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Promoting Labor Standards

Promoting Labor Standards. DEG’s Labor Policy Dr. Peter Thimme, Head Environment / Sustainable Development, DEG Washington, 18-19 April 2005. DEG‘s Labor Policies. Milestones. . “Guideline on social compatibility“ Approved by DEG‘s supervisory board.

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Promoting Labor Standards

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  1. Promoting Labor Standards DEG’s Labor Policy Dr. Peter Thimme, Head Environment / Sustainable Development, DEG Washington, 18-19 April 2005

  2. DEG‘s Labor Policies. Milestones. “Guideline on social compatibility“ Approved by DEG‘s supervisory board Revision of DEG‘s E&SManagement System 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. DEG‘s Social Procedures. Overview. Clearance in Principle Due Diligence Contract Monitoring • Risk Mapping  Categorization • Medium risk: evaluation of E&S information questionnaire • Higher risk: verification thru site visit • High risk: full social audit E&S 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. DEG‘s 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)-intensive 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. DEG‘s Social Procedures.Contractual Requirements. Small risk High risk Higher Risk Medium 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@deginvest.de +49-221-4986-1503 www.deginvest.de

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