The Palm Rights Observatory has developed a Fair Work Monitor in Guatemala, where it highlights the working conditions of those who make this industry possible today. A total of 65 workers participated in the monitoring, and the results are now presented in this human and labor rights observatory.
Oxfam and CNV Internationaal aim, through their work with the RSPO, to ensure the informed participation of communities and workers at all levels, establishing stronger ties with the RSPO, and facilitating the active involvement of communities in the sustainability of the palm oil industry.
For this monitoring process, we relied on eight RSPO principles and criteria indicators linked to the concept of Fair Work. Thus, throughout this document, workers' perceptions of labor rights violations contrast with the following principles:
- Prohibition of all forms of discrimination against workers.
- Workers' pay, working, and living conditions must meet legal or sectoral minimum standards.
- The Certification Unit must respect the formation and affiliation of unions or worker organizations for collective bargaining.
- The Certification Unit will not use child labor and will prohibit the worst forms of child labor.
- Forms of intimidation, harassment, abuse, or violence in the workplace must be prevented, mitigated, and addressed.
- The rights of women workers must be respected and promoted, and violations of these rights must be remedied.
- There must be zero tolerance for forced labor and human trafficking.
- The Certification Unit must implement health and safety practices to protect workers from occupational diseases and injuries.
GENERAL CONTEXT
In Guatemala, palm oil plantations are rapidly expanding, occupying extensive areas in the southwest and northeast of the country, particularly in the municipalities of Petén, Alta Verapaz, and Izabal. Guatemala has become the third-largest palm oil producer globally, exporting 875,000 metric tons of oil in 2023. Guatemala is now the world’s third-largest palm exporter, following Indonesia and Malaysia, which together account for 88% of global exports.
In the second half of 2023, we conducted Digital Monitoring to listen to the workers—the ones who make the palm oil chain possible. This tool feeds, year after year, the Palm Rights Observatory with updated information.
The Digital Monitoring tool has proven effective in tracking working conditions from the workers' perspective, helping identify crucial areas for strengthening labor rights protection.
This initiative addresses fundamental principles that should be included in industry labor laws and certifications, in line with the International Labour Organization (ILO) guidelines, including:
- Living Wage
- Freedom of Association
- Precariousness faced by outsourced or subcontracted workers
- Health and safety conditions at work
- Gender equality in the workplace
In 2024, we published our first report of this kind for the palm oil sector. This baseline information will be continuously updated to recognize both positive and negative trends throughout the years of participatory digital monitoring.
HOW WE BUILT THE PALM RIGHTS OBSERVATORY: LOCATIONS AND PARTNERS
In October 2023, CNV Internationaal and Oxfam focused their efforts on building trust with workers in Honduras, encouraging them to share their participation, opinions, and experiences.
A total of 65 Guatemalan participants, both men and women aged 25 to 49, took part in the digital monitoring.
It is important to highlight that 94% of the participants (61) identified as indigenous people in Guatemala.
Generalidades de los participantes:
SOCIAL DIALOGUE
According to Indicator No. 2 of the RSPO, which relates to workers' pay, working, and living conditions, these standards are significantly affected, according to findings from the Fair Work Observatory of CNV Internationaal. This indicator mandates that all employment contracts be formalized in writing, with each worker receiving a copy. Additionally, it specifies that detailed payroll records must be provided, showing payments and deductions from wages.
In terms of Social Dialogue, the context is generally precarious, with 94% of workers reporting the absence of direct communication channels with their employer.
Company 1:
In Company 1, there is evident dissatisfaction among workers in various aspects of the employment relationship. The vast majority (95%) feel that they are not consulted before significant work decisions, and an equally high proportion do not recognize the existence of dialogue spaces beyond collective bargaining. Existing dialogue mechanisms are seen as ineffective by all workers who noted their existence, with some feeling that these mechanisms have worsened situations. A large majority rate their relationship with the company as poor.
