Annual Report: 2018 2 3

Contents Message from the President and Director· 4 Impact· 6 Public Procurement and Human Rights: The Big Picture· 10 Public Buyer Demand for Better Working Conditions Works· 11 Independent monitoring Activities· 12 for public procurement Reports from the Field: How Affiliates are Making a Difference· 21 Organisational and Financial Development· 24 Electronics Watch envisions a world in Affiliates· 30 which the rights of all workers in the electronics supply chain are respected, workers’ voices are heard, and working conditions are safe and decent.

The mission of Electronics Watch is to help public sector organisations work together, and collaborate with civil Electronics Watch society monitors in production regions, Sarphatistraat 30 -1018 GL Amsterdam - Netherlands to protect the rights of workers in their Email: [email protected] -Telephone: +44 748-0050-341 www.electronicswatch.org electronics supply chains. No. 62721445 in the Dutch Chamber of Commerce Trade Register

Published July 2019 4 - Annual Report: 2018 5

Dear reader, We also saw movement on industry-wide issues in job because they had to pay off debts, the employer systemic issues, including forced labour, precarious response to major Electronics Watch investigations on held their passport, and the law did not allow them employment, and unsafe workplaces by: Electronics Watch affiliations jumped from 85 to 305 debt bondage related to migrant worker recruitment to change employer. Fear of losing their jobs and in 2018. New affiliates include leading public sector and the link between employment conditions and the being deported and blacklisted effectively kept them • Strengthening the commitment of existing affiliates organisations such as the Greater London Authority, risk of worker suicide in the electronics industry in silent. We also learned about workers’ psychological and attracting new affiliates; the Swedish County Councils, Partenariat des Achats China. In the former case, Electronics Watch spurred trauma in the industry through the research on • Strengthening the worker-driven monitoring Informatiques Romand (PAIR), Switzerland, and the an improvement in industry auditing methodology and worker suicides. Our study noted the importance methodology and workers’ collective voices and Association of Catalonian Municipalities who have in the latter, a collaboration with the Economic Rights of empowering workers to collectively influence key influence in their workplaces; and, come together to demand transparent supply chains, Institute, a visibly bigger investment in the area of decisions to mitigate the risk of suicide. • Building platforms of collaboration with affiliates, remediation of labour rights violations and improved worker wellness. monitoring partners, unions and industry. working conditions in factories that make the Electronics Watch affiliates and monitoring partners electronics products they buy. However, we also learned about formidable understand the power of the public procurement We hope you will find inspiration in the pages that challenges linked to workers’ lack of a meaningful market to drive social responsibility and sustainability, follow and be motivated to promote the rights of Electronics Watch expressed this public buyer demand voice in the workplace, whether in the form of worker- the potency of networks that connect public buyers electronics workers through responsible public in updated and legally compliant contract conditions management dialogue, negotiation or collective with workers and their organisations, and the promise procurement. that affiliates can insert into their electronics contracts bargaining through independent trade unions or other of engaging industry to improve policy and practice to ensure a unified message to industry. As you will forms of workers’ self-organisation. through these networks. We therefore adopted see in this report, organised public buyer demand in a three-year strategic plan that calls for tackling Onwards! combination with worker-driven monitoring to verify In one case we met workers who had struggled for compliance is bearing fruit. In Thailand, workers who years with illnesses and poor health because they were were in debt bondage reduced their debt burden, and working without adequate protection against a highly their identity documents were returned to them. In toxic solvent. For more than half a year they told us not China, interns in a factory, previously forced to work in to report to buyers because they feared losing their order to gain their diplomas, can now choose whether jobs if management found out they had complained. In or not to work there. In Indonesia, workers who fainted several cases we found migrant workers in situations and got sick from a toxic chemical are now working in a of forced labour. They had incurred debts at high safer environment. interest to pay recruiters, were unable to leave the Sheung So, President, Board of Trustees Björn Skorpen Claeson, Director Photograph: Jonas Gratzer 6 - Annual Report: 2018 7

IMPACT

Informing public Increasing transparency

buyers The Supply Chain Database contained: 1,168 40 115 9 Procurements from affiliates Factories and suppliers Product types disclosed to affiliates

6 Compliance Reports on factories that make goods affiliates buy 5 Companies disclosed 5 Companies reported factories and linked audit findings and linked them to affiliates’ them to affiliates’ subject subject matter of matter of contract contract

Driving systemic improvements 271 Affiliate representatives receive monitoring reports Dialogue and updates 2 with more than Reports on systemic issues 20 companies Companies develop (the link between employment programmes on conditions and suicide, and the worker wellbeing risk of debt bondage and forced and improve forced labour in migrant worker labour auditing recruitment)

228 Participants in our webinars on Socially Responsible Public Procurement 8 - Annual Report: 2018 9

IMPACT

Increasing public buyer demand for Strengthening worker voices Improving decent working conditions working Electronics Watch documented, reported, and took conditions action on:

4 major consortia joined: the Association of Catalonian Munici- palities, Partenariat des Achats Infor- matiques Romand (PAIR), Switzerland, the County Councils of Sweden, and the Greater London Authority. 6 factories improved conditions, verified by Electronics Watch 12 billion amount of spend of Crown Commer- cial Service, our new partner to detect and address modern slavery in public procurement supply chains

12 Companies engaged to improve con- ditions

2 worker complaints from India 1 worker complaint from Thailand [Electronics Watch] will support us in meeting the ethical sourcing Tim Rudin, Head of 5 worker complaints from Malaysia commitments within the Mayor’s Responsible Procurement Policy Responsible Procurement, worker complaint from Indonesia and gives us capacity to verify that suppliers meet the labour Greater London Authority 1 rights standards in our contracts, or to proactively work with 1 worker complaint from China them to improve working conditions where further development worker complaint from the Philippines is needed. 1 10 - Annual Report: 2018 11

