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Between the Domination of Transnational Companies and Its Awarded Theses 2018/2019 Mahesti Hasanah Between the domination of transnational companies and its discourse on business and human rights Contract farming and banana small farmers in the Davao Region (The Philippines) APMA, The Master’s Programme in Human Rights and Democratisation in Asia Pacific MAHESTI HASANAH BETWEEN THE DOMINATION OF TRANSNATIONAL COMPANIES AND ITS DISCOURSE ON BUSINESS AND HUMAN RIGHTS: CONTRACT FARMING AND BANANA SMALL FARMERS IN THE DAVAO REGION (THE PHILIPPINES) MAHESTI HASANAH FOREWORD The Global Campus of Human Rights is a unique network of more than one hundred participating universities around the world, seeking to advance human rights and democracy through regional and global cooperation for education and research. This global network is promoted through seven Regional Programmes which are based in Venice for Europe, in Sarajevo/Bologna for South East Europe, in Yerevan for the Caucasus, in Pretoria for Africa, in Bangkok for Asia- Pacific, in Buenos Aires for Latin America and the Caribbean, and in Beirut for the Arab World. Every year each regional master’s programmes select the best master thesis of the previous academic year that is published online as part of the GC publications. The selected seven GC master theses cover a range of different international human rights topics and challenges. The Global Campus Awarded Theses of the academic year 2018/2019 are: • Begalieva, Nuriza, From Democracy to Autocracy? Growing Threats to Civil Society and Media in Kyrgyzstan, Supervisor: Arusyak Aleksanyan, Yerevan State University. Master’s Programme in Human Rights and Democratisation in the Caucasus (CES), coordinated by Yerevan State University • El-Hawary, Nouran Refugees ad Migrant Access to Health in Transit Countries: Politics of Adaptability, Enactment of Slow Death and Inevitability of Pain: an Ethnography of Poor Urban Neighborhood in Rabat (Morocco), Supervisor: Jeremy Gunn, International University of Rabat (UIR). Arab Master’s Programme in Democracy and Human Rights (ARMA), coordinated by Saint Joseph University (Lebanon). II TRANSNATIONAL COMPANIES, BUSINESS AND HUMAN RIGHTS • Ferizov Jasenka Prosecution of Crimes of Appropriation of Private Property before the ICTY and the IRMCT, Supervisor: Hans- Joachim Heintze,ić, Ruhr Unversity Bochum. European Regional Master’s Programme in Democracy and Human Rights in South East Europe (ERMA), coordinated by University of Sarajevo and University of Bologna • Frías Sampaio, Emmanuel, Politics of Memory of the Recent Past in Brazil: The Federal Government’s Role in Constructing Collective Memory Between 2003 and 2016, Supervisor. Ana De Maio, University of Buenos Aires. Master’s Programme in Human Rights and Democratisation in Latin American and the Caribbean (LATMA), coordinated by National University of San Martin (Argentina) • Guzmán Torán, Juan José, When the Forest Screams. The Rights of Nature and Indigenous Rights as a Mutually Reinforcing Resistance Platform for the Indigenous Peoples of the Ecuadorian Amazon, Supervisor: Felipe Gómez Isa, University of Deusto Bilbao. European Master’s Programme in Human Rights and Democratisation (EMA), coordinated by Global Campus of Human Rights Headquarters. • Hasanah, Mahesti Between the Domination of Transnational Companies and Its Discourse on Business and Human Rights: Contract Farming and Banana Small Farmers in the Davao Region (The Philippines), Supervisor: Ryan Jeremiah D. Quan, Manila University. Master’s Programme in Human Rights and Democratisation in Asia Pacific (APMA), coordinated by Mahidol University. • Nyemba, Chisomo Right to Data Privacy in the Digital Era: a Critical Assessment of Malawi’s Data Privacy Protection Regime, Supervisor: Akinola E Akintayo, University of Lagos. Master’s Programme in Human Rights and Democratisation in Africa (HRDA), coordinated by Centre for Human Rights, University of Pretoria. III MAHESTI HASANAH This publication includes the thesis Between the Domination of Transnational Companies and Its Discourse on Business and Human Rights: Contract Farming and Banana Small Farmers in the Davao Region (The Philippines) written by Mahesti Hasanah and supervised by Ryan Jeremiah D. Quan, Manila University. BIOGRAPHY Mahesti successfully enrolls the Master’s degree in Human Rights and Democratisation from Mahidol University Thailand in July 2019. Her academic interests range from business and human; political economy; and women’s rights. Her current occupation is working at her undergraduate alumni as a researcher at Research Center for Politics and Government (PolGov), Department of Politics and Government, Universitas Gadjah Mada. ACKNOWLEDGEMENTS This thesis, I must say, can only attain its worth due to the many