Investigation finds European Bank for Reconstruction & Development fails to respect labour rights in loan to Turkish tractor manufacturer

Author: Kirsten Genovese, SOMO (Netherlands), Published on: 18 April 2017

"Investigation finds: European Development Bank fails to respect labor rights in Turkish investment"

An independent investigation report, published last week, concludes that the European Bank for Reconstruction and Development (EBRD) failed to ensure protection of core labor standards when providing a EUR 30 million loan to Türk Traktör – a Turkish manufacturer of tractors and agricultural machinery. In response, EBRD committed to improve their internal procedures and commission an analysis on the gaps between international labor law and national law. The Bank, however, fails to commit to any concrete measures that would improve conditions or provide remedy for affected workers. The investigation, conducted by the EBRD’s independent Project Complaint Mechanism (PCM), was in response to a complaint filed in September 2015 by the Turkish union, Birleşik Metal İş, with the support of SOMO. The complaint argued that Türk Traktör was in violation of EBRD’s labor policy when it dismissed 20 Türk Traktör workers and workers’ representatives after they took part in a country-wide strike in May-June 2015, in which more than 30,000 metal workers demanded respect for their right to establish and join a labor union of their choosing. In addition the complaint also raised issues of compulsory and excessive overtime, salary levels, and the validity of the existing collective bargaining agreement – negotiated by a union workers are forced to join... [includes link to 2015 complaint by Turkish union, Birleşik Metal İş and 2017 report by  Project Complaint Mechanism]

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Related companies: TurkTraktor