Print Freedom of association

Dilemma:
Trade Union Framework Agreement
Background:
Freedom of association in the Latin American agricultural sector
Name:
Chiquita Brands International
Sector:
Agriculture
Locations:
Global with major operations in Latin America
Shareholders:
Publicly-listed (NYSE)
No. of employees:
23,000 in 80 countries

Description:

Chiquita's product range includes bananas, avocados, pineapples, washed salads, and other fruits and vegetables. Net sales in 2008 were US$3.6 billion.

Further information:

www.chiquita.com

Dilemma: Enhancing freedom of association in banana plantations

In the late 1990s, there was concern within Chiquita about:

  • Negative media coverage regarding working conditions in Central America
  • Trade union concerns about freedom of association in Ecuador and the lack of protection of labour rights in other countries
  • Environmental issues affecting workers' health
  • Trade union allegations that Chiquita was engaging in anti-union activities
  • Market pressure from supermarkets to reduce the price of bananas

Good practice: Framework Agreement between Chiquita and global and regional trade unions

Chiquita, the International Unions for Food Workers (IUF) and the Coordinating Committee of Banana Workers' Unions (COLSIBA) signed a Framework Agreement in 2001. The Agreement is known as the IUF/COLSIBA and Chiquita Agreement on Freedom of Association, Minimum Labour Standards and Employment in Latin American Banana Operations. The Framework Agreement commits Chiquita to supporting the ILO Core Conventions and to a framework for dialogue.

The Chiquita-IUF-COLSIBA Agreement represents the first time a Framework Agreement has been forged in the agricultural sector. Under the Agreement, Chiquita agrees to respect the ILO Core Conventions and Convention 135 on protection and facilities guaranteed to workers' representatives. The Agreement affirms the right of each worker to choose to belong to, and be represented by, an independent and democratic trade union and to bargain collectively. The Agreement applies to suppliers, contract growers, and joint venture partners.

According to George Jaksch, Chiquita's Senior Director for Corporate Responsibility and Public Affairs, the Agreement creates a “culture of dialogue”.1 The Agreement established a formal steering committee which meets twice per year. Under the Agreement, the parties agree to “avoid actions which could undermine the process spelled out in the Agreement, such as public international campaigns or anti-union retaliatory tactics.”

Results: Increased trade union membership and a decrease in the number of strikes

Since the Agreement was signed, there have been significantly fewer strikes in Chiquita's operations in Latin America, in large part as a result of the dispute resolution processes built into the agreement. The biggest impact has been the increase in union membership in Colombia, with 4,000 additional trade unions members added and 27 new collective agreements.2 In Honduras, the Agreement led to the formation of a new trade union at the Buenos Amigos plantation.3

The Agreement has had different results in different countries. In Costa Rica, the Agreement has not led to an increase in new union members, but has facilitated an on-going dialogue between unions and Chiquita at the national level. As a result, fewer disputes have been reported to the Labour Ministry.