Public Procurement and Human Rights: The Big Picture

Public procurement is a force in the global economy, accounting for an estimated €2 trillion in contracts1 and an average of 20% of the gross domestic product (GDP) globally.2 Human rights abuses in public procurement supply chains are by now widely Public Buyer Demand for Better documented,3 and the obligation for states to use public procurement as a driver for Working Conditions Works human rights is becoming clear. The United Nations Guiding Principles on Business and Human Rights specifically address procurement activities, and recommends that “States Electronics Watch affiliates’ demands have helped to increase should promote respect for human rights by business enterprises with which they conduct supply chain transparency in the electronics industry. By the commercial transactions” (UNGP No. 6). Several National Action Plans on Business and end of 2018: Human Rights address the role of public procurement (e.g., Germany, Italy, Switzerland, • Five brands linked at least some of their factories to the the United Kingdom, and the United States). Sustainable Development Goal 12.7 calls for subject matter of the contracts of public buyers. sustainable public procurement. Directive 2014/24/EU on public procurement places • Five companies reported their own compliance findings to social and environmental criteria on equal footing with transparency, equal treatment Electronics Watch in response to our reports. and non-discrimination for the first time, and European Commission procurement policy now recommends greater use of innovative, green and social criteria.4 The OECD Workers benefitted: recommends linking public procurement to responsible business conduct.5 • Thailand: Workers who were in debt bondage reduced their debt burden, and their identity documents were returned to them. The transformative potential of public procurement to protect human rights and • China: Interns in a factory, previously forced to work in order accelerate sustainable development will only increase. to gain their diplomas, could choose whether or not to work there. • Czechia: Temporary workers with no job security received a guaranteed income even if they do not get the hours they were promised. • Indonesia: Workers who fainted and got sick from a toxic chemical got a safer work environment. • Philippines: Workers who were laid off because of loss of orders received a higher severance payment. • China: The family of a worker who committed suicide received higher compensation.

In all these cases, Electronics Watch worker-driven monitoring helped to strengthen workers’ voices as we responded to workers’ complaints and sought to involve them in the process of developing remedies.

1 The estimate of total general government expenditures on works, goods, and services, excluding utilities, was 2015.3 billion euros in 2015. “Public Procurement Indicators 2015,” DG GROW G4 - Innovative and e-Procurement, December 19, 2016. 2 World Bank Group, ”Benchmarking Public Procurement 2016: Assessing Public Procurement Systems in 77 Economies,” Washington: 2016. 3 For example, Robert Stumberg et al., Turning A Blind Eye? Respecting Human Rights In Government Purchasing (2014), available at http://icar.ngo/initiatives/procurement/. 4 European Commission, ”Public procurement strategy,” available at https://ec.europa.eu/growth/ single-market/public-procurement/strategy_en. 5 OECD, “Responsible business conduct in public procurement,” June 2017, available at https:// mneguidelines.oecd.org/Responsible-business-conduct-in-government-procurement-practices.pdf. 12 - Annual Report: 2018 13

ACTIVITIES

Monitoring Supporting Affiliates Updated Electronics Watch Electronics Watch screened risks in 68 factories, At the same time we have strengthened our worker- Contract Conditions We supported affiliates in their daily work through documented and responded to worker rights driven monitoring methodology. As part of the Make direct consultations and by connecting them to complaints in 11 factories, and conducted six full ICT Fair project, and in collaboration with the Centre Electronics Watch released version 2 of the Contract specialists from various fields. A key question for compliance investigations in 2018. We also conducted for Research on Multinational Corporations (SOMO), Conditions. Developed in collaboration with the many affiliates is how to integrate the Electronics a major thematic study on the link between we developed resources for monitoring partners for law firm, Clyde & Co., and grounded in part in the Watch Contract Conditions into upcoming tenders. employment conditions and risk of employee suicide methodology trainings and guidance to be provided academic work of Professor Olga Martin-Ortega, the Customized approaches are often necessary to align in the electronics industry in China together with the on site in 2019. new Contract Conditions build on the experiences with organisational processes. This direct exchange Economic Rights Institute. of affiliates and their suppliers. They are consistent with our affiliates provides Electronics Watch with with the principles of English contract law. In 2019 great learning opportunities and strengthens our Electronics Watch will transpose the Contract understanding of the individual needs of our affiliates. Conditions to other national legal frameworks.

We have chosen to use Electronics Watch worker-driven J. Le Roux, Amsterdam PAIR looks forward to joining Electronics Mining Issues in Public City Council, monitoring to follow up on contractual requirements Watch because affiliation makes our Procurement The Netherlands and verify compliance with labour standards, and commitment to socially responsible Electronics Watch explored legal options for ad- therefore to improve working and sustainable purchasing concrete and operational. dressing mining issues in public tenders in collab- production conditions in our electronics supply chains. It allows us to verify that the criteria of oration with the German research organisation, our tender calls, aimed at preventing World Economy, Ecology and Development (WEED). and reducing the risk of human rights Working with ICLEI – Local Governments for Sustain- violations in our IT purchases, are ability and in cooperation with Advanced Procure- actually controlled in practice ment for Universities and Colleges (APUC), Barcelo- na City Council, Greater London Authority, Haarlem City Council and Stockholm County Council we have Jean-Pierre Gilliéron, also set up a pilot programme to develop hands on President, Partenariat des experience on mining issues in public tenders. Achats Informatiques Romand (PAIR), Switzerland 14 - Annual Report: 2018 15

