Number of Factories Audited 149 Number of Factories Audited (including audits in shared facilities) 162 he Fair Labor Association’s Estimated Number of Workers in Factories that Received 127,450 multi-stakeholder approach FLA Audits in 2010 brings together NGOs, Total Number of Factories Used by FLA Affiliates 4,703 universities and companies Estimated Number of Workers Impacted by FLA programs 4,651,658 Tto help them recognize and embrace their role in protecting workers’ • Leading discussions on wage In 2010, there were 35 leading brands rights. This system—reflected in issues in the global supply chain. affiliated with FLA as Participating FLA’s governance structure of equal In October 2010, FLA hosted a Companies and 16 Participating representation on its Board of Directors stakeholder forum in Hong Kong, Suppliers. Affiliates that join FLA at for companies, NGOs and universities— which brought together academics, this high commitment level agree to holds all constituents accountable practitioners, and representatives comply with ten obligations, which to each other. Since 1999, FLA has of international organizations, include submitting their entire supply worked with representatives from these companies, trade unions, and chain to the FLA independent external groups to create a safe environment for monitoring organizations to discuss monitoring process. In 2010, American collaboration. recent wage developments and Eagle Outfitters, Estate Europe AB, address wage issues. Read more on prAna, Sanata Holdings, and s. Oliver Today, more than 10 years since its page 17. joined as Participating Companies, inception, FLA is having a noticeable and Dongguan Luen Thai, Ebru Tekstil impact in factories throughout the • Assisting in the resolution of Nakis, Hey Tekstil Sanayi ve Ticaret world and, more importantly, in third-party complaints and other A.S., and Hop Lun (Hong Kong) Ltd. workers’ lives. Three groups—unlikely compliance issues. FLA successfully joined as Participating Suppliers. Other collaborators—have proven their resolved a Third Party Complaint and companies participate in FLA as college ability to work together under the FLA conducted an investigation regarding and university licensees, registering in umbrella where their interests intersect. unauthorized subcontracting. Category B, C or D groups depending It may not be a conventional approach, Read more on page 14. on their size. but it works. FLA made an impact this • Evolving its methodology and past year by: expanding into other industries, • Conducting 149 unannounced such as agriculture. FLA continued factory visits in 21 countries. its work with companies, NGOs and Through these unannounced universities to further develop and independent external monitoring refine its methodology. The evolving audits of factories used by affiliated system will utilize a unique worker companies, FLA verifies companies’ lifecycle approach that looks at how internal monitoring efforts and a factory organizes and implements ensures that the FLA Workplace key functions affecting workers, such Code of Conduct is being enforced. as hiring, training, setting wages Read more on page 16. and work hours, and terminating employment. Read more on page 23.

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 7 SUSTAINABLE COMPLIANCE: AN EVOLVING METHODOLOGY

FROM AUDITS TO LASTING, and global trends in labor rights and take increasing responsibility for the SYSTEMIC IMPROVEMENTS compliance, FLA staff is able to weave progress and sustainability of their labor in local realities to develop lasting compliance programs. rand-name companies solutions. FLA brings factory managers, In 2010, FLA continued working with sourcing products from companies, and NGOs together to companies, NGOs and universities externally owned factories develop sustainable change founded to further develop and refine its are under ever-increasing in respect for workers’ rights. FLA methodology. The evolving system Bpressure to improve working conditions uses knowledge and expertise gained will utilize a unique worker life- in those factories. This has historically through monitoring and assessments cycle approach that looks at how a been done through social compliance to develop special projects that target factory organizes and implements key audits, which identify specific violations persistent regional or sector-specific functions affecting workers, such as and fix them. Not surprisingly, compliance violations. hiring, training, setting wages and work however, some of the same violations Monitoring is, of course, one element hours, and terminating employment. are rediscovered during future audits. of FLA’s approach. However, FLA’s When assessors identify a management Recurring violations and the lack of methodology continues to evolve systems gap, they are able to relate it long-term change at some facilities have in order to deliver real solutions to to a possible violation. These violations resulted in declining trust between problems and to protect workers in both are often directly connected to the buyers and their suppliers, and between the short- and long-term. In 2005, FLA absence of an appropriate management brands and their consumers. It is a began offering tools to factories to help policy or a failure to implement a policy broken system that doesn’t work for them assess their compliance capacity properly. FLA will continue building on the companies or factories and—most and fill compliance gaps; address root this approach, creating more tools and importantly—puts workers at a higher causes of noncompliance; and report resources for its affiliates. Key features risk of exposure to ongoing threats to on ongoing progress. These tools have will be rolled out over the next two their health, safety and dignity. allowed factories to manage labor years. FLA strives to drive lasting change compliance on a self-sustaining basis.

throughout the global supply chain. By Factories have worked in collaboration applying an understanding of regional with affiliated companies and FLA to

NAME: PINAR SEN JOB: SEWING LINE WORKER NUMBER OF YEARS WORKING IN FACTORY: 7

“ Good working conditions build worker-management trust. Because I trust my manager and the owner of the factory, I am happy to come to work every day. Social compliance is very important. We have a worker representative system and—as a result of appropriate communication—we received a prayer room four years ago. There is no pressure at work. Nobody is allowed to curse or shout, and everyone has to respect each other—I like that the most.”

