Promoting Labor Standards

1
Promoting Labor Standards

• DEGs Labor Policy
• Dr. Peter Thimme, Head Environment / Sustainable
  Development, DEG
• Washington, 18-19 April 2005

2
DEGs Labor Policies. Milestones.
Revision of DEGs ESManagement System
Guideline on social compatibility Approved
by DEGs supervisory board
Occupational Health and Safety

• ILO Core Labor Standards
• ILO Basic Terms Conditions of Employment
• Social Management Systems

Optimize/broaden assessment and monitoring
2001
2005
3
DEGs Social Procedures. Overview.

• Clearance in Principle
• Due Diligence
• Contract

• Risk Mapping ? Categorization

• Medium risk evaluation of ES information
  questionnaire
• Higher risk verification thru site visit
• High risk full social audit

ES Team

• Risk specific modular requirements
• Environmental and Social Action Plan (ESAP)

• Annual Monitoring Report
• Monitoring of ESAP
• Site visits and audit depending on the project
  risk

4
DEGs Social Procedures. Risk Mapping.
RISK GROUPS risk of child labor, younger
employees, women, low-wage-groups, migrant and
temporary workers workers hired by
sub-contractors, workers in the supply chain
RISK BRANCHES extractive industries,
agribusiness, infrastructure (power stations,
streets), greenfield projects including
comprehensive infrastructure measures,
construction industries or projects with
construction phase Staff (low-wage-group)-intens
ive industries (like textile, consumer products,
supermarkets)
RISK COUNTRIES Countries with inadequate labor
laws and regulations countries known for breaks
of laws and regulations free-trade zones
MANAGEMENT RISK inadequate human resource policy
or social management systems
5
DEGs Social Procedures.Contractual
Requirements.
Small risk
Higher Risk
Medium risk
High risk
Social Action Plan
International Good Practice
World Bank/IFC Guidelines and Safeguard
Policies/Performance Standards
Social Management System (e.g. in accordance with
SA 8000)
ILO Core Labor Standards and Basic Terms and
Conditions of Employment
National laws and regulations
6
Promoting Labor Standards.Challenges.

• Within our institutions
• Continuous Improvement stringent approach to
  labor issues in projects
• Broaden mind set of project managers
  understanding labor issues as vital for achieving
  our development goals
• Clients
• Ownership persuade clients to endorse fair, safe
  and healthyworking conditions as business
  necessity and advantage
• Management full integration of social management
  into the overall management of the company

7
Promoting Labor Standards.Contacts.

• Thank you for your attention!
• For further discussions please contact
• Dr. Peter M. Thimme
• Environment/ Sustainable Development
• Belvederestrasse 40, 50674 Cologne
• thi_at_deginvest.de
• 49-221-4986-1503
• www.deginvest.de