Oxfam study reveals exploitation of migrant workers in German supermarket supply chains; incl. company comments
Summary
Date Reported: 13 Jun 2022
Location: Costa Rica
Companies
Grupo Acón - Supplier , REWE Group - Buyer , Lidl - BuyerOther
Not Reported ( Recruitment agencies ) - EmployerAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Nicaragua , Agriculture & livestock , Gender not reported )Issues
Occupational Health & Safety , Right to Unionisation , Freedom of Association , Dismissal , Freedom of Assembly , Wage Theft , Social SecurityResponse
Response sought: Yes, by Oxfam
External link to response: (Find out more)
Action taken: REWE assessed the events as a clear violation of applicable law and the moral and ethical principles of the company. It announced that there would be consequences if the violations were unambiguously proven. Lidl was the only supermarket that disclosed its suppliers for pineapples, bananas, and wine from the countries in question in response to Oxfam Germany’s request. It stated that every direct and indirect business partner of Lidl was required to respect the company’s Code of Conduct if it wished to remain a partner over the long term.
Source type: NGO
Summary
Date Reported: 13 Jun 2022
Location: Costa Rica
Companies
Upala Agrícola. - Supplier , Edeka Group - Buyer , Lidl - BuyerOther
Not Reported ( Recruitment agencies ) - EmployerAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Nicaragua - Sector unknown , Gender not reported )Issues
Poverty WagesResponse
Response sought: Yes, by Oxfam
External link to response: (Find out more)
Action taken: Upala Agrícola denies that it hires farmworkers over contratistas and claims it is in full compliance with the requirements of the minimum wage law.
Source type: NGO
Summary
Date Reported: 13 Jun 2022
Location: Costa Rica
Companies
Jardín del Tigre - Employer , ALDI South - Buyer , Fyffes - SupplierAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Nicaragua , Agriculture/food/beverage/tobacco/fishing: General , Gender not reported )Issues
Social Security , Failing to renew visasResponse
Response sought: Yes, by Oxfam
External link to response: (Find out more)
Action taken: LDI South claimed that it had no knowledge of the allegations concerning the Fyffes banana supplier Jardín del Tigre and entered into a dialogue with the company. It said it would, if necessary, conduct an on-site review itself.
Source type: NGO
Summary
Date Reported: 13 Jun 2022
Location: Costa Rica
Companies
Finca Once - Supplier , Lidl - BuyerOther
Not Reported ( Recruitment agencies ) - EmployerAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Nicaragua , Agriculture/food/beverage/tobacco/fishing: General , Gender not reported )Issues
Poverty WagesResponse
Response sought: Yes, by Oxfam
External link to response: (Find out more)
Action taken: Finca Once denies that it hires farmworkers over contratistas and claims it is in full compliance with the requirements of the minimum wage law.
Source type: NGO
Summary
Date Reported: 13 Jun 2022
Location: Costa Rica
Companies
Bellavista Fresh - Employer , Edeka Group - BuyerAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Nicaragua , Agriculture/food/beverage/tobacco/fishing: General , Gender not reported )Issues
Occupational Health & Safety , Gender DiscriminationResponse
Response sought: Yes, by Oxfam
External link to response: (Find out more)
Action taken: Edeka stated that it had no contractual relationship with the firms Upala Agrícola or Cítricos Bellavista. Oxfam’s research, however, was able to clearly trace the boxes of fruit in the Edeka store back to both enterprises using the GlobalGAPnumber printed on the box. One gets the impression that Edeka does not see itself as responsible for the abuses uncovered. The supermarket merely stated that all farms, from which their supplier intermediaries bought fruit, had to be certified by either GlobalGAP or Rainforest Alliance. It asserted that the governmental authorities in the producer’s country were responsible for investigating allegedly criminal conduct such as the payment of wages below the lawful minimum wage—a statement which once again underscores the company’s misconception of what constitutes meeting its due diligence obligations. Oxfam Germany has seen evidence of this misconception at Edeka for many years now. When pressed by us, the company finally said that it would take the allegations seriously and investigate
Source type: NGO
Summary
Date Reported: 13 Jun 2022
Location: Costa Rica
Other
Not Reported ( Agriculture/food/beverage/tobacco/fishing: General ) - EmployerAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Nicaragua , Agriculture/food/beverage/tobacco/fishing: General , Gender not reported )Issues
Occupational Health & Safety , IllnessResponse
Response sought: No
Source type: NGO
Summary
Date Reported: 13 Jun 2022
Location: Costa Rica
Companies
Del Monte Foods - Parent CompanyOther
Not Reported ( Agriculture/food/beverage/tobacco/fishing: General ) - EmployerAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Nicaragua , Agriculture/food/beverage/tobacco/fishing: General , Gender not reported )Issues
Wage Theft , Denial of leaveResponse
Response sought: No
Source type: NGO
"No limits to exploitation – migrant workers in the supply chains of German supermarkets", June 2022 [German original published 1 March 2022]
For plantation owners and companies, migrant workers are cheaper than local workers. Moreover, it is often more difficult for migrants to stand up for their rights, as they not only lose their jobs but are also at risk of deportation. Therefore, they are most affected by human and labour rights violations such as violence and exploitation, especially women.
This research uses four case studies to trace the supply chains of large German supermarkets back to the farms and growing areas. Based on on-site research and interviews with workers, the situation of migrants in pineapple and banana farming in Costa Rica and in the wine and table grape sector in South Africa is examined.
The results of the case studies show: fruits sold in German supermarkets like Rewe, Aldi, Lidl and Edeka are grown under inhumane working conditions. Migrants in particular are exploited:
- Many workers receive significantly less than the legally prescribed minimum wage - even on certified plantations.
- Contrary to legal requirements, piecework of more than twelve hours is a reality for many workers.
- The study also describes cases of trade union repression, sexual exploitation, inadequate protection against pesticides and other labour rights violations in Costa Rica and South Africa.
The German supermarkets - above all the four supermarket giants Aldi, Edeka, Lidl and Rewe - exert enormous price pressure on the farms in their supply chains through their market power. This makes them partly responsible for the conditions on the plantations. But not all supermarkets are willing to take responsibility. Therefore, the German government must lobby at the EU level for a strong legal regulation on human rights due diligence. It also needs to ambitiously implement the German Supply Chain Act, which was passed in 2021.
Note: Oxfam wrote to all the companies mentioned in this study in February 2022 to ask for their comments. Responses can be found on page 30 and following pages of the report.