Impact of poor working conditions

Poor working conditions can have serious consequences. When factories or machines are not safe, employees can get injured. Prolonged exposure to the sun or hazardous substances can make employees ill.

In some cases, the consequences are even more severe. Work can also cause mental illness. Excessive working hours, overtime, stress, discrimination, or harassment can lead to serious mental health problems. It is, therefore, crucial to work on decent working conditions to ensure that at least the basics are in place and the safety and health of employees are ensured.

Causes of the problem

Poor working conditions exist worldwide. Vulnerable groups such as (illegal) migrants or seasonal workers are often victims.


Why do poor working conditions exist?

The main reason why employers subject their employees to poor working conditions is likely because they can. In many countries, there are no adequate laws to protect workers, or existing laws are not effectively enforced. Companies often feel pressure to produce at the lowest possible costs. As a result, they sometimes choose countries with poor laws and less frequent inspections. This is particularly evident in the textile industry. Additionally, companies sometimes place unrealistic demands on their suppliers, such as demanding short delivery times or changing orders. This puts even more pressure on suppliers. In other cases, companies may simply lack the funds to improve working conditions.


Why do people accept poor working conditions?

The primary reason workers accept poor working conditions is poverty. If there are no other options, something is sometimes better than nothing. People in hopeless situations are especially vulnerable to poor working conditions. Additionally, sometimes workers are unaware that they are working with hazardous substances for which they should wear protective clothing. Finally, many workers have little knowledge about their rights. Workers may find it harder to demand better conditions when unions do not exist or are banned. In 2023, 114 countries banned workers from joining a union. In 108 countries, authorities have made it difficult to register unions, please view page 41 and 43.

Example

Vulnerable Groups

Some workers are more vulnerable to poor working conditions. These include migrants who work in another country. They often do not have access to the same rights and social benefits. Seasonal workers also often work under poor conditions. They have poor contracts, low wages, and work long hours. People from specific minority groups are also often victims of discrimination and harassment.

Positive impact of decent working conditions

Companies that invest in decent working conditions often find that their company performs better. Employees feel better, more valued, and more engaged in the organisation. There is less absenteeism, and people stay employed longer. One could say there is a 'business case for decent working conditions.' Decent working conditions can also contribute to a company's good reputation, making attracting new employees or customers easier.


Solutions

You have learned that many topics fall under 'decent working conditions.' How can you, as a procurer further down the supply chain, check all these topics? It may seem impossible, but fortunately, it is possible. Below are some solutions.


Platforms

There are increasingly more organisations collecting and making data about working conditions available. They use questionnaires filled out by workers in a factory. This allows companies further down the supply chain to see which risks of poor working conditions exist in specific factories. Some examples include:

Social audits

Another option to gain insight into working conditions at a specific supplier is to conduct social audits. Various organisations with different focuses can do this. During social audits, for example, inspectors check for poor working conditions at a production location. Although audits provide good insight into potential risks, they cannot eliminate all risks. Therefore, it is good to visit suppliers yourself and build a relationship with them regularly. Some examples of social audits are:

  • SEDEX/SMETA
  • Amfori/BCI

Certification

Most certification systems, such as those for sustainable agricultural practices, also check employees' conditions. Purchasing certified raw materials can stop the worst abuses at the production level. Some certification systems also ask auditors to speak with employees or unions. However, this is not always the case. Therefore, it is essential to remain critical of the quality of certification. It is also good to regularly discuss good working conditions with the supplier. Examples of certification systems are:

  • RA
  • RSPO

Supporting unions

Employees often know best how their working conditions can be improved. Employees who work together in unions or works councils can engage in discussions with employers more equally. Therefore, encouraging these types of organisations is a way to address many different issues simultaneously.


Joining multistakeholder initiatives

Another way to gain insight into working conditions in the supply chain and learn from other companies is to join multistakeholder initiatives. Competitors sometimes buy from the same factories or companies, and cooperation can work towards better working conditions. Examples of multistakeholder initiatives are:

  • Ethical Trade Initiative
  • FairWear Foundation
  • Initiative for Responsible Mining Assurance

Example

Some examples of actions you can take are:

  • By talking to your suppliers, you can explore what they need to achieve decent working conditions for their employees.
  • If you find specific labour or human rights risks at a production location, you can organise training sessions to address them in collaboration with the production locations.
  • Training your purchasers to buy with attention to decent working conditions.
  • Independent social audits can support finding risks in the supply chain.

Useful tools