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 8 MY FAIR LABOR ASSOCIATION: HOW FLA’S APPROACH MAKES A DIFFERENCE GLOBAL FAIRNESS INITIATIVE GLOBAL FAIRNESS

“ The collaborative model that FLA has built is uniquely “ FLA has drawn on their archives of thousands of effective at both holding stakeholders accountable, and independent external monitoring visits to develop fostering stronger cooperation between buyers, worker and sponsor activities that directly confront chronic groups and organizations like mine. I genuinely feel that noncompliance issues in global workplaces. These our work through FLA is making a real difference towards innovative activities are changing the compliance improving conditions for workers around the globe.” landscape and providing solutions for fair wages,

—KAREN TRAMONTANO, GLOBAL FAIRNESS INITIATIVE more effective worker-management communication mechanisms, and monitoring standardization using a methodology that focuses on employment lifecycle “ The University of Notre Dame has high expectations benchmarks.” regarding the level of corporate social responsibility —GREGG NEBEL, ADIDAS-GROUP commitment demonstrated by our licensees. FLA provides training and educational opportunities for licensees while simultaneously providing the University “ Esquel, like most suppliers, is regularly exposed to new with feedback regarding the licensees’ progress in government regulations and customer requirements/ meeting company obligations. Notre Dame uses this standards. After a review of several multi-stakeholder information when evaluating prospective licensees as well initiatives, we decided to become an FLA Participating as reviewing licensee requests for contract renewals.” Supplier because FLA has taken quite a number of steps to give suppliers a seat at the table with the brands, —MICHAEL S. LOW, UNIVERSITY OF NOTRE DAME retailers and NGOs. We also believe we can have open and honest discussions about improving working “ Nike has been evolving its mindset and its field conditions and promoting fair labor throughout the global operations away from a compliance auditing model supply chain, along with the practical realities of the towards a coaching model for factory partners focusing complex business environment in which we work. Being on continuing improvement in sustainability (lean, part of FLA has also helped Esquel strengthen its internal green, equitable and empowered). We are excited to monitoring system, which supports our continuous drive be partnering with FLA in this process, and are looking for better working conditions all around.” forward to continued partnership with FLA in the —TAMMY RODRIGUEZ, ESQUEL GROUP development of industry-wide tools to build sustainable

supply chains in the footwear and apparel industry.”

—AMANDA TUCKER, NIKE

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 9 SUPPLIER OVERVIEW 2010 Top Ten Countries Hosting Factories Supplying FLA Companies* Country Number of Factories Percent of Total In 2010, FLA-affiliated companies reported that they sourced from 4,703 China 1,792 38.10% factories, located in 73 countries. USA 366 7.78% The largest concentration of factories Vietnam 323 6.87% supplying FLA companies in 2010 was in China, where 1,792 factories or 38.1% of Turkey 286 6.08% the factories were located. India 247 5.25% Indonesia 238 5.06% An estimated 4.6 million workers were employed by facilities supplying FLA Thailand 160 3.40% affiliates in 2010. As a group, the top Bangladesh 153 3.25% ten locations accounted for over 87% of Mexico 78 1.66% total employment in factories supplying FLA companies. China also accounted Cambodia 75 1.59% for the largest number of workers in TOP TEN 3,178 79.04% factories supplying FLA affiliates, with an Rest of the world 1,525 20.96% estimated 1.8 million workers.1 Total 4,703 100% *Participating Companies, Participating Suppliers, and Category B Licensees

1. In some instances, employment levels are estimated since employment information was not available for each factory. In such cases, missing data were extrapolated from factories in that country for which data was reported. 2010 Top Ten Countries with the Largest Workforce in Factories Supplying FLA Companies (in thousands)* Country Estimated Number of Workers Percent of Total China 1,815 39.0% Vietnam 739 15.9% Indonesia 525 11.3% Bangladesh 238 5.1% India 200 4.3% Thailand 173 3.7% Cambodia 137 2.9% Sri Lanka 93 2.0% Honduras 81 1.7% Turkey 80 1.7% TOP TEN 4,081 87.7% Rest of the world 571 12.3% Total 4,652 100 *Participating Companies, Participating Suppliers, and Category B Licensees

Distribution of Suppliers by FLA Region (percent of suppliers) Region 2006 2007 2008 2009 2010 Americas 19.1 16.0 16.7 17.2 16.6 EMEA 11.2 9.9 8.3 13.1 10.3 South Asia 7.2 8.3 9.9 10.8 11.6 East Asia 45.3 48.0 45.8 41.3 42.3 Southeast Asia 17.2 17.8 19.4 17.6 19.2

