HUMAN RIGHTS AT WORK Carrefour’s commitment to respecting fundamental human rights at work

1. HUMAN RIGHTS AT WORKCarrefour’s commitment to respecting fundamental human rights at work

2. AGENDA Carrefour's Commitments INTRO Human Rights in the supply chain Part 1 Carrefour's Actions : auditing and more Part 2 Social compliance in the sourcing process Part 3 Discussion on challenges Discussion

3. Social présentation Background & Commitments For over 10 years, Carrefour has been committed to put in practice its commitment to respecting fundamental universal principles (child labour, working condition, etc.).

4. Background & Commitments Carrefourgives practical effect to this commitmentin a number of ways: Cooperation with the International Federation for Human Rights (FIDH) since 1997/1998 : 10 years • The setting up of a cooperative framework FIDH: the INFANS association • Establishment and adoption of a supplier’s charter • Implementation of a methodology to ensure the charter is respected

5. Social présentation Background & Commitments • Created in 1922 • 155 member organisations in over 100 countries • www.fidh.org

6. Background & Commitments = the most protective standard

7. Background & Commitments INTERNATIONAL LAW Social présentation

8. Why should Carrefour respect human rights? BUSINESS RISKS MEDIAS NGOS CONSUMERS

9. Social présentation Why Should Suppliers be Socially Compliant? BUSINESS OPPORTUNITES

10. Social présentation Why Should Suppliers be Socially Compliant? . Moral and Ethical Reasons Carrefour will not conduct business with critical factories. Productive, more motivated workers Lower worker turnover Higher and more consistent sales volumes BUSINESS OPPORTUNITIES Carrefour has social compliance requirements for all suppliers, but suppliers may wonder why they should oblige

11. Why should business respect human rights? ECONOMIC BENEFITS • Good for global retailers Customers pay more and more attention to ethics Social Responsible Investment Funds growing • Good for suppliers Productive, more motivated workers Lower worker turnover Higher and more consistent sales volume All global retailers now demand social compliance

12. Social présentation Respect human rights : benefits Modifier ce slide et séparer par catégories

13. Why should suppliers respect human rights? Safety Training PPE – Masks, Gloves, Boots Time Off Safe, well maintained machinery and facilities Comfortable Working Conditions Limit on Working Hours Adequate Payment Healthy Workers Satisfied Workers Safe Workers

14. Commitment to protect Human Rights: the supplier charter The supplier charter includes six obligations. Each obligation refers to the Universal Declaration of Human Rights and the principles of the ILO (International Labour Organization). • To immediately eradicate slavery, servitude for debt and the use of forced or compulsory labour, • Not to employ or make children work who are under the age of 15 • To ensure workers have the right to join Trade Union and to collectively bargain,

15. Commitment to protect Human Rights • To give workers remuneration which satisfies their basic needs, • To guarantee safety working conditions, • To respect equal opportunities in terms of recruitment and remuneration

16. Human rights issues in the supply Chain In factories producing for Carrefour we pay attention to the following issues: • Child labour • Forced labour • Discrimination • Disciplinary practices, harassment and abuse • Freedom of association • Working hours and overtime • Remuneration • Health and safety

17. Social présentation Credit: Ruben Dao

18. NO CHILD LABOR • HOW DO YOU DEFINE CHILD LABOUR? • HOW DO YOU RECOGNIZE CHILD LABOUR?

19. Social présentation NO CHILD LABOR Globally: • According to UNICEF, one child out of every six works. • 158 million children aged 5-14 • 69 per cent of child labourers work in the agricultural sector • 22 per cent in the services sector • 9 per cent in the industrial sector

20. NO CHILD LABOR What does the law say? What does Carrefour Charter say? • Carrefour Charter : no worker under 15 years old • China:16 years old • Bangladesh: 14 or 12 under certain conditions • Pakistan: 14 years old (no more than 5 hours/day)

21. NO CHILD LABOR ALERT • Young workers deserve special attention • No one under 18 is to do hazardous work or work at night. • A policy to prevent recruiting child labor, checking and record employee’s ID copy • No presence of children allowed in factories • Importance of finding remediation measures

23. NO FORCED LABOR • HOW DO YOU DEFINE FORCED LABOUR ? • HOW CAN WE RECOGNIZE FORCED LABOUR?

24. NO FORCED LABOR ALERT DEFINITION AND FORMS SCOPE Spain : Agricultural workers shelter in the greenhouses

25. Social présentation NO FORCED LABOR • No forced, no threats or involuntary labor • Workers are free to come/go from work site • Workers free to leave employment after giving reasonable notice • Workers are not required to lodge deposits/ID Card

26. NO FORCED LABOR • Retention of ID documents • Delay of wage payment • Collecting Deposit ALERT

27. Social présentation

28. NO DISCRIMINATION • CAN YOU THINK OF GROUPS THAT ARE MORE LIKE TO FACE DISCRIMINATION IN THE WORKPLACE? • CAN YOU GIVE EXAMPLES OF DISCRIMINATION? WHAT DO THESE PEOPLE HAVE IN COMMON?

