In 2020, an Indonesian footwear manufacturer implemented Labor Solutions’ internal grievance mechanism, WOVO, at the request of a client. The platform had active utilization with workers using it to ask questions about leave, production targets, and salaries. But rarely did the human resource team receive messages about health and safety or other serious issues. The factory instead relied on monthly inspections from an internal health and safety team to ensure worker safety. But the inspection staff had limited capacity and many issues remained unidentified and persistent. Implementing eLearning for workers In early 2022, the factory’s client asked the group to implement WOVO’s digital trainings and ensure workers completed courses on Understanding Grievances and Health + Safety. The courses explained health and safety standards and the importance of speaking up to help solve issues quickly. Results: A Working Grievance Mechanism That Engages Workers Immediately, there was a 50% increase in the number of health and safety messages and reports. Reports included reports of smoking, need for new protective gloves, and insect infestations. Now aware of what constitutes an issue and how to report an issue to resolve, workers were quick to use the tools and highlight issues. eLearning for workers is the first step to effective grievance mechanisms and management. “Factories are complex social settings and physical environments. Workers are the most likely to spot issues first, but they must first be able to identify something is wrong, know how to report the issue, and not be scared to do so,” said Jen Green, Senior Director of Content and Partnerships, “that’s why education is the first step to prevention and arguably more important the grievance mechanism itself.” The following quarter there was a 124% increase in the number of health and safety reports, demonstrating not only that workers knew what and how to report but also that they trusted the system and their management to resolve the issues. The factory was surprised, and, at first, overwhelmed. “We see utilization as a strong indicator of trust, if workers don’t trust management, they don’t use the system,” said Pradeep Paul, Senior Director of Global Client Excellence. “When we saw this huge increase in utilization, we reassured the factory that it was a good sign. But reminded them that they needed to continue to resolve issues to maintain worker trust.” The Labor Solutions Client Excellence team provided support to help the factory first set up a transparent process to investigate and remediate each issue. After implementing and communicating the process, the factory was able to tackle each problem and solve most of the underlying, long-standing issues reported by workers more efficiently. Ongoing Progress to Manage Grievances Among New and Existing Factory Workers The process for managing grievances is still in place and now new workers are required to take the digital training when they are onboarded. While the factory receives fewer health and safety messages now, workers still actively report issues. The factory also still conducts internal and external health and safety audits, but they no longer need to wait for an audit to happen to uncover or address problems. This case study shows how eLearning for workers can be used to increase health and safety reporting in factories. By educating workers about their rights and how to report issues, companies can create a more transparent and trusting environment that aligns with human rights due diligence (HRDD) principles. Learn more about how to kick-start your HRDD process.

Companies often ask Labor Solutions about how other companies implement, encourage suppliers to the program, and gain leadership buy-in. We recently sat down with Mr. George Hou, the Regional Responsible Sourcing Manager of The Children’s Place to hear about the children's apparel brand’s worker wellbeing strategy and lessons. Why is worker wellbeing important to TCP and suppliers and what is your goal? George Hou, TCP: “At TCP, we strive to positively impact the lives of the people who make our products and the communities and environments affected by our business. Our commitment to positive social practices includes supporting the workers within our supply chain. TCP’s ESG strategy focuses on 6 areas, namely: Grow, Reduce, Divert, Comply, Develop and Give. Worker Well-Being belongs to the Develop category, for which we want to develop worker well-being programs with our manufacturers. For, TCP, a worker well-being program encompasses the development and implementation of workplace programs with a goal to improve workers’ lives. Our worker well-being model centers around 3 areas that support women workers: Personal Development Workplace Gender Equity, and Community Well-Being Companies doing their part to address worker needs leads to tangible benefits on the production floor, including, but not limited to reduction in turnover and absenteeism, improvement in workplace cooperation, decrease in stress factors, higher level of worker retention, and opportunities for career development. Our goal is to positively impact 140,000 workers by the end of 2023 through development on personal growth, workplace gender equity, and community well-being." How TCP Implemented WOVO TCP started by conducting a baseline survey to understand the needs of its workers. The survey found that workers wanted to communicate more with management, learn more about worker wellbeing topics, and take training that was relevant to their jobs. TCP leveraged WOVO's ecosystem of tools to make positive changes in their workplace. What suggestions do you have for other companies looking to start a worker engagement program? George Hou, TCP : I would suggest several things: Commitment and support from leadership Build up strategy on objectives from the worker wellbeing programs Select key suppliers to pilot the programs Communicate to the chosen suppliers to get their buy-in Identify qualified service providers and negotiate a reasonable program cost.” How has WOVO helped TCP achieve the goal of worker wellbeing? George Hou, TCP: “TCP has been sponsoring in-factory training programs to teach soft skills to aid workers in areas such as communication, problem-solving, decision-making, time and stress management, and leadership. We have found women-centered projects to be particularly impactful in providing value to a predominantly female workforce within our supply chain. Such programs have a cascading effect and end up benefiting workers, their families, and the extended community. “ Supplier ownership is critical in implementing projects like this in complex supply chains. How did you get suppliers’ buy-in? George Hou, TCP: “We provided Worker Wellbeing Program guidelines and explained the content through webinars with our suppliers in late 2021 when we first launch the program. We also targeted the top 25 global vendors to create an impact. That said, it paved the way for easier communication with vendors. We did not experience pushback. But, indeed, there are situations that require more rounds of communication to provide more information and share TCP’s expectations. “ Labor Solutions helped TCP take its worker well-being strategy to scale. Promoting supplier ownership, leveraging technology and advisory support, and collecting actionable data points with Labor Solutions is at the heart of TCP’s strategy. If you’re a brand or supplier looking to build up a similar program – or just want to take that key first step in the right direction– get in touch with us!

