How does a company ensure it respects relevant international standards and national laws relating to working hours within its supply chain when workers are either compelled, have no choice, or operate in a context which makes them accept excessive working hours? Workers, including migrant workers, for example, may be compelled to work longer hours in order to earn a living wage or maximise their income. This could also occur in a county where the culture expects long working hours or where the government does not restrict working hour limits or does not effectively enforce the law.

Defining working hours

According to the International Labour Organization (ILO)1, the standard weekly working hours (excluding overtime) cannot exceed 48 hours per week and eight hours a day. According to the ILO, "the imposition of hours limits was intended to ensure a safe and healthy working environment and adequate rest or leisure time between shifts."2 However, the international guidelines, especially on overtime limits can be confusing and unclear.

The ILO Convention No. 1, on the Hours of Work (Industry) (1919), covering industrial undertakings, i.e. construction, mining, extraction and transport, establishes an eight-hour-day and a 48-hour-week (Article 2). 3

Article 3 of ILO Convention No. 30 on the Hours of Work4 (Commerce and Offices) also stipulates working time of 48 hours a week and eight hours a day. Under this Convention, the maximum amount of working hours can be so "arranged so that hours of work in any day do not exceed ten hours" (Article 3). The Convention covers commercial or trading establishments, those working in administrative services and mixed commercial and industrial establishments.

Both Conventions5 deem working hours exceeding the 48-hour-limit as overtime. Any overtime must be paid at a premium. Convention No. 1 stipulates that the rate of pay for overtime that is determined by "government authorities" must be at least 25% more than normal pay (Article 6(2)).

Overtime as the exception rather than the rule

According to the ILO, overtime is only permitted under exceptional circumstances. There are permanent and temporary exceptions and both are referred to in the above-mentioned conventions as well as the ILO Recommendation 116, on the Reduction of Hours of Work (1962)6 (see discussion on Recommendation 116 below). However, the two Conventions do not explicitly specify any limitations to hours of work on a general level.

Examples of exceptions where working hours may be extended under ILO Convention No. 1 include:

• When "the nature of the process to be carried on continuously by a succession of shifts" requires it. In this case, average working hours shall not exceed 56 hours a week and shall not affect rest days (Article 4)7
• In the cases of "force majeure", "but only so far as may be necessary to avoid serious interference" with ordinary operations (Article 3)8
• In other exceptional cases where these time stipulations cannot be applied. In these cases extended working hours must be agreed by workers' and employer organisations, or regulations set down by the government (Article 6).9

Examples of exceptions where working hours may be extended under ILO Convention No. 30 include:

• General interruptions at work due to local holidays, accidents or force majeure. In these cases hours can be increased to make up for the hours that are lost. This is as long as the following conditions are met: hours lost can only be redeemed within 30 days in the year; the increased hours shall not exceed one hour in a day; and the daily working hours shall not exceed 10 (Article 5)10
• In exceptional cases where the nature of the work does not make the standard workweek applicable the permitted hours of work will be determined by a "public authority". That is as long as the average number of hours "over the number of weeks" does not exceed 48 hours in a week and 10 hours in a day (Article 6)11
• In certain permanent or temporary exceptions laid out in Article 7, such as the type of work (e.g. work that is inherently intermittent or in the case of force majeure. In these cases it is the "public authority" that will determined the working hour limitations. Any rate of pay for additional hours in these cases however, shall not be less than 1.25 the normal rate (Article 7(4)).12

Recommendation No. 116 provides further guidance on overtime exceptions. These exceptions can be permanent, temporary or periodic. Permanent exceptions include, but are not limited to: where the work is intermittent (such as agriculture); those cases where extended working hours are required in the public interest; as well as for operations where there are technical reasons for work being carried out beyond "normal hours". This could include the seasonal work, such as the production of cards for Christmas, for example, or the harvesting of a fruit crop. In all these exceptions, it is up to the public authorities to place a limit on weekly and hourly working hours (General Principle 1).13 Part D states that overtime should be remunerated at higher rates than normal rates.14

As is clear from the ILO Conventions and other related ILO guidance, there is no standardised limit on working hours over 48 hours per week. However, some guidance of the limit can be gleaned from the preparatory work when the two conventions were drawn up. The 2005 ILO report entitled, Hours of Work, from fixed to flexible?15, discusses the preparatory work and the guidance thereof.

According to the ILO report, additional hour limits must be "reasonable" and must be "prescribed in line with the general goal of the instruments, namely to establish the eight hour day and 48-hour week as a legal standard".16 "Specifically, Convention No. 1, the limits considered to be permissible amounted to a total of 60 hours a week in the case of permanent exceptions and 150 hours a year in the case of temporary exceptions, or 100 hours a year for non-seasonal activities. As far as hours of work in commerce and offices are concerned, at the time of adoption of Convention No. 30, such limits amounted to 10 hours a day and 60 hours a week for intermittent work and 10 hours a day and 54 hours a week for preparatory or complementary work."

ILO recommendations and guidance to moving to a 40 hour week

Although the ILO sets a 48-hour week standard, it is now advocating a 40-hour week mainly due to the fact that "over the last century ... hours limits increasingly came to be seen as a way of advancing the additional policy goals of allowing workers to balance their paid work with their family responsibilities and other aspects of their lives, promoting productivity and reducing employment".17 This ILO's movement to a 40 hour week is found both in ILO Convention No. 47 on the Forty-Hour Week (1935) and Recommendation No. 116, on the Reduction of Hours of Work (1962).18 So far, only 14 member states have ratified ILO Convention No. 47 including Australian, the Russian Federation and Sweden.19

Other rights that can be affected by working hours (and are explained in the Context of the Dilemma section below) include the right to enjoy just and favourable conditions at work,20, the right to health,21 the right to a safe working environment22 and the right to a family life.23

Other guidance and standards

Social Accountability International: SA8000

This is an auditable standard and voluntary code established by Social Accountability International. These standards are based on international law and workplace norms.24 According to SA8000, working limitations must comply with the applicable law in the country. In any event, working hours should be no more than 48 hours per week within a seven day period. All overtime must be voluntary, through a collective agreement, and should not exceed 12 hours a week. Nor should it be a regular event.25 It is important to note, that instead of SA8000 stating that overtime is the exception rather than the rule, it uses the less strong phrase of "not a regular event" seemingly inconsistent with ILO conventions. There is also no mention of this overtime being paid.

Challenges for multinational companies (MNCs) with regard to implementing the 48 hour week

The challenge for a multinational company (MNC) is that it must remain competitive. To do this it must keep costs down while meeting tight production targets. Tough competition in many western and consumer driven markets may put businesses under pressure to further reduce already low prices. In April 2009, for example, Reuters reported in news article, International Cloth buyers ask Bangladesh to cut prices26, that buyers from 50 major brands and retailers including Marks & Spencer, Hennes & Mauritz, Walmart, JC Penney, Tesco and Nike Inc., called on Bangladesh's textile exporters to reduce their prices if they wished to remain internationally competitive and if these retailers were to continue sourcing from the country.27

In order to maintain competitiveness, supply contracts from retailers will often stipulate tight production timelines that the supplier must adhere to. Tight timelines often mean that suppliers are left in a position where their employees must work beyond the acceptable working hours stipulated by the ILO or national legislation to meet production targets.

Regardless of timelines, there is an inextricable link between low wages and long working hours, especially in emerging economies. This analysis will address both, but emphasis will remain on working hours (see discussion below). Many employees, especially in developing countries, work for very low wages and consequently elect to work more than the "normal hours" in order to be able to afford the "family bread basket". This is especially true for migrant workers, who often move to work to save money and to support families back home. This category of workers may have a strong desire to work more to save more money. This, in turn presents a challenge for MNCs that must then ensure that national regulations and international norms are not breached.

Also, workers may be working on a piece-rate system, where they are paid for what they produce or harvest, therefore, to earn sufficient income they need to work long hours.28 This often occurs if they have no other means to support their families.29

Another implication is that workers may be "impelled" to work overtime by their employers who may threaten replacement, or this pressure may tacitly exist within the corporate culture. Therefore, even if an employee is working overtime that is within legal guidelines, the simple fact that the worker has agreed to this overtime under duress or compulsion means that these extra hours are, in effect, illegal. These types of situations occur in countries where workers are not fully protected by labour laws, or the enforcement of labour laws is weak, or where trade union activity is restricted or banned.