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 10 FLA UNIVERSITY AFFILIATES: A CATALYST FOR CHANGE UNIVERSITY OF NOTRE DAME UNIVERSITY OF DELAWARE

early 200 universities in FLA staff conducted licensee visits the United States and in 2010 to enhance capacity building With more than Canada are affiliates of and training—reviewing compliance FLA. For colleges and programs, providing resources and 3,000 collegiate Nuniversities whose students are both support, and conducting due diligence consumers and—in many cases—social activities. FLA also continued licensees now justice advocates, it is a core value to integrating Category C licensees into ensure that workers’ rights are respected the Enhanced Licensee Program. registered with in factories that manufacture collegiate To ensure continuous improvement of products. Universities play a crucial working conditions and help licensees FLA, university role as thought leaders, helping to bring move toward sustainable compliance, attention to workers’ rights and to move FLA offered in-person and web- affiliates the dial forward in improving working based trainings, tools and resources conditions in factories around the globe. throughout the year. These efforts significantly FLA university affiliates weigh their confirmed licensee compliance and licensing decisions carefully and take verified that the Workplace Code of expand the steps to ensure that their licensees— Conduct was being upheld. companies producing apparel and University affiliates play an active role organization’s other products bearing the universities’ in shaping FLA programs. With more logos—recognize and contribute to than 3,000 collegiate licensees now the fulfillment of the university’s scope and impact registered with FLA, university affiliates commitment to workers’ rights. significantly expand the organization’s FLA supports university affiliates in throughout the scope and impact throughout the world. holding their licensees accountable for Learn more about Category B, C and D enforcing the FLA Workplace Code of world. licensees at www.fairlabor.org. Conduct in the factories that supply these products.

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 11 EXPANDING FLA’S REACH THROUGH INNOVATIVE SOLUTIONS

LA develops special projects struggle to identify whether the cotton Achieving Sustainable Compliance in that complement existing they use in production embodies human Bangladesh programs and improve workers’ rights violations or threatens labor and Since its inception more than two years lives. Through its work in environmental standards. ago, the Promotion of Responsible Fthe field and andby engaging a variety Representation for Workers and Working toward a solution to this of stakeholders in an open and honest problem, FLA launched its Cotton Employers (PREPARE) project in dialogue, FLA identifies areas needing Project and conducted a pilot exercise Bangladesh has improved the efficacy of special attention and works with to transparently trace cotton along worker representation in three factories multiple stakeholders on innovative an entire supply chain of apparel by providing a platform for labor- solutions to systemic issues at the producers to identify risks in the management dialogue; establishing a industry or regional level. chain. Based on the findings, FLA then system of communication, consultation, developed a Product Tracking Tool that and negotiation; providing capacity training to worker representatives and Mapping Supply Chains for Better companies may use to trace products Cotton and proactively identify risks. The tool, factory management on their roles tested throughout the supply chains and responsibilities; and promoting a Globalization has led to the of cotton, leather and synthetics in sustainable training model that ensures development of supply chains that span India, allows companies to trace the that all workers and supervisors in the multiple countries and have distinctive product all the way back to its origin at factory receive regular training on local and wide-ranging economic, political, the time of design conceptualization. labor laws. PREPARE entered its final social, labor and environmental FLA assisted in the adoption of the stage in 2010, with Independent External standards. This poses a unique tool, which will help companies take Assessments (IEA) being conducted at challenge to companies, producers and preventative measures and improve all three factories. Project participants consumers trying to trace the origin of compliance and sustainability. advised on next steps, which will include products to ensure the sustainability of preparation of IEA reports and the supply chains and to monitor working development of capacity building training conditions throughout. This challenge modules such as Worker Integration is especially prominent in the apparel and Dialogue. Final reports and training industry, where some companies materials will be available in 2011.

NAME: ERCAN ISIK JOB: PACKAGING LINE WORKER, AND WORKER REPRESENTATIVE NUMBER OF YEARS WORKING AT FACTORY: 2.5

“ The most important things to me are harmony with my co- workers and the respectful approach of my managers. To me, good working conditions mean having appropriate working hours, steady transportation and meals at the workplace. I have been in this sector for twenty years, and this is the best factory ever because the workers are valued and treated well due to social compliance.”

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 12 Ethical Fashion in Kenya and Uganda One innovative element of this process, photo elicitation, helped illustrate the One innovative The International Trade Center’s (ITC) day-to-day lives of the workers, painting Ethical Fashion Program supports a more complete picture of the program’s element of the the development of marginalized impact on workers’ lives. Photo elicitation communities of women in Kenya and (see below) is an explorative approach Uganda—mostly groups of micro- research process, among a small sample of workers to producers based in poor rural and urban discover what a typical workday looks settings. By enabling international photo elicitation, like; how workers view their lives, their distributors and fashion houses to source work, and their community; what is fashion and lifestyle products from helped illustrate most important to them; and how the these communities, ITC has created an Ethical Fashion Program is embedded innovative yet complex supply chain. This the day-to- into their daily routines. As the workers is where FLA comes in, offering expertise are provided with disposable cameras to in monitoring labor standards throughout capture images from their own lives, this day lives of the a supply chain which includes informal method offers an unfiltered perspective workshops, communities and home- that is essential to the program’s long- workers. based work. term success. Initial research has been FLA and ITC are developing a completed, and FLA will continue methodology to measure the impact working with ITC to develop its of the Ethical Fashion Program on the methodology and ensure it is consistent capabilities, livelihood and well-being with FLA standards and the Workplace of the workers involved in the program. Code of Conduct.

Photo elicitation offers an unfiltered glimpse into the lives of working women in Kenya and Uganda.