Company 3:
While the situation at Company 3 appears better than at Company 1, challenges remain. Although fewer workers report a lack of consultation before major decisions, more still feel they are not consulted than those who do. There is a higher recognition of dialogue spaces, yet the majority of workers who are aware of them do not consider them effective. Opinions on the relationship with the company are mixed, with "average" being the most common rating. Perceptions of the consequences of dialogue mechanisms are also mixed, with some reporting negative outcomes. These results indicate that, while less critical than in Company 1, significant areas still need attention to improve relations between workers and the company.
It is important to highlight reports of strikes in the past year at both companies, particularly in Company 1. This underscores the existence of major labor conflicts and signals an urgent need to investigate and address the underlying causes of these strikes.
LIVING WAGE
The concept of a living wage, established by the Anker Research Institute, refers to the economic compensation that enables workers and their families to live with dignity, covering their basic needs such as food, housing, education, health, transportation, and recreation. Unlike the minimum wage, which establishes a legal wage floor, the living wage reflects a level of income that guarantees a decent, equitable life, promoting social justice and reducing poverty and inequality.
Regarding perceived economic stability, most workers report that their financial situation remains unchanged. In terms of wages and overtime, although a significant number of workers receive full cash payment for their wages, a substantial 85% report not receiving payment for overtime hours worked. This could indicate a lack of compensation for the labor load, with a notable portion of workers reporting 60-hour work weeks, far above the standard 40-hour workweek.
Regarding the minimum wage, which is set annually in each country, a considerable percentage of workers at Company 1 report earning less than the minimum wage, while at Company 3, workers report earning the minimum wage. However, in terms of a fair or living wage, 97% of workers at both companies believe they do not receive one. Conditions appear better at the RSPO-certified company regarding minimum wage compliance and formalized contracts.
For Indicator 2, which evaluates pay, working, and living conditions, several essential aspects are found lacking. Key shortcomings include the absence of overtime pay, lack of social security coverage by employers, and situations where some workers earn less than the legal minimum wage.
OCCUPATIONAL HEALTH AND SAFETY
In terms of health and safety, disparities exist in affiliation with the Guatemalan Social Security Institute (IGSS), widespread dissatisfaction with working conditions, and an alarming lack of Personal Protective Equipment (PPE), particularly evident in Company 1. Additionally, inadequate maintenance of PPE is observed in this company compared to Company 3. There is also an imbalance in the provision of occupational safety and health (OSH) services, and both companies lack a dedicated area for first-aid nursing.
Common occupational risks identified include exposure to extreme temperatures, sun exposure, and dust/particulate material.
Worker perceptions of occupational risks and treatment during the workday vary, with a general reluctance to report work-related illnesses. Some workers face retaliation for requesting breaks outside of work hours and for reporting illnesses.
A significant number of workers experience reprisals for requesting breaks outside working hours. There are discrepancies in how workers perceive treatment across companies, with some reporting negative experiences at Company 1 and mixed perceptions at Company 3. Concerns about reporting work-related illnesses are particularly acute at Company 1. Perceptions of these reports vary considerably, with outcomes ranging from dismissal to supportive responses and reasonable accommodations. These outcomes tend to be less favorable at Company 1 compared to Company 3, where illness reports are treated more sympathetically. It is worth noting that Company 3 is certified by the mechanisms.
FORCED LABOUR
The RSPO certification affirms a "zero-tolerance policy on forced labor and human trafficking," yet 43 participating workers reported being compelled to work longer hours than allowed by law.
Regarding work under threat, some workers at both Company 1 and Company 3 report working under coercion, which directly violates the policy advocating voluntary, non-coercive labor. Results appear better in the RSPO-certified company compared to the other company, though full compliance with criteria and principles is lacking.
GENDER EQUALITY
The fact that the majority of workers (55%) are unaware of the existence of a Gender Committee to assist and advise in cases of workplace harassment indicates a lack of specific resources and support structures to address this issue.
It is concerning that 58% of workers are unaware of existing procedures for reporting cases of abuse, violence, or harassment in the workplace. This points to a lack of clarity and communication about available resources to address these situations. Additionally, a significant percentage of workers (31% in both companies) report experiencing harassment based on their gender, both male and female.
Data on gender-related issues show a lack of compliance with mechanisms indicators related to “prohibition of all forms of discrimination against workers” and “respecting and promoting the rights of women workers, with remedies for violations of these rights.”
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