FYFFES FARMS EXPOSED the Fight for Justice in the Honduran Melon Fields
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FYFFES FARMS EXPOSED The Fight for Justice in the Honduran Melon Fields APRIL 2020 This is a joint publication by the International Labor Rights Forum, the International Union of Food Workers (IUF) Latin America Regional Secretariat (Rel UITA), and Fair World Project, with support from 3F International. Authors: Liana Foxvog and Gabriela Rosazza Layout: Sarah Newell The authors are very grateful to Ahrax Mayorga, Anna Canning, Paul Lievens, Esmeralda Lopez, and Laura Vera for their review of early drafts of the report and to Winston Moore for corporate research. The report and the photos by ILRF contained within it are made available under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) license and is available for download at www.laborrights.org/fyffeshondurasreport. All unattributed photos in the report were taken by ILRF. Cover photo credits: ILRF (top) and Giorgio Trucchi, Rel-UITA (bottom) Published: April 2020 International Labor Rights Forum 1634 I St NW, Suite 1000 Washington, DC 20006 USA T: +1 202 347 4100 [email protected] www.laborrights.org Regional Latinoamericana de la UITA (Rel-UITA) International Union of Food Workers (IUF) Latin America Regional Secretariat Wilson Ferreira Aldunate 1229 – 201 CP. 11.100 | Montevideo, Uruguay T: +598 2900 7473 www.rel-uita.org Fair World Project PO Box 86104 Portland, OR 97286 USA T: +1 800 631 9980 [email protected] www.fairworldproject.org 3F - United Federation of Workers in Denmark Kampmannsgade 4 1790 København V, Denmark T: +70 300 300 [email protected] www.3f.dk 02 TABLE OF CONTENTS I. EXECUTIVE SUMMARY . 05 II. HONDURAN MELON INDUSTRY AND FYFFES . 06 Honduran melon industry Fyffes’ melon business in Honduras Fyffes, an empire of acquisitions and subsidiaries III. WORKING CONDITIONS AT FYFFES HONDURAS. 10 Documentation and reporting Precarious work Wage theft, irregular schedules, and denial of monetary benefits Non-payment of social security Toxic chemicals Occupational injuries Gender-based violence and discrimination Repression of worker voice IV. FYFFES’ RESPONSES TO UNION ORGANIZING . 20 Threats and coercion Stalling and appealing Collusion and corruption Retaliation and firings Forming fake unions Corporate white-washing and smokescreens V. RESPONSES FROM SUPERMARKETS, CERTIFIERS, AND GOVERNMENTS. 36 Government of the United States Ethical Trading Initiative Fair Trade USA Supermarkets International Labour Organization VI. CONCLUSION. 40 ENDNOTES . 42 03 The fight on the Honduran melon farms is a microcosm of the international worker struggle – a struggle against a system that keeps people in poverty while extracting massive profit for corporations. Violence against trade unionists and other human rights defenders in Central America directly contributes to a lack of decent work in the region, one of the many factors that fuels the cycle of poverty and pushes people to migrate. While every human has a right to seek asylum, they also have a right to stay in their communities, feel safe at work, and earn a living wage. Photo04 credit: Giorgio Trucchi, Rel-UITA EXECUTIVE SUMMARY Thousands of miles away from U.S. supermarket Moisés, threatening to murder him if he continued shelves, the melon workers of southern Honduras are in the union. The Sánchez brothers survived the standing up to a global fruit giant that has long used attack, but the crime remains unpunished, sending their labor but never respected their rights. an undeniable message to every worker who has seen their colleagues persecuted for speaking out. Fyffes is the billion-dollar fruit company that most Americans have never heard of. They are the top During the 2019-2020 growing season, workers importer of melons to the United States, which are at Fyffes’ farms in Honduras continue to report sold in supermarkets across the country. They are blatant violations of their legally-guaranteed rights, also the number one supplier of bananas into Europe. including the dangerous misuse of toxic pesticides, denial of sick leave, the company’s failure to enroll For more than a decade, Honduran workers have its seasonal workers in the national healthcare and reported rampant wage theft, inhumane working pension system, and coercion to force them to leave conditions, and exposure to toxic agrochemicals on STAS and join a company-controlled union that was Fyffes’ melon farms. founded by management, in order to destroy genuine worker organizing. Fyffes employs over 6,500 melon workers in Honduras, the majority of whom are women in This report reviews the history of Fyffes’ labor seasonal jobs. In 2016, these workers decided to violations in Honduras, the ongoing abuses, and address their longstanding issues by organizing the response from Fyffes, which includes silencing a union with El Sindicato de Trabajadores de la workers’ lived experiences by deploying futile Agroindustria y Similares (STAS). In response, local corporate social responsibility programs that distract bosses fired and blacklisted dozens of outspoken supermarkets and