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 13 SOLVING GLOBAL ISSUES

ACHIEVING RESOLUTIONS • Mandatory overtime work; (Wande), which supplies soccer and THROUGH FLA volley balls to a dozen sports equipment • Verbal harassment of workers by brands from the United States, Europe nannounced external supervisory staff; and Japan. The companies were monitoring in factories • Unkempt bathrooms, insufficient especially concerned about whether around the world helps supplies of toilet paper and soap, and subcontracting activities in Wande’s to highlight violations in numerous other health and safety supply chain might give rise to the use Ufactories, but FLA Accredited Monitors violations throughout the factory; and of home workers, underage workers, or cannot be everywhere at once. That is even prison labor in the production of why FLA relies on workers, companies, • Coaching of workers by supervisors footballs. NGOs or any other stakeholder to file prior to audits by the brands. complaints about persistent factory FLA assembled an Assessment Team Based on the findings, adidas and issues through its Third Party Complaint consisting of independent monitors other brands worked with Chi Fung process. In 2010, FLA successfully from three FLA-accredited firms in management to develop a joint resolved a Third Party Complaint and China. Prior to making unannounced remediation plan to address the conducted an investigation regarding visits to the facilities, the Assessment noncompliances. FLA met with unauthorized subcontracting. Team consulted with local civil society stakeholders in San Salvador to review organizations and conducted research the remediation plan and provide on football production in the region to Chi Fung S.A de C.V oversight during its implementation. learn about: 1) the existence of industry- Several workers at the Chi Fung factory wide subcontracting and home work; in San Salvador, El Salvador, filed a Shanghai Wande Sporting Goods and 2) the possibility of unauthorized or complaint of alleged labor violations Company hidden subcontracting, home workers, including forced labor and harassment In the fall of 2009, three FLA child labor, prison labor, and production or abuse. One of the factory’s buyers, Participating Companies—Nike, New of counterfeited goods. adidas-Group, therefore commissioned Balance and PUMA—requested that The Assessment Team found an investigation which confirmed a FLA conduct an assessment of Shanghai that subcontracting in the ball number of the allegations, including: Wande Sporting Goods Company manufacturing industry is common

NAME: SABAN BAKACAK JOB: PACKAGING LINE WORKER NUMBER OF YEARS WORKING AT FACTORY: 9

“ Good working conditions mean having peace of mind at the workplace. As long as the payments are on time and the overtime is appropriate, I want to work for more years in the same factory. Social compliance ensures that overtime is voluntary in our factory and there is no pressure.”

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 14 in China, and that ball factories in the lives from long working hours over an Shanghai area frequently subcontract extended period of time. They asked Information orders to small workshops as a way to for a maximum of 10 working hours fulfill large orders and mitigate resource per day; frequent and reliable breaks; gathered from constraints. FLA recommended that and some guaranteed days of normal the brands enhance their ability to working hours and rest. the factories detect unauthorized subcontracting in In addition to focus group discussions, their supply chains; establish proper FLA increased worker participation in progress systems and policies regarding labor through its training module in China compliance by subcontractors and and Bangladesh this year. The Worker reports this conduct assessments on a regular Participation training module—which basis to identify risks in subcontracted consists of three training sessions over year revealed factories; set up remediation programs a 3-6 month period—examines existing to support contractors in addressing dialogue and communications systems noncompliance issues at subcontracted that workers and helps worker representatives facilities; and further investigate and management understand how to possible unauthorized subcontracting experienced better communicate with each other with Wande. to resolve conflicts. Throughout this greater freedom process, workers and management ASSESSMENT, CAPACITY apply lessons learned during trainings to make BUILDING AND TRAINING and submit monthly progress reports to demonstrate progress. suggestions Strengthening Workers’ Voices Information gathered from the through Increased Participation factories in progress reports this year and express In August 2010, FLA piloted its new revealed that workers experienced standardized focus group discussions greater freedom to make suggestions their opinions, approach to better integrate workers’ and express their opinions, and were perspectives into assessment activities. more aware of their rights at the and were more These discussions typically involve six to workplace. Workers also indicated that ten workers in a relaxed environment, communications channels were better which encourages workers to express maintained and that they had input aware of their themselves openly and discuss sensitive regarding work shift changes and policy issues candidly. The pilot discussions decisions. Management indicated that rights at the were held in three Chinese factories and the trainings resulted in improved focused on working hours, providing communications skills and that workplace. workers’ perspectives on overtime and problems were resolved more quickly. wages—insights that are often difficult The progress reports also indicated that to obtain through typical assessment some unfairness and dissatisfaction still methods. existed, and workers complained that in some cases, issues took too long to During the discussions, workers resolve and work was poorly organized. expressed that they would not want to This input will help FLA further refine work overtime if their monthly salary its training programs and identify areas reached RMB 1600 (approximately USD for improvement within the factories. 2461) and that they experience negative impacts on their health and social

1. As calculated with an exchange rate of RMB 6.505 to USD 1.00

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 15 INDEPENDENT EXTERNAL MONITORING

LA is committed to ensuring 2010 IEMS by Country 2010 IEMs by Country the implementation of its Workplace Code of Conduct. 60 Upholding that commitment 53 Frequires due diligence. A core 50 component of the FLA’s program is 40 conducting unannounced Independent

External Monitoring (IEM) of factories 30

used by FLA affiliates andevaluating 22 compliance with all code elements. 20

12 Submitting to the FLA’s monitoring 11 9 program is one of the ten obligations 10 8 5 5 5 3 2 2 2 2 2 affiliated companies are required to 1 1 1 1 1 1 0 fulfill. Transparency is a foundational pillar of the FLA process, and therefore, the findings for all inspections are posted to our website as Tracking Charts, which can be found at 2010 IEMS by Region www.fairlabor.org under Public Reporting.

