May 14, 2009 - Today two of Europe’s largest trade unions – the Dutch FNV Bondgenoten and the UK based Unite the Union - accused Unilever of an “aggressive policy of job destruction” and of “creating an entire generation of disposable workers”. Unilever is a global industry leader in food, home and personal care products. It is the world’s leading tea packing company with well known brands such as Lipton and Brooke Bond.
During Unilever’s AGM in Rotterdam FNV Bondgenoten, FNV Mondiaal and Unite jointly released a so called Erratum report to the Unilever Annual Report and Accounts 2008. The name of the alternative annual report is “Adding insecurity to life”, which is a variation on Unilever’s own mission statement “Adding vitality to life”. The report - which is supported by the Indian Committee of the Netherlands and the British trade union central TUC - details 10 cases from around the world in which Unilever has denied workers their legal rights, refused to recognize trade unions as representatives of the work-force, intimidated workers and replaced permanent workers with casual, temporary labourers who have fewer rights.
It also estimates that around half of Unilever’s global workforce (approximately 150,000 people) is now outsourced. This means that all these people are not recognised as employees and Unilever does not pay them the wages and benefits that unions have successfully fought for and negotiated.
Unilever has won many prices over the last decade for its policies of corporate social responsibility. However the report “Adding insecurity to life” tells another story. Outsourcing and flexibilisation of factory work undermine the position of people who work for Unilever on a global scale. High wages and bonuses for the top managers stand in sharp contrast with the growing insecurity and underpayment of ordinary employees.
Three of the cases mentioned in the report, are related to the production of Lipton tea. For example, the report details the situation in the Lipton tea factory in Khanewal, Pakistan. Under the regime in this factory casual workers are only paid one third the daily wage of the permanent employees and offered no job security, no overtime pay and no health and social security benefits.
Cases such as these are remarkable, because Unilever has committed to source all Lipton tea from sustainable, ethical sources and runs a massive advertising campaign to convince the public that Lipton tea is good for people and planet. By obtaining certification from the international conservation organisation Rainforest Alliance, Unilever aims to ensure that tea plantation delivering to the Lipton brand operates according to high social and environmental standards. However the trade union report released today shows that Rainforest Alliance certification does not necessarily mean that (suppliers to) Unilever comply fully with the social component of the certification requirements. E.g. in India workers on certified teaplantations that deliver to the Lipton brand are not receiving the full legal wages. In Kenya, teapickers working on tea plantations approved by the Rainforest Alliance are still suffering from discrimination, sexual harassment, low wages and bad living conditions.
In conclusion: there is still a lot of work to be done at Unilever to ensure that the reality in the company’s glossy CSR reports matches with the day-to-day reality of its employees.
The report “Adding insecurity to life” by FNV Bongenoten, FNV Mondiaal and Unite the Union can be downloaded here.
