As Trump-era tariffs disrupt supply chains, brands must not pull back on worker and supplier engagement. Resilient supply chains weather economic storms better — and recover faster. Loyalty Drives Faster Recovery Suppliers and workers remember the brands that stood by them during COVID. Those brands saw production rebound 75% faster , and their orders were prioritized post-crisis. Loyalty pays off again now: supporting your suppliers and their workers shows long-term thinking and operational excellence, positioning you as a forward-thinking, investable company. Workers Will be the First to Be Hurt Value chain workers will feel the squeeze first. Reports of worker layoffs are already emerging. Jason Judd of Cornell  highlights the stakes: in places like Sri Lanka, wage cuts or job losses mean hungry children and desperate families.  Keeping people central to your strategy is a moral, strategic, and in some places legal, imperative. Risk Management is Non-Negotiable — Especially in Volatile Times Downturns push suppliers to cut corners, increasing risks of labor violations and safety lapses. Brands remain accountable, even as orders slow. Due diligence helps you catch risks early,  avoiding costly legal, financial, and reputational damage when it matters most. Everyone is Watching Consumers, investors, and watchdogs are scrutinizing supply chains. Reputational risks are magnified in crises. Good decisions today will protect your brand and earn trust  tomorrow. Due Diligence continues to be an Investment, Not an Expense While others retreat, proactive supplier due diligence helps you manage risks, maintain resilience, protect your reputation, and seize competitive advantage  — all while preparing for recovery. As Aron Cramer of BSR  recently reminded us, “The volatile economic impacts of the tariffs should remind all of us " people must always be central to the sustainable business agenda. ”   More Reading: Supporting Workers + Suppliers Through Turmoil + Transition: A Collection of Case Studies Labor Solutions has supported suppliers and brands through various supply chain and regional instabilities, where unrest threatens workers' livelihoods. Time and time again, Labor Solutions' tools have proven critical in crises. Labor Solutions helps maintain clear communication, gather real-time worker insights, and support proactive decision-making. It has helped suppliers keep workers engaged and enabling brands to offer timely support when suppliers are stretched. By listening directly to workers, companies can spot risks early, strengthen compliance, and ensure supply chain stability — proving that worker engagement is not just ethical, but essential for long-term resilience. Read more case studies here .

Download our eBook on Strategies for Effective HRDD in Your Supply Chain to learn more about this topic. Human rights due diligence is becoming a prerequisite to doing business globally. With dozens of laws and regulations passed over the past few years, businesses now face steep consequences for not making every effort to ensure human rights are protected throughout their supply chain. Human Rights Due Diligence legislation are increasingly demanding wide-scale implementation across complex supply chains. Bu sinesses, manufacturers, farmers and other suppliers, who hope to continue exporting to global markets, providing components, materials or products, or selling to international clientele should not risk falling behind. Those who fail to meet standards could face seized shipments and or costly fines and legal fees. Key human rights due diligence laws come into effect in January 2023. Are you ready? What is Human Rights Due Diligence (HRDD)? Human rights due diligence are legal requirements facing global companies and their supply chains to ensure no harm is done to people or the environment in the creation of products or services. Most organizations and countries consider the UN Guiding Principles on Business and Human Rights , as the authority on defining HRDD principles and have used these principles as the foundation of their laws. The UN Guiding Principles basically say states and businesses must respect and protect human rights and are responsible for finding remedy when human rights are breached. These rights can include everything from the right to food and clean water, to the right to freedom from discrimination and access to justice, as well as freedom of association and freedom from slavery. Several countries and regions have passed laws over the last few years regulating industries and imports into their country. Laws range from issue specific to disclosure reports to national -level mandatory due diligence and reporting that cover all human rights. Here are a few: the UK , US and Australia Modern Slavery Act , and the Dutch Child Labor Due Diligence Act . The California Transparency in Supply Chains Act and the EU Non-Financial Reporting Directive (EU NFRD) . Mandatory supply chain human rights due diligence laws recently passed in France , Switzerland , the Netherlands , Norway , Germany , and proposed in Canada , Japan , Spain and the EU . The enforcement mechanisms vary from case to case and could result in hefty fines or customs’ seizure of goods. Some laws allow for indiscriminate detention of specific types of goods, meaning importers are responsible for proving their supply chains are clear of violations. Buyers will be particularly sensitive about supplier selection and retention based on ability to comply with human rights requirements. What do the laws require (generally)? While there are many laws and regulations you may have to comply with (we encourage you to consult your legal team), the majority are based in the UN Guiding Principles, and as a result there are several overlapping requirements and principles that can be put into place to ensure broad compliance and help protect businesses when practices are questioned. Businesses are required to design + implement a risk management system + policy for direct business activities + suppliers to; Identify adverse Human Rights Impacts + Risks through regular risk analysis + complaints collection; Prevent human rights violations in direct business and supply chain ; Remediate violations to an end; and Report + Track violations + risks identified + prevention + remediation actions taken throughout the entire supply chain annually It’s a lot, we know. Don’t worry, Labor Solutions is here to support you. To meet the growing need for robust human rights due diligence, Labor Solutions has launched a Human Rights Due Diligence Program . The suite of tools and advisory services include support designing and implementing scalable human rights risk assessment and improvement systems, policies, and programs in line with pending legislation in the EU, US, and Canada. Variations of our program are now functioning at scale. Reach out to our advisory team to help you create a risk management system; Start with a Worker Survey to help you identify your risks; Implement WOVO’s Connect features to ensure you have an effective grievance mechanism and case management system to identify and prevent issues; Implement our rights and responsibilities or responsible recruitment eLearning cours e s to ensure workers and managers know their rights and responsibilities to help prevent risks; Work with our advisory team to design a remediation plan; and Use your WOVO dashboard to report and track trends. Labor Solutions' supplier ownership, empowerment and improvement approach, is not only scalable, but also allows companies to tackle the problem at the source and collect unparalleled data sets. Our solutions are designed to help your business go beyond tick-box solutions and meet the intention of these laws; creating sustainable solutions customized to your business and built around respect and trust between workers, buyers, suppliers, and brands. To find out more about this new law and how it might impact your business, get in touch with Labor Solutions here or at info@laborsolutions.tech .

With the new HRDD legislation, HP sought a holistic and proactive approach to its value chain capacity building program, seek to cover both breadth and depth (specific risk focused) and scale the worker empowerment program.  HP’s value chain is large, cutting across several industries and in dozens of countries, a scalable, flexible approach for supplier worker training was critical. Finding a solution that could be implemented in a variety of locations, supplier types and languages, resources on a system level to monitor learning progress was key for HP’s deployment success. HP wanted to ensure all workers in its value chain, regardless of their risk levels, are educated on rights and responsibilities. The Solution: Focused Training, Flexible Deployment, Dynamic Reporting Using WOVO eLearning,  Labor Solutions worked with HP to help achieve this goal. In the first year HP mandated 40 suppliers ensure all workers completed Labor Solutions’ digital training on Fair Working Conditions.   The initial goal was to establish fundamental awareness on rights and responsibilities. “People is a core HP sustainability pillar. HP make serious efforts to ensure human rights due diligence in our value chain. As part of mitigating, preventing Human Rights issues, HP aims to increase knowledge and awareness of value chain towards Human Rights by providing capability building in the form of all accessible and ever convenient e-Learning approach,” said the HP Human Rights Team.   HP choose to partner with Labor Solutions to select and deliver relevant lessons for its value chain. Labor Solutions creates and regularly updates the eLearning in partnerships with industry leading subject experts such as Better Work, IOM, ETI, etc., ensuring workers get the most accurate and updated knowledge about their rights and responsibilities.  The lessons are all interactive and workers' knowledge is assessed through embedded quizzes and assessments.   Labor Solutions designed a practical phased training program for supply chain workers. Focused:  Workers are provided with only one lesson at a time. Flexible:   The digital training could be deployed in multiple ways according to workers' and suppliers' workplace and technology environment.  Workers accessed the learning via WOVO App or web-based Learning Management System, allowing them to take the lesson anytime, anywhere. Offline training mode means workers can take eLearning without using data. Suppliers also used WOVO LMS for group classroom learning. Live, Dynamic Reporting : HP’s WOVO dashboard allows them to track eLearning progress by supplier and view data at facility, country or global level. This reduced the amount of time the HP team needed to spend on oversight and collecting data from suppliers. Focused:  Workers are provided with only one lesson at a time. Outcomes: 71,525 workers at 40 suppliers, completed training on Fair Working Conditions within one year.   Soon, these workers will be trained on additional specific topics like Health and Safety, Responsible Recruitment.   HP looks forward to expanding the eLearning program and has integrated it into its human rights strategy.     In the coming years, in addition to expanding the depth of the digital training, HP plans on expanding training to even more workers throughout its supply chain. “HP is committed to empowering 1 million workers through worker empowerment program. The trainings serve as a part of the channel to realize our commitment towards empowerment to the value chain,” said HP Human Rights Team. Start Empowering Your Partner Facilities Labor Solutions’ tools and services are designed to engage, connect, and educate workers across global supply chains by empowering suppliers to own human rights data and address risks as they arise. Whether you are starting with any scale supplier employment project – we tackle all challenges big or small – get in touch with our team at info@laborsolutions.tech .

Background: The recent COVID-19 Delta Variant outbreak has hit Vietnam hard, particularly manufacturers and workers. Ninety percent of the footwear factories in Vietnam had suspended productions at some point during the outbreak, with many reducing production capacity, mainly due to the operational challenges and financial burdens to implement the " 3 on-site" model , a government mandated protocol that involves workers eating, sleeping, and working onsite  without leaving the factory compound . Eager to bring workers back from their hometown and restore production, many factories have focused on helping vaccinate worker to ease the stay-at-work burdens . 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. Solution: With many workers no longer onsite, the brand and their suppliers needed a way to directly connect to get feedback and understand challenges facing workers return. The brand immediately thought of WOVO , a platform used to deploy surveys and communicate with workers. With many workers off-site and dispersed the brand and their suppliers need technology to reach as many workers as possible, WOVO was the clear solution. Within less than 24 hours of deciding to send the survey the brand was able to send 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. Within minutes of pressing send, workers throughout the brand’s supply chain in Vietnam received a message and survey directly to their phones. Results: Within 24 hours the survey received more than 10,000 responses and within 48 hours nearly 30,000 responses had been gathered. The survey provided valuable data for the brand to better understand the vaccination situations across their suppliers. They were also able to view the insights of demographic groups to make better decisions to support the needs of specific groups. The brand has used this data to purchase vaccines for workers in the hope of reopening facilities faster. Since workers can only return to work once they are fully vaccinated, knowing who is vaccinated and when workers will be fully vaccinated is key to predicting production. Suppliers are using the data to better understand how many workers will return and when they can return. Suppliers are also using the data to better understand what support workers need to return to work from providing a stipend for travel to supporting child care, factories are going above and beyond to ensure worker engagement and safety. WOVO continues to be critical for brands and suppliers to ensure continuity and safety. Read about what other factories and brands are doing to support workers.

In today’s rapidly changing geopolitical landscape, suppliers and brands face unprecedented challenges. From sudden production disruptions to unpredictable geopolitical shifts, suppliers and buyers alike are keen to implement resilient systems to minimize supply chain distributions, ensure worker safety, and comply with new supply chain and sustainability legislation. South Asia and Southeast Asia are the manufacturing hubs of the world. Yet, several key sourcing countries are facing significant political change and unrest. Sri Lanka faced crippling inflation  and widespread protests ultimately leading to the president resigning , Myanmar continues to be locked in a civil war, Thailand’s prime minster  was recently, and surprisingly, ousted and  the ongoing political unrest in Bangladesh  has heightened international concerns  within the apparel and textile industry. While political regime change can provide opportunities for workers and trade unions to negotiate for more rights and higher minimum wages (for example), unrest and uncertainty also often have negative effects on trade, the local economy, and safety that can impact workers. Labor Solutions continues to support clients through these challenging times. WOVO  has proven to be a critical tool for suppliers to maintain communication with workers during crises, enhancing trust and safety. Brand clients have used the data to make sourcing decisions, support suppliers with resources and even target philanthropic support. Political instability often impacts, already vulnerable workers. In these complex situations, where worker needs and protection are priority, being able to hear directly from workers about their concerns and priorities provides irreplaceable insights to companies make data-based decisions. And in our experience with post-coup worker surveys in Myanmar, workers want to share their perspectives and to be heard . For Suppliers: Strengthening Communication and Decision-Making Keeping Workers Informed and Engaged In periods of disruption, maintaining clear communication with workers is crucial. WOVO’s Connect tool allows suppliers to communicate efficiently with their workforce, providing timely updates during critical events such as factory closures or production halts. For instance, after factory closures in Vietnam from COVID-19, a staggering 75% of workers  returned to their jobs when WOVO was used to keep them informed and engaged, highlighting the platform’s effectiveness in maintaining workforce stability during challenging times​​. Gauging Worker Sentiment and Addressing Needs Understanding worker sentiment is key to navigating changes effectively. WOVO enables suppliers to take the temperature of their workforce, understand their needs, and implement necessary support measures. This proactive approach not only safeguards workers' rights but also strengthens the overall resilience of the workforce. In Myanmar, WOVO surveys revealed that garment workers have a strong desire to have their voices heard , leading to enhanced worker-management dialogues. In another instance, a factory in China used WOVO to cope with sudden COVID-19 lockdowns , providing reassurance to workers through regular updates and demonstrating the platform’s versatility in addressing urgent worker needs​​. Making Informed Decisions with Real-Time Insights WOVO provides suppliers with real-time, first-hand insights from workers, enabling them to make informed decisions quickly. This capability is vital for navigating the complexities of modern supply chains, where swift and informed decision-making can mean the difference between maintaining operations and facing significant setbacks. By directly connecting with workers, suppliers can anticipate issues and implement solutions before they escalate​​. For Brands: Ensuring Worker Protection and Supply Chain Resilience Gaining Insights from Workers at Scale For brands, understanding the on-the-ground reality of their supply chains is essential for ensuring that workers are protected and safe. WOVO provides brands with comprehensive insights into worker sentiment across suppliers, allowing for a proactive approach to risk management, and a global view that allows for effective prioritization and support. This visibility is particularly crucial in high-risk regions, where the potential for human rights violations is heightened, and where multiple suppliers might benefit from similar support or training​​. Providing Necessary Support Beyond Supplier Capabilities There are times when the support needed by workers exceeds what suppliers can provide. WOVO allows brands to step in and offer the necessary resources, ensuring that workers receive the help they need, even in challenging circumstances. A notable example of this is during the COVID-19 pandemic in Vietnam, where WOVO facilitated brand-led support initiatives to distribute vaccines that not only significantly improved worker welfare​​, but also meant factories were able to get back to full production faster . Proactive and Reactive Actions to Address Supply Chain Risks New global supply chain regulations require proactive engagement with suppliers to address potential and actual risks to people from business operations. WOVO provides more effective early warning signals because it both asks workers about potential issues through worker perspective surveys, and supports the mitigation, termination and remedy of incidents through WOVO Connect’s grievance and case management tool. There is no need to wait for an issue to be raised before implementing preventative measures.   Cases have shown time and again that companies that effectively listen to and engage their workforce are better equipped to navigate difficult times and make better, informed decisions. A proven worker engagement tool like WOVO  ensures clear communications between workers and employers, provides real-time insights for suppliers and brands, and enables proactive support to ensure workplace and supply chain resilience.

A global food sourcing and production company with suppliers operating in Thailand, Malaysia and Singapore all with many migrant workers, sought to conduct a global worker survey to pinpoint areas for action and improve worker engagement, particularly amongst migrants. Initial Challenges: The company wanted to better understand the needs of migrant workers. Despite a large number of migrant workers, the company received no reports from migrant workers on the grievance mechanism the company had established. Migrant workers are often at higher risk for forced labor and exploitation and the lack of feedback from the workers was concerning. The company wanted to ensure migrant workers were being treated with respect, being paid fairly and felt safe at work. The company had conducted surveys before but failed to drive value from them because the surveys lacked standardization across geographies and languages and had no follow up action guidelines. Workers in these facilities faced literacy challenges. While, the workers all had primary schooling, it was clear the workers would struggle to fully understand complex survey questions.A small proportion of workers either did not have phones or did not use the internet on their phones. Solution Implemented: Labor Solutions worked with the company to update worker survey questions to meet the needs of the workers. The questionnaire was shortened and focused on experiences—like “On a scale from 1-5 do you feel safe at work." The surveys were translated by worker right experts into Khmer, Thai, Burmese and Malay to ensure all workers and migrant workers were able to access the survey and understand the questions. Implemented WOVO Unlimited Surveys at all facilities to deploy the global survey but also to allow the facilities to deploy their own surveys. Channels:  QR codes + Onsite Deployment. Many workers used their own phones to take the survey, but some needed additional support, so onsite deployment was provided. Survey Results: Nearly 60% of workers responded to the survey, far more than is necessary for a statistically relevant sample size. The survey results were mixed. All facilities received high scores on basic-compliance topics like correct pay and payslip, receipt of health and safety training and ability to take leave when they wanted. But most workers, 85%, reported that they didn’t feel like they had a choice if they worked overtime, and that they didn’t feel like management made changes based on worker feedback. Impact Better Supplier- Buyer Communication The survey sparked conversations between the buyer and its suppliers and managers and workers. Themes were discussed that had never been discussed before, because no one knew the right question to ask. For example, the buyer thought they had been clear about the company’s expectations for migrant workers, but through these conversations discovered that in fact they had not, and more clarity was needed. As a result, the buyer updated their purchase contract template to reflect these requirements and provided trainings to the suppliers about these expectations. The buyer also decided to conduct a gap analysis to better understand where additional policy and management support was needed. Often at Labor Solutions, we find that buyer-supplier communication is core to many “non-compliance” issues. If the supplier had known the requirement or understood it, they would have happily implemented it. As a result, often after a first survey, lots of changes are quickly made by suppliers who are eager to keep their client relationships. Better Target Setting + Incentives A key finding was that workers did not feel like they had a choice to work overtime. But there was a clear distinction between lower-level workers and higher-level workers. Workers who identified themselves as line leaders or higher felt that they did have a choice  to workover time, while those who identified themselves as line workers overwhelmingly reported they did not have a choice  to work overtime. This suggested that there may be a troubling dynamic between goal setting and its transfer to line leaders and workers.  When more questions were asked, it was found that line leaders were positively incentivized to hit targets, but line workers were negatively incentivized . If a line leader exceeded their targets they received bonuses, if a worker missed their target, they did not make their full wage.   The buyer helped the suppliers address and change the target setting and incentive structure to ensure both parties were positively incentivized. This process is still in progress, as realigning expectations and targets takes time, but thus far results have been positive. Better Employer- Worker Communication + Upskilling Worker Committees The results also highlighted the need to include workers more in decisions, particularly around grievance remediation. While, each facility had a worker committee, the worker committees were under resourced and under trained. They did not know how to effectively use their positions to advocate for change. Additional training was provided to the worker committee and the management team. Worker Surveys Helped to Uncover Key Challenges The buyer had been conducting audits for over a decade and had never uncovered the issues highlighted by the survey. The suppliers were also pleased with the outcomes they had more clarity and targeted support from their client and engagement from their workers. Both parties say they’ll continue to conduct worker surveys annually.

In a significant move toward sustainability and social responsibility, the European Union (EU) Parliament has passed and is considering multiple new pieces of legislation that signal a new way of operating for the global businesses with third party suppliers. This legislation is designed as the social component of the Green New Deal , not only to enhance the sustainability of products but also to ensure ethical practices throughout global value chains—from brands and manufacturers to end consumers. Overview of new EU Legislation The EU's legislative framework includes several key components: Corporate Sustainability Due Diligence Directive (CSDDD) :   This directive requires companies to identify, prevent, and mitigate adverse human rights and environmental impacts within their operations and their entire value chain. This provides guidance for “how” companies should operate in order to align with new reporting requirements such as ERFS and CSRD. Forced Labour Goods Ban (Effective from 2027) :   This upcoming ban emphasizes the EU's commitment to eradicating forced and child labor in supply chains, prohibiting the export from or sale in the EU of goods produced under such conditions. Right to Repair Directive : Extending the lifespan of products through repairability, this directive mandates suppliers to offer repair services for goods long after their sale. Ecodesign for Sustainable Product Regulation (ESPR) :   Aimed at making sustainable products the norm, this regulation sets stringent criteria for the design and production of goods, focusing on durability and recyclability.   Nearly Every Company is Impacted While the laws directly apply roughly 9,400 EU companies and 2,600 non-EU companies and expanding to another 4,800 companies in year two, the impact will be felt globally throughout all of these companies’ vast supply chains.  Transformational for Global Supply Chains The amalgamation of these regulations will lead to a transformative shift in the way companies source products. The implications are profound and will require a fundamental change in the way global companies operate. The laws are so far-reaching and expansive it will take decades for companies to catch up and all the impacts to be felt. In the short term these laws will result in brands being risk adverse and conducting traditional due diligence, but that approach will quickly prove insufficient. CSDDD is impactful, "because it deals with the way the supply chain is actually mandated to collaborate in order to deal with the other topic specific environmental and social laws. From a manufacturers’ point of view, a correctly implemented CSDDD is what stands between a tough but collaborative approach to industry transition and an exploding list of demands for investments, improvements, data and assurances,'" explained, the International Apparel Federation's secretary general Matthijs Crietee in an interview with Just Style . Crietee underscores the potential of CSDDD to shift the industry from a compliance-based to a due diligence-based approach, which is more likely to achieve meaningful results. "CSDDD not only means that manufacturers get a better deal, the entire industry should be better off moving from a compliance-based to a due diligence-based approach because it is simply better equipped to achieve results." Challenges lie ahead, particularly in balancing the implementation of CSDDD with other laws like the EU's forced labor act. These two laws seemingly govern many of the same activities and could end up coming into conflict with each other or result in brands and retailers pushing in the direction of transferring risk towards their suppliers. The EU's ESG legislation represents a pivotal turning point for the supply chains, setting a precedent for other regions and sectors. As companies navigate this new regulatory landscape, they must adopt more integrated and proactive approaches to sustainability and social responsibility.

Labor Solutions’ Worker Survey technology was designed specifically for complex supply chains. Flexible deployment methods and aggregated data sets allows for companies sourcing from a diverse set of suppliers to deploy a multilingual survey to all workers and collect comparable and aggregate data sets quickly. Buyers are able to track data by supplier, country and globally to better understand worker needs. Reports are instantly shared with suppliers to help them quickly address concerns. In September, on behalf of adidas, Labor Solutions deployed a worker pulse survey to 350,000 workers in 125 factories in 17 countries and languages at once. Workers were given four weeks to respond. adidas was able to collect nearly 70,000 responses from workers. The adidas worker pulse survey results in an Employee Net Promotor Score (eNPS) for each individual supplier. Both adidas and the factories us the score better understand work sentiment, engagement and wellbeing. The survey is planned to be sent to workers every six months and results are used by the suppliers and adidas to better capture workers' satisfaction levels and determine improvement opportunities. The eNPS is central to adidas' worker empowerment program and the scores contribute to the adidas social compliance key performance indicator (CKPI). Hearing directly from workers allows adidas to have a more holistic view of supplier performance and ensure worker safety and wellbeing throughout their supply chain. About Labor Solutions Labor Solutions, an impact-focused business, leverages technology to connect , engage and educate workers to build resilient supply chains. Over a million and a half workers in 25 countries have access to Labor Solutions’ worker engagement platform, WOVO . Workers can respond to worker surveys, report grievances and access eLearning modules on rights and responsibilities.

WOVO has “sizeable economic returns” for businesses, concludes an academic study conducted by researchers at the University of Michigan and the University of Hawaiʻi at Mānoa. The randomized control trial took place in two factories at Shahi Exports – a large garment manufacturer in India. The study was made possible through a collaboration between Labor Solutions, The Children’s Place , Good Business Lab and Shahi Exports. Researchers asked: Does giving workers a voice – enabling direct communication of grievances and concerns with employers – impact workplace behavior and exit decisions? To answer this question, researchers randomly placed 7,500 workers at two Shahi factories into two groups: [Treatment group] The first group received training on the service and received SMS reminders encouraging them to use the service. [Control Group] The second group received no training nor any kind of encouragement to use WOVO. Ethically, they weren’t stopped from using it but were not formally introduced to the tool or encouraged to use it. The study measured three important workplace behaviors: retention, absenteeism, and productivity. Over the course of seven months, only five percent of workers in the treatment group used WOVO to proactively ask a question, suggest or make a report to management. Still, business and worker outcomes drastically improved , suggesting that the mere availability of WOVO is enough to improve worker engagement and improve the bottom line. In the paper’s conclusion, researchers found that “simply knowing it is possible to communicate concerns effectively, even if concerns arise only sporadically, increases worker utility enough to change workplace outcomes.” The Report’s Rate of Return Calculation Section stated: “Attendance and retention benefits totaled about 25,000 USD , implying a net rate of return of approximately 52%.” Workers in the treatment group were 5% less likely to be absent than workers in the control group. Workers and management found WOVO to be easy to use and that it brought a positive change in the work culture. Almost all workers owned a phone or had access to a phone. However, only 50% had a smartphone, indicating that in India SMS continues to be a critical functionality to make available to workers in WOVO facilities. The study showed that investing in worker voice technologies, such as WOVO, can drive long term profits by reducing costly worker turnover and absenteeism. Read more on ApparelResources.com ---- About Labor Solutions Labor Solutions, an impact-focused business, leverages technology to connect , engage and educate workers to build resilient supply chains. Over a million and a half workers in 25 countries have access to Labor Solutions’ worker engagement platform, WOVO . Workers can respond to worker surveys, report grievances and access eLearning modules on rights and responsibilities. For more information on how you can proactively identify your supply chain risks via WOVO and actually remediate them, get in touch with Labor Solutions at info@laborsolutions.tech .

2022 was a pivotal year for supply chain human rights due diligence . Globally, governments, investors and consumers are demanding more corporate accountability for human rights. These new mandates have increased global awareness of the importance rigorous programs protect and monitor human rights throughout supply chains and highlighted the faults of many existing tools. At Labor Solutions, we are energized by the global wake up call. We saw new stakeholders come to the table to discuss the social impact of businesses and salient human rights issues effecting supply chains. Labor Solutions’ tried and tested tools proved to be key to helping companies reach and go beyond new due diligence requirements. As a result, our business doubled. Labor Solutions Tools Are Now In the Hands of More Workers Than Any Other Tool in the Industry Labor Solutions tools are unique in the industry. Our subscription model means, once implemented, workers have ongoing, unlimited access to tools to help them be heard, empowered and provide them with access to key information. Now 1.5 million workers have active access to our tools. Over 90% of clients return annually. And in 2022 a majority of Labor Solutions’ clients increased the number of sites and workers covered by WOVO . As a result, by the end of 2022, more workers around the world feel heard and are educated, protected, and respected at their workplaces. A million workers now have access to safe and anonymous channel to ask a question, give a suggestion or report a concern. Over 250,000 cases were closed with a 88% satisfaction rating. Nearly 150,000 learning sessions were completed on rights and responsibilities, professional growth and personal wellbeing (on WOVO-- even more were completed outside of WOVO through our partners) Surveyed over a million workers globally 24 New Courses from Partners and Industry Leaders Added in 2022 Labor Solutions partnered with organizations like Better Work , FiftyEight , the Ethical Trade Initiative, ICRW and Arup + Kindling to digitizing courses, reducing duplication and amplifying industry-leading content. Labor Solutions released 24 new eLearning courses, including a set of core eLearning courses on Fair Working Conditions , Gender Equity , Responsible Recruitment and customized eLearning, equipping workers with necessary knowledge to be safe at workplace. Proven, Local Results: Our Favorite Case Studies from 2022 We pride ourselves on being able to provide global data, and local results. By educating and empowering individual facilities, direct, impactful change is being made on the ground. We heard lots of stories of success this year, our team gathered to discuss some of our favorites. Read our discussion here . 75% More Workers Returned to Factories Using WOVO after Factory Closures in Vietnam Burmese Garment Workers Want to be Heard, Finds Several Labor Solutions’ Surveys Educating Workers on Rights and Responsibilities is Key to a Functioning Grievance Mechanism Easier to Use, Simplified Design to Support Massive Scale: 2022 Product Updates To help our clients scale and meet the global mandates, in 2022, Labor Solutions focused on building systems, data sets and tools to help clients scale to thousands of supplier sites and cover millions of workers. Read how our team improved access to reach more workers across a more diverse population, added security features to protect workers in high-risk places, added data filters to help users understand specific demographic needs and more. What’s Ahead for 2023: Going Deeper into the Supply Chain to Reach More Workers + Integrating Data with ESG to Effect More Change In 2023, Labor Solutions continues to be committed to our mission to reduce supply chain risks by educating, connecting and engaging workers and suppliers. We believe stakeholders at all levels have a role to play in creating real change for workers. That's why we've built tools that engage all parties. We know in order to drive change the right people have to have the right data. To that end, in 2023, we'll focus on building more data connections and pathways to make integrating our data into ESG and traceability platforms and datasets easier, like we have with our partners Open Supply Hub . We'll also continue our thought leadership to define and measure the “S” in ESG and help investors, buyers and others define the role of worker engagement and voice in ESG. While we've made great strides in amplifying the voices of workers. Millions of workers and stakeholders go unheard. In 2023, we'll focus on digging deeper into the supply chain to capture the voice of everyone, through projects like our current partnership with Rainforest Alliance ’s LandScale Project. Data is a starting place, but data isn't enough. So, as we have for the last decade, in 2023, Labor Solutions will continue to go beyond technology and ensure successful and sustainable implementations through advisory services aimed at supporting and enabling social eco-systems. Our goal is to not only help companies meet corporate due diligence laws but to affect change and improve lives. We look forward to continued innovation and expansion in 2023. As always, we are thankful for our brand, supplier and multi-stakeholder partners who have supported our success thus far. Labor Solutions, an impact-focused business, leverages technology to connect , engage and educate workers to build resilient supply chains. Over a million and a half workers in 25 countries have access to Labor Solutions’ worker engagement platform, WOVO .