Nestlé SA’s “Action Plan” for seafood sourced from Thailand is based on outdated information gathered before the Thai government implemented strict measures to combat human trafficking as well as illegal, unreported and unregulated (IUU) fishing, stated Ananchai Uthaipattanacheep, deputy director-general of the Department of Labor Protection and Welfare, on November 25.
The Vevey, Switzerland-headquartered multinational food giant, which utilizes fish and seafood in its frozen meals and other ready-made dishes as well as pet food and nutrition products, began an investigation in late 2014 after reading news stories and receiving complaints from non-government organizations (NGOs) alleging poor labor conditions and human rights abuses in the Thai fishing and seafood processing industries. Earlier this year it commissioned Verité, a non-profit social auditing and research organization, to look into six locations in the country that produce fishmeal (or fish feed) for use by farms supplying whole prawns. Findings from its probe have prompted changes in Nestlé’s supply chain and procurement policy.
“Nestlé is committed to eliminating forced labor in our seafood supply chain in Thailand, working alongside other stakeholders to tackle this serious and complex issue,” said Magdi Batato, the company’s executive vice president of operations. “We believe that our Action Plan will help improve the lives of those affected by unacceptable practices. This will be neither a quick nor an easy endeavor, but we look forward to making significant progress in the months ahead.”
In reference to findings by Verité, Thiraphong Chansiri, chief executive officer of Thai Union, a major processor of frozen and canned seafood, told The Nation newspaper: “Many times there were reports about things in the past. What people should give importance to is the progress efforts and determination to tackle this issue.”
Chansiri went on to say that the Thai government has shown its sincerity and determination to address this matter. Indeed, with the European Union threatening to ban Thai seafood imports if it can’t be demonstrated that fishing industry regulations are being systematically enforced, this issue is a high priority among authorities.
Nestlé’s plan contains a series of actions designed to protect workers from abuses, improve on-the-job conditions and tackle unacceptable practices including juvenile and underage teenage working.
“Alongside the Thai government, local seafood suppliers and international buyers, we also participate in the multi-stakeholder International Labor Organization (ILO) Working Group, which is seeking collaborative solutions to improve labor conditions in Thailand’s complex seafood export industry,” declared Nestlé in a statement posted at its website.
The company will appoint a dedicated manager in Thailand to oversee the plan’s progress in collaboration with Nestlé’s seafood suppliers in the country. Implementation will begin immediately and the rollout will continue through 2016, with progress reports issued publically.
Five-Point Action Plan
Specifically, the following actions will be taken together with suppliers and local partners:
- Emergency Response Team
Nestlé will coordinate the establishment of a Migrant Workforce Emergency Response Team to help protect Thai fishing laborers from labor abuses and carry out remediation work. It will work with a third party partner, assisted by a network of local NGOs, to take short term actions that protect individuals at risk (measures may include buying debt, regularizing work permits, and facilitating relocation). - Grievance Mechanism
An awareness raising campaign aimed at boat captains and ship supervisors will be launched covering required labor standards and health and safety in the workplace. A grievance mechanism will form part of this activity to allow anonymous reporting. - Fishing Vessel Verification Program
An internal audit program will verify working conditions on fishing vessels. Boats will be randomly selected on a quarterly basis to undergo third party verification. The audit will include interviews with boat workers to establish a history of their working career and to assess their working and living conditions. - Training Program and Best Practices
Nestlé will partner with other companies and NGOs to initiate a training program for boat owners and captains. Best practices will include traceability, recruitment practices, fish catching systems and living and working conditions for boat workers.
This program will potentially include an implementation toolkit composed of Employment Contract Templates and rules, worker ID cards, a template to monitor workers’ names, their working time, salary, and appropriate associated deductions. - Traceability Goals
A system will be set up to improve the traceability of seafood ingredients used by Nestlé, from fishing vessels to manufacturing sites. This system will begin implementing an identification system for fishing vessels. Commercial contracts will include a traceability goal as well as the implementation of a monitoring and remediation system on human rights and labor standards.This is designed to help the identification of all potential origins (farms, mills, back to fishing vessels) of the seafood ingredients used by Nestlé. Once identified, these suppliers’ sources will then be continuously assessed and assisted to ensure that they meet the company’s Responsible Sourcing Guideline standards.
Thai Government Strike Force on Guard
Thai Deputy Director-General Ananchai, meanwhile, described Nestlé’s goals as a positive reflection of the international community, including further processors and distributors of fish and seafood that are interested in clean sources of supply and the protection of workers’ rights. He made it clear that his department is willing and able to, upon receiving complaints, dispatch personnel to take legal action to remedy problems.
Ananchai pointed out that the Department of Labor has deployed teams to regularly check fishing-related enterprises in 22 seaside provinces. The Thai Navy, Department of Fisheries, Marine Department, Department, the Ministry of Social Development and Human Security, the Labor Ministry and Police Department have assigned altogether 316 officials to the teams.