29. VULNERABLE GROUPS • No discrimination in treatment hiring, compensation, access to training, promotion, termination or retirement based on: • Age, Race, Origin; • Religion; • Disability; • Gender; • Literacy; • Marital Status etc. Migrant agricultural workers in Europe are often discriminated against. Some of them suffer from forced labor.

30. VULNERABLE GROUPS No discrimination against women • Women Workers often suffer from discrimination • Women are often subject of harassement from male supervisors. • Women workers have specific rights: pregnant women shall be given adequate protection. • Maternity leave with pay is compulsory.

31. NO HARASSMENT AND ABUSE DISCIPLINARY PRACTICE, ABUSE • MAIN RULES • Workers free from: • Sexual harassment • Verbal or physical abuse • Financial penalties.

32. WORKING HOURS According to the law in your country, what is the maximum number of hours, including overtime, that a worker can do in a week?

33. EXCESSIVE WORKING HOURS WORK HOURS AND OVERTIME MAIN RULES At least one day off in seven Overtime only voluntary Maximum 48 hours/ week . Max 60 Hours/ week including overtime! Over time Max. 48 hours/month. Overtime paid accordingly to the law

34. EMPLOYMENT PRACTICES MAIN RULES Wages meet local minimum /industry standard, Written & understandable info about wages (Pay slip), To pay social insurances when mandated by law, No deduction as a disciplinary measures, Labor contracts signed with employees

35. DECENT LIVING FOR WORKERS • WHAT IS THE MINIMUM WAGE IN GARMENT SECTOR AS PER LAW?

36. DECENT LIVING FOR WORKERS • Workers remuneration which satisfies their fundamental needs and those of the members of their family who are directly dependent on them, including : • Food • Water • Health • Housing • Education • This remuneration must, at least, correspond to the minimum wage fixed by the legislation of the country in question.

37. WORKING CONDITIONS • WHAT IS GOOD WORKING CONDITIONS FOR WORKERS ?

38. HEALTH & SAFETY AT WORK MAIN RULES Fire Safety Equipment Emergency Evacuation First Aid Equipment Safe Passage Toilet Facilities P.P.E. Hazardous Substances Electrical safety Special equipment certificate Hygiene certificate Building safety certificate

39. HEALTH & SAFETY AT WORK Chemical storage and handle NOT OK OK

40. HEALTH & SAFETY AT WORK Personal Protective Equipment NOT OK OK

41. JUST AND FAVOURABLE CONDITIONS OF WORK • Harsh working conditions impact on the health and wellbeing of workers

42. Social présentation

43. RIGHT OF WORKERS TO JOIN TRADE UNIONS AND TO COLLECTIVE BARGAINING • What is the usefulness of freedom of association? • Why is it important for workers? • Can you give examples of mechanism on how workers communicate with the management ?

44. RIGHT OF WORKERS TO JOIN TRADE UNIONS AND TO COLLECTIVE BARGAINING MAIN RULES Recognition of the right of workers to join Trade Union and to collectively bargain; Support independent workers representation where trade unions not allowed by law

45. Social présentation • CARREFOUR'S ACTIONS FOR THE RESPECT OF HUMAN RIGHTS IN THE SUPPLY CHAIN

46. 2. CARREFOUR'S ACTIONS FOR THE RESPECT OF HUMAN RIGHTS IN THE SUPPLY CHAIN • WHAT IS CARREFOUR DOING TO SUPPORT RESPECT OF HUMAN RIGHTS IN THE SUPPLY CHAIN? 1) Supplier charter in the contract with the supplier 2) Social audits and corrective actions 2) Sharing audit results with other retailers: ICS 3) Overcoming shortcomings of individual companies audits: GSCP 4) Experience in training suppliers on human rights at work 5) Question governments on respect of human rights

47. CARREFOUR SUPPLIERS’ OBLIGATIONS • Every supplier has to SIGN THIS CHARTER before beginning any cooperation with Carrefour.

48. CARREFOUR SUPPLIERS’ OBLIGATIONS • Carrefour supplier’s obligation contained in the Charter, Supplier Operation Procedure, Commercial Contract : • To allow all kinds of visits from Carrefour or agency on behalf of Carrefour ,to get a view of production conditions, including visits of INFANS representatives. • To display the charter in the local language and in a visible place • To distribute it to all its employees and to the unions present in the company, • To ensure these commitments are respected by all factories used for Carrefour production

49. Social audits Deployment Policy in Carrefour • Priority on suppliers • Brand name/ First price/ no name • Non Food and Food Product • Geographical risk defined through INFANS : China, India, Pakistan, Bangladesh, Vietnam, Laos, Cambodia, Indonesia, Thailand, Taiwan,

50. Results of Social audits