supports, inputs, feedbacks and attentive guidance from Ajahn Benchararat Sae Chua from IHRP Mahidol University, and Attry Ryan D Quan and Attry Jaymie Reyes from School of Law, Ateneo de Manila. Their inputs and patient guidance are exceptionally vital to the development of my thoughts and ideas. I would also like to acknowledge the assistance of Ajahn Yanaur Sumarlan and Ajahn Naparat, both from IHRP Mahidol University, who patiently supported me on my proposal writing. I would like to thank my internship organisation, Unyon ng Manggagawa sa Agrikultura (UMA), for helping me in finalising and connecting with informants in Davao. I also wish to thank the assistance of the staff of Kilusang Mayo Uno-Southern Mindanao (KMU-SMR) for connecting me with the respondents. Also, I am grateful for to the respondents for participating in this study and for my translator, Mau, who was very cooperative and introduced Davao to me during the interview process. Finally, I believe that I would not have been able to complete this process successfully without the love and support of my mother, my father, my sister, Galang and Jefry. I would like to thank Mas Nanang, Mbak Nova and Mbak Ika for helping me to prepare my proposal presentation, and also Mbk Wigke, Mbk Primi, Devy, Ina, Cis, Wegik, Onik, and the PolGovers who always support me. Subsequently, I would like to thank my classmates, Diep, Jessus, Justin, Li Yan, Mark and Neha for being there, motivating and supporting each other for our betterment. Last but not least, I would like to thank the APMA staff, particularly Kan, who assisted me with the Mahidol University’s matter. And, for sure, I could not make this programme without Michelia and others Sahabat Penyu; Hening, Ike and other SNSD who always lift me up and convince me that I can finish the programme. IV TRANSNATIONAL COMPANIES, BUSINESS AND HUMAN RIGHTS ABSTRACT This research examined violations towards small farmers’ rights over banana plantations – with the emphasis that the farmers held their agreements with transnational agribusiness corporations in Santo Tomas and Compostela Valley, Davao Region, Mindanao, the Philippines. By focusing on the right to work and the right to enjoyment of safe and healthy work conditions, the study was intended to enrich the existing literature reviews on contract farming (CF). The scholars in this field have explored this issue through many different approaches; however, perspective highlighting the farmers’ rights is still infrequently investigated. By using a case study method, the research focused on the implementation process of CF and its impact in the production cycle of small growers. The study conducted interviews and focus group discussions with eight small farmers, two academics, two non- governmental organisations (NGOs) and one journalist and analysed government document policies, and had direct observation of several key events in the field. The research revealed that the companies governing the small farmers or growers as well as workers affect their social, economic and political aspects. Trans-national companies (TNCs) are controlling the market and the production chain through their subsidiaries or affiliation companies by rejecting the UN Guiding Principles on Business and Human Rights (UN Guiding Principles), obligating them to respect the rights regardless of their size, sector, operational context, ownership and structure. However, since the UN Guiding Principles can be sorted as soft law, the companies do not have an obligation to follow it. Instead, the companies are considered to be violating the right to work and right to the enjoyment of just and safe working conditions of the small farmers and workers. The violations included unfair contract signing, low payment on rented land, minimum wage and unhealthy working conditions. However, as CF is no single phenomenon, it was observed that the small farmers and workers had three strategies in gaining their rights over these domineering companies. They fought using formal and non-formal ways to demand the companies respect and fulfil their rights. This research should be able to strengthen the argument that companies are controlling the small farmers and workers under the CF system through social, economic and political aspects. Key words: Banana, Contract farming, Farmers’ rights, Socio-economic and political control, Philippines V MAHESTI HASANAH TABLE OF ABBREVIATIONS ARBs Agrarian reform beneficiaries AVA Agribusiness venture arrangement CARL Comprehensive Agrarian Reform Law CARP Comprehensive Agrarian Reform Program CARPER CARP Extension with Reforms CBA Community based agreement CF Contract farming DAR Department of Agrarian Reform DARPO DAR Provincial Office DOLE Department of Labour and Employment FGD Focus group discussion FAO United
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