In 2010, FLA-accredited monitors conducted 149 factory visits in 21 countries in the Americas, East Asia, Europe, the Middle East and Africa (EMEA), South Asia and South East Asia. Participating Companies accounted for a majority of the IEM audits in 2010, with 99 of 149 audits. FLA-accredited monitors conducted 10 Americas (40) EMEA (15) audits for Participating Suppliers, a new South Asia (19) but expanding group of affiliates. There East Asia (53) SE Asia (22) were 32 IEMs conducted for Category B Collegiate Licensees. In 2009, pilot IEM audits were initiated for Category C Licensees. In 2010, 10 licensees in this category received IEMs, 8 of which 1. One of these audits was shared by a also received simultaneous headquarter Participating Company and a Category B visits to verify the responses they Licensee, and another by two Category C Licensees, which were counted twice provided in their Licensee Profile and in the breakdown by affiliate category Self Assessment.1 above.

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 16 EXAMINING WAGES ALONG THE SUPPLY CHAIN

n October 25, 2010, encouraged FLA to continue leading legal requirements but they also gauge FLA convened a second a dialogue on wage issues. In 2010, the extent to which wages within an stakeholder forum on FLA launched www.fair-wage.com to enterprise are equitable, result from the issue of wages. The help stakeholders share wage data, social dialogue and reward workers for Oforum, titled “Wages Along the Supply wage setting mechanisms, and best their contribution. Chain: Developments and Responses,” practices; and encourage commitments In addition to defining fair wages, was held in Hong Kong at the offices from brands to support anonymous Mr. Vaughan-Whitehead has also of Participating Company Phillips-Van self-assessments of their suppliers on developed a methodology to audit Heusen Corporation, and brought wages in order to develop a database the implementation of its different together academics, practitioners, that would permit analysis of wage dimensions and tested it at a number of and representatives of international information and development of factories in China and Vietnam. Read organizations, companies, trade unions, strategies going forward. more in this report’s foreword. and monitoring organizations to FLA also continued working with discuss recent wage developments and FLA will continue exploring—and Professor Daniel Vaughan-Whitehead responses to address wage issues. advocating for—fair wages, and on the conceptualization of fair bringing stakeholders to the table to This event was a follow-up to the wages. Fair wages is a more dynamic find sustainable solutions. 2009 FLA stakeholder forum, “Wages and comprehensive concept than the Along the Supply Chain: Assessment meeting of a given wage level; not only and Prospects,” in which participants do they comprise compliance with all

“ C.CAWDU is standing firmly to defend workers’ rights in Cambodia—especially regarding wage issues—so that Cambodian workers can support their families. Collaborating with organizations like FLA helps C.CAWDU and workers to have a stronger voice and advocate for better negotiations toward decent wages for all.”

—ATHIT KONG, COALITION OF CAMBODIAN APPAREL WORKERS’ DEMOCRATIC UNION (C.CAWDU)

“ As a major buyer of garments, ensuring fair and sustainable wages paid by our suppliers in the global garment supply chain is essential for us. FLA’s work and our joint projects are important to H&M and the industry as a whole.”

—LARS-AKE BERGQVIST, H&M HENNES & MAURITZ AB

“ Wage inequality and disparity often exist even if a factory pays the minimum wage. The concept of fair wages is more dynamic and comprehensive than the meeting of a given wage level.” —DANIEL VAUGHAN-WHITEHEAD, SCIENCES-PO, PARIS H&M HENNES & MAURITZ AB

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 17 CODE COMPLIANCE AND REMEDIATION

he FLA’s Workplace Code regard to complex noncompliance of Conduct is based on issues and involve both short-term Different International Labour solutions as well as long-term systemic Organization (ILO) change. forms of Tstandards. Each code element is Each code element is evaluated based supported by specific benchmarks on a combination of compliance noncompliance that help us measure a factory’s benchmarks: compliance with that code element. lead to different At least one benchmark in the Health • Substantive benchmarks are and Safety code element was breached considered a direct violation of the approaches in 95 percent of the factories audited rights and duties embodied in the FLA in 2010. There were also numerous Workplace Code of Conduct. and timing noncompliances in factories for Hours • Procedural benchmarks refer to of Work, Freedom of Association, and systems or administrative processes Wages, Benefits, and Overtime. regarding whose absence in a factory could lead FLA affiliates are responsible for to the violation of a code provision. remediation working with the factory following an • Miscellaneous benchmarks refer IEM audit to develop a corrective action to issues that do not fit neatly into plans. plan to address the noncompliances, to existing FLA benchmarks. conduct follow-up visits to ensure the plan is implemented, and to provide This distinction is important because, status reports to FLA. as you will note below, the vast majority of noncompliances with respect to the Different forms of noncompliance lead Child Labor code element were of a to different approaches and timing procedural or miscellaneous nature regarding remediation plans. Some (90% in 2010) rather than a direct noncompliances may be relatively easy violation involving the employment to fix, such as adding fire extinguishers of children. Procedural violations or recharging them. In these cases, included, for example, not having an remediation can be carried out quickly age verification system that meets FLA and documented through certificates, standards or ignoring certain legal photographs and other simple procedures, such as employing juvenile documentation. workers of an eligible age but who Other noncompliances, however, are have not registered with the local labor more complex and take much longer bureau or who have not had the physical to remediate, such as violations of examination required by law. More freedom of association, discrimination, details on the FLA benchmarks can be or excessive hours of work. In these found at www.fairlabor.org. cases, it is instructive to investigate The charts below show the distribution the root cause of the noncompliance, of noncompliances by code element for which could be a policy, procedure 2010. or implementation issue. Multi-year remediation plans are common with