In 2011 Myanmar’s political and economic transformation was attracting new foreign direct investment and renewed enthusiasm. Footwear and apparel manufacturing acted as a driving force for growth, creating over 700,000 jobs and accounting for nearly two percent of the annual GDP growth . However, the 2021 political crisis led the once-promising industry to drastically contract . Exasperated by ongoing political tension, the COVID pandemic, and rising energy costs, Myanmar’s economy continues to suffer and unemployment continues to grow. Global brands sourcing from Myanmar find themselves in the middle of a heated and public debate—should they stay or go? The debate is nuanced and complex - since leaving the country could be catastrophic for workers’ economic welfare, but staying is seen by some as financially or figuratively supporting the military regime. As the political crisis continues and vulnerabilities are exacerbated, the pressure on brands to act is mounting. At the center of this crisis are workers, many of whom eagerly ditched the uncertainties of the agricultural sector to join the more stable manufacturing workforce. An estimated 32% of manufacturing workers have lost their jobs since the coup started. In an effort to make evidence-based decisions, international companies sourcing from Myanmar are keen to hear directly from workers. In early 2022, several leading footwear and apparel companies engaged Labor Solutions to help overcome ongoing communication challenges and capture feedback directly from affected workers. Labor Solutions started by conducting several worker surveys across the country: the response rates were unprecedented. Despite the seemingly insurmountable obstacles faced by workers and those trying to connect with and support them, nearly 100,000 workers responded (nearly 20% of the total workforce) to Labor Solutions’ surveys. “We were shocked", said Bijie Li, SVP of Client Services, “more than 60% of workers that we contacted responded to the survey.” The sheer number of responses is a result of itself: workers want to be part of the conversation. In November 2022, Ms. Li presented the findings of surveys conducted over the course of the year to over one hundred business owners and stakeholders at the Operational Grievance Mechanisms Workshop hosted by Myanmar Sustainable Business Network and UNDP’s Responsible Business Myanmar Project . While results vary per factory, three main themes emerged; Job security and the need to continue financially supporting their families is the chief concern among workers. For many, their factory jobs have become the only source of income for their family, as other sources of income have disappeared since the coup. Workers have a strong sense of social connection in their workplace: most responses indicated that workers had friends at work and overall felt cared for by their managers. Workers need to hear more from management. In times of high stress and change, communication is key. Workers reported feeling disengaged and confused when communication was weak. One of the great advantages of conducting surveys at individual factories, says Ms. Li, "is the ability to collect localized data that is able to drive local change. Worker satisfaction is obviously not universally the same, but the best way to universally increase worker engagement and satisfaction is to make sure there is access to local data and to share those results with local decision-makers." Results are always shared with both brands and factory managers who can leverage findings to cultivate social connection and proactively address stresses, rumors, and issues with their workforce. Most suppliers engage with the findings and those who don't face pressure from brands. The surveys conducted in Myanmar showed that some suppliers needed additional capacity building and support. The EU-backed NGO SMART Textile & Garment partnered with Labor Solutions to implement a holistic program to help factories more actively communicate and engage with workers, particularly given the political climate and changing circumstances. The program provides suppliers with Labor Solutions’ WOVO tech platform to support better worker engagement and communication. With WOVO, factories can proactively communicate with workers, seek worker feedback via surveys at any time, and allow workers to send anonymous messages with concerns, questions, or reports, regardless of the worker’s location. To protect workers, Labor Solutions has added several features, like disappearing messages and masked or anonymized responses, to the WOVO app to ensure messages don’t get into the wrong hands or result in retribution. SMART uses the data from the surveys and grievance mechanism to create facility-specific Corrective Action Plans (CAPs) to remediate identified issues and ensure long-term strategies for success are embedded into their daily operations. In this process, brands support, rather than police and punish factories. The data allows brands to see each supplier as a unique workplace and provide localized improvement plans. The results of this project thus far reinforce what we already know: workers are the engine of the garment industry and worker engagement and communication cannot be neglected in a holistic responsible sourcing strategy. To get a deeper insight into your supply chain in Myanmar and join our collaboration, contact us here: https://www.laborsolutions.tech/contact or at info@laborsolutions.tech. SMART Textile & Garments now renewed as MADE, is funded by the European Union and co-funded by private sector partners (brands, retailers, and factories) and aims at improving working conditions, promoting labor and environmental standards, and reducing labor rights abuses in the textile and garment industry. The project builds on the previous SMART projects implemented between 2013-2019 and will further upscale, expand and strengthen responsible and sustainable manufacturing practices across the Myanmar garment industry. 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.

Engaging Front Line Workers is Key to Understanding Risks + Improving Workplaces Enhanced Engagement: Worker surveys are essential for engaging the workforce by giving them a voice in the organization's operations and decision-making processes. This can lead to improved job satisfaction and morale as workers feel valued and heard. Risk Identification: Proactively identifying and addressing issues within the workplace through surveys can prevent minor concerns from escalating into serious problems, ensuring a harmonious and productive work environment. Continuous Improvement: Surveys provide critical insights into processes, policies, and practices, allowing organizations to make informed decisions that drive continuous improvement and operational efficiency. Compliance and Due Diligence: In the face of stringent global regulations regarding labor practices, worker surveys help organizations maintain compliance by monitoring and documenting conditions that affect human rights within their operations and supply chains. Worker Well-being: Direct feedback from workers helps organizations to better understand and subsequently enhance worker well-being, leading to reduced turnover and a more motivated workforce. Data-Driven Decisions: The data collected from worker surveys offers a clear, actionable insight into the workforce's needs and expectations, guiding strategic decisions and resource allocation. Work with Labor Solutions to Conduct Worker Surveys Throughout your Value Chain. Accessibility and Inclusivity: WOVO’s mobile and web-based platforms are accessible in multiple languages, ensuring that surveys are easy to complete for a diverse, global workforce, which enhances participation rates and data quality. Real-Time Analytics: WOVO provides real-time feedback capabilities, allowing organizations to quickly identify and address emerging issues before they escalate, ensuring timely and effective responses. Confidentiality + Security: The platform ensures that all survey responses are confidential, which encourages honesty and transparency from workers fearing retribution, thereby enhancing the reliability of the data collected. Educational Integration: WOVO eLearning tools can be used to inform workers about their rights and company policies before taking the survey, which can lead to more informed responses and engagement in the survey process. Comprehensive Compliance Support: WOVO helps organizations adhere to HRDD and other compliance requirements with its robust data management and reporting features, making it easier to document efforts and outcomes in various regulatory environments. Scalability and Customization: The platform can be easily scaled and customized to fit the specific needs of different parts of an organization, from small teams to large global operations, making it a versatile tool for gathering actionable feedback across varied contexts. Using WOVO to conduct worker surveys not only streamlines the process of engaging with and understanding your workforce but also ensures that the efforts align with broader compliance and strategic goals, ultimately fostering a more inclusive and responsive organizational culture.

Download our eBook on Strategies for Effective HRDD in Your Supply Chain to learn more about this topic. While there are many human rights-related laws and regulations you may have to comply with, most HRDD laws are based on the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, the OECD Due Diligence Guidance for Responsible Business Conduct, and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. As a result, there are several common requirements and principles that your business can put into place to ensure compliance across regimes and to help protect your businesses when practices are questioned. Here are the first steps you can take to implement HRDD in Your Supply Chain; The scope is vast, and the scale is huge - you can’t do this alone Conducting due diligence alone at scale is impossible. Companies must engage suppliers. To meet regulations global companies will need to leverage their relationships with suppliers to ensure on-going active identification and prevention throughout the value chain. Successfully identifying risks from afar will be challenging, if not impossible, and could leave organizations exposed. Incentivizing and supporting suppliers to conduct their own due diligence and human rights management will allow for scalability and efficacy. Suppliers must be charged with conducting identification efforts, operating their own grievance management system, implementing prevention methods, and remediating complaints. A buyer’s responsibility is not to conduct these efforts themselves, but to ensure these activities take place—the objective is not micromanagement but building trust and that suppliers get support when needed. Successful implementation will allow buyers to have oversight and pinpoint suppliers who need additional support. To ensure suppliers ask for help when they need it, take care not to incentivize suppliers to hide issues or set up a dual reporting system. By aligning incentives and ensuring that suppliers will not be penalized for human rights issues that occur at their facilities, you can build trust with your value chain partners that ensure business changes for the better. Get key stakeholders engaged Prior to these new regulations, corporate human rights teams often struggled to get the right stakeholders engaged to create systemic, long-term change. The goal of HRDD is to integrate the changes into business practices long term and to level the playing field so that responsible businesses do not incur significantly higher costs. With these new regulations, subject matter experts and internal human rights champions should now have the tools necessary to get the attention, buy-in, engagement and resources from top leadership, supply chain managers and others needed to ensure success. To maintain buy-in and support, new policies, active stakeholder engagement and continuous education and improvement will be required. Now outline your risks Most companies do not know their entire value chain much less the human rights risks within their value chain, but that does not preclude the legal responsibility to act on known and inherent risks. Inherent/Core Risks: Simply sourcing from outside your company has inherent risks that must be understood, prevented, and mitigated. This includes general human resource risks, like health and safety, gender and other non-discrimination in the workplace, and fair wages. Political instability and conflict, supply chain interruption, as well as extreme weather events and natural disasters are also part of the core risks of doing business globally and particularly in sourcing from countries with lower costs and lower protections. Known Risks: Many specific geographies, commodities or industries also have widely known risks. For example, it is common knowledge there is a high risk of forced labor in Malaysia and globally in the fisheries industry (particularly in offshore work), and cacao has problems with child labor. Therefore, governments assume multinational companies sourcing from these locations or in these commodities know these risks and therefore companies are required to actively identify existing issues and prevent future issues. Unknown Risks: Risks not yet identified, understood, or accounted for. These risks are most commonly specific to a business and unknown due to an opaque or obscure supply chain. Since unknown risks are a continuing and evolving issue, conducting an ongoing assessment, and monitoring of your entire value chain must be done in tandem with other due diligence. However, the assessment process cannot be done in isolation and the incompleteness of the assessment will not be an excuse for not complying with other components of the regulations. These first steps would inform you what are the next immediate actions that you can take. You can start addressing those risks through prevention and identification efforts to improve and remediate the issues within your supply chain. It is very important to remember you can start practicing due diligence even if you don’t know how to do everything yet.

2023 was marked by significant developments in supply chain and human rights regulations, including the implementation of the German Supply Chain Due Diligence Act (SCDDA, or LkSG) and the European Parliament's agreement on the Corporate Sustainability Due Diligence Directive (CSDDD), as well as several countries' laws on modern slavery and forced labor (amongst other key issues). A shift in expectations on buyers for risks throughout their value chains has companies globally reexamining their supply chain relationships, human rights policies, practices, and compliance programs.    Many leading global companies with complex supply chains have turned to Labor Solutions to help design programs to meet these new regulations at scale. In 2023, Labor Solutions introduced new tools, made improvements to existing ones, and saw our tools bring about a significant impact while reaching more workers and suppliers than ever. We also launched 20 new eLearning lessons for workers, managers, and practitioners. Labor Solutions’ thought leadership continued to push forward for better worker rights and working conditions through publications and speaking engagements.    Improving the Lives of More Workers than Ever  Labor Solutions’ mission is to improve the lives of workers. In 2023, we ensured more workers than ever had access to the tools needed to protect their rights and improve their livelihoods.   We reached over 300,000 more workers last year—now WOVO is in the hands of more than 1.8 million workers globally.  Expanded tools and services to 3 new countries and added 2 new languages . We now offer support in 30 countries and 26 languages.    More Workers Know Their Rights + Responsibilities. More Managers + Leaders are Equipped with Knowledge of Worker Rights Workers who know their rights are more likely to speak up . WOVO’s Educate tool continues to be key to implementing a successful human rights due diligence program.    200,000+ lessons on rights + responsibilities were completed in 2023, helping to ensure workers are safer. 20 new lessons for both workers and practitioners launched, including Inclusive Leadership, Access to Remedy, Responsible Recruitment, Child + Forced Labor and more to help ensure safer and more respectful workplaces. Increased worker productivity, engagement, and safety are clear outcomes for companies that launch WOVO Educate for workers. See how a company leveraged WOVO Educate to gain a 23% increase in workers’ compensation satisfaction.   A Trusted, Scalable + Effective Grievance Mechanism for Workers Safe and anonymous grievance lines have been mandated by almost all the new HRDD regulations. Workers must have a way to speak up about unfair treatment and ask questions about their rights. Labor Solutions continues to manage the most effective operational grievance mechanism in the market.  730,000+ workers were given direct access to their employers to communicate and provide feedback – improving working conditions and business outcomes.  42,000+ cases were resolved by the employers with the help of WOVO – ensuring workers’ grievances were settled. When workers have direct and anonymous access to management, issues are addressed more quickly, workplaces are safer, and businesses do better.    Digitization of grievance cases with WOVO could help overcome challenges in management – a 2023 study by ILO concluded.   Engaging Workers + Suppliers Directly to Gather Transparent and Reliable Data Collecting responses from workers directly through a system embedded in their workplace, and engaging suppliers in the process to build accountability and trust provides an unique understanding of workers’ reality and perceptions of conditions in their workplace. WOVO Engage surveys provide real-time, structured data from workers, providing insights to suppliers and buyers to drive social change.  320,000+ workers responded to our surveys in 2023, providing an accurate and actionable representation of their experiences and perspectives. Social & Labor Convergence Program (SLCP) WE Tech Survey  added WOVO as an approved worker engagement tech (WE Tech) provider. Adding worker surveys to social compliance audits can lead to more representative audit results and enhanced worker safety.     Partnered with the Rainforest Alliance to integrate human rights + development indicators  into data collection from communities in Peru and Ecuador  to create unique Landscape Assessments - More Reliable + Integrated Tools for All Stakeholders.   WOVO Ecosystem Advancements: Simpler to Expand, Easier to Manage Given the scope of the new human rights due diligence regulations, scalability is key for multinational companies with complex supply chains. In 2023, we focused on reinforcing and enhancing our architecture to improve WOVO’s reliability, speed, and data management, and to support the needs of our growing client base for timely, actionable insights.   Our innovation and product teams focused on creating easy-to-use features and tools to reduce barriers to initiating due diligence programs globally and at scale, including: WOVO Improve :  an automated corrective action and improvement module based on survey and grievance results to help suppliers quickly identify the next steps, access needed tools and resources, and track and share their progress, with brand support.  HRDD Starter Kit: an easy-to-start + swiftly scalable toolkit for brands impacted by new legislation to get suppliers quickly up to date on HR(E)DD requirements and have access to key basic due diligence tools.   Our client advisors focused on helping clients expand their coverage to ensure more workers have access to the tools needed to protect rights and improve livelihoods.  87% of our clients expanded their projects – reaching more regions and utilizing a greater variety of WOVO tools. Our leading clients have hundreds of suppliers using WOVO regularly as part of their sustainability and human rights monitoring and reporting system. Thought Leadership in Action: Webinars, Blogs + eBooks The Labor Solutions team continued to be seen as a leading voice on social sustainability. Our unique approach to improving human rights within supply chains by engaging and supporting suppliers and workers has resulted in an increased demand for speaking engagements and consulting services across a wide range of industries and member organizations globally.    Labor Solutions’ leaders shared insights from a decade of experience at UN Responsible Business & Human Rights Forum Asia-Pacific, Bloomberg’s Sustainable Business Summit, Asia Institute of Management’s Asia Forum on Enterprise for Society, OECD side sessions, Sustainable Apparel Coalition’s Manufacturer Forums, EuroCham events + more. Published insights on our blogs + introduced two publications: an eBook on  “Strategies for Effective Human Rights Due Diligence in Your Supply Chain”  and a guide on  “Practical Tips on Leveraging Worker Voices for Improvements.” These free guides provide more depth and explanation of our methodology and approach, as well as recommendations from our decade of worker engagement.   Subscribe to Our LinkedIn for Updates, Trends + Insights.   What’s Ahead for 2024 – Celebrating 10 Years of Improving the Lives of Workers   In 2024, Labor Solutions will celebrate 10 years of improving the lives of workers. We continue to be thankful to our clients and partners who have enabled and supported our growth over the last decade, and we are excited to be able to continue our work and ensure workers remain at the center of due diligence and sustainability.    In 2024, Labor Solutions will continue its unwavering commitment to improving supply chain risk management through education, connection, and engagement of suppliers and workers. Recognizing the integral roles that buyers, suppliers, and workers play, we will continue to improve our tools to ensure we meet the needs of all stakeholders.    2024 will see a continued focus on automation and scalability. Labor Solutions continues to believe that tech tools alone are insufficient for creating change—people must act on results to drive long-term improvements. So, in 2024, our innovation and product teams are working on tools to make understanding and acting on reports easier, more responsive, and more intuitive. We will continue to automate reports, as well as provide real-time recommendations + improvement plans to ensure workers’ voices are not only heard but also provide insights that drive strategy and organizational change. From sharing graphs and data visualization to signing in, we want to make it as easy to interact with our tools as possible!   Innovative thought leadership on social impact and sustainability in ESG is key to the growth of our industry. Labor Solutions is committed to driving the industry forward by ensuring investors, executives, and boards have the language and frameworks necessary to talk about their business and value chain’s impact on humans and the actions necessary to reduce risk and harm.    We will also continue to assist businesses engaged in international trade in understanding worker engagement and navigating supply chain regulations through our free  Resources  and public engagements. As our footprint grows so will our Programs + Kits  – making value chain sustainability projects more accessible and easier to start.    We are proud of the work we have done and look forward to another year of shared impact, engagement, and improvement!

Audit programs are vital for assessing compliance and sustainability within supply chains, but they may miss major risks to worker safety and rights. Recent media reports ha ve highlighted that audits are insufficient in detecting risks, especially in issues related to forced labor and other labor abuse incidents.   Continuous engagement methods like worker surveys and grievance mechanisms are an effective augmentation to audits, helping to identify workplace problems.   Using Worker Surveys to Better Inform Social Audits Recognizing the limitations of traditional methods, multinational companies, multi-stakeholder initiatives, and industry standards like the Social & Labor Convergence Program (SLCP )   are now incorporating worker surveys into their assessment process. These surveys are anonymous, offering workers a safe space to share feedback - allowing buyers and suppliers to collect larger sample sizes at scale, and detecting trends in the workers’ responses.   These workers’ responses can help identify localized issues that otherwise may go unnoticed. Surveys, when appropriately deployed, provide more representative results, engage more workers at once, and help reveal facility patterns for risk management.   Worker Surveys also have incredible val ue for employers. By identifying and addressing workplace issues, employers can mitigate safety risks, save time and costs, and retain workers. Employers who leverage workforce data to proactively resolve issues also reduce compliance costs and attract buyers.     [Learn more about the benefits of including direct employers in worker surveys]   Using Grievance Mechanisms to Monitor Issues Audits and surveys are useful to evaluate working conditions at a point in time, but they may not catch unexpected incidents. Having an effective grievance mechanism and worker dialogue program between employees and their direct employers (through committees, working groups or mediated by trade unions) can provide real-time insights for improvement.   For example, audits can confirm fire exits are well-maintained, but if a fire exit is blocked, the employer needs to be notified to take immediate action to prevent injuries. A supplier-owned grievance mechanism provides a channel for workers to report incidents, ask questions, or offer suggestions.   Encouraging constructive communication from workers can also prevent dissatisfaction, and safety issues and helps management act before problems become harmful. By tracking and categorizing worker questions and complaints, management can identify when prevention or additional communication may be necessary. For instance, posting a document or holding an information session for all workers might be a better approach than individually responding to similar questions.   WOVO Connect is a Labor Solutions ’ platform for direct employer-employee communication. It is a digital grievance mechanism that protects workers' anonymity while allowing two-way dialogue. The case management system enables employers to easily manage communications, including tracking of response times and issue types while workers, on the other hand, can give feedback directly to their employers. Buyers get real-time aggregated data to strengthen existing systems and foster a collaborative approach between all stakeholders.   [Learn more about How One Factory Reduced Fire Safety Accidents by 80% using WOVO Connect + Educate]   Continuous Engagement over One Time Data Collection Worker surveys and grievance mechanisms are beneficial for improving compliance and worker safety. Continuous monitoring of workplace safety through engagement with workers allows for the collection and analysis of real-time data throughout the year, enabling immediate action instead of waiting for one-time audits or an OSH disaster. Utilizing a digitized platform can save time and money, as well as prevent accidents and workplace injuries.   As countries demand proactive measures to address workplace risks, customers will ask about your monitoring programs. Use WOVO to comply, gain control, and make informed decisions with reliable data.

The EU Directive on Corporate Sustainability Due Diligence (CSDDD) is a regulation that is commonly referred to as the "EU Directive on Due Diligence", "CSDDD" or "CS3D". It requires certain businesses to identify, prevent, mitigate, and account for the potential adverse human rights and environmental impacts of their operations and value chains. The CSDDD is expected to be finalized in 2025 and will apply to businesses that have significant operations or sales in the EU, as well as businesses that sell products or services in the EU. It is important to note that the CSDDD is not the same as the Corporate Sustainability Reporting Directive (CSRD), which is a broader reporting framework that encourages companies to report on their sustainability activities. The CSDDD focuses specifically on corporate due diligence on human rights and the environment, including prevention and remedy, and will feed into CSRD reporting. If you want to find out if your company is affected by the CSDDD and how to comply with it, keep reading. This is important information for both European companies and their suppliers. Brief Overview The CSDDD, just like other recent human rights and environmental due diligence laws such as the LkSG (German Supply Chain Due Diligence Act), requires businesses to follow a due diligence process that aligns with the OECD Guidelines and UN Guiding Principles. These laws aim to address the potential impacts of your business and supply chain partners' operations and sourcing on workers and other people who might be affected. However, they do not require you to identify and remedy the risks of these operations to your business. The scope of these laws and the companies directly impacted, as well as the supply chain partners included, vary from law to law. It's important to note that EU Directives must be implemented by national law to be effective, so please check with your legal counsel about your legal requirements. This summary is intended to provide a general overview for informational purposes. Does CSDDD affect your business? The EU Directive on Due Diligence will affect fewer companies than originally planned. However, many large companies based in the EU or with significant EU operations will be covered. The regulation will apply to both European and foreign companies with 1,000 employees and a turnover of €450 million during the five-year phase-in period. Companies with 5,000 employees and €1,500 million turnover will be impacted first and should expect changes within the next three years. The high-risk sector approach has been removed temporarily, but it may be considered in the future as part of the CSDDD. If your business does not sell or operate in the EU, you may not be directly affected by the CSDDD. However, you may still be impacted due to your association with value chain partners. If you are a contractor, subcontractor, manufacturer, service provider, distributor, or retailer for a European business (or other business that falls under the CSDDD), you may notice changes in your contractual relationships that enable regulated businesses to comply with their obligations. These new regulations make each business responsible for human rights and environmental issues in its supply partners, distributors, and customers. Therefore, any company that conducts business with a company that has a significant European presence, or operations could be affected indirectly. By being prepared, the impact of these new laws can be minimized, as explained below. After the EU Directive is finalized, each EU member state will have to pass national legislation to implement it, which may vary slightly from the original directive. The national legislation is expected to be passed by 2025, and each company will have to consider which national laws apply to its operations and what specific requirements they entail. You can keep track of the progress of the EU Directive on Due Diligence . Are you ready for the upcoming CSDDD? Don't let the changes catch you off guard. Allow us to help you kickstart to ensure a seamless transition. Practical Guide for CSDDD Compliance Requirements: To work with EU buyers, it's important to be prepared for their requirements, which may vary slightly across member states implementing their version of the CSDDD. Direct Requirements: HRDD Process, Internal Governance + Supply Chain Grievance Businesses that are directly regulated will be obligated to implement a human rights due diligence process that is similar to the LkSG and other HREDD regulations. This process consists of six steps: design, assess, identify, prevent, remediate, and report. The goal is to identify and manage human rights and environmental risks, establish internal governance standards, and implement a human rights policy with a grievance mechanism for impacted individuals to report issues or complaints. Labor Solutions has covered these in detail in eBook " Strategies for Effective Human Rights Due Diligence in Your Supply Chain ". Indirect Requirements: Support Identification, Prevention, Remedy and Reporting Indirectly regulated businesses must collaborate with their directly regulated supply chain partners to comply with new regulations. This involves updating contractual obligations and codes of conduct, providing training and support, fulfilling reporting requirements, and implementing other mechanisms that satisfy the law. Obligations: Scope of Risks Responsible New in the CSDDD (and different from some other HRDD) is the scope of the risks and operations that are covered. For example, the LkSG requires that only the risks presented by direct suppliers (and risks posed by indirect suppliers if known) must be addressed, prevented, and remedied. On the other hand, the CSDDD proposes that partners both upstream and downstream be included in the scope of responsibility, which is likely to encompass indirect suppliers. Scope of Actions Required These regulations pertain to business practices rather than reporting requirements or compliance laws. As such, they call for a distinct approach from what may be accustomed to. To comply with these regulations, it's necessary to continually monitor and proactively engage with customers and suppliers to ensure a focus on preventing and minimizing the negative impact of human rights and environmental issues on people. Labor Solutions assists suppliers and regulated businesses in collecting quality data for better business and purchasing decisions. Labor Solutions offers tools like advisory and consulting work, as well as the HRDD Starter Kit that provides scalable solutions to meet CSDDD and HRDD requirements. The most important thing is to start, and you don’t have to do it all alone. First Steps to Compliance: HRDD Process Regulated businesses must perform due diligence, including risk assessment, identification, prevention, remediation, and reporting. More details about this process can be found here. The scope of risks and operations may differ, but it is always advisable to start understanding the general risks associated with the countries and industries you source from. This will help you identify specific risks in your value chain through surveys, grievance tools, audits, and assessments. When working with your suppliers, customers, and other stakeholders, start engaging with your supply chain partners. The suppliers should be responsible for conducting identification efforts, operating their grievance management system, implementing prevention methods, and remediating complaints. The objective is not to micromanage but to build trust and support mechanisms for suppliers when needed. Grievance or Complaints Process Businesses that are directly regulated must establish a complaints process or grievance mechanism that is accessible by workers and other individuals who may be affected by any company within your value chain. There are several service providers available that offer hotlines and grievance tools. However, it is essential to ensure that not only is there a communication channel, but it is also effective in collecting complaints and providing effective solutions. Our eLearning library offers a comprehensive range of courses to help you understand the requirements better. For example, our practitioner training on Access to Remedy provides detailed information on the elements of effective remedies and how to choose an appropriate service provider. We also recommend that you educate your suppliers about the new requirements. Our online modules on human rights due diligence can be customized to meet your company's specific needs and can assist you in communicating the due diligence process to all your direct and indirect suppliers effectively, across various risk-based categories. Suppliers and indirectly regulated businesses can prepare for the new due diligence requirements of their CSDDD buyers by following a few simple steps. We have helpful blog posts on this topic. Contact our advisory team if you need assistance in creating a risk management system. Start with conducting a Worker Survey to help identify the potential risks. Implement WOVO's Connect features to ensure that you have an effective grievance mechanism and case management system in place to identify and prevent issues. Deploy our eLearning courses on rights and responsibilities or responsible recruitment to ensure that workers and managers know their responsibilities and rights, thus helping mitigate the risks. Collaborate with our advisory team to design a remediation plan. 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 go beyond tick-box solutions and are designed to help your business meet the intent of labor laws while creating customized, sustainable solutions built around respect and trust between workers, buyers, suppliers, and brands. For more information, here are some of our previous posts on HRDD and how to work with your suppliers to meet the new requirements.

Ensuring transparency and ethical practices throughout the supply chain has become a legal imperative for businesses.  More and more HRDD regulations necessitate responsible sourcing practices and the protection of human rights at every stage of the value chain. However, many suppliers find themselves ill-equipped to meet these emerging obligations. Labor Solutions' new Five Parts Business + Human Rights Course educates suppliers on the UN Guiding Principles on businesses and human rights. It employs a blended classroom approach that is interactive and scalable - ensuring that participants not only learn the theory but also understand its practical application in their supply chain. Course Structure: Four Digital Lessons: Introduction to Human Rights Due Diligence:  A primer on the foundational elements of HRDD and its implications for your supply chain. A State’s Duty to Protect Human Rights:  How governmental responsibilities intersect with business operations. Corporate Responsibility to Respect Human Rights: Navigating the business's role in human rights preservation within the supply chain. Access to Remedy:  Exploring mechanisms for addressing grievances and non-compliance within the HRDD framework.   3-Hour Live Practicum: An expert-led, interactive session, learners will : Act out three case studies to apply the principles learned. Review example policies to contextualize the learning. Draft a sample implementation plan to visualize the path forward. Engage in risk prioritization exercises to strategically focus their efforts. The lessons use real-life examples and explain global trends to emphasize HRDD principles' relevance to business operations. After completing digital lessons, participants attend a 3-hour live practicum led by experts. This hands-on session helps stakeholders prioritize risks, review policies, act out cases, and set implementation plans. The aim is to leave with a clear framework to effect change locally. This HRDD course is an affordable and flexible program, coming with global online reporting to ensure all suppliers are up-to-date. By taking this foundational step towards responsible business conduct, suppliers can align their operations with human rights principles. If interested in building a more ethical supply chain , reach out to Labor Solutions today  to learn more and get started!

In 2021, almost 28 million people were in forced labor worldwide, highlighting the prevalence of exploitative conditions and the importance of addressing forced labor in supply chains. With more countries passing laws to ban products made with forced labor, it is critical for global companies to proactively address this issue within the value chain or risk facing financial and legal liabilities or import bands. Education is a key step in the prevention and identification of forced labor. Sari, an Indonesian migrant worker in Malaysia, was recruited through a distant relative. The work required enduring meager pay and harsh conditions for the first year. But she believed this to be a normal rite of passage and hoped for improvement in the next year. Caught in this cycle, she even unknowingly perpetuated the misconception to her own family members. In many cases even hiring managers may also lack awareness of ethical considerations and downplaying labor rights due to inadequate knowledge, cultural norms, and workplace pressures. Addressing these gaps in awareness among workers and line managers is essential to fostering a culture of respect for labor rights and ethical conduct within the supply chain. In 2023, Labor Solutions released 20 new lessons, including two for managers and four for workers on responsible sourcing and preventing forced labor in their workplaces. These lessons aim to reduce risks throughout the supply chain by ensuring both workers and management teams know what forced and child labor is, what responsible recruitment is, and how to report incidents for effective prevention. [View our complete eLearning catalog] The Role of Managers in Preventing Forced Labor The eLearning courses help managers eradicate forced and child labor from supply chains. They provide a practical understanding of regulations, best practices, and workers' rights. Managers can identify, prevent, and address human rights violations with the knowledge and skills gained from these two lessons. • Introduction to Human Rights Due Diligence • Introduction to Responsible Recruitment Empowering Workers to Recognize + Report Forced Labor The eLearning lessons for workers provide tools to recognize signs of forced labor and take appropriate action, created in collaboration with Better Work, RISE, and JustGoodWork, • Fair Working Conditions • Right to be Free from Forced Labor • Responsible Recruitment for Workers • Introduction to Grievance By educating workers on their rights, workers are equipped with the knowledge of what is right or wrong. With WOVO Educate global companies can share training with workers throughout the value chain with one click. [How One Brand Exceeded their 3-Year Training Goal in Less than a Year by Digitizing Safety Trainings] Labor Solutions' WOVO Educate + Lessons With accessibility, flexibility, and scalability at the core of Labor Solutions’ learning management system, WOVO Educate can reach managers and workers globally at any time. The micro-learning model saves time and bandwidth, enabling workers and managers to access responsive and targeted training. These interactive courses are designed to be engaging and effective, resulting in improved learning outcomes for participants. The lesson contents are also designed in partnership with industry-leading organizations: Better Work: A partnership between the International Labor Organization (ILO) and the International Finance Corporation (IFC) to set standards for working conditions and support workers through tripartite collaboration (governments – unions – business). Better Work provides in-country monitoring and advisory support to improve working conditions in the global apparel and footwear industry and make the sector more competitive. RISE (Reimagining Industry to Support Equality): An initiative to support collaborative industry action at scale, to advance gender equality in global garment, footwear, and home textiles supply chains. JustGoodWork & Fifty-Eight : An organization & mobile application that prioritizes supporting migrating workers and ensuring they have safe workplaces and access to their rights. Fifty-Eight uses data and evidence to advance public knowledge in providing good work for people everywhere, helping businesses align with their primary purpose in society: to provide products and services that are good for people. As new regulations on supply chain human rights and responsible business conduct continue to evolve and tighten, businesses must stay ahead of the curve and ensure compliance throughout supply chains. Labor Solutions empowers managers and workers to become advocates for human rights through a collaborative approach and proven eLearning courses. Contact to discuss how Labor Solutions can provide a turnkey solution to tackle forced and child labor in the supply chain.