Strengthening Capacity for Company Performance The Electronics Website and Social Media Industry Engagement Tracker Affiliates’ Intranet Word got out via our social media platforms, with our twitter followers growing from 1,000 to 1,600 New tools provide affiliates insights into their elec- The Company Performance Tracker (CPT) is the Electronics Watch conducted a communications in 2018. Electronics Watch also established a pres- tronics supply chains and capacity to follow-up on newest Electronics Watch tool that allows affiliates audit to improve our website. Visitors can now ence on LinkedIn – follow us! the contractual obligations of their suppliers: to see how well brands and manufacturers have explore several new sections tailored for the core complied with their contractual obligations. Devel- Electronics Watch stakeholders. “For Public Buy- Public Buyer Toolkit oped in 2018 to be launched in 2019, the CPT scores ers” is a one-stop-shop for everything public buyers contractors’ and brands’ supply chain transparency need to know about the Electronics Watch model of and efforts to remediate labour rights violations in “contracting for change”. “Workers’ Issues” consists The Public Buyer Toolkit supports communication specific factories based on their interaction with af- of workers’ stories that highlight the larger themes and promotes contract performance compliance filiates and Electronics Watch. While the methodol- and challenges that form the core of the Electronics within affiliates’ supply chains. It contains standard- ogy will be publicly available and regularly reviewed Watch Strategic Plan 2018-2020. We also launched ized and easy-to-use tools like the Letter to Suppli- and updated, the CPT scores will only be available the website in French, reflecting our outreach work ers, Factory Disclosure Form, Guidelines for Disclo- to affiliates. in French-speaking countries. The site attracted sure of Factories, and the Electronics Watch Con- 12,000 users in 2018. tract Conditions. Affiliates can download the entire Toolkit from the affiliates’ intranet on our website. Supply Chain Database

Affiliate Action Guide Developed in 2018 to be launched in 2019, the Publications Supply Chain Database integrates procurement

Compliance Report Foxconn in Pardubice, Czech Republic data from affiliates, factory disclosures from sup- Contributing organisation: MKC Praha, o.p.s. Publications for The Affiliate Action Guide provides a quick overview April 2017 pliers and brands, and results from monitoring in- of current issues that Electronics Watch recom- affiliates included vestigations. The database helps affiliates explore mends affiliates address with their suppliers. The several additional the depth and breadth of their supply chains and issues relate to supply chain transparency require- compliance re- understand the risks that make their engagement ments in contract clauses or to labour rights and ports and worker with industry especially important. safety conditions in factories that make products rights complaints affiliates buy. Affiliates can find the Guide onthe not yet released affiliates’ intranet on our website. to the public.

1 2 3 1 Electronics Watch Policy Brief #1: Worker-Driven Transparency

Responsible public procurement. Rights of electronics workers. 2 Compliance Reports: Foxconn in Pardubice, Czech Republic, June 2018 Guidelines on Best 3 Compliance Report Update: Cal- Practices Preventing Eye Comp, Samut Sakorn and Petchaburi, Strain in the Examination of Thailand, October 2018 Screens 4 Guidelines on Best Practices Preventing Eye Strain in the Examination of Screens, October 2018 5 The Link Between Employment Conditions and Suicide: A Study of the Electronics Sector in China, November 2018 6 Regional Risk Assessment: Electronics Industry, Indonesia, December 2018 4 5 6 16 17

Electronics Watch Annual The client asks workers to start working on an order— Electronics worker, Conference 2018 this can be within 24 hours. Whatever the client asks for, Czechia the managers will carry out. I have tried to explain to The Electronics Watch Annual Conference and the managers that if they had a restaurant, they wouldn´t Affiliates and Monitoring Partners Meeting took let customers enter the kitchen but here they do. place at the Royal Tropical Institute in Amsterdam on 10th and 11th December 2018. The conference was co-organized by Electronics Watch affiliates Gemeente Amsterdam and London Universities Purchasing Consortium (LUPC), as well as SOMO, Good Electronics and the Business, Human Rights Electronics Watch Affiliates and the Environment Research group. and Monitoring Partners Meeting 2018 Ninety participants from 18 countries, including 41 public buyers shared their insights, and dis- The Electronics Watch Affiliates and Monitoring cussed their experiences and goals during the Partners Meeting is a forum reserved for affiliates conference in open formats focusing on the and monitoring partners to meet in a private and three thematic areas: Supply Chain Transparen- safe setting to discuss sensitive issues in detail. In cy, Purchasing Practices and Working Conditions, 2018 51 participants, including 25 public buyers Webinar Series and Social Dialogue and Workers’ Voices. Three and 26 monitors took part, sharing local stories workshops - on recent guidance and legislation connected by topics such as workers’ collective Electronics Watch offered a series of free, open we- 4. Sozial verantwortliche IT-Beschaffung in der Praxis on human rights due diligence in global supply voices, worker-driven monitoring, worker-driv- binars on socially responsible public procurement, – Erfahrungen und Unterstützungsangebote, Au- chains, the second generation Electronics Watch en supply chain transparency, and harmful and/ intended primarily for public sector buyers, with ex- gust 2018, with Dr. Lars Kühnel, Deputy General contract clauses, and the Electronics Watch Com- or illegal precarious employment. This dialogue pert guest speakers from around the world. A total Manager of the Data Center of the University pany Performance Tracker - offered conference gave participants a better understanding of their of 228 people attended the webinars, and 132 peo- of Kiel, and Andreas Thamm, Head of the Pro- participants the opportunity to discuss Electron- collective work and helped them understand how ple viewed the online recordings. Electronics Watch curement Department at the Christian-Albre- ics Watch current work in depth. they are connected through Electronics Watch. also initiated webinars in German. chts-University Kiel. 5. What public procurers can do to protect the health 1. Knowing & Showing Your Supply Chain, February and safety of workers in their electronics supply 2018, with Robert Stumberg, Professor of law at An ideal opportunity for stakeholders to get closer and understand Conference participant, chains, September 2018, with Sanjiv Pandita, Georgetown University Law Center. more of others’ perspectives. I really liked the way of organizing the 2018 Asian Network for the Rights of Occupational conference: promoting communications among participants, not 2. SRPP – Extending to Extractives in the Electronics and Environmental Victims (ANROEV), Hong Industry, April 2018, with Irene Schipper, Cen- Kong and Dr. Pauline Göthberg, Stockholm just focusing on presentations of speakers. tre for Research on Multinational Corporations County Council, Sweden. (SOMO), Netherlands and Liz Cooper, Depart- 6. Issues in Central and Eastern Europe, September ment for Social Responsibility and Sustainabil- 2018, with Dr. Rutvica Andrijasevic, University ity, The University of Edinburgh. of Bristol, and Marek Čaněk, MKC Praha, for 3. The Link Between Employment Conditions and Su- members of the Responsible Business Alliance. icide, June 2018, with Dimitri Kessler, The Eco- nomic Rights Institute, China.