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 18 COMPLIANCE

2010 Non-Compliances by Code2010 Element Non-­‐Compliances by Code Element

100% 95%

90%

80% 74% 72% 73% 70%

60% 52% 50% 141

110 40% 109 Percent of Factories 36% 87 107

29% 30%

22% 77 20% 54 39 43 10% 33

0% Forced Labor Child Labor Harassment or Discrimina?on Health & Safety Freedom of Wages, Benefits & Hours of Work Abuse Associa?on Over?me

There were 674 instances in which at least one benchmark of the FLA Workplace Code of Conduct was breached.

2010 Procedural vs. Substantive2010 Non-Compliances Procedural vs. Substan@ve Non-­‐Compliance

100% 2 12 1 6 5 4 4

90% 164 40 12 80% 104 124 90 70%

53 60% 37 50%

40% 537 40 113 201 30% 135 74 20% 25 10% 4 0% Forced Labor Child Labor Harrassment or Discrimina@on Health & Safety Freedom of Wages, Benefits Hours of Work Abuse Associa@on & OT

Substan@ve Procedural Miscellaneous

There were 1,787 instances of noncompliance based on the benchmarks reported by accredited monitors in 2010, which translates into an average of 12 instances of noncompliance per factory inspection.

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 19 2009 Regional Non‐Compliances in Comparison 2009 Regional Non‐Compliances in Comparison 2010 Regional100% Non-Compliances in Comparison2010 Regional Non-­‐Compliances in Comparison 100% 90% 100% 90% 80%

ype 80%90%

ype 70% 70%80% 60% 60%70% 50% 50%60% 40% 40%50% 30% 40% 30%

% of IEMs with Noncompliance T 20% 30%

% of IEMs with Noncompliance T 20% 10%

% of IEMs with Noncompliance Type % of IEMs with Noncompliance Type 20% 10% 0% 10% 0% ty T tion fe tion ork 0% ty T e ork ced Labor tion f tion fits & O s of W Child Labor t or Abuse For ced Labor Discrimina fits & O Hours of W Child Labor t or Abuse Health &Sa For assmen es, Bene Discrimina Health &Sa ag Hour Har assmen eedom of Associa W es, Bene Fr ag Har eedom of Associa W Fr Americas East Asia EMEA South Asia SE Asia Americas East Asia EMEA South Asia SE Asia Overview: The 149 audits conducted Americas across all five regionsEast Asia resulted inEMEA 1,787 findingsSouth of noncompliance, Asia SE Asia or roughly 12 findings of noncompliance per audit. The code element most frequently breached was Health and Safety, with at least one breach of the benchmarks associated with this code element identified in 141 out of 149 audits (95%), followed by one or more in 110 of the audits (74%) for Hours of Work and 109 (73%) in Wages, Benefits, and Overtime.

The Americas: The 40 audits conducted East Asia: The 53 audits conducted South East Asia: The 22 audits conducted in the Americas resulted in 271 findings in East Asia resulted in 702 findings of in South Asia resulted in 295 findings of of noncompliance, or roughly 6.8 findings noncompliance, or roughly 13.2 findings noncompliance, or roughly 13.4 findings of noncompliance per audit. The code of noncompliance per audit. For all 53 of noncompliance per audit. One or element most frequently breached in IEMs conducted in China, FLA-accredited more of the benchmarks associated with the Americas was Health and Safety, with monitors recorded a violation of the Health and Safety were recorded by at least one breach of the compliance benchmark regarding the right to freedom FLA-accredited monitors as breached in benchmarks associated with this code of association.* Noncompliances were all 22 audits. For all 12 IEMs conducted element identified in 35 out of 40 IEMs. also high for Health and Safety, Hours of in Vietnam, there was a violation of the Work, and Wages, Benefits and Overtime, benchmark regarding the right to freedom EMEA: The 15 audits conducted in the with at least one benchmark in each of association. In total, 18 out of 22 audits EMEA region resulted in 189 findings of element breached in at least 47 of 53 (82%) conducted in the region had at least noncompliance, or roughly 12.6 findings audits. one noncompliance with respect to the of noncompliance per audit. At least one Freedom of Association and Collective benchmark relating to the Hours of Work South Asia: The 19 audits conducted Bargaining code element.* * and Health and Safety elements was in South Asia resulted in 330 findings of breached in each of the 14 audits conducted noncompliance, or roughly 17.4 findings in the region. Noncompliances were also of noncompliance per audit. In all of the high for Freedom of Association with at 19 audits conducted in the region, FLA- least one benchmark of this code element accredited monitors recorded at least breached in 12 of 15 inspections. one violation of the benchmark regarding Health and Safety, Hours of Work, and Wages, Benefits, and, Overtime.

