Apple supplier accused of violating Chinese workers’ rights
The Hong Kong firm, Biel Crystal Manufactory that produces iPhone screens for the US firm Apple has been accused of violating workers’ rights at its Chinese factories. According to a report by the Hong Kong NGO Students and Scholars Against Corporate Misbehaviour (SACOM), Biel Crystal requires its employees to work 11 hour shifts, seven days a week, with only one day off each month and forces workers to sign blank contract to minimise workers’ rights. SACOM also alleges that at least five workers at Biel Crystal’s Guangdong factory in China have committed suicide in the last two years owing to exploitative working conditions. Apple said that “our suppliers provide safe working conditions, treat workers with dignity and respect” and that the company will investigate the allegations. (Reuters)
H&M to pay all textile workers living wage by 2018
The Swedish retailer, H&M has announced that it will pay a fair living wage to all of its 850,000 textile workers by 2018. H&M, which is the second largest clothing retailer in the world, said that “we believe that the wage development, driven by for example governments in some countries, is taking too long, so we want to take further action and encourage the whole industry to follow.” The announcement follows months of protests by garment workers in Bangladesh over low pay and poor working conditions, which has forced the closure of hundreds of factories. H&M said that it would support factory owners to develop pay structures that enable a fair living wage in two model factories in Bangladesh and Cambodia in 2014 and then scale up the model to the 750 factories it works with by 2018. (Reuters)
Tax
Brussels to crack down on European corporate tax schemes
The European Commission has launched proposals to block corporate tax loopholes in an attempt to force multinational firms to pay billions of euros in corporate taxes to members of the EU. The proposals come as the Organisation for Economic Co-operation and Development is attempting to tackle tax structures that allow corporations to exploit mismatches between tax systems in different countries to avoid taxation. According to research by the US financial services firm Citigroup, cross-border financing structures are key to many European multinational companies’ low tax rates. The EU Commissioner for Taxation, Customs and Anti-fraud, Algirdas Gediminas Semeta, said that “the proposal ensures that laws are respected. We can no longer afford freeloaders who reap huge profits within the EU without contributing to the public purse.” (Financial Times*)
Supply Chain
Beef sector collaborates on new global principles for sustainable beef farming
The Sustainable Agriculture Initiative (SAI) Platform, which was set up in 2002 by Nestlé, Unilever and Danone to support the development and implementation of sustainable agriculture practices, has launched its new global Principles for Sustainable Beef Farming. The principles, which are designed for global use in both developed and developing countries, have been developed to advance the production of beef in a way that protects and improves the natural environment, the social and economic condition of farmers, and safeguards the health and welfare of beef cattle. Keith Kenny, the senior supply chain director at McDonald’s Europe, a member of the SAI Platform, said that “sourcing beef sustainably has long been a priority for our business. However, to date there has been no widely agreed definition of what sustainable beef looks like. The SAI Platform has successfully brought together producers and processors from across the supply chain, along with key retailers as knowledge exchange partners, to establish a set of principles that we can all support.” (Sustainable Brands)
Environment
WWF: UK rivers risk running dry if new water bill is passed
The UK Government has launched proposals which according to the WWF would allow the UK water industry to take more water from rivers, consequently threatening the survival of surrounding wildlife and habitats. If passed, the new laws would for the first time allow all private holders of abstraction licences to sell their water to water companies. Reportedly, 30 billion litres of water a day is taken from UK rivers, which is 10 percent more than what is considered to be ecologically sustainable. However, licences exist for a further 50 billion litres of water to be withdrawn each day. The WWF said that "the UK licence system is completely broken, unsustainable and out of date, having been set in 1960s with no regard to how much water could be sustainably taken out.” (The Guardian)
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