Once again Labor Solutions has been highlighted in Nike’s annual FY2O20 Impact Report as an important partner in strengthening the resiliency and capability of its supply chain. Labor Solutions’ worker engagement mobile technology platform, WOVO, is being used by contract manufacturers to meet Nike’s leadership goals of advancing factory worker engagement by supporting "technological solutions that help improve communication between workers and management." Labor Solutions was also recognized in the report as a facilitator for Nike’s Engagement and Wellbeing (EWB) survey. This survey is now open sourced and available for anyone to use. The EWB provides suppliers with a holistic, comprehensive view of the worker experience, as well as actionable data which can be used for continuous improvement. Labor Solutions is proud to be part of an effort that encourages and supports supplier ownership. Nike integrates Labor Solutions tools and services as a "learning and development tool (rather than a compliance tool) helps factories better listen to workers and integrate the feedback into their operations." The Nike report underlines the company's commitment to supplier engagement a key tenant of the Labor Solutions model, "we have leaned in more to our core philosophy of supplier ownership, increasing our focus on working with experts in developing best practices, setting standards, and creating data-driven tools to help them understand their own journey." We look forward to Nike's continued leadership in the industry.

Labor Solutions is featured in a report that highlights innovative digital solutions that are improving working conditions for migrant workers. Published by the Open Society Foundation, the Transformative Technology for Migrant Workers report highlights ways workers are being exploited including unsafe and inhumane working conditions, lack of payment, underpayment, and deceptive practices by recruitment agencies. Migrant workers around the globe are vulnerable to abusive labor practice for a variety of reasons including language barriers, minimal education and lack of familiarity with legal rights. In addition, debt related to migration and competition for low-wage jobs often keep workers from reporting abuse. Increasingly, businesses are facing pressure to uncover and address abusive practices taking place within their supply chains. The digital tools featured in the report are providing ways for companies to use mobile technology to rapidly collect information about working conditions from a large number of workers across multiple worksites. Labor Solutions is recognized for its innovative dual-purpose technology that integrates worker voice functions into a single platform that also addresses human resource priorities including training, announcements and wellbeing resources. WOVO, Labor Solutions’ two-way communication platform, allows workers to anonymously voice concerns to management and also gives management a way to respond to workers’ input. WOVO is also capable of providing surveys, digital pay-slips, e-learning courses and coaching support. When interviewed for the report, Head of Labor Solutions, Elena Fanjul-Debnam, shared that businesses are often motivated to adopt worker reporting tools because improved employee engagement supports improved worker productivity and reduced absenteeism and turnover. They can also help protect companies against legal, reputational and financial risks associated with reports of worker exploitation. The report emphasizes that worker reporting tools are only effective when companies are willing and capable of addressing worker feedback in ways that benefit workers. Otherwise, workers will become distrustful and less likely to report concerns.

By Bijie Li, Director of Labor Solutions Operations, Emerging Markets Images from www.un.org The United Nations’ Sustainable Development Goals listed above, give all countries – no matter their size or wealth – an action plan to achieve social and environmental justice. While the goals are large in scope and meant to address the world as a whole, businesses can do their part to help the progress. Many issues can be addressed within organizations and their supply chains that can have an impact on their communities, their countries, and around the globe. Tackling all 17 goals within your business may seem daunting- but as part of a commitment to helping the world achieve sustainable development, perhaps you can start with a few.  Labor Solutions can help by providing services that can assist in a variety of ways. Here are a few achievable goals for many businesses to work towards: Sustainable Development Goal #3: Good Health and Wellbeing Making health and wellbeing a priority in your workforce leads not only to a healthier society, but can also increase productivity, employee retention, employee wellbeing, and revenue. Labor Solutions division can help your workforce improve its health and wellbeing through our eLearning and WOVO services. Our programs educate employees on physical fitness, financial and emotional wellness, mental health, and more. Employees can also connect with our qualified professionals for personalized health. Sustainable Development Goal #5: Gender Equality Gender Equality in the workplace is an important component of a healthy work environment where all workers feel safe and empowered while on the job. Labor Solutions can implement worker surveys in order to identify if there may be a sexual harassment problem in your workplace. We can also administer E-learning courses that train workers and management on sexual harassment prevention through our mobile phone platform, WOVO. WOVO trainings are accessible and beneficial for all employees and employers, regardless of gender or sexual orientation. This helps ensure that everyone is included in the conversation and invested in gender equality in their workplace. Beyond these preventative measures, Labor Solutions can help organizations to establish and employ grievance hotlines, which can offer victims of sexual harassment immediate support, comfort, and advice on how to proceed. Labor Solutions offers both an external hotline, Labor Line, and an internal platform, WOVO, to help address the specific needs of each organization. Taking steps like these to combat sexual harassment in the workplace that may seem small, actually have the potential to make vast improvements towards gender equality and a healthier work environment. Sustainable Development Goal #8: Decent Work and Economic Growth Ensuring your workplace is an environment where employees are treated with respect and dignity, is both a financial and emotional win. Problems that prevent your employees from working with dignity and respect are often hidden in plain sight. Labor Solutions believes that the first step to ensuring a respectful workplace is worker-employer dialogue. Providing workers with a way to share their opinions, ask questions, and report problems directly to management is critical to creating a decent place to work. Labor Solutions created WOVO to help connect workers and their employers on a secure and anonymous platform. This dialogue, not only provides workers with a voice, but it also helps improve managerial skills by demanding they address issues quickly and directly. Additional services like surveys to help identify issues in organizations and their supply chains, and grievance hotlines like Labor Line can help track information to analyze and lead to resolution of issues that negatively affect workforces, and the quality of work opportunities. This UN Sustainable Development Goal also aims, ” to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour…”  and to “Protect labour rights and promote safe and secure working environments for all workers”  See the details here. The Labor Solutions suite of products can help increase transparency, communication and feedback within an organization and with its vendors.  Bringing more information and data to light for decision makers can help them ensure positive, safe, secure and compliant working environments. Sustainable Development Goal #9: Industry, Innovation, and Infrastructure Identifying, mitigating, and preventing abuses within your supply chain can improve work experiences and living standards for workers, and technology can provide additional benefits. Help your business to be more progressive in the fight for a more sustainable world by using innovative technologies. Labor Solutions can implement WOVO, a new mobile phone app designed to revolutionize worker engagement and voice within the workplace. WOVO has a range of features that include: • Two-way anonymous communication between workers and management, • Corporate broadcast messaging to send company-wide messages and alerts, • Instant worker surveys to identify issues, • E-learning modules with comprehensive courses to advance worker wellness, and • Connections to local, live coaches who can personally motivate and support employees, WOVO’s services can help your supply chain identify and address malpractices, as a proactive step to improve communication through innovative technology. To read the United Nations Sustainable Development Goals in full, click here. Sources: https://www.un.org/sustainabledevelopment/ https://sdgs.un.org/

France has put the force of law behind corporations’ moral duty to respect human rights and minimize adverse environmental impacts. Under the 2017 French legislation known as the “Duty of Vigilance” or “Duty of Care” law, certain large companies have an affirmative obligation to prevent human rights violations and environmental abuse – both within the company itself, as well as its subsidiaries and even subcontractors and suppliers. The law originally carried the threat of multi-million-euro fines for failure to comply. Although the fines were removed from the legislation after judicial review, violations could still pose serious consequences for companies that fall short of their obligations. Companies covered by the law should develop, implement and enforce due diligence plans to identify and thwart corporate activities that threaten fundamental human rights and environmental integrity. The law requires companies to follow the U.N. Guiding Principles on Business and Human Rights in the execution of vigilance plans. Due to the novelty and complexity of the legislation, it is understandable that uncertainty remains in the business community regarding the scope of the law and what steps are necessary for compliance. Labor Solutions offers a suite of tools and services to assist companies in their efforts to comply with the law. Which Companies Must Comply? The French Duty of Vigilance law applies to the largest companies in France. According to the legislation, companies must comply with the law if: The company is established in France. and The company has had at least 5,000 employees in France, both at the main company and at its subsidiaries, at the end of the two previous fiscal years. or The company and its subsidiaries have at least 10,000 employees in France and in other countries. What Does the Duty of Vigilance Law Require? The law mainly focuses on the creation and implementation of a vigilance plan to identify and prevent corporate abuses from infringing on basic human rights or adversely impacting the environment. According to the law, the plan must include: Identification, analysis and ranking of potential risks An outline of procedures to periodically asses compliance on the part of the company’s subsidiaries, subcontractors and suppliers Steps to address risks and prevent violations A method for identifying potential or existing risks in cooperation with representatives of relevant trade unions A monitoring system to assess the effectiveness and efficiency of the program The company’s stakeholders should play a role in developing the plan. The company must include its vigilance plan and reports on implementation in its public annual report. What Are the Potential Consequences for Failure to Comply? If a covered company fails to create, implement or publish a vigilance plan as required by the law, any “concerned parties” may file a complaint. The company will be given formal notice of its obligation to comply. The company will have three months to bring its affairs into compliance. If the company remains in violation of its obligations under the law, a judge could impose a civil fine. The law initially called for the imposition of civil fines up to €10 million for failure to comply – and fines up to €30 million if actual human rights or environmental violations resulted from the company’s failure to meet its Duty of Vigilance obligations. However, since the fines were censored during judicial review, it remains unclear what sort of penalties a company may face if it is found to have violated the law’s requirements. A company that violates the Duty of Vigilance law could also be held liable for paying compensation related to human rights violations or environmental abuses that could have been prevented if the company had complied with its legal obligations. What’s the Bottom Line for Companies Affected by the Duty of Vigilance Law? While the full extent of potential financial exposure remains unsettled under the French Duty of Vigilance law, it is clear that compliance is the best option for avoiding costly fines and tort liability – not to mention negative publicity that could tarnish a company’s reputation. Labor Solutions provides tech-based tools and in-person services to assist companies in their efforts to comply with the French Duty of Vigilance law in order to avoid negative consequences for violations of the law. Some of the ways we can help your company comply with the Duty of Vigilance law include: Creation of an effective vigilance plan Establishing procedures to ensure compliance Designing systems to identify and address potential risks Drafting reports outlining the company’s efforts in compliance with the law Conducting surveys of stakeholders to further compliance Comprehensive consulting services to assist with the overall integration of compliance efforts We are prepared to discuss how we can work with your organization to better understand the law’s requirements and to develop a plan to ensure compliance. Sources: European Coalition for Corporate Justice International Review of Compliance and Business Ethics

The Solution Overview In this case study, the Labor Solutions team facilitated communication from factory managers to their workers using the WOVO platform. WOVO is an integrated mobile and web-based system that allows managers to send information to workers’ mobile phones via broadcasts and newsletters. Additionally, it provides worker voice and wellbeing tools that foster wellness and productivity, and gives management actionable data. Background When Chinese footwear factory Dongguan Pouchen reopened as the number of COVID-19 cases subsided in China, it sought a way to inform its workers of the precautions they would need to take as they returned to work. The traditional channels of information dissemination – such as public announcements systems and notice boards – were either too limited, or weren’t ideal in light of new social distancing rules. Outcome Pouchen used WOVO to send newsletters describing actions workers needed to take to protect themselves and their coworkers. These actions included properly using disinfectants, conducting or being prepared for more frequent workplace inspections, adhering to social distance guidelines, and wearing masks and other personal protective equipment where necessary. The WOVO mobile application allowed workers to view this content in a “dynamic and eye-catching” way, according to Pouchen, which helped ensure that workers would pay attention to it. Labor Solutions also provided Pouchen with images and content for the factory to send informative broadcast messages to workers. Dianzhen Lin, Pouchen’s Human Resources Manager, said WOVO was essential for a smooth transition into the new normal. She added, “with WOVO we were able to quickly inform workers what was going to happen. The SMS accessibility of WOVO also allows companies to spread the word to those who do not own a smartphone, reaching basically everyone in the workforce.”

Increasingly, retailers, brands and multi-stakeholder groups are adding worker feedback into their social compliance programs and standards. We are excited that workers are finally being included into the process, but caution that the trend to conduct worker surveys quickly and haphazardly could hurt workers more than help. The trend to conduct worker surveys quickly and haphazardly could hurt workers more than help. The power dynamic of a traditional audit is clear: buyer > supplier. The same cannot be said about worker participation in an audit; a worker's honesty could lead to their employer failing the audit and thus, the worker losing their job. Thus, incorporating worker voice into social compliance programs must be more comprehensive then simply deploying a survey to collect data. Trust is at the core of all worker engagement efforts. Workers must trust that responses are anonymous and must trust the integrity of the process or handling feedback. Putting value judgements on worker feedback often produces misleading results. Workers who do not feel like their situation will change will not speak up, while those who do believe their voice can create change will speak up. This results in facilities with the least vulnerable, most vocal workers having the "lowest" scores. The industry's incentive for 'good feedback' inevitably affects all feedback. The industry's incentive for 'good feedback' inevitably affects all feedback. Technologies facilitating direct access to those whom social compliance programs were designed to protect can transform the way we understand and measure risks. They also tempt us into thinking there is an easy solution to a complex problem. Simply because technology has evolved does not mean the social infrastructures in which those technologies will be used can be neglected and ignored. Simply because technology has evolved, does not mean the social infrastructures in which those technologies will be used can be neglected and ignored. Holistic worker engagement and voice programs should be disassociated from audits, conducted with employers, be action oriented and include worker follow-up. Collecting the right data with the right incentives can not only help you better understand, but also reduce risks while improving the lives of workers. Using the right incentives to collect the right data, can not only help you better understand, but also reduce risks while improving the lives of workers. To help companies better incorporate worker voice into their compliance programs we've designed the Labor Solutions' Maximizing Worker Voice in Compliance Program. The comprehensive program, available globally, integrates strategy, technology and capacity building to help you effectively integrate worker feedback into your risk and compliance programs. The program brings together our survey technology, designed specifically for complex supply chains, with the experience and expertise of our team in a structured format that makes implementation easy, and long term sustainability possible. While we recommend supplier engagement, we know that it's not possible for everyone. We also know everyone is in a different point in their sustainability journey and capacity, therefore we've designed three levels of engagement to meet you where you are. No matter where you start, we'll craft a sustainable solution for you and your suppliers. Learn more here.

The Solution Overview WOVO is an integrated mobile and web-based system designed to provide worker engagement and wellbeing by connecting workers and managers. WOVO’s Connect feature allows workers to send anonymized messages directly to management via text message or smart phone application. Managers can respond to each question directly, while the workers continue to maintain their anonymity. Additionally, WOVO provides data allowing management to track trends in the number and types of questions and complaints received by the system. Background Workers at an apparel factory in Indonesia were suspicious of grievance systems, with good reason. Under a previous system, management had questioned an employee whose identity had been revealed after he submitted what was supposed to be an “anonymous” grievance. Case Overview Labor Solutions helped workers overcome their initial reluctance to use WOVO, stemming from negative experiences with a previous grievance system. WOVO is an integrated mobile and web-based system featuring worker voice and wellbeing tools that foster safety, wellness and productivity. Workers fears eased after seeing how WOVO could be used to send anonymized messages directly to management via text message or smart phone application. In addition, requests that workers made through the system had been ignored. They had waited more than a year for a response to a request for replacement safety shoes, as theirs were worn out. Even after repeated follow-up requests, they were still waiting. When the manufacturer introduced WOVO, a new communication platform to address low employee engagement, workers initially refused to use it. Based on their past experiences, they didn’t trust it. Outcome Labor Solutions encouraged factory management to form a team of WOVO ambassadors. This team spoke to their fellow workers and conducted demonstrations to emphasize WOVO’s anonymity feature. Despite initial resistance and distrust, WOVO ambassadors began convincing workers to submit their grievances through WOVO. Workers once again requested that their safety shoes be replaced, but this time the request came through WOVO. Management ensured the request was addressed promptly and news about the effectiveness and trustworthiness of WOVO spread. This, in turn, led to more workers utilizing the new platform. Worker engagement improved and workers began using WOVO for all their grievances, requests and questions. Overcoming workers’ skepticism, WOVO created a positive impact resulting in a 161.0% increase in worker engagement within a month.

Read in Español, Việt Nam, 中文 COVID-19 continues to be a critical issue throughout the supply chain. Key sourcing countries, like Vietnam, India and Indonesia have recently been devastated by the Delta variant. There has been a tragic number of deaths amongst worker communities, accompanied by a rapid change in workplace regulations, as well a s stressed and confused workers and employers. Several reports, including one by the ILO, have argued for equitable access to vaccines for supply chain workers in order to create a more resilient supply chain, and brands and suppliers alike have actively been lobbying governments for these changes. In Vietnam, workers are not allowed to return to work until they are inoculated, a challenging request for many and one that has led to most factories to operate at limited capacity. As sourcing countries wait for vaccines, brands and factories are looking for ways to better support workers and secure their supply chains. Many are turning to WOVO to instantly connect with workers throughout their supply chain or in a specific location to better understand worker needs. Here are some examples of how clients are using WOVO + worker surveys to support workers during COVID: A brand sent a worker survey to over 150,000 workers in Vietnam to count both the number of vaccinated workers, and the number of workers who need support to get vaccinated. The brand collected over 10,000 responses in less than 24 hours and 30,000 in 48 hours. The brand has used this data to purchase vaccines for workers in the hope of reopening facilities faster. Several factories in Vietnam have used WOVO and worker surveys to prepare for their re-opening by promoting vaccines, listing vaccine locations, and gathering documentation about workers’ vaccination status, so they can open faster. Suppliers are also better able to predict how many workers will be allowed to return each day, as they are certified as being fully vaccinated. Several factories have used WOVO to communicate with workers while they are offsite or when government regulations change. Many clients have implemented eLearning on WOVO to provide workers with access to safety and wellbeing courses on topics like reliance, grief, and parenting during the crisis. Several factories in have used WOVO to manage testing roll-out, with workers signing up for certain time slots using the app in order to avoid overcrowding. During COVID, worker voice tools have been key to worker recovery and safety, allowing factories to “assess worker sentiment so that we can timely respond to their needs. It also allowed us to quickly reach out and support workers during this fluid and challenging time,” said a human resource director at a footwear factory in Vietnam, who has been working to get workers vaccinated so they can return to work. With the data they’ve collected from WOVO and surveys, that factory can now accurately predict when workers will be back at work (based on when workers receive their second dose) and better understand which workers need more support. Facing a very fluid situation with little to no predictability having a reliable and digital system to stay in contact with workers has been key to recovery and ensuring worker safety. Looking to better support workers and suppliers struggling to combat COVID. Reach out to your client advisor for support.

Read in Español, Việt Nam, 中文 Read how one factory conducted a worker survey, discovered female workers were concerned about their safety and then worked with Labor Solutions to improve the protection of workers and reduce sexual harassment on their site. When the factory conducted the same survey again 6 months later, they found workers reported feeling safer and safety concerns had decreased by 45%. Background: The Nike Engagement and Wellbeing (EWB) worker survey is increasingly used by brands and suppliers to better understand workers’ experience and identify issues to focus attention and resources. The survey allows brands and factories to easily identify strengths and improvement opportunities, by providing scores for each question and indicator. Indicators include topics such as Skill Building, Recruitment, Harassment, Social Connection, Communication, Stress and more. Worker surveys have proven to be successful tools to better understand worker needs, but often Labor Solutions finds interpreting data and following up to be more challenging for management teams. Understanding worker needs is important but acting on feedback and making improvements is key to increased engagement and safety. To support management teams to using surveys to drive change, in addition to preparing and deploying the survey, Labor Solutions now provides advisory services to help factories understand the results, identify next steps and create and implement Corrective Action Plans (CAP). This case study examines how a factory from China, with support from a Labor Solutions Client Advisor, acted on survey results and responded to workers’ feedback regarding sexual harassment. The factory conducted the EWB worker survey and found 60% of survey participants were concerned about Sexual Harassment at workplace, and among them 80% had not spoken about their concerns with anyone. Management, having never heard these types of complaints before, was shocked by the results and eager to find out more. But they struggled to figure out how to get started, so they decided to engage the client advisory team at Labor Solutions. Solution: The training also provides a structure for management teams to better understand root causes of results. It requires management to consider multiple aspects of the issue, such as existing (or non-existing) policies and procedures, ability to action policies and procedures (was someone assigned to manage the process) and the existence and availability of trainings for management and worker on the target issue. This leads to an internal review process. Labor Solutions Client Advisors helped management quickly distill key information from a number of data points and identify areas that required a deeper dive. Sexual Harassment was identified as an improvement area. The training also provides a structure for management teams to better understand root causes of results. It requires management to consider multiple aspects of the issue, such as existing (or non-existing) policies and procedures, ability to action policies and procedures (was someone assigned to manage the process) and the existence and availability of trainings for management and worker on the target issue. This leads to an internal review process. Sometimes, when the root causes are unclear, Labor Solutions advisors, encourage factories to also conduct Focus Group Discussions (FGD) to get more detailed information from workers. Based on Labor Solutions’ guidance, this factory conducted an internal review process and invited Labor Solutions to organize FGDs to gather more workers’ feedback. The factory was not lacking comprehensive sexual harassment policies or a person in charge. Still, the process was not working, workers felt unsafe but choose not to report it through the normal processes. The FGD uncovered that female workers were being verbally harassed by a group outside the factory on their way back to the dormitory next to the factory compound. Despite feeling unsafe, workers were hesitant to speak up to management because they lacked an anonymous feedback tool (until the survey) and they felt the topic was embarrassing and sensitivity of the topic. It was clear that the factory needed to help protect the women by addressing their safety during their commute and provide tools for workers to report issues anonymously and immediately, rather than waiting for an annual survey. Using the action plan template provided by Labor Solutions, the factory set up a short-term and a long-term plan to tackle the issue, which included action items, responsible personnel and how they plan to monitor the progress. Short-term plan includes providing transport for workers back to the dorm, avoiding arranging night shifts for female workers and working with local authority to provide additional surveillance around the area. The long-term plan is to provide training on sexual harassment awareness to workers and set up an anonymous grievance channel. The factory quickly put the plan into implementation and used the template to track monitoring results to hold the personnel accountable. Results: When the factory conducted the same survey again 6 months later, they found workers reported feeling safer and safety concerns had decreased by 45%. The percentage of workers reporting sexual harassment and safety concerns had reduced by 45% to 15%. A majority of workers now stated that they directly report any issues immediately though the anonymous grievance line. While, clearly management wants all workers to always feel safe, they are proud of these results and continue to endeavor to make sure abuse is not an issue faced by their workers in or outside their facility.

Once again Labor Solutions has been highlighted in Nike’s annual FY 2019 Impact Report as an important partner in strengthening the resiliency and capability of its supply chain. Labor Solutions’ worker engagement mobile technology platform, WOVO, is being used by contract manufacturers to meet Nike’s leadership standards for grievance processes. Under these standards, workers must be able to raise grievances anonymously and confidentially without fear of retaliation. Additionally, suppliers must track grievances and responds to workers in a timely manner. WOVO, in addition to providing access to anonymous two-way communication, allows suppliers to track worker grievances and gain actionable insight on worker wellbeing. Labor Solutions was also recognized in the report as a facilitator for Nike’s Engagement and Wellbeing (EWB) survey. This survey is now open sourced and available for anyone to use. The EWB provides suppliers with a holistic, comprehensive view of the worker experience, as well as actionable data which can be used for continuous improvement. To learn more about Labor Solutions’ partnership with Nike, see page 32 of the report. Note: At the publication of this report, Labor Solutions was still part of Workplace Options, thus Labor Solutions' work is attributed to Workplace Options.