* Each of the IEMs conducted in China has the following text included on the corresponding tracking chart to reflect the systemic noncompliance with the FLA benchmark on Freedom of Association: “The Chinese constitution guarantees Freedom of Associations (FOA); however, the Trade Union Act prevents the establishment of trade unions independent of the sole official trade union—the All-China Federation of Trade Unions (ACFTU). According to the ILO, many provisions of the Trade Union Act are contrary to the fundamental principles of FOA, including the non-recognition of the right to strike. As a consequence, all factories in China fall short of the ILO standards on the right to organize and bargain collectively. However, the government has introduced new regulations that could improve the functioning of the labor relations mechanisms. The Amended Trade Union Act of October 2001 stipulates that union committees have to be democratically elected at members’ assemblies and trade unions must be accountable to their members. The trade union has the responsibility to consult with management on key issues of importance to their members and to sign collective agreements. Trade unions also have an enhanced role in dispute resolution.”

* * Each of the IEMs conducted in Vietnam has the following text included on the corresponding tracking chart to reflect systemic noncompliance with the FLA benchmark on Freedom of Association:: “Vietnam has not ratified ILO Conventions 87 or 98. Under Vietnamese law, all unions are required to affiliate with the single trade union, the Vietnam General Confederation of Labor (VGCL), which is affiliated with the Communist Party. With respect to such union monopolies, the ILO Committee on Freedom of Association has stated that the rights of workers to establish organizations of their own choosing implies… the effective possibility of forming… [trade unions] independent both of those which exist already and of any political party. Vietnam’s legal framework is therefore not compatible with the ILO Principles on Freedom of Association and, as such, all factories in Vietnam fail to comply with the FLA Code standard on Freedom of Association.”

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 20 INDEPENDENT EXTERNAL VERIFICATION

LA selects a sample of the challenging noncompliance issues, such audits conducted in previous as nonpayment of wages, egregious As we have years and arranges for an safety and health violations, freedom of accredited independent association, and harassment or abuse come to Fexternal monitor to revisit the factories issues. FLA targets cases for verification to verify that corrective actions were based on the severity of the issues that understand taken to remedy noncompliances. In emerged from the IEM audits. 2010, FLA conducted 38 Independent Second, when returning to these the limitations External Verifications (IEVs) of factories, FLA-accredited monitors corrective action plans for inspections were asked to focus on the original of monitoring, conducted in previous years. In our noncompliances or risks of experience, a two- to three-year period noncompliance identified in the original FLA has been should elapse between the development IEM audits and to evaluate progress of a corrective action plan and a toward remediation. The monitors were verification assessment in order to be at the forefront also asked to cite any new noncompliance able to measure the impact of the more issues they observed. complex remediation plans. Verification of developing reports are posted on the FLA website The largest number of noncompliances alongside other Tracking Charts. monitors reviewed was in the Health and a sustainable Safety area, reflective of the distribution Two important points should be of noncompliances for all inspections in taken into consideration in reviewing compliance general. Since the verification audits were the results of the verifications. First, weighted toward re-evaluating situations unlike inspections that are selected methodology where complex and critical issues had at random, the verification visits emerged in the inspections, there were target factories facing critical and that we believe a higher number of cases involving will have significant impact for positive change at the factory level.

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 21 harassment or abuse than usually found in general audits.

Verifications illustrate a challenge with using a monitoring system alone for due diligence. An unannounced, external audit of a factory provides a snapshot of issues within the factory at a point in time but does not identify the root causes of the problem. In revisiting factories to verify remediation of past noncompliances, monitors often identified additional or new noncompliances. As we have come to understand the limitations of monitoring, FLA has been at the forefront of developing a sustainable compliance methodology that we believe will have significant impact for positive change at the factory level.

2010 IEVs by Region In 2010, 55% of noncompliances were found Region Number of Verifications Percent to be fully remediated by FLA affiliates and their suppliers, and in 78% of the issues Americas 10 26% identified previously, monitors were able East Asia 9 24% to verify full or partial remediation. Among EMEA 5 14% the revisited factories, 118 new findings South Asia 7 18% of noncompliances surfaced during the verification audits, requiring additional Southeast Asia 7 18% remediation steps. The majority of the TOTAL 38 newly-identified noncompliances were also in Health & Safety (40%), followed distantly by Hours of Work (15%). 2010 Verification Audit Results by Code Element

Code Element Complete / Improved / No Risks Risks Not Total % Success New Verified Ongoing Change Addressed Addressed Original Rate* Findings Code Awareness 30 8 15 1 5 59 66% 3 Forced Labor 18 2 3 1 0 24 88% 5 Child Labor 12 3 1 2 0 18 94% 0 Harassment or Abuse 15 8 8 2 0 33 76% 6 Discrimination 10 0 3 5 0 18 83% 3 Health & Safety 126 40 36 14 1 217 83% 47 Freedom of Association 14 5 12 7 4 42 62% 8 Wages & Benefits 59 11 13 5 2 90 83% 17 Hours of Work 30 15 20 4 3 72 68% 21 Overtime Compensation 15 3 5 1 0 24 79% 6 Miscellaneous 6 2 1 0 0 9 89% 2 Total Verifications 335 97 117 42 15 606 78% 118 % By Status 55% 16% 19% 7% 2% n/a n/a n/a

*Completed plus improved remediation plus risks addressed.