Many workers suffer from respiratory illnesses and Electronics worker, allergies. They have lung diseases and difficulty Indonesia breathing. This is caused by the fumes of the toluene. 18 19

June September November • 2018 Local Government Conference, • ZKI Conference 2018, organised by ZKI, the • Opportunities and Challenges in Socially organised by UNISON. Launch of the guide German association of Higher Education Responsible Public Procurement: A “Responsible buying in public services” IT centers and public funded reasearch roundtable discussion with public buyers, 2018 (UNISON), Brighton, England. organisations, Kiel, Germany. nongovernmental organisations, and A YEAR IN EVENTS academics, organised by Queen Mary Electronics Watch presented at these events: • Workshop: Sustainable smartphones - finding • “Mehr als nur ein fairer Preis” (More than just University of London, London, England. a collaborative way forward, organised a fair price), Panel on Fair Public Procurement, by Transform Together and BioRegional, organised by Global South Studies Centre, • The Conference for Digitalization & Brussels, Belgium. University of Cologne, Cologne, Germany. Sustainability, organised by Bits & Bäume, Berlin, Germany. February • Symposium for socially responsible • “The Missing Link: Suicide and Employment Procurement of IT-Hardware, organised by Conditions in the Chinese Electronics Sector”, • Public Procurement Fair of the City of • III Mobile Social Congress: “For a Fair Dachverband Entwicklungspolitik Baden- September 2018, Part of Sustainable Purchasing , Barcelona, . Electronic Model”, organised by SETEM Württemberg (DEAB), WEED – World Leadership Council’s (SPLC) autumn webinar • Driving Sustainability in European Public Catalunya, Barcelona, Spain. Economy, Ecology & Development and series, with Dimitri Kessler, Economic Rights Procurement, organised by Forum Europe, Werkstatt Ökonomie, Stuttgart, Germany. Institute. Brussels, Belgium. March • Supply chain transparency panel at • “Challenging the sustainability of the OECD Global Forum on Responsible October December global ICT supply chain: from mining to Business Conduct, organised by OECD, • Live market engagement: Sustainable procure- • Electronics Watch Affiliates’ & Monitoring procurement”, organised by KU Leuven and the International Corporate Accountability ment of ICT, organised by Electronics Watch, Partners’ Meeting 2018, Amsterdam, The CATAPA, Brussels , Belgium. Roundtable (ICAR) and the Trade Union ICLEI & Procura+, Nijmegen, The Netherlands. Netherlands. Advisory Committee (TUAC), Paris, France. • National Round-Table on Working Conditions • Responsible Business Alliance Annual • Electronics Watch Annual Conference 2018, and Social Dialogue in the Indian Electronics Conference, Session: “RBA’s Response to Amsterdam, The Netherlands. Industry, organised by Cividep, Good Electronics July Public Procurement Practices”, organised by and Electronics Watch, Chennai, India. • ASF Forum with a focus on transparency, RBA, Santa Clara, California, US. • The 15th Procura+ Seminar, organised by The Almedalsveckan, Gotland, Sweden. City of Oslo and ICLEI, Oslo. • United Nations High Level Political Forum Side Event: “Scaling solutions for Goal 12 for May smartphones and ICT”, New York, US. • APUC Procurement Network Conference, organised by APUC, Stirling, Scotland. 20 - Annual Report: 2018 21