The ILO's Working Time Around the World30 report states that globally one-in-five workers are putting in ‘excessive hours'. Therefore, this phenomenon of excessive working hours is not confined to only emerging economies, but is one that also exists in well developed economies such as Japan and South Korea31, and that is emerging in the United States and the United Kingdom.

There is an important distinction which is explored here, which is that in many developed economies workers and managers are free to leave and find alternative employment. However, their counterparts in emerging economies and less developed countries are frequently locked into working arrangements with few alternatives. Moreover, of most concern is where workers are vulnerable to exploitation over working hours when they are in forced labour situations either because they owe recruitment fees, have been charged excessively for housing and food or where they have been trafficked.

• However, there are solutions for companies to ensure compliance with the acceptable maximum working hours, while still remaining competitive. For example, as part of an initiative to raise wages and lower working hours at a major Bangladeshi supplier, UK-based fashion retailer New Look improved its buying practices through improved forecasting, reduced order changes, the imposition of longer lead times for orders and training for its buyers on the impacts of their buying decisions. In the first year, the lowest-grade wages increased by 24% and overtime rates dropped 46%, see
  New Look case study
• The ILO Help Desk also has a tools and a resource section on working time for businesses. The questions and answer section of the helpdesk states that "MNEs are encouraged to progressively reduce the normal hours of work from 48 hours to 40 hours, taking into account national conditions and practice, as well as the condition in the particular sector of operation". In reference to overtime, it should not extend the working week to 48 hours and it should only be in exceptional circumstances,see
  ILO Helpdesk

Working hours in the global workforce

Long working hours and low wages are issues of increasing focus at the international level. A 2007 ILO study entitled, Working Time Around the World: Trends in working hours, laws and policies in a global comparative perspective32, found that an "estimated 22 per cent of the global workforce, or 614.2 million workers, are working ‘excessively' long hours" (the study used 2004-2005 figures).33 Jon C. Messenger, Senior Research Officer and a co-author of the study, said in the press release, "the good news is that progress has been made in regulating normal working hours in developing and transition countries, but overall the findings of this study are definitely worrying, especially the prevalence of excessively long hours".34

The countries found by the ILO report to have the highest incidence of long working hours (i.e. more than 48 hours per week) included Peru (50.9% of workers), the Republic of Korea (49.5%), Thailand (46.7%) and Pakistan (44.4%).This compares, for example, with 18.1% of workers working more than 48 hours per week in the US and 25.7% in the UK.35

At this juncture, it is important to note that although a company may face legal consequences by being complicit36 in breaching national or international laws and guidelines and may be subjected to legal costs and fines, there is another important and substantial risk. This other important factor is that excessive working hours can pose significant health and safety risks about which a socially responsible company should be aware. These risks can lead to workplace deaths, an increase in accidents, losses in productivity, high staff turnover and a degradation of employee morale. These can have serious costs for business, affect business continuity and result in reputational damage.

The opportunity cost point is supported by the ILO Working Hours report which says that shorter working hours has positive benefits including, a reduction in accidents, greater productivity and equality between the sexes as well as better workers' health.37

Real-world examples

Toyota in Japan accused of allowing excessive working hours, both internally and in their supply chains

In June 2008, a National Labour Committee (NLC) report entitled "The Toyota you Don't Know: The Race to the Bottom in the Auto Industry"38 accused Toyota of pressurising their employees to work "voluntary" unpaid overtime. Some employees reportedly worked up to 14-hour shifts and up to 155 hours of overtime per month. The NLC claimed that Toyota placed cultural pressure on their employees to work at home, to undertake overtime and participate in off-site meetings, all of which were not paid.

Furthermore, the NLC says that this is occurring further down Toyota's supply chain. It states that foreign "guest workers" migrating to Japan under the government's workers placement programme39 are treated worse than their Japanese counterparts. The NLC claimed that foreign workers are "trafficked" from China, Viet Nam, Philippines, Thailand and Brazil40 to Japan. Upon arrival, the workers' employer (either Toyota or suppliers of Toyota) confiscated their passports, prohibited these workers from leaving the factory to which they were contracted, and compelled them to work more than 15 hours per day, seven days a week.

Toyota responded in a statement41 entitled Toyota response to NLC, on 1 July 2008, stating that the report contained inaccuracies that presented a false and misleading picture of the company. The statement claimed that Toyota provides a safe, healthy working environment for all employees and undertakes regular compliance audits. Further, Toyota stated that the guest worker placement programme is managed by an independent agency. It denied ever confiscating guest worker passports and insisted temporary workers were compensated fairly.

Undercover journalist exposes excessive working conditions at Foxconn factory in Shenzhen, China

An undercover journalist claimed on 19 May 2010 that Foxconn was subjecting its factory workers to sub-standard working conditions at its large Shenzhen factory, including working excessive hours and being required to work overtime. Foxconn is a Taiwanese based electronics manufacturer that produces many of the iPhones, iPads and iPod mobile devices for Apple.

A journalist from the Southern Weekend went undercover as an intern to work at the Foxconn factory for a month, in order to investigate the reason for nine suicides at the factory in the previous 12 months.42 He found that most employees were paid the minimum wage, which means they "do not make a living, so are forced to work overtime".

In addition, each employee would sign a "voluntary overtime affidavit" on a monthly basis, waiving the 36-hour a month legal working limit so that they could earn enough money for a decent living.

Other organisations have also criticised Foxconn's business practices in the past. China Labor Watch43, for example, has "long reported" on allegedly sub-standard working conditions at the factory. It claimed that an average shift would last from 10 hours to 12 hours, not the legal eight hours (not necessarily including the two-hour rest period that is required). Any overtime should be "remunerated at higher rates than normal working hours".44

Following significant media attention, Foxconn announced45 on 7 June 2010 that it would be increasing wage levels at the factory by 70% in October 201046. This was implemented on 9 June 2010. The chairman of Foxconn, Terry Gou, also announced that following an investigation the company would be ending condolence payments over suicides.

This was on the basis of evidence that such payments might actually be encouraging workers to take their lives. Gou also claimed that the company's investigations had found that none of the suicides at the plant were related to working conditions, including long working hours.47

War on Want accuses major retailers, including Primark, Tesco and Asda of ignoring working conditions in supplier factories

A 2008 survey entitled "Ignoring the Law"48 by War on Want and the National Garment Workers' Federation (NGWF), a Bangladeshi trade union, accuses major retailers of ignoring substandard working conditions in supplier factories.

The survey suggested that major retailers including Tesco, Primark and Asda are ignoring the breaches in working hours in supplier factories. Researchers interviewed 1,203 garment workers in 43 factories across the country. The survey found that nearly half of the workers interviewed worked between 13 and 16 hours a day. Furthermore, 78% of workers were put on night shifts, and at times remained at the factory until 3a.m. – only to start work again at 7a.m. the following morning. This means that workers are not getting sufficient rest between work, which is not in compliance with ILO standards of adequate rest between shifts.

Taiwan labour inspectorate punishes nine high-tech companies including Siemens for violating regulations on working limits

The Associated Federated Press reported49 on 20 January 2011 that labour authorities fined nine high-tech companies up to TWD60,000 (US$2,000) for overworking their employees. The article, entitled "Taiwan punishes Siemens, others for staff overwork", states that this came after a much publicised case where an engineer allegedly worked himself to death. Authorities initially rejected the claim for compensation brought by the deceased family. This is being appealed, however. The report further states that overwork appears to be prevalent in the industry and it is "the main driving force for the island's economy".

• Please contribute your commentary or suggestions to our online discussion forum:
  Working hours and human rights online case studies

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Long working hours in supply chains

Within their own operations, MNCs often have strong policies and practices that limit the amount of overtime and working hours their employees work. It is therefore less likely that their employees will end up working excessive hours and, accordingly, the risk of these companies breaching national laws and international norms is also lower.

However, there are examples where MNCs are directly implicated, such as where the "corporate culture" advocates long working hours and "voluntary" overtime by workers (see the Toyota example above).

MNCs are more likely to find working hours that exceed ILO guidelines in countries characterised by the following:

• Where the country has no laws regulating maximum working hours: In some countries, labour laws do not limit the amount of working hours, though they may advocate "standard" working hours. Therefore workers are not protected from working more than 48 hours per week as defined as the maximum by the ILO. Although a country may stipulate a standard working week, overtime can be unlimited, leaving workers vulnerable to working excessively long hours without legal protection (this occurs in the Philippines – see country discussion below).50 Responsible business should be aware of the lack of protections and implement policies and practices accordingly.
• Laws on working hours are not properly enforced: This is typically due to a lack of human or financial resources on the part of enforcement bodies. In a large country such as India for example, it is difficult for national and local governments to recruit an adequate number of labour inspectors to cover all industries and sectors as the country is vast. Lack of enforcement and protection by the government can also result in workers signing agreements – that comply with statutory legislation – which stipulate that they opt out of working limits. However, in practice these "agreements" are signed under duress and would therefore be invalid.
• Corruption could exist in countries where labour inspectors/enforcement officers are poorly compensated. These inspectors/officers are more likely to accept bribes from employers breaching labour standards, including working hours.
• There is a general culture that encourages long working hours: In some locations, the culture (either of the country or even a company) will require employees to "donate time". Japan, for example is a country whose culture appears to encourage longer working hours, though the government is seeking to reduce this.51 South Korea is another country where the culture is to work excessive hours. Forbes reveals that the average Korean employee works 2,357 hours per year, which is equivalent to six-and-a-half hours a day for every single day of their life.52

Between 2000 and 2004, more than six million people in Japan worked more than 60 hours a week according to a report by entitled, "Health Problems due to Long Working Hours in Japan: Working Hours, Workers' Compensations (Karoshi), and Preventative Measures". This report highlights the risks in relation to working long hours and the government's increasing acceptance that health problems can be classified as workplace accidents. During 2000-2004, for example, 300 cases of brain and heart disease (traditionally associated with health and diet) were recognised by the Ministry of Labour as workplace accidents due to overwork.

• Certain vulnerable worker groups that are not protected by laws. These include "atypical" workers such as those in the informal sector, part-time workers, fixed-term employees, domestic workers and those temporary workers outsourced from recruitment companies.53

Often these workers are hired by MNC suppliers who compete to win the MNCs' business and offer low costs. These low costs are often achievable for a supplier because they use these irregular workers and do not have to pay for extra costs such as paid holidays, sick pay, etc. In turn, these workers are often desperate for work so will take these jobs, even though they may not be as well protected and may be vulnerable to exploitation.

Sometimes, contracts given to workers are always short term so that standards and rights can be circumvented. Workers are re-hired each season for example, as in most countries, more than 12 months employment secures further rights and benefits; for example, the right to take an employer to a tribunal, the right to paid sick leave or the right to health care.

• Temporary workers: Of particular concern are those temporary workers that are outsourced by companies on fixed-term contracts. These have been the hardest hit by the economic downturn, according to the ILO, as they are the first to lose their jobs.54These workers are often subjected to longer working hours (as well as lower pay) and often have only fixed-term contracts (although they can also be casual or seasonal workers)55.

The practice by MNCs and suppliers of outsourcing employees from third parties appears to be on the increase in many countries including Malaysia, the Philippines and Mexico. As you will see in our country examples below, companies are increasingly using this type of labour to cut costs, especially since the economic downturn.

• Migrant workers: There were an estimated 105 million migrant workers in 2010, many of whom were in vulnerable situations. However, while this represents only 1.5% of the global population, 50% of these workers are women, a group that is especially vulnerable to human and labour rights abuses. This includes workers either being compelled to working long hours by their employers, or wishing to work more hours to earn more money to send home. However working overtime should be in accordance with the law, international standards or voluntary guidelines, depending on which one protects the worker most. According to SA8000, for example, overtime should not be taken on a regular basis and may not exceed 12 hours a week. Further, overtime can only be undertaken in conformance with a freely negotiated collective bargaining agreement.

Migrant workers move in order to save money and support their family. They will often move to a place where there are little social networks and will want to work extra hours so that they can save enough money to return home. Further, employers often will accommodate this type of arrangement, even if it could breach national regulations or international norms, should an appropriate balance of working hours and rest periods not be achieved.

Despite the high numbers of migrant workers, business should be aware that this diverse group in society is often not well protected in law or in practice, leaving them vulnerable to longer working hours. Countries in which migrant workers are particularly vulnerable include Mexico, China and South Korea (see country examples below).

• Piece-rate workers: These are workers that do not receive a minimum wage per se, but receive a rate for every piece they produce or harvest. This usually exists in agriculture, workers get paid according to the amount they harvest56 and in the garment and textile industry, getting paid for each garment produced. In some countries, such as India, this piece-rate is not linked to minimum wage57, therefore workers could earn less than minimum wage.

Business sectors where employees experience long working hours

Multi-national companies often come across excessive working hours further down the supply chain, where they do not have direct control over production and timelines. This can occur, for example, when suppliers contract out some of their work to home workers or other, smaller factories. Excessive working hours can also occur where there are few or no laws regulating and limiting working hours. Furthermore, in many countries where domestic laws regulating working hours do exist, these laws are often not properly enforced.

Sectors where there is evidence of excessive working hours include:

• The agricultural sector, which is labour-intensive and where some produce is seasonal, such as fruit and crops. These foodstuffs need to be harvested within a certain time frame to ensure freshness and saleability. Globally, seasonal work in the agricultural sector is not protected by full-time contracts. Often workers are under fixed-term contracts that are not governed or protected by labour laws limiting maximum working hours.58 Further, a short time frame to harvest those goods places more pressure on workers to work longer working hours in order to ensure that all crops are harvested before they are spoiled. Categories include biofuel production and food harvesting that is often labour-intensive (grapes, corn, etc.).
• The manufacturing industry, where production processes may take more than a normal working day of around eight hours. Often these processes cannot be stopped mid-production. This includes, for example, the electronics industry, where producers have strict timelines to produce vast numbers of products. It includes seasonal work around holidays.
• The clothing and textile industry, for example, will usually experience fluctuations in demand, due to the varied output of clothing (winter, spring, autumn and summer), mostly at the beginning of each season. Companies sourcing from suppliers may often demand that the products be produced within a short time frame. In turn, suppliers are bound by contractual agreements to honour any commitments made in this respect. Seasonal work requires that employees work intensively and for long hours in a short space of time to meet demand.

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Examples of the kinds of scenarios companies might face in BRICs and N11 countries include the following:

Bangladesh: Under the Factories Act59, the law stipulates that a standard working week is 48 hours but can be extended to 60 hours if overtime allowances are paid60. However, on average a worker cannot exceed 56 hours a week for the year.61 Overtime allowances shall be double the normal wage and will be paid when the employee works more than nine hours a day, or 48 hours a week.62 There are restrictions on the number of hours that can be worked without a break and factory workers.63

However, garment workers interviewed by NGOs such as No Sweat64 and War on Want65 report working hours of 12 to 14 hours a day, often for seven days a week to complete an order. Holidays and time off are ignored in many factories.

China: Article 30 of the Labour Law of the People's Republic of China limits working time to an eight-hour day, 44-hour week "on average". This does not cover agricultural workers and there is no limit on the number of hours domestics must work. Article 41 stipulates that overtime is limited to one hour a day. It can be extended to three hours if "such a prolonging is called for and under the condition that the physical health of labourers is guaranteed".66 However, overtime cannot exceed 36 hours a month. A different limit on working hours can be applied, with approval from the relevant government authority, if an employer cannot follow the law due to the special nature of production.

In its 2009 Human Rights Report, the US Department of State noted that the enforcement of working hours and overtime in 2009 was weak and "standards were regularly violated, particularly in the private sector and in enterprises that used low-skilled migrant or seasonal labor".67 Such enterprises are present in the manufacturing, electronics and textile sectors. Poor enforcement is compounded by the fact that many rural migrant workers are not aware of their rights and therefore do not seek assistance in the event of a breach of these rights from the relevant department. Labour departments in the larger cities and in SEZs have superior enforcement and monitoring procedures due to better resources and training.

There are widespread reports by various NGOs of employees, including children, working long hours.68 NGO All-China Women's Federation (ACWF), for example, reports that female migrant workers (30% of migrant workers) face particular problems. In 2007, ACWF reported that more than 50% of female migrant workers had no labour contract (compared with 40% of male migrants), more than 40% worked nine to 10 hours a day, while 24.8% worked more than 11 hours a day. ACWF notes that 21% of female migrants had been fired for being pregnant or giving birth.69

Mexico: Mexico's Federal Labour Law sets the legal workweek at 48 hours; eight hours a day for six days a week. Workers who work more than eight hours a day are paid overtime, for which they are entitled to double the hourly wage. However, the US Department of State reports that disputes are regularly filed with labour boards and international labour organisations with complaints of non-payment of overtime pay.

According to the Report of the Special Rapporteur on the human rights of migrants70, Jorge Bustamante, migrant workers who remain in Mexico, particularly those who originate principally from indigenous communities in Guatemala, Honduras and Nicaragua, often work in poor conditions. Many work excessive hours, lack health insurance, suffer physical and verbal ill-treatment, sexual harassment, and threats that they will be handed over to the migration authorities because they are undocumented.71

There are also unsubstantiated reports of long working hours in the maquiladoras, although many of these reports state that conditions in these areas are improving. One report entitled Maquilas in Mexico72, states that some maquiladoras "could be considered ‘sweatshops' composed of young women working for as little as 50 cents an hour, for up to ten hours a day, six days a week".73

Another study refers to a 2007 Global Exchange article entitled, Maquiladora!, which reports of "laborers putting in 12-hour workdays producing thousands of pairs of Polo Ralph Lauren, Tommy Hilfiger and Wrangler jeans per week for weekly wages of MXN700 ($US53). These jeans were being sold in Los Angeles stores for MXN1,000 (US$75) per pair".74

Philippines: The Labor Code of the Philippines sets the "normal work day" at eight hours75 for most categories of industrial workers. It also mandates a 125% overtime hourly rate.76 However, there is no limitation as to the number of hours an employee can work.77 Enforcement of working hours is also sporadic.78

In a July 2009 report, "Configuring Labour Rights", makeITfair reported that working conditions in the Philippines' electronics sector, for example, remain poor.79 It notes that "[e]ven though quite important variations exist between electronics firms in the export processing zones, working hours are in general excessive, inhumane ‘disciplinary measures' are common and wages are low."

The electronics sector has been an important driver for growth in the Philippines with major foreign investment. In 2007 the sector accounted for 63% of the country's exports. It employs about 460,000 people, up from 74,000 in 1992.80

The same report, "Configuring Labour Rights", noted a growing trend towards hiring workers in the electronic industry only on a temporary contract basis, despite the employees working for the same company for years. In 2008, several companies laid-off workers and re-employed them as contract workers, according to the report.

Both temporary contract workers and those on full-time contracts in the country are not being adequately protected by domestic labour law. They do not receive paid sick leave, paid holiday, allowances, bonuses and annual wage increases. Contract workers can also be dismissed at any time. Workers that were interviewed for the makeITfair report stated that the percentage of workers who had been hired under a contract had increased in the last few years.

South Africa: Section 9 of the Basic Conditions of Employment Act81 stipulates that an employee cannot work more than 45 hours a week. If an employee works for five days or less during the week, they can work up to nine hours in a day. Employees who work more than five days a week can work up to only eight hours a day (Section 9(1)). An employee's ordinary hours of work can be extended to up to 15 minutes a day to no more than an hour a week to continue to perform duties relating to civil service (Section 9(2)).

In terms of risks specific to particular sectors, conditions have been found to be particularly poor within agriculture and wage compliance was also patchy. In its 2009 Human Rights Report, the US Department of State claims that while working conditions have improved on large commercial farms, they remain "harsh, especially for small holdings' workers, most of whom are black". In addition, it has been found that many small farm owners do not record working hours accurately and that 12-hour work days are common during harvest time and the payment of overtime was not common.82

The US Department of State also indicates that with rapid growth in casual and contract labour – especially as South Africa adjusts to the exigencies of the global financial crisis – workers are often obliged to work longer hours.

South Korea: The Labor Standards Act (LSA) states that working hours shall not exceed 40 hours per week excluding recess hours, and that working hours each day shall not exceed eight hours excluding recess hours (Art. 50). Recess hours include a period of more than 30 minutes for every four working hours and more than one hour for every eight working hours.

A 2009 report by Amnesty International (AI), entitled "Disposable Labour: Rights of migrant workers in South Korea",83 found that many employers take advantage of legal restrictions which tied migrant's visas to employers to exploit these workers. Forms of exploitation included making them work long hours in poor conditions, as well as withholding salaries and seizing passports and work permits to prevent them from looking for jobs elsewhere.

The 2006 Report of the Special Rapporteur on the human rights of migrants84 found that although the Korean government has begun to enact legislation and regulations to protect migrant workers, there were still "serious pitfalls".85 Pitfalls included tying migrant workers' status to their initial employer, thereby making it difficult for them to move jobs without the threat of deportation and leaving them more vulnerable to abuse.

Other risks include migrant women who may be exposed to "multiple violations based on their gender and status"86 including domestic migrant workers being "victims of violence at home"87. Migrant children were also a concern for the Special Rapporteur as the government did not adequately address their right to education88.

Amnesty International reports that in one unnamed electronics factory in Yongin, Gyeonggi province, for example, migrant workers were given one day off a month and were sometimes "impelled" by their employers to work on their free day when there was a heavy workload. AI notes that their Korean colleagues were not required by their employers to work such long hours. Similarly, other migrant workers in a range of factories, including those manufacturing textiles, reported that they were required to work night shifts, many not receiving overtime or additional pay due to their migrant status.89

In 2010, a press release from the state-sponsored Economic and Social Development Commission, observed that long hours of work undermine productivity and job creation and contribute to a dwindling birth rate, thereby serving as an impediment to the country's long-term development.90

Accordingly, the Commission advises that the provision under the current employment system for management to remunerate workers for unused holidays should be replaced by compulsory statutory leave requirements. Job sharing and flexible working hours are among the initiatives that the Commission will promote to generate new jobs and encourage family time.91

Turkey: The legislation related to working hours is poorly enforced in Turkey92. This derives, in no small part, from the fact that approximately 30%-50%93 of Turkey's active labour force is considered to work in the unregistered economy. This means that the state is unable to scrutinise or penalise unethical and unlawful labour practices in unregistered companies which have refrained from registering in order to save on their social security contributions to the state.

The government has a mixed record in enforcing working hours laid out by the law. The US Department of State says that in 2009 the Labour Inspectorate of the Ministry of Labour and Social Security "effectively enforced wage and hour provisions in the unionised industry, service and government sectors."94 However, these sectors cover only an estimated 12% of Turkey's workers.

A 2008 report by the ILO, entitled the "Decent Work Country Report"95, added that in Turkey more than half of the working people work more than 50 hours a week, which is longer than is specified in relevant legislation. The Labour Act of Turkey states that in "general terms" the weekly working time is 45 hours maximum.96 The report also stated the "[t]he incidence of fatal work accidents is rather high in Turkey".97 "Considering low wages and income levels, these long hours of working are regarded as somewhat normal and social parties presently have no agenda on shortening working hours," according to the report.98

Viet Nam: Article 68 of the Labour Code stipulates that working hours shall not exceed eight hours per day or 48 hours per week. The daily working hours shall be reduced by one or two hours for workers who perform extremely heavy, dangerous, or toxic work.

The US Department of State99 reports that the government has set a 40-hour workweek for government employees and employees of companies in the state sector. Further, the government encourages the private business sector and foreign and international organisations employing local workers to do the same, but does not make compliance mandatory.

A 2008 report published by the Friedrich-Ebert-Stiftung research institute entitiles, "Viet Nam, Human Rights and Trade" 100, states that working conditions of garment workers are often poor, with long hours and often hot, noisy and dusty factories. Many work overtime – sometimes an extra 10 to 15 hours a week. The report states that garment workers receive lower levels of pay than other wage earners in the urban economy. They are also at risk of unemployment due to low professional qualifications and the vulnerability of the export industry to fluctuations in the international market.

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Legal risks

Most countries have legislation limiting working hours. If a company is found to have breached any legislation surrounding limitations on working hours then it could face penalties. Penalties could include fines, remediation, and restitution for employees or compensation. These cases are often not reported as they are minor offences with minor penalties.

However, a 2009 case in Brazil, from of the labour court in the state of Minas Gerais, is an example of where employers are at risk of legal sanctions if they do not comply with overtime limits in order to keep the costs of their products low.101 In this case, the employer sought to sell the enterprise's products for an artificially low price, thereby pushing competitors out of the market. To do this it required its employees to work 10 hours a day or more and offsetting these hours (which should have been compensated under the Labour Code) as time off. The Labour Court of Appeal ordered that the employer pay BRL500 (US$300) per employee. This decision came after repeated individual labour claims of employees at the same company working excessive hours. Another similar case, also based on workers' complaints of excessive working hours filed by the Public Attorney's Office, resulted in the company being penalised BRL200 million (US$119 million).102

In Japan there appears to be an increasing number of court decisions where families have been compensated for the death of an employee due to "overwork" (karoshi). Often, the court finds that a worker has died or committed suicide due to overwork, i.e. working long hours. This occurs across the board – from workers on the factory floor to managers and senior employees – and was initially found to be particularly pronounced in the construction industry, with shift workers, sales people, those working on television or in media and drivers.103

Death due to overwork (karoshi) has been recognised by the Japanese government since its first case in 1969.104 Compensation has been available for deceased workers' family members through both civil claims and under the labour law.105 Criminal charges were first brought against a Tokyo interior fitting company in 2001106, but as yet companies have managed to evade criminal charges.

Toyota is one company that has been faced with legal suits due to employees dying from overwork. These legal risks have resulted in higher costs in relation to lawsuits and pension pay-outs.

In 2008, for example, a court found that a Toyota engineer, Kenichi Uchino, aged 30 died of exhaustion due to overwork. According to NGO National Labor Committee (NLC), the court heard evidence that Kenichi Uchino worked 13 to 14 hour days on average.107 The month before his death he had worked approximately 106.5 to 155 hours of overtime per month.108 The employee was developing the hybrid version of the Toyota Camry and had averaged more than 80 hours of overtime each month in the two months up to his death. According to the report, he regularly worked nights and weekends and was often sent abroad. At the time, he was also under pressure to ship this new model to North America. The court ordered that the company pay a pension to his widow.109

In July 2010, a 31-year-old Chinese worker in Japan was found by a Japanese court to have died from overwork.110 This was the first time that a court found that a foreigner had died from karoshi.111 The trainee worked for Fuji Electronic Industries on the metal plating production line. After investigation, it was found that the trainee was working up to 150 hours overtime per month. The company's official records, however, indicated much less.112 The case has been forwarded to the public prosecutor, but at the time of writing there are no reports of criminal charges.113

Operational risks

Studies have found that long working hours can contribute to an increase in the risk of work accidents as well as damage workers' health. 114 Although not a direct risk, if a worker's health is damaged it can translate into an increase in operational costs, particularly in relation to compensation for accidents and loss in productivity due to employees working while they are fatigued and/or taking time off for illness.115 The health and safety consequences are fully articulated in the context of dilemma section below.

These operational risks of working when fatigued can also result in faulty goods and inferior products. If this happens consistently and over a long period of time, flaws could occur throughout a production line and may result in the recall of products.

An example is the connection between safety issues with Toyota cars and overwork claimed by retired employees and former union members in Toyota. This resulted in employees overworking to ensure production goals were met and may have contributed to the recent car recall that occurred globally in early 2010. Millions of Toyota models were recalled world-wide after allegations of a sticking accelerator pedal. The sticking pedal could have resulted in more than 89 deaths since 2000 in the US alone.116 The recall cost Toyota US$2 billion.117 Further, Toyota President Akio Toyoda said that in the company's race to become the world top producer, it compromised quality and safety.118 This is similar to the allegations made by the ex-employees who claimed that Toyota management implemented "dangerous safety and manpower shortcuts"119 from 2000 to 2005.

Concerns over product safety were originally flagged by six senior workers at the Toyota plant in 2006 who formed a trade union for contract and part-time workers who could not join Toyota's Union due to their temporary status. These workers sent a memo to senior management "warning Toyota about an impending disaster."120

Other allegations made in the memo include:

• Toyota having to recall a higher proportion of total vehicles when compared to other car makers between 2000 and 2005
• Toyota not being thorough enough in identifying the source of problems
• The company compromising manufacturing processes on quality and safety such as: combining vehicle platforms, the sharing of parts between models, the outsourcing of planning, shortened development time (resulting in a shortage of experimental data on prototypes)
• The lack of quality control processes to ensure the manufacture of safe cars, as well as fears that they "ultimately may be ignored ... in the name of competition"

The memo requested that the company:

• prioritise safety
• review cost-reduction measures made in the past
• provide better training for contract workers
• to return the company to a culture of craftsmanship

One of the six, Wakatsuki, told the LA Times that "our responsibility as a labour union was to point out these problems that Toyota should have known about. People were overworked; some were committing suicide".121 This memo was ignored at the time by management.

Reputational risks

Reputational damage and brand contamination may arise as a result of sustained or high-impact negative publicity and activism, particularly by NGOs, trade unions and journalists. In the past, such actions have typically been concentrated on the apparel and footwear sector, although companies in the food and beverage and electronics sectors have also come under scrutiny, such as Apple and Foxconn in China (discussed above). In today's market, when negative reports against companies have been published there is often a swift, almost immediate response.

For example, the UK's Channel 4 Dispatches programme report entitled, Fashion's Dirty Secret aired on 3 November 2010, highlighted substandard working conditions in a factory in the UK. The report claimed that fashion companies, including New Look, Peacocks and Jane Norman were sourcing from suppliers where workers were enduring long working hours, unsafe conditions, bullying and low wages. These were in factories where the suppliers' work had been sub-contracted out to other factories.

In response, the Ethical Trade Initiative, of which New Look is a member, released a statement that immediate action was being taken by New Look. According to the ETI it is a violation of the base code "which seems in this case to be flouted".122 ETI announced in the statement that, due to New Look's track record, it had "every confidence that New Look will carry out a full and frank investigation, and will act swiftly to put things right."123

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For a company to ensure the responsible elimination of excessive working hours within supply chains it should first look to comply with national laws on working hours. Where national laws are set lower than international standards on working hours, companies should strive to meet these higher standards. This aligns with the John Ruggie's Draft Guiding Principles on Business and Human Rights.124

According to the UN's "Protect, Respect and Remedy"125 policy framework ("the framework"), business has a responsibility to respect all human rights. To meet its responsibility to respect human rights, the framework states that a responsible company should engage in human rights due diligence126 to the level commensurate with the risk of infringements posed by the country context in which a company operates, its own business activities and the relationships associated with those activities.127

The framework also specifies the four main components of human rights due diligence: a statement of policy articulating the company's commitment to respect human rights, serving as guidance underpinning specific actions; periodic assessments of actual and potential human rights impacts of company activities and relationships; integration of these commitments into internal control and oversight systems; and tracking and reporting performance.

Companies can seek specific guidance on this and other issues relating to international labour standards from the ILO Helpdesk.128 This aims to help company managers and workers to understand its approach to socially responsible labour practices and to assist in the development of good industrial relations. The ILO Helpdesk website also contains detailed factsheets and links to information, resources and frequently asked questions on labour issues, using the ILO Declaration of Principles concerning Multinational Enterprises and Social Policy as the framework. This includes information on decent work principles including the guidelines and limits on working hours.

A company would also be well advised to engage in human rights due diligence to a level commensurate with the risks of excessive working hours within its supply chain and its ability to impact positively the working hours issues at stake in order to discharge its responsibility to respect human rights. This might include conducting impact assessments and social audits to gauge the likelihood and nature of working hours within its supply chain.

Although the ILO has established a weekly working limit of 48 hours, as stated at the outset, the organisation advocates that multinational companies should be "encourage[d] to progressively reduce the normal hours of work from 48 hours to 40 hours."129

Specific suggestions:130

1. Adopting a forward looking human rights compliance policy with procedures to match

It is a basic requirement that a company operating in emerging economies should develop and implement human rights policies and procedures (this should be throughout its subsidiaries) that support managers and suppliers to take a socially responsible approach to working hours.

Specific actions may include:

Policy

• Compliance with national laws in relation to working hours, daily rest periods, etc. Where local laws differ from company policy, the higher standard should prevail. Company policy on working hours should be guided by ILO Conventions on working hours of the standard 48 hour week and eight hour day
• If there are no national laws in relation to working hours, or laws are weakly implemented, the policy should commit to international standards, ILO Convention No. 1, on the Hours of Work (Industry), ILO Convention No. 30, on the Hours of Work (Commerce and Offices). ILO Convention No. 153, ILO Convention No. 47, on the Forty-Hour Week , Recommendation No. 116, on the Reduction of Hours of Work
• A grievance mechanism which allows employees to address issues in relation to working hours
• Supplier contracts with the MNC must comply with company policy, as well as to maintain a grievance process to address claims in relation to working hours

Procedure

• If and where relevant, a company should undertake due diligence. This may be particularly beneficial to companies in high risk industries, such as the mining and manufacturing sectors, where employees tend to work longer hours due to manufacturing processes and procedures that cannot be stopped mid-production
• Monitor the prevalence of excessive working hours within an industry and the social and economic context to understand underlying risks of excessive working hours and how it manifests in a particular industry and location of operations
• Effectively communicate any working hours policy, associated guidance and procedures to personnel and, if relevant, to suppliers, subcontractors and business partners
• Provide employees with regular training and awareness building in order to sensitise them to issues surrounding working hours and the dangers of working long hours without breaks. This should also foster awareness and shared responsibility and accountability
• Continually review and improve working hours policies and procedures to ensure that they are in line with best practice advancements and training managers accordingly
• Implementation of grievance procedures for both employees and for suppliers. They can be company-internal or they could be at the industry-level (e.g. ombudsperson)

The Ethical Trade Initiative's Base Code,131 which over 50 companies (including Gap, Pentland, Marks & Spencer and Primark) have signed up to, may provide a good example. The Base Code addresses working hours stating the following:

• Working hours comply with national laws and benchmark industry standards, whichever affords greater protection. Therefore, if countries' standard working hours are above 48 hours (which is the international norm), a company should comply with the international standard
• In any event, workers should not be required to work in excess of 48 hours a week and shall be given at least one day off for every seven days
• Overtime shall be voluntary and not exceed 12 hours a week. This should not be demanded on a regular basis and shall be compensated at a premium rate

• The Ethical Trade Initiative, an alliance of companies, trade unions and voluntary organisations, requires its member companies to adopt and implement its Base Code (including commitments on working hours, as noted above). Member companies provide the ETI with annual reports on their progress in implementing the commitments, including on the working hours, see:
  Ethical Trading Initiative case study (Global)
• For ILO guidance on addressing working hours, see:
  The ILO Helpdesk
• Please contribute your commentary or suggestions to our online discussion forum:
  Working hours online discussion forum

2. Occupational health and safety training for suppliers and company personnel on working hours limitations

Training is a key component of responsible approaches to preventing excessive working hours in the workplace. Company managers and suppliers can benefit from ongoing training in the following areas:

- Understanding the relevant working hours laws within the country

- Understanding and implementing company policy in relation to working hours

- Health and safety procedures for young workers (which often differ from those required for adults; most workers under 18 have shorter working hours)

- Understanding the issues and risks for a company with respect to excessive working hours

• Marks & Spencers, through supplier training and the launch of an Ethical Exchange website and "model factories" have improved working hours and wages, see:
  Marks & Spencer case study
  Please contribute your commentary or suggestions on good company practices to our online discussion forum:
  Working hours online discussion forum

3. Social auditing and monitoring

A company should consider including in its CSR audits monitoring its own operations as well as major suppliers' factories in countries where a high incidence of working hours have been reported. Such monitoring or audits can be undertaken by the company or a third-party contracted by the company.

Audits could include:

- Interviewing management on policy and practices ensuring that working hours limits are being honoured. The auditor should ascertain, for example, whether the supplying company requires that workers must clock-in or clock-out hours

- Interviewing employees on their working hours and breaks, preferably out of the working setting and anonymously so as to assuage any fears they may have over losing their jobs

- Inspecting the factory/workplace for any signs of workers appearing overly tired, fatigued or stressed

- Inspecting contracts to ensure that workers' overtime hours are not excessive

Pharmaceutical company Novo Nordisk introduced an environmental and social evaluation supplier questionnaire in January 2002.132 The company sent the questionnaire to all of it suppliers and contractors, the data from which would be compared and evaluated on an annual basis. The questionnaire refers to relevant ILO conventions governing labour standards and included the following questions:133

- Do you ensure that your employees are adequately protected according to the ILO convention regarding working hours, overtime, time-off and holidays? Rights regarding wages and benefits?

- How many hours of normal working time and overtime would a full time production worker or the like work in an average week?

- How many days off would a full time production worker or the like have in an average week?

• Please contribute your commentary or suggestions to our online discussion forum:
  Working hours online discussion forum

4. Improving the productivity of business partners and suppliers to reduce the need for long working hours

A company can introduce methods to increase productivity. While commercial pressures will often mean buyers and employers will have to find a way to reduce non-labour costs to compensate for a reduction in working hours, MNCs might be in a strong position to help their suppliers achieve such non-labour cost reductions.

This could be achieved through:

• The promotion and/or financing of new technologies to improve production efficiency
• The promotion of new production techniques that are more efficient
• The training of employees in relation to new production techniques, or new production technologies
• Improved logistical coordination and planning to reduce the impact of production problems and disruptions

Nonetheless, MNCs will need to put mechanisms in place to ensure such measures do actually translate into a reduction in working hours for employees and not just an increase in output – and higher profits for suppliers. This might include, for example, a formula by which the increase in production is tied to a pre-agreed percentage of efficiency savings, which is then allocated to increased wages.

Increasing productivity could also include introducing flexible working programmes. A company is likely to see initial non-financial benefits almost immediately, and in the long-term this should translate into non-financial benefits. Financial benefits include cost savings in relation to reduced staff turnover (therefore the reduction of recruitment costs), improved worker/management relationships, as well as an increase in productivity.

• In September 2007, for example, UK-based fashion retailer New Look engaged with its major Bangladeshi supplier Echo Sourcing Ltd to raise wages and lower working hours for more than 2,000 workers by improving efficiency and increasing productivity, including by implementing production incentive schemes. In the first year, the lowest-grade wages increased by 24% and overtime rates dropped 46%. See:
  New Look (Bangladesh)
• Please contribute your commentary or suggestions through our online discussion forum:
  Working hours online discussion forum

5. Improving ordering practices

Companies can also create a procedure so that orders they demand from suppliers are achievable within the specified amount of time. This could mean, for example, calculating how many garments a worker could sew within a working day and multiplying this with the number of employees within a factory.

For example, the Ethical Trade Initiative, an alliance of companies, trade unions and voluntary organisations, held a roundtable discussion attended by senior buyers, merchandisers and ethical trade teams from more than 20 global retailers, including New Look, Asda, George, Gap Inc and Next, as well as NGOs and trade union members. Among the experiences shared was that improving buying practices can not only help in tackling workers' issues like excessive overtime and wages, it can also increase efficiencies that benefit the bottom line.

These include:

• Having a clearer critical path for each product line and integrating purchasing practices initiatives across the business
• Building two-way communication with suppliers (e.g. rather than just handing down demands for compliance, retailers should ask their suppliers what they can change so as to help a supplier or factory to improve)
• Establishing tools and guidance for designers, buyers and merchandisers to improve purchasing practices and ensuring they are implemented consistently across the business
• Smoothing out peaks and troughs when ordering products
• Helping suppliers improve their forecasting, for example by giving suppliers earlier sight of the order book134

Such measures will enable suppliers to gain more predictability and consistency in their forecasting of orders, thereby reducing potentially unforeseen time and cost pressures which may impact on their ability to pay living wages due to the need for excessive overtime, an increased use of casual labour and even unauthorised sub-contracting.

• The Ethical Trade Initiative, an alliance of companies, trade unions and voluntary organisations, requires its member companies to adopt and implement its Base Code (including commitments on working hours, as noted above). Member companies provide the ETI with annual reports on their progress in implementing the commitments, including on the working hours, see:
  Ethical Trading Initiative case study (Global)
• Please contribute your commentary or suggestions through our online discussion forum:
  Working hours online discussion forum

6. Implementing flexitime schedules

Many larger MNCs have been introducing flexible work programmes to allow for a better work-life balance for the worker.

According to the UK Trade Union Confederation, in many companies, the implementation of the schedules has resulted in better productivity135 as well as:

- A more flexible and committed workforce136

- Improved management control137

- Reduced absenteeism138 due to better health139

- Improved efficiency140

Flexible work could either be time flexibility or flexibility in an employee's contract.

One example of where flexible working time was implemented in a successful manner is by Unilever Foods UK at the Purfleet spreads factory in Essex (the world's largest spread factory) where there was no flexibility to match the peaks and troughs of labour demand in the production of the foodstuff, mustard. To see how the company addressed these peaks and troughs through flexible fixed hours and at the same time abolished overtime, see the Unilever UK case study.

This is only one solution that is better implemented and suggested by a company after suppliers address the use of excessive working hours and address efficiency and productivity. For further guidance on flexible programmes there are a number of organisations that address working time, including flexibility, The Work Foundation, Trade Union Congress and the Labour Relations Agency.

• Unilever have successfully implemented a flexible working time programme reducing overtime and the use of excessive working hours, see:
  Unilever case study (UK)
• Please contribute your commentary or suggestions through our online discussion forum:
  Working hours online discussion forum

7. Multi-stakeholder engagement and programmes

Multi-stakeholder programmes can assist companies to minimise the risk of excessive working hours throughout the supply chain. For instance, a coordinated effort amongst suppliers, business partners and other companies aimed at managing working hours in the supply chain, through creating a "level playing field", may enhance the chances of making a positive impact on supplier wages.

Such an effort could initially focus on contexts where there is a critical mass of buyers who have a long-term relationship with the supplier and are willing to ensure that workers actually receive living wages. This may be arranged through industry groups, multi-stakeholder initiatives such as the Ethical Trading Initiative, or through supply chain data-sharing organisations such as Sedex.

Sedex, for example, provides a secure database for companies to store and share ethical data including self-assessment, audit reports and corrective action reports and status. Such information could be used by member companies to coordinate their efforts in the implementation of living wages in supply chains.

• The Ethical Trading Initiative and New Look have successfully implemented a programme at a Bangladeshi factory designed to reduce working hours and increase efficiency, see:
• Ethical Trading Initiative and New Look (Bangladesh)
• Please contribute your commentary or suggestions through our online discussion forum:
  Working hours online discussion forum

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International legal instruments

The ILO has a number of conventions that cover the hours of work for particular industries and sectors, as well as detailing rest periods, paid leave and night work.

These include:

ILO Convention No. 1, on the Hours of Work (1919) (interim status141)

ILO Convention No.1 limits the hours of work of those employed in any industrial undertaking to an eight-hour day and a 48-hour week. This includes those working in mines, quarries and other extractions of minerals, construction, maintenance and repair of buildings, railways, telephone installations, gas works, etc. It also includes those employed to transport goods or passengers by sea, road or inland waterways (and now presumably by air).

The Convention also provides for at least one day of rest each week and provides for a minimum of three weeks' annual leave. It also covers workers undertaking night work, part-time work and workers with family responsibilities. Only 47 ILO members have signed this convention. Some of the member countries that have signed this Convention include many European states as well as Egypt, India, Colombia, Israel and Bangladesh. Countries that have not signed the convention include Indonesia, Philippines, Mexico, Viet Nam and Brazil.

ILO Convention No. 30, on the Hours of Work (Commerce and Offices) (1930) (interim status)

ILO Convention No. 30 limits working hours to an eight-hour day and a 48-hour week. A working day cannot exceed 10 hours. This Convention covers those employed in commercial or trading establishments and administrative services in which workers mainly engage in office work and mixed commercial and industrial establishments.

It has been signed by only 27 ILO member countries. Therefore, the majority of ILO member states have not adopted this Convention.

ILO Convention No. 47, on the Forty-Hour Week (1935) (up-to-date)

This Convention calls for the reduction of the working week in a manner where "the standard of living is not reduced as a consequence."

This Convention was created in the Great Depression in the 1930's in consideration of the following:

a) that unemployment has become so widespread and long continued that there are at the present time many millions of workers throughout the world suffering hardship and privation for which they are not themselves responsible and from which they are justly entitled to be relieved

b) it is desirable that workers should as far as practicable be enabled to share in the benefits of the rapid technical progress which is a characteristic of modern industry; and

c) it is necessary that a continuous effort should be made to reduce hours of work in all forms of employment to such extent as is possible

This Convention has only been signed by 14 member states, including Australia, Azerbaijan and Norway.

ILO Convention No. 14, concerning Weekly Rest (Industry) (1921) (up-to-date)

This Convention covers all employees in industrial employment which includes, mining and extraction, manufacturing industries (where products are cleaned, repaired, ornamented or in which materials are transformed), construction, transport of goods and the transport of passengers by road, rail, etc.

The Convention supports a 24-hour rest period for every seven days, advocating the requirement that working hours limitations must also be complied with. It also states that all staff in an enterprise should take days off at the same time and days off should coincide with traditional and customary days off (Article 2(3)).

One-hundred-and-nineteen countries out of 183 member states have ratified this Convention. Notable exceptions include Indonesia, Singapore and the Philippines.

ILO Convention No. 30, on the Hours of Work (Commerce and Offices) (1930) (interim status)

ILO Convention No. 30 limits working hours to an eight-hour day and a 48-hour week. A working day cannot exceed 10 hours. This Convention covers those employed in commercial or trading establishments and administrative services in which workers mainly engage in office work and mixed commercial and industrial establishments.

It has been signed by only 27 ILO member countries. Therefore, the majority of ILO member states have not adopted this Convention.

ILO Convention No. 106, concerning Weekly Rest (Commerce and Offices) (1957) (up-to-date)

The Weekly Rest Convention covers people working in "establishments, institutions, and administrative services" that are not subject to national and other arrangements concerning weekly rest in industry, mines, transport and agriculture.

This Convention advocates a daily minimum rest period of 24 hours every seven days. There are temporary exceptions such as in the case of an accident, force majeure or urgent work that needs to be done, or in order to prevent the loss or perishable goods.

ILO Recommendation No. 98, Holidays with Pay Recommendation (1954)

This Recommendation applies to all employed persons and allows workers time off from work, with the exception of seafarers, agricultural workers and persons employed by a member of their family.

ILO Recommendation No. 98 states that all workers shall be entitled to paid annual leave. The duration of the holiday with pay should be "proportionate to the length of service performed and should not be less than two working weeks per year". It further recommends that the government should ensure that public or customary holiday, days of rest, absence on account of sickness, as well as post- and pre-natal leave are not counted as part of holiday pay.

Certification schemes

Social Accountability's SA8000142 is one example of a certification scheme followed by many socially responsible companies. It states that: "The company shall respect the right of personnel to a living wage and ensure that wages paid for a normal work week shall always meet at least legal or industry minimum standards and shall be sufficient to meet the basic needs of personnel and to provide some discretionary income."

The standard also provides guidance on wage deductions, benefit composition, overtime and labour contracts – particularly with regard to their impact on the living wage. This standard is not in compliance with ILO conventions on a 40-hour week. Instead it provides for a 48-hour a week maximum, excluding overtime.143

Voluntary guidance

The International Organization for Standardization (ISO) new standard, ISO26000, provides a guide to assist companies to implement practices and procedures in a socially responsible manner.

ISO argues that "an organization's performance in relation to the society in which it operates and its impacts on the environment has become a critical part of measuring performance and its ability to continue operating effectively."144

Working Time around the World

According to a 2006 ILO report, "Working Time Around the World: Main findings and policy implications", an estimated 22% of the global workforce, or 614.2 million workers, are working more than 48 hours per week. Gender and age are important factors determining the number of hours worked. There is a clear "gender gap", with men working longer hours. Women's time for paid work is constrained by time spent on household/domestic responsibilities.

According to the ILO report, informal employment provides at least half of total employment in all regions of the developing world. Around three in five of those in informal employment consist of the self-employed. While the self-employed in industrialised companies tend to work long hours it is far more variable from country to country. This is especially the case for self-employed men. Self-employed women tend to work short hours. It appears these women are using self-employment instead of working part-time in order to earn some money while handling family responsibilities.

Attempts to reduce working hours in these countries have been undermined as people work longer hours to ensure that they can adequately support themselves and their family. Proposed alternatives to long working hours such as flexibility measures as well as part-time work are not used in practice due to the fact that it reduces household income.

Working hours and the impingement of rights

Long working hours can affect the following rights:

The right to enjoy just and favourable conditions of work (ICESCR, Article 7): Employees have a right to just and favourable working conditions, including fair wages, equal remuneration for equivalent work, healthy and safe working conditions, the right to rest, leisure, holidays and reasonable limitation of working hours as part of the conditions of work.145

The right to health (ICESCR, Article 12): Employees working long hours, especially over long periods of time, often face long-term risks to their health and safety. One American study, The impact of overtime and long work hours on occupational injuries and illnesses: new evidence from the United States146, found that overtime and extended work schedules resulted in an increase in the risk of hypertension, cardiovascular disease, fatigue, stress, depression, musculoskeletal disorders, chronic infections, diabetes, general health complaints and all cause mortality.

Similarly, according to a Health and Safety UK government report, "Working Long Hours", long working hours affects the general health of the worker. This study compares a number of past studies from all over the world and associates a number of health problems with long working hours including an increase in accidents, stress, psychological and physical health.147

The right to a safe working environment (ICESCR, Article 7, ILO Conventions, including but not limited to, ILO Convention No. 152, on Occupational Safety and Health (1979), ILO Convention No. 155, on Occupational Safety and Health (1981), ILO Convention No. 161, on Occupational Health Services (1985), ILO Convention No 170, On Chemicals (1990) and ILO Convention No. 174, on the Prevention of Major Industrial Accidents Convention(1993)): The same American study148 found that working in jobs with overtime schedules was associated with a "61% higher injury hazard rate compared to jobs without overtime. Working at least 12 hours per day was associated with a 61% higher injury hazard rate compared to jobs without overtime and working at least 60 hours per week was associated with a 23% increased hazard rate".149

The right to a family life (Article 10, ICESCR): According to the above cited Health and Safety UK government report, "literature suggests that working long hours impacts negatively on home and family life."150 Furthermore, long working hours was found to disrupt family activities and ‘atypical work' (that which is worked outside the normal working week), was associated with dissatisfaction with the amount of time that mothers spent with children, dissatisfaction with the amount of time spent as a couple and an increase in the disruption of children's activities

The health implications of long working hours

The increased rate of injuries and the loss of working days resulting from excessive working hours also translate into an increase in company costs associated with insurance and workers' compensation, as well as a loss in productivity.

Long working hours and the loss in productivity are also linked to:

• Fatigue: Employers must be aware that long working hours result in fatigue and insufficient rest between work will exacerbate fatigue. Fatigue is likely to set in after 50 hours a week (when it could lead to occupational stress) to 60 hours a week, or a 10-12 hour day (though the study does not make it clear whether this is with or without a break). "The Working Long Hours" study states that working time regulations in various countries "suggests that there can be cut-off points when fatigue may become dangerous", resulting in accidents at the workplace and injury to employees.151

The ILO states that it is vital for employees working long hours to also get adequate rest between working.152 According to the ILO, "[e]xcessive working hours can cause sleep disturbance, fatigue, cardiovascular, gasto-intestinal and mental health disorders."153 It can also lead to an increase in the incidence of accidents and injuries, decreased productivity and substandard work.

• Stress and psychological health: Working long hours can also be associated with stress and poorer psychological health outcomes. The level of stress and psychological health will depend on the individual and other factors, such as job rewards and whether the worker thinks he/she has a choice over the amount of hours he or she can work.154

Although the word "stress" has been commonly adopted into everyday language and can be used to describe varying degrees of work pressures in modern working life, the effects of stress upon workers must not be underestimated and the symptoms of stress must be adequately recognised. The ILO reports that the effects of stress can cause "physical illness and psychological disorders"155. These "disorders are responsible for the great majority of disease, death, disability and medical care use in most industrialized countries".156 Stress can have a number of adverse effects on health, from chronic fatigue to depression, insomnia, anxiety, migraine, emotional upsets, allergies and abuse of tobacco and alcohol.157

The ILO reports that there are a number of long-term effects, such as hypertension. Hypertension can cause heart and cerebrovascular disease, peptic ulcers, inflammatory bowel diseases and musculoskeletal problems.158 It may cause an alteration of immune functions, which the ILO says, "may in turn facilitate the development of cancer."159

Further, the ILO160 states that several recent studies have highlighted the links between work-related stress, violence at work, the abuse of drugs and alcohol and tobacco consumption. These studies suggest that stress at work contributes to negative emotions such as "fear, helplessness and failure"161, which may lead to behaviours such as drinking, using drugs and other harmful substances which, in turn, can lead to other health issues.162

The following are recent estimates which relate to the cost of work-related stress:

• According to a 2010 study reported in The Independent by the charity Mind, there is evidence that hundreds of thousands of workers suffer mental distress due to their jobs163. The charity claims that each year "UK businesses lose £26 billion and 70 million working days because of conditions like workplace stress"164
• Australia's Federal Assistant Minister for Industrial Relations estimated the cost of occupational stress to be around A$30 million in 1994165
• Work-related stress costs the US approximately US$50-US$150 billion each year, whilst 550 million working days are lost each year due to absenteeism in the United States and over half of these absences are stress-related166

One American study found that overtime and extended work schedules resulted in an increase in the risk of hypertension, cardiovascular disease, fatigue, stress, depression, musculoskeletal disorders, chronic infections, diabetes, general health complaints and all cause mortality.167 The study found that working in jobs with overtime schedules was associated with "61% higher injury hazard rate compared to jobs without overtime and working at least 60 hours per week was associated with a 23% increased hazard rate"168. These are all costs to the company.

Another stress expert, Professor Cary Cooper from Lancaster University says that the increase risk is not just confined to those who work more than 60 hours, but extends to those who work more than 45 hours169. Furthermore, Derek Simpson, secretary of the union Amicus, concurs with Professor Cooper, noting that an increase in working hours does not necessarily translate into an increase in productivity. He takes the UK as an example and says: "As well as being bad for individuals, [the UK's] long hours culture is also bad for business because lower working hours relate directly to higher productivity. It is no coincidence that the UK has the least-regulated economy in Europe and is the least productive in the industrialised world"170

• Physical health: Studies171 revealed an increased incidence of suicide rate. Employees working over 48 hours a week in another study reported more chronic headaches and irritable bowel problems. Other negative effects include a reduction in immunity and a higher risk of diabetes (though not entirely conclusive). Although the study noted inconsistency in the various research findings, "it is agreed that current evidence is sufficient to raise concerns about a possible link between long hours and physical health outcomes, including cardiovascular disease, especially for hours exceeding 48 to 50 a week."172

There is a link between long working hours, resulting in ill health and the direct and indirect costs to business. If workers are experiencing stress, sickness or ill health, a business may experience the direct effects of increased costs due to paying sick days, higher insurance costs and loss in productivity.173 However, it also leads to indirect costs such as the erosion of staff morale, a higher staff turnover, lower productivity due to days lost as a result of illness and, ultimately, higher staff turnover and reduced quality in the recruitment pool.174

The Economics of Health, Safety and Well-being175 report by the ILO, the Ministry of Social Affairs and Health and the Department of Occupational Safety and Health reveals a number of cost implications for employers176, including absenteeism, higher medical costs, a decrease in the morale of co-workers and a higher staff turnover, with the associated cost of recruiting and training new workers and reduced productivity and efficiency.

All of these studies are performed in developed countries; however, the same would apply in emerging economies, the difference being that the pool of labour is much greater and the costs of labour much lower. In fact, there is a greater chance of workers being subjected to longer working hours in the emerging economies, as evidenced in the country examples above, which means that the risks are greater.

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