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FINAL REPORT
THE EMPLOYMENT OF RURAL WOMEN IN MULTINATIONAL AGRIBUSINESS:
THREE CASE STUDIES AND SOME LESSONS LