[2015] FAIR LABOR ASSOCIATION INDEPENDENT EXTERNAL MONITORING AGRICULTURAL REPORT COMPANY: Syngenta COUNTRY: Hungary PROVINCE: Mezotur/Jász-Nagykun-Szolnok MONITOR: Janos Nagy/FLA AUDIT DATE: 13-17 July 2015 PRODUCTS: Hybrid Sunflower Seed NUMBER OF WORKERS: 49 NUMBER OF GROWERS/WORKERS INTERVIEWED: 7/19 NUMBER OF FARMS VISITED: 7 TOTAL AREA COVERED IN AUDIT: 581 ha PROCESSES: Flower head selection, weeding To view more about the FLA s work with Syngenta, please visit the FLA website here. 1
Non-compliances Overview and Table of Content 1. Code Awareness Page GEN 1 GEN 2 GEN 3 2. Forced Labor Establish and articulate clear, written workplace standards. Formally convey those standards to Company Growers as well as to supply chain Organizers. Ensure that all Company growers as well as supply chain Organizers inform their workers about the workplace standards orally and through the posting of standards in a prominent place (in the local languages spoken by workers) and undertake other efforts to educate workers about the standards on a regular basis. Develop a secure communications channel, in a manner appropriate to the culture and situation, to enable Company employees, Supervisors and employees of supply chain organizers to report to the Company on noncompliance with the workplace standards, with security that they shall not be punished or prejudiced for doing so. Other (Company Internal Grievance Policy and Procedures) F.1 General Compliance Forced Labor F.2 Freedom in Employment F.3 Employment Terms/Voluntary Agreement F.4 Employment Terms/Prohibitions F.5 Debt/Bonded Labor F.6 Wage Advances F.7 Free Disposal of Wages/Cash and In-Kind Compensation F.8 Recruitment through Referrals F.9 Freedom of Movement F.10 Grower-Controlled Living Quarters F.11 Worker Ability to Terminate-Freedom of Movement F.12 Individual Contracts (Verbal / Written) F.13 Personal Worker Identification and Other Documents F.14 Bonded Labor Noncompliance 6 Noncompliance 7 2
3. Child Labor CL.1 General Compliance Child Labor CL.2 Child Labor CL.3 Proof of Age Documentation CL.4 Other Means of Age Verification CL.5 Government Permits and Parental Consent Documentation CL.6 Employment of Young Workers CL.7 Hazardous Work for Young Workers CL.8 Education of Young Workers CL.9 Children on Premises CL.10 Removal and Rehabilitation of Child Laborers Uncorroborated Noncompliance 8 4. Harassment or Abuse H&A.1 H&A.2 General Compliance Harassment and Abuse Discipline/Fair and Non-discriminatory Application H&A.3 Discipline/Worker Awareness Noncompliance 9 H&A.4 Discipline/Training H&A.5 Discipline/Monetary Fines and Penalties H&A.6 Discipline/Access to Facilities H&A.7 Discipline/Physical Abuse H&A.8 Discipline/ Verbal Abuse Uncorroborated Noncompliance 10 H&A.9 Violence/Harassment/Abuse H&A.10 Sexual Harassment H&A.11 Punishment of Abusive Workers/ H&A.12 Grievance Procedure 3
5. Non-Discrimination D.1 General Compliance Non-Discrimination D.2 Employment Decisions D.3 Sex-Based Wage Discrimination D.4 Marital Status or Pregnancy D.5 Protection and Accommodation of Pregnant Workers and New Mothers D.6 Health Status D.7 Discriminatory Violence/Harassment/Abuse 6. Health and Safety H&S.1 H&S.2 H&S.3 H&S.4 H&S.5 H&S.6 H&S.7 H&S.8 H&S.9 H&S.10 H&S.11 H&S.12 H&S.13 H&S.14 H&S.15 General Compliance Health and Safety Document Maintenance/Worker Accessibility and Awareness Written Health and Safety Policy Health and Safety Management System Communication to Workers Access to Safety Equipment and First Aid Personal Protective Equipment Chemical Management and Training Chemical Management for Pregnant Women, Young Workers and Family Members residing in the farm Protection Reproductive Health Machinery Maintenance and Worker Training Medical Facilities Drinking Water Rest Areas Living Quarters 4
7. Freedom of Association and Collective Bargaining FOA.1 FOA.2 FOA.3 FOA.4 FOA.5 General Compliance Freedom of Association Right to Freely Associate Grower Interference and Control Anti-Union Violence/Harassment/Abuse Right to Collective Bargaining/Unorganized Workers 8. Hours of Work HOW.1 HOW.2 HOW.3 HOW.4 HOW.5 HOW.6 General Compliance Hours of Work Rest Day Meal and Rest Breaks Overtime Over Time/Positive Incentives Public Holidays 9. Wages, Benefits and Overtime Compensation WBOT.1 WBOT.2 WBOT.3 WBOT.4 WBOT.5 WBOT.6 WBOT.7 WBOT.8 WBOT.9 General Compliance Wages, Benefits and Overtime Compensation Minimum Wage Timely Payment of Wages In-kind Compensation Advance Payments Worker Wage Awareness Record Maintenance Employer Provided Services Additional Benefits 5
Code Awareness: GEN 2 Ensure that all Company growers as well as Seed Organizers inform their workers about the workplace standards orally and through the posting of standards in a prominent place (in the local languages spoken by workers) and undertake other efforts to educate workers about the standards on a regular basis. Noncompliance Explanation: Plan Of Action: Deadline Date: Although some workers showed some level of awareness of some code elements (e.g. Child Labor, Health & Safety, Hours of Work and Compensation), Syngenta does not show systematic efforts to share communication materials and organize regular trainings for growers and workers on the sunflower seed producing farms. Syngenta's training materials and visual aids do not reach the seed organizer's sunflower farms, since Syngenta primarily targets their corn-seed growers. Sunflower producing growers are not participating in Syngenta's "FLA days" (training provided to Syngenta's supply chain partners and suppliers that covers workplace standards and fair labor program implementation), as only the seed organizer's representatives participated. There is no implementation system ensuring that workplace standards are effectively communicated to sunflower seed producing growers and their workers. Source: Interviews with workers, growers and IMS staff; Farm visits 1. Syngenta will develop a bonus system using points as an incentive and increase the vested interest of the growers in order to improve the efficiency of the information flow. 1.1. Syngenta will implement the internal monitoring system for 35 % of the growers. Through internal monitoring, Syngenta will check the availability of the printed COC and the awareness of the workers. The growers will get point deductions if the COC is missing or the workers are uninformed of the COC. 1.2. Syngenta will invite the organizer of the sunflower production (Agromag) and 30% of the sunflower growers to the training organized for the labor contractors (FLA Party). 