consumers from the reality on the union leaders and launched a violent union-busting farms. Until Fyffes acknowledges its history of worker campaign – physically, verbally, and psychologically exploitation in Honduras and takes responsibility to harassing union members. remedy the injustices – specifically by negotiating in good faith with STAS to sign a legally-binding and The violence peaked in April 2017 when unknown enforceable agreement to uphold workers’ rights – assailants attacked Moisés Sánchez, the STAS union thousands of farmworkers will continue to experience local’s Secretary-General, and his brother Misael. exploitation in the fields. They sliced Misael’s face with a machete and beat 05 HONDURAN MELON INDUSTRY AND FYFFES Honduran melon industry States remains the largest market for Honduran Honduras’ main agricultural exports are coffee, melons, while access to new markets in Japan, bananas, sugarcane, shrimp, melons, and palm oil. Taiwan, Chile, and Mexico are contributing to the The melon industry employs at least 68,000 people growth. The top importer of melons into the United directly and indirectly.1 At $110 million in exports, States is the multinational corporation Fyffes, melons accounted for a fifth of the country’s which is a conglomerate of subsidiaries owned by agricultural export earnings in 2019,2 for an increase Sumitomo Corporation, a publicly-held Japanese 4 of $38 million from the previous one.3 The United parent company. Fyffes’ melon business in Honduras Fyffes produces melons across 17,500 acres of Poverty in Southern Honduras farmland in Honduras and Guatemala.5 Its • Honduras is the second poorest Honduran farms are located in Choluteca, where country in Central America Fyffes has a workforce of at least 6,500 employees, • With a population of 9.8 million over 90% of whom are seasonal workers hired on people, 64% live below the poverty temporary contracts and 80% of whom are women.6 line with 1.6 million people in extreme They produce cantaloupes, honeydews, and mini poverty, surviving on less than $1.90 a watermelons on two subsidiary plantations, day11 • Honduras has a 44% Suragroh and Melon Export, with the annual underemployment rate growing season starting at the end of November • Southern Honduras is comprised of and lasting until the end of May.7 Fyffes reports the departments of Choluteca and that it operates a fully integrated supply chain, Valle with a population of about controlling all operational steps in the production 750,000 people, and jobs are mainly and distribution process, and ships the melons into in the melon, sugarcane, shrimp, 8 okra, and mining sectors nine different ports in the United States. These • Choluteca has the highest level of melons, with Fyffes or Sol labels, are sold in the income inequality in the country United States by major supermarket chains such as and the second highest percentage Giant, Kroger, Publix, and Safeway, as well as smaller of people living in poverty in the grocery stores. Fyffes exported nine million boxes 12 country of melons from Honduras in the 2018-2019 season,9 • Malnutrition affects one in three making melons from Honduras nearly ten percent people in Choluteca13 of the company’s annual volume of shipments for bananas, pineapples, and melons combined.10 06 “It is extremely painful and horrendous to watch such a hypocritical EU-based multinational company – which claims high ethical standards – act as the most monstrous, ultra- reactionary union-busting employer in Honduras. Fyffes is spearheading a fight against a union that achieved the historic milestone of organizing poor farmworkers as an industry union in Honduras. In early 2019, Fyffes signed an agreement with STAS to start collective bargaining, but immediately reneged. The global trade union movement can never forgive this. The only viable solution is for Fyffes to negotiate in good faith with STAS.” – Jesper Nielsen, Head of Department, 3F International 07 Fyffes, an empire of acquisitions and subsidiaries Fyffes is the oldest fruit brand in the world. exchanges.15 Fyffes’ annual revenue in 2018 was Founded in London in 1888 as a banana $1.3 billion.16 company, it is now headquartered in Dublin. Today, Fyffes is the fourth largest banana In 2005, Fyffes acquired half of Turbana – a company in the world after Chiquita, Dole, pineapple, banana, plantain, and tropical fruit and Del Monte.14 Fyffes is the top importer company – making Fyffes the fifth largest banana of bananas into Europe, the largest offshore supplier to the U.S. market.17 producer of melons sold in the United States, and a leading producer of pineapples, In 2007, Fyffes acquired Sol Group Marketing plantains, and mushrooms. Fyffes’ operations Company, a melon producer based in Florida, span Europe, North America, Central America, and soon became the largest importer of off- and South America. In 2017, the Japanese shore melons into the United States. Sumitomo Corporation acquired Fyffes for €751 million, taking the company private and In 2015, Fyffes acquired Fresh Quest, a main delisting it from the Dublin and AIM stock melon competitor to Sol Group.