PROJECTS REPORTS FROM THE FIELD HOW AFFILIATES ARE MAKING A DIFFERENCE

Shedding New Light on the Link Between Employment Conditions and Suicide

The Economic Rights Institute (ERI) and Electronics • Empower workers to collectively influence key Photograph: CATAPA Watch released The Link Between Employment Condi- enterprise decisions connected to conditions tions and Suicide: A Study of the Electronics Sector in that heighten risk of employee suicide, includ- China. The report shows how the employment con- ing productivity norms, overtime and the struc- Collaboration with Crown ditions of some electronics firms in China heighten ture of incentives. innovative research approach the risk of employee Commercial Service • Address excessive use of flexible employ- suicide. It uses an innovative approach based on ment schemes and other employment ar- original quantitative and qualitative data, including Make ICT Fair: 2017-2020 Electronics Watch and Crown Commercial Service rangements linked to risk of employee suicide. public reports of suicide, on-site surveys, and off- (CCS) announced a partnership to detect and ad- – Developing expertise site worker interviews. • Review and revise purchasing practices that dress modern slavery in supply chains of public contribute to employment conditions linked to on mining issues in the sector customers seeking assured technology hard- The report calls attention to the industry-wide employee suicide. ware purchasing options. electronics supply chain improvements urgently needed to prevent needless • Hold firms accountable when their violations loss of life and improve conditions for all workers. ERI Electronics Watch is part of the EU-funded Make ICT CCS is the largest public sector procurement organ- of workers’ rights contribute to employee sui- and Electronics Watch called for a multi-stakeholder Fair project with 10 other European organisations isation in the UK, helping organisations across the cide. taskforce to develop, implement, and monitor an to improve the lives of workers and those impact- whole of the UK public sector find the right com- action plan to: The report garnered support from leading academ- ed along the ICT supply chain. The project focuses mercial solutions for around £12 billion of spend ic experts and led to in-depth dialogue with the on mining issues and is the first project to bring to- each year. The partnership between CCS and Elec- • End “soft” forms of forced labour, including electronics industry on steps to mitigate risk of em- gether civil society organisations from the areas of tronics Watch should assist both parties to improve forced overtime and restrictions of workers’ ployee suicide and improve worker well-being. mining, manufacturing, and public procurement. conditions for workers at risk of modern slavery. right to resign from their jobs without forfeiting Electronics Watch focuses on supporting public their wages. authorities in procuring ICT hardware responsibly. Since the project started in late 2017 it has helped Bread for All • Abolish punitive forms of discipline and in- us broaden our offering to affiliates and strength- tervene effectively to prevent hostility and vio- Protest sign used by suicide survivors: en activities in major work areas, including legal Electronics Watch and Bread for All, Switzerland, lence in the workplace. “Management without conscience push employees till they die”. research on the integration of mining issues into worked together with The Economic Rights Institute public tenders, updating of the Electronics Watch on the report titled: The Link Between Employment Contract Conditions, trainings for monitoring part- Conditions and Suicide: A Study of the Electronics Sec- ners, the development of monitoring guidance and tor in China (see over). This report is a thorough, meticulous and Sarah Waters, School of Languages, a Supply Chain Database. detailed study that makes an important Cultures and Societies, University contribution to academic study, but is also of Leeds; author of Suicide Voices. an urgent rallying call for policy makers Testimonies of Trauma in the French Workplace, Liverpool University Press, and businesses to intervene in order to You get income from Supplier H by giving Electronics worker, China, discussing forthcoming 2020 your life. If you don’t think your body is suicides at the factory, linking them to improve working conditions and take strong enough it is best you do not come the high pressure environment responsibility for the mental health of here. employees. 22 - Annual Report: 2018 23

Promoting Ethical Migrant A New Field: Analysing Worker Recruitment in the Workers’ Grievances Electronics Industry Posted On Line

Electronics Watch and our monitoring partner, the Electronics Watch teamed up with Migrant Worker Rights Network (MWRN), continued Globalworks Lund AB to expand the to document excessive recruitment-related fees scope of risk assessments by collecting and expenses that migrant workers from Myanmar and analysing grievances that work- pay to get a job at two sites of Cal-Comp Electronics ers in China post online. Developed in Thailand. by Globalworks, the social@risk™ tool searches worker grievances on social After Electronics Watch and MWRN began engaging media and stores all information in a Cal-Comp buyers, working conditions improved in secure database. It combines machine some respects for migrant workers. They now hold learning algorithms with expert valida- their own passports and work permits. They are Photograph: Jonas Gratzer tion to structure and analyse the data. directly employed by Cal-Comp rather than by an agency and have contracts of employment in their In our pilot project we conducted quali- native languages. In addition, by the end of 2018 tative content analysis and quantitative Cal-Comp’s workers had received partial (though trend analysis on a total sample size of insufficient) reimbursement for recruitment-relat- more than 1.3 million posts by electron- ed fees and costs. ics workers in China, focusing on two major OEM companies. The analysis in- HP reported additional improvements, including dicates specific areas of risk that should migrant rights trainings and modification of recruit- be priorities for these companies. Four ment agent contracts to comply with HP policies, as affiliates of Electronics Watch co-fund- well as additional worker communication and train- ed this project: the Stockholm County ing on pay-slip content, voluntary overtime and Council, London Universities Purchas- process chemicals. ing Consortium, Advanced Procurement for Universities & Colleges, and Han- However, Electronics Watch and MWRN remained zehogeschool Groningen. Globalworks concerned about continuing excessive recruit- co-funded this project with a grant from ment-related fees and costs paid by migrant the European Union under the Horizon workers at Cal-Comp which violate Myanmar legal 2020 framework, SME instruments, New standards and industry codes of conduct. In order Business Models for Inclusive, Innova- to pay these recruitment related costs in Myanmar, tive and Reflective Societies. workers must often borrow money, sometimes from informal money lenders and at high interest. As a result, risk of debt bondage and forced labour increases for these workers. I paid 10,000 ringgit (€2,000) for my passport, work permit, and to be cleared off the blacklist. I In late 2018, Electronics Watch commenced exten- also had to sign a consent form for my employer sive research on migrant worker conditions in the electronics supply chain in Malaysia. Electronics to keep my passport. If I want it I have to deposit Watch will continue to document these conditions 2,000 ringgit. and seek to engage with electronics companies concerning widespread forced labour risks. Electronics worker, Malaysia, who migrated from Indonesia and risked the blacklist and imprisonment when she fled from her previous employer because of abusive conditions 24 - Annual Report: 2018 25

ORGANISATIONAL AND FINANCIAL DEVELOPMENT

The Electronics Watch Financial Strategy and Electronics Watch also seeks outside support, such Block 2. Experts in human rights, as funds from the EU and private foundations, labour rights, and global supply Strategic Plan 2018-2020 Business Planning to expand work into new areas or to undertake time-limited projects. We do not accept financial chains In 2018 Electronics Watch published its first three- Electronics Watch offers public sector buyers who support from the electronics industry, including, Advisory group members may serve with particu- year strategic plan (available for download on seek to strengthen social responsibility in electron- but not limited to, brand companies, resellers, and lar expertise in human rights, labour rights, and our website), based on our analysis of pervasive ics supply chains an indispensable service: eyes and factories. global supply chains in an individual capacity or as and systemic labour rights and health and safety ears on the ground in production regions through a representative of a trade union or NGO with par- breaches in the electronics industry from mining qualified monitoring partners. Public buyers gain With a Strategic Plan now in place, Electronics ticular expertise. In 2018 this group consisted of to manufacturing. It is enriched by the strategic access to this service by affiliating to Electronics Watch has been able to give form to the accom- 19 organisations and 15 individual advisors from insights of more than 50 stakeholders who under- Watch and paying an annual fee. Annual affilia- panying business plan. We have analysed how our 13 countries. stand the industry from their perspectives as public tion fees are the core of Electronics Watch financial costs and income streams have evolved since our sector buyers, monitoring partners to Electronics sustainability. Because affiliates share the cost of launch in 2015 and projected what is likely to hap- Block 3. Representatives of civil Watch, and other experts in human rights, global monitoring the same suppliers, Electronics Watch pen over the next three years. We predict ongoing supply chains, and related fields. Ten strategic ob- society organisations from the is able to significantly reduce the cost to each in- growth year on year. Our business plan also out- jectives will guide our work during the coming three regions of electronics production dividual affiliate. At the same time, our model of lines a stretch target for fundraising, a figure that years: Advisory group members may include any repre- affiliate collaboration ensures real impact: better would enable the expansion to new continents, sentative of a civil society organisation from a re- conditions for workers in their electronics supply new industries and new levels of impact. The busi- 1. Replace harmful and/or illegal precarious em- gion of electronics production that advocates for chain. Greater impact at reduced cost for a large ness plan will be published in 2019. ployment with secure jobs. number of affiliated public sector buyers is our key or represents the interests of electronics workers. In 2018 this group consisted of 24 organisations 2. Make workplaces and environments safe for to sustainability. The Group of Advisors from 13 countries. workers and community members. Advisors play a critical role in Electronics Watch. In- 3. Promote voluntary employment without coercion. formally, they enrich Electronic Watch’s work with 4. Strengthen the worker-driven monitoring meth- their particular expertise. Formally, they help elect odology. the Board of Trustees as each advisory group block nominates and elects their representatives to the 5. Strengthen workers’ collective voice and influ- Board. This group has been large and diverse since ence in their workplaces. The Swedish Regions have affiliated the founding of the organisation, and evolved fur- to Electronics Watch as we, as public 6. Increase worker-driven supply chain transparency. ther to over 350 organisations and 15 individuals procurement agencies, see the many 7. Strengthen the commitment of existing affiliates from 22 countries by the end of 2018. advantages. By doing joint monitoring and attract new affiliates. with other public buyers we can share cost Block 1. Public sector buyers 8. Build platforms of collaboration with affiliates, and increase our leverage. And the unique Advisory group members may include any rep- monitoring partners, unions and industry. monitoring method that Electronics Watch resentative of a public sector buyer that buys ICT 9. Strengthen relations to the wider organisational has developed contributes to improved hardware products. By the end of 2018 this group ecosystem in the sustainable development and consisted of more than 300 organisations from working conditions in the electronics circular economy fields to promote awareness of seven countries. industry. labour rights issues.

10. Ensure Electronics Watch accountability to Pauline Göthberg PhD, National stakeholders and maintain robust organisation- Coordinator, National Secretariat, al functions. Sustainable Public Procurement, Sweden 26 - Annual Report: 2018 27

The Board of Trustees The Electronics Watch Network

The Board of Trustees is responsible for fiduci- ary and programmatic guidance and oversight to ensure Electronics Watch achieves its mission and purpose and operates legally, ethically, and soundly. The Board approves the annual budget and seeks to ensure adequate finances to advance the Electronics Watch mission. It establishes broad organisational and financial policies and strategic goals and priorities.

We welcomed four new members onto the Board Electronics Watch Staff, of Trustees. Representing block 1: Pauline Göth- berg of Sustainable Public Procurement (Sweden) Country Representatives, and Huib de Langen of University of Groningen and Specialist Consultants (Netherlands), leaders in the area of socially re- sponsible public procurement. Representing block Staff of Electronics Watch are responsible for im- 3: Daisy Arago of the Center for Trade Union and plementing programs and reaching the strate- Human Rights (CTUHR, Philippines) and Sanjiv gic goals established by the Board. In 2018 staff Pandita of Asian Network for the Rights of Occupa- members included a Director, a Director of Ad- tional and Environmental Victims (ANROEV), both ministration and Communication, and a Director well-known labour right defenders and experts in of Outreach and Education. In addition, Electron- health and safety issues. The board now has equal ics Watch worked with consultants who served representation from the three constituent blocks: as country representatives in the UK, the Nether- public buyers, experts in human rights, labour lands, and Spain to support and recruit affiliates; rights, and global supply chains, and representa- and specialists in occupational health and safety, tives of civil society organisations from the regions migrant worker rights, and financial administra- of electronics production. tion. 28 - Annual Report: 2018 29

Monitoring Partners Financial Report Income 2018

Monitoring partners are civil society organisations Electronics Watch is audited annually by the in electronics production regions whose staff have IPA-ACON Group in the Netherlands, which focus- expertise in labour rights, health and safety, and es on SMEs, government and non-profit organisa- monitoring methodologies. Because they are lo- tions. cated near workers’ communities and have estab- lished relationships with workers through educa- The net-income of 2018 was € -7,839. tional or other service programmes, they are able to meet with them in conditions that minimize fear A copy of the audit report is available on request. of reprisals for reporting abuses. The following charts show the distribution of in- Workers report their concerns to Electronics Watch come and expenses in 2018. The expenses are monitoring partners. Electronics Watch may then divided into monitoring and remediation, affiliate work with monitoring partners and/or independ- services and operations. ent researchers to investigate complaints and de- velop solutions. In 2018 Electronics Watch worked with monitoring partners in 11 countries. Income and Expenses Evolution

Organisational €450.000 Structure €400.000 30 - Annual Report: 2018 31

Consortium Affiliates

Advanced Procurement for Universities & Colleges (APUC), Associació Catalana de United Kingdom Municipis (ACM)* ,Spain

• Abertay University • Alcarràs,Segrià • Polinyà,Vallès Occidental Affiliates Individual Affiliates • Ayrshire College • Alcoletge,Segrià • Pontós,Alt Empordà • Amsterdam City Council, Netherlands • Borders College • Alt Urgell,Alt Urgell • Rialp,Pallars Sobirà Affiliates use the monitoring services of Electronics Watch to • Barcelona City Council, Spain • City of Glasgow College • Anglès,Selva • Riells i Viabrea,Selva achieve increasing compliance with labour rights and safety • DUO, Netherlands • Dumfries and Galloway College • Arbúcies,Selva • Riudellots de la Selva,Selva standards in the supply chains of the ICT hardware goods they • Durham University, United Kingdom • Dundee and Angus College • ,Maresme • Salou,Tarragonès • ,Maresme purchase. In 2018 the total number of Electronics Watch affili- • Ethical Culture Fieldston School, United States of • Edinburgh College • Salt,Gironès America • Edinburgh Napier University • Artés,Bages • ,Vallès Oriental ates grew from 85 to 305, including the members of affiliated • Haarlem City Council, Netherlands • Fife College • Badia del Vallès,Vallès Occidental • Sant Fost de Campsentelles,Vallès consortia. • Hanze University of Applied Sciences, Netherlands • Forth Valley College • Bages,Bages Oriental • Loughborough University, United Kingdom • Glasgow Caledonian University • ,Bages • Sant Hilari Sacalm,Selva • Manchester Metropolitan University, United Kingdom • Glasgow Clyde College • Bellvei,Baix Penedès • Sant Jaume de Frontanyà,Berguedà • Nottingham Trent University, United Kingdom • Glasgow Kelvin College • Breda,Selva • ,Bages • Sant Boi City Council, Spain • Glasgow School of Art • Camarasa,Noguera • Sant Llorenç Savall,Vallès Occidental • Southern Universities Purchasing Consortium, United • Heriot-Watt University • Camarles,Baix Ebre • Sant Quirze del Vallès,Vallès Occidental Kingdom • Inverness College • Campllong,Gironès • Sant Vicenç de Montalt,Maresme • Sveriges Kommuner och Landsting, Sweden • Lews Castle College • ,Vallès Oriental • Swansea University, United Kingdom • Santa Margarida i els Monjos,Alt • Moray College • Castelldans,Garrigues Penedès • The University of Sheffield, United Kingdom • New College Lanarkshire • , • Seva,Osona • Tower Hamlets London Borough Council, United • Newbattle Abbey College • Castelló d'Empúries,Alt Empordà Kingdom • Sils,Selva • North East Scotland College • Castellterçol,Moianès • Unison, United Kingdom • ,Garraf • North Highland College • Celrà,Gironès • University of Leeds, United Kingdom • Solsonès,Solsonès • Orkney College • Corbera de Llobregat,Baix Llobregat • University of Leicester, United Kingdom • ,Bages • Perth College • ,Maresme • University Medical Centre Utrecht (UMC-Utrecht), • Tremp,Pallars Jussà • El Perelló,Baix Ebre Netherlands • Queen Margaret University • ,Vallès Oriental • Esponellà,Pla de l´Estany • University of Groningen, Netherlands • Robert Gordon University • Escola de Música del Gironès • Foment de Ciutat Vella, • University of Winchester, United Kingdom • Royal Conservatoire of Scotland (OAEMG),Gironès S.A.,Barcelonès • Utrecht City Council, Netherlands • Sabhal Mor Ostaig • Fundació Pública Municipal de • Scottish Association for Marine • ,Bages Música Robert Gerhard,Alt Camp Science (SAMS) • Garrotxa,Garrotxa • Patronat d'Escoles Bressol de • Shetland College • Girona,Gironès ,Maresme Thanks • South Lanarkshire College • Gironès,Gironès • Consorci Centre Cultura Contemporànea • La Cellera de Ter,Selva Electronics Watch gratefully acknowledges • SRUC Barcelona,Barcelonès financial support from: • ,Vallès Oriental • University of Aberdeen • Consorci d'Acció Social de la • University of Dundee • La Pobla de Montornès,Tarragonès Garrotxa,Garrotxa All affiliates, for general monitoring activities. • University of Edinburgh (Edinburgh • L'Ampolla,Baix Ebre • Consorci de Benestar Social Gironès- Bread for All, for specific monitoring projects. College of Art) • Les Borges Blanques,Garrigues Salt,Gironès • University of Glasgow • L'Escala,Alt Empordà • Consorci d'Osona de Serveis Stockholm County Council, London Universities Socials,Osona Purchasing Consortium, Advanced Procurement • University of St Andrews • ,Vallès Occidental • Consorci Servei de Recaptació for Universities & Colleges, and Hanzehogeschool • University of Stirling • Mieres,Garrotxa Cerdanya-Ripoll,Ripollès Groningen for the social@risk™ pilot project. • University of Strathclyde • Moià,Moianès • MC Intermunicipal de la Vall del The Business, Human Rights and the • University of the Highlands and • Montblanc,Conca de Barberà Tenes,Vallès Oriental Islands Environment Research Group at the University • Montornès del Vallès,Vallès Oriental • Aran Salut, Servicis Assistenciaus • University of the West of Scotland of Greenwich, Gemeente Amsterdam, Good • Mont-ral,Alt Camp Integrats, SL,Aran • West College Scotland Electronics, Hanze University of Applied • Navàs,Bages • EMFO, SL,Vallès Oriental Sciences, London Universities Purchasing • West Highland College • Noguera,Noguera • MERCADOS DE ABASTECIMIENTOS Consortium, SOMO, The University of • West Lothian College • Oliana,Alt Urgell DE BARCELONA, S.A. Edinburgh, UNISON and University of MERCABARNA,Barcelonès Groningen, for conferences and events. • Perafort,Tarragonès • SEMESA (Selectives Metropolitanes, • Picamoixons,Alt Camp The European Commission, for the project, S.A.),Baix Llobregat Make ICT Fair, 2017-2020. • Pla de l´Estany,Pla de l´Estany