1.2.1. Aim to reach min. 90 % of training participation 1.2.2. After the training, participants will be asked to fill a test. 1.3. Syngenta will distribute visual materials (e.g. bus stickers, PPE shirts) to the representatives of the sunflower production organizer and the sunflower growers. 2. Syngenta will improve communication of the grievance number, the so called green number June 2016 2.1 Syngenta will explain the function of the green number during the trainings of labor contractors and growers 2.2 Syngenta will publish the green number on the visual materials 2.3 If 2/3 of the interviewed workers during internal monitoring do not know the function of the green number, the grower will get point deductions, which can decrease the FLA bonus. 6
Code Awareness: GEN 3 Develop a secure communications channel, in a manner appropriate to the culture and situation, to enable Company employees, Supervisors and employees of Seed organizers to report to the Company on noncompliance with the workplace standards, with security that they shall not be punished or prejudiced for doing so. Noncompliance Explanation: Plan Of Action: Deadline Date: Syngenta has established a grievance system that is utilized by the seed organizer in the sunflower seed producing farms. However, the system is not effectively implemented for the following reasons: There is no dedicated communication channel established between Syngenta and the seed organizer in order to deal with grievance-related issues; The toll-free phone number used on the communication notice boards is out-ofdate; There is no regular internal monitoring organized on sunflower seed producing farms to identify and deal with potential grievance-related issues. Source: Records' review; Interview with seed organizer s representative; onsite farm visits Refer to Code Awareness action plan under GEN.2 June 2016 7
Child Labor: Removal and Rehabilitation of Child Laborers CL.10 If a child laborer is found working on the farms, the grower and the company shall ensure that the child is immediately removed from the farm and is rehabilitated and brought into the mainstream school system. The grower and company will make efforts to make this rehabilitation sustainable. Uncorroborated Noncompliance Explanation: Plan Of Action: Deadline Date: There is no child labor monitoring and remediation system for potential cases of child labor identified on sunflower seed production farms. Farms are not systematically monitored and the newly established Syngenta policy on child labor rehabilitation was not communicated to the seed organizer and sunflower seed-producing growers. Source: Record review; interview with seed organizer s regional representative 1. Syngenta will make sure to distinguish between workers and young workers (between age 15-16) 1.1. Syngenta will expand the usage of the distinguishing bracelet to 30% of the fields 1.2. Syngenta will check the usage of the distinguishing bracelet through internal monitoring. The growers who do not implement it will get point deductions, which can decrease the FLA bonus 1. 1.3. Child labor (below age 15) is unacceptable; however, if Syngenta detects child laborers, the representatives of the sunflower seeds organizer will warn parents to take home the child younger than the age of 15. June 2016 1 Syngenta established a point program to measure growers compliance with their COC system and establish incentives. However, for growers who do not implement the usage of the distinguishing bracelet, Syngenta will use deduct points, which can decrease the FLA bonus. 8
Harassment or Abuse: Discipline/Worker Awareness H&A.3 Grower will follow disciplinary practices that are fair and are clearly understood by the workers. The grower will take necessary steps to ensure that the farm s disciplinary procedure is clearly understood by the workers. Noncompliance Explanation: Plan Of Action: There is neither a written disciplinary policy nor an established, well-documented procedure on how to handle discipline at farm level. Therefore, workers are not aware of any fair disciplinary process in practice. This carries out a risk that such actions requiring disciplinary measures remain uncontrolled and improperly addressed. Source: Record review; interview with seed organizer, growers and workers 1. Syngenta will ensure a printed version of the COC for all of the growers. 2. See also action plan under Code Awareness, GEN.2 Deadline Date: June 2016 9
Harassment or Abuse: Discipline/ Verbal Abuse H&A.8 Grower will not use, engage in, or support any form if verbal violence, including screaming, yelling, or the use of threatening, demeaning, or insulting language as means to maintain labor discipline. Uncorroborated Noncompliance Explanation: Plan Of Action: Deadline Date: An interview with one of the growers revealed that he does not refrain from using verbal violence, especially towards workers from the Roma community. Although such behavior was not directly witnessed by FLA monitors in the field, the interview with the grower serves as sufficient evidence to classify this as an uncorroborated noncompliance. In addition, this issue highlights the need for a written disciplinary policy, and more targeted communication and control from the seed organizer or Syngenta. Source: Farm visits; grower interviews See action plan under H&A.3 June 2016 10