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 22 BEYOND APPAREL & FOOTWEAR

USING FLA’S APPROACH TO END CHILD LABOR AND OTHER NONCOMPLIANCES IN AGRICULTURE

oncerns about unfair labor practices prevailing in the agriculture sector continued to escalate at the turn of the Ccentury. Although many improvements had been made in the footwear and apparel industries, FLA recognized that a lack of standards and monitoring in the agriculture industry was making it impossible to improve working conditions universally. Reports of poor working conditions in the industry poured in from across the globe—from child labor in hybrid seed Syngenta’s Me & Mine program teaches students in a village school about labor standards. production; to poor working conditions in Syngenta has collaborated with local One area identified for improvement cotton production in Uzbekistan, Pakistan growers, schools, and local and village was engagement with female workers, and India; and unfair treatment of workers government officials to launch several which was limited due in part to local at cocoa farms in Africa and coffee estates awareness-building programs on cultural norms. To ensure women were in Central America. preventing child labor and health and receiving adequate training, female safety violations, and created tools mobilizers were recruited to interact with In 2004, FLA launched a pilot project in local languages, such as the “Best the women and their families. Innovative with Syngenta Seeds Inc., a Swiss Seed Production Practices” booklet. communications techniques—such as agro-business seeking assistance with Additionally, Syngenta developed board games to support training—have monitoring of working conditions procedures for reporting grievances. proven highly successful. throughout its global hybrid seed supply chain. Since the project’s launch, FLA has In 2010, each of the more than 12,000 Over the past year, Syngenta has built an in-depth understanding of the hybrid vegetable seed farms in India developed its program, consulting in India tasks and risks involved in hybrid seed were internally monitored and received with business, NGOs and universities to production, and developed and tested follow-up visits. Analysis of the data measure impact and develop next steps. a monitoring system and agriculture- collected during these visits showed an The company also participated in the specific benchmarks, which are based on improved level of compliance throughout Child Care Program—a joint initiative ILO conventions and FLA’s Principles of the Syngenta supply chain. Analysis of seed companies in collaboration with Fair Labor and Responsible Sourcing. of the data collected through internal NGOs and governments to address monitoring of 100 percent of hybrid the problem of child labor in seed Since the launch of the project, vegetable seed farms in India in 2010 production activities. Syngenta has developed a child showed an improved level of compliance labor monitoring tool for the farms; In January 2010, FLA and Syngenta throughout the Syngenta supply chain. introduced an incentive scheme to agreed to significantly expand the scope Okra production, for example, showed a reward growers who are consistently in of the project. Efforts in the next year will reduction of child labor noncompliance compliance; and created a progressive focus on growing the program in India from 1.76% in 2007 to 0.04% in 2010; disciplinary policy to blacklist growers to include field crops and conducting and health and safety noncompliance was found delinquent on child labor for initial mapping and risk evaluations in reduced from 45% in 2007 to 6% in 2010. two consecutive production seasons. Romania, Brazil and Argentina.

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 23 “ FLA has done pioneering work in establishing decent conditions of labor in India’s agriculture sector. It has focused not only on child labor but also on minimum wages. Syngenta should be complimented for its commitment to ethical work standards in its production areas. DRMU wishes that such standards be also adopted in the cottonseed plots of Gujarat, where children continue to be deployed in large numbers.”

—SUDHIR KATIYAR, DAKSHIN RAJASTHAN MAZDOOR UNION (DRMU)

“ Since 2004, Syngenta has partnered with FLA to develop new approaches to improve working conditions on farms in India supplying seeds to Syngenta. These programs are increasing

awareness on the farm and within rural communities about DRMU health and safety, child labor, education, acceptable working hours and wages. Through this partnership, Syngenta and FLA are helping thousands of farmers to improve their working environments and live better lives.”

—DR. JUAN GONZÁLEZ-VALERO, SYNGENTA

“ The progress observed for workers in the agricultural supply chain results from the collaboration between stakeholders, including Syngenta staff, that is the hallmark of FLA. Working together, stakeholders can find innovative solutions for difficult labor challenges. This progress resonates strongly with university communities that hold social justice as a core value and are actively engaged in its achievement.”

—MARSHA DICKSON, UNIVERSITY OF DELAWARE;

EDUCATORS FOR SOCIALLY RESPONSIBLE APPAREL BUSINESS DRMU

NAME: BHANDARNATH SHIRIPATH SHIRLAKAR JOB: SEED FARM OWNER NUMBER OF YEARS ASSOCIATED WITH SYNGENTA: 10

“ FLA monitoring has helped me substantially, and has taught me more about the importance of child education and the evils of child labor. Even if FLA were to discontinue monitoring working conditions on the farms, I would never engage children here. I want to help break the vicious cycle of child labor and poverty. Children form our future generations.”

FAIR LABOR ASSOCIATION n 2010 ANNUAL REPORT 24 H&M HENNES & MAURITZ AB To learnmore aboutaffiliatingorgettinginvolvedwithFLA, Join theFairLaborAssociationinprotecting workers’rights and improving workingconditions worldwide. or [email protected] 1111 19thStreet NW, Suite401 visit www.fairlabor.org Washington, DC20036 www.fairlabor.org 202-898-1000