* Users of the framework agreement for the supply of printing and multifunction equipment 32 - Annual Report: 2018 33

Consortium Affiliates

London Universities Partenariat des Achats Purchasing Consortium (LUPC), Informatiques Romand (PAIR), Sustainable Public United Kingdom Switzerland Procurement, Sweden

• Serveis Municipals de Sant Esteve • Alexandra Palace and Park • NHS Blood & Transplant (NHSBT) • Etat de Fribourg • Stockholm Sesrovires, SL,Baix Llobregat Charitable Trust • Public Health England (incl Health • HES-SO Friboug • Uppsala • SUMAR Empresa d'Acció Social, • British Film Institute Protection Agency) • RZGD • Sörmland S.L.,Gironès • British Library • Queen Mary, University of London • TPF • Östergötland • TERSA (Tractament i Selecció de • British Museum • Royal Academy of Music • Etat de Genève • Jönköping Residus, S.A.),Barcelonès • British Council • Richmond University • Université de Genève • Kronoberg • Tortosa Salut, SL,Baix Ebre • Birkbeck • Regent’s University London • Ville de Genève • Kalmar • City of London School • Ravensbourne • Vapor Llonch. Promoció Econòmica • HUG - Hôpitaux universitaires de • Blekinge , S.L.,Vallès Occidental • CITB - ConstructionSkills • Royal Botanic Gardens, Kew Genève • Skåne • City of London School for Girls • Royal College of Anaesthetists • SIG - Services industriels de Genève • Halland • City of London Freemen’s School • Royal College of Surgeons of • TPG - Transports publics genevoiss • Västra Götaland England Greater London Authority • Courtauld Institute of Art • Association des communes genevoises • Värmland (GLA), United Kingdom • Defence, Science and Technology • Royal Holloway, University of • IMAD London • Örebro Laboratory (DSTL) - part of MOD • Hospice général • Royal College of Music • Västmanland • Transport for London • Diamond Light Source • IFAGE - Institut de formation des adultes • Royal College of General • Dalarna • London Fire Commissioner • Guildhall School of Music and Genève Drama (incl City of London Practitioners • Gävleborg • Mayor’s Office for Policing and • Rentes Genevoises Independent Schools) • Royal College of Art • Västernorrland Crime and the Metropolitan Police • Fondation Officielle de la Jeunesse Service • Goldsmiths, University of London • Royal Central School of Speech & • Jämtland Drama • ASFIP - Autorité cantonale de • London Legacy Development • Heythrop College surveillance des fondations et • Västerbotten Corporation • Horniman Museum and Gardens • Royal Veterinary College institutions de prévoyance • Norrbotten • Old Oak and Park Royal • Historic Royal Palaces • South West London & St Georges • CPEG - Caisse de prévoyance de l’Etat de • Gotland Mental Health NHS Trust Development Corporation • Harris Federation Genève • Sotheby’s Institute of Art • Imperial War Museum • The Graduate Institute • School of Oriental & African Studies • Institute of Cancer Research • HES-SO Genève ITSH-edu, Germany • St George’s, University of London • International Students House • Aéroport International de Genève • Science Museum Group, Science • République et Canton du Jura • Jisc Museum London (SMG) • Christian-Albrechts-Universität zu • Kingston University • HES-SO Kiel • Tate incl Modern, Britain, Liverpool • London Metropolitan University and St Ives • République et canton de Neuchâtel • Europa-Universität Flensburg • London School of Economics & • The Institute of Ismaili Studies • Etat du Valais • Fachhochschule Kiel Political Science • Trinity Laban Conservatoire of Music • Fédération des communes valaisannes • Fachhochschule Lübeck • London Ambulance Service NHS & Dance (FCV-VWG) • Fachhochschule Westküste Trust • TeachFirst • Réseau Santé Valais • GEOMAR Helmholtz-Zentrum für • London School of Hygiene & Tropical • Trinity College, London • Etat de Vaud Ozeanforschung Kiel Medicine (LSHTM) • The Francis Crick Institute • CHUV • Hochschule Flensburg • London Business School • University of London • AVASAD - Association vaudoise d’aide et • Institut für Weltwirtschaft • London South Bank University de soins à domicile • University of the Arts London (UAL) • IPN Leibniz-Institut für die Pädagogik • London Academy of Music and • CIAD - Centre Informatique AVOP-DSAS der Naturwissenschaften und Dramatic Art (CDD) • University of Greenwich & DFJ Mathematik • Museum of London • Universities UK • FHVI - Fédération des Hôpitaux Vaudois • Musikhochschule Lübeck • National Theatre • UK Shared Business Services Ltd • Police - Sécurité dans l’Ouest lausannois (UK SBS) • Muthesius Kunsthochschule • Natural History Museum • TL - Transports publics de la région • University of East London • Studentenwerk SH • National Nuclear Laboratory lausannoise • Universität zu Lübeck • University of Westminster • National Portrait Gallery • Ville de Lausanne ‘This publication has been produced with • Victoria & Albert Museum • ZBW Leibniz-Informationszentrum • National Physical Laboratory • Ville de Montreux the assistance of the European Union. Wirtschaft • Wellcome Trust The contents of this publication are the • National Gallery • Ville de Morges • Zoological Society of London (incorp sole responsibility of Electronics Watch • National Archives • Ville de Nyon and can in no way be taken to reflect Institute of Zoology) the views of the European Union. The • NBI Partnership • Ville de Prilly Electronics Watch Annual Conference • National Institute Biological • Ville de Pully 2017 is part of the project “Make ICT Fair - Standards & Control (NIBSC), incl • Ville de Vevey Reforming Manufacture & Minerals Supply CPRD & MHRA Chains through Policy, Finance & Public • Ville d’Yverdon-les-Bains Procurement”, co-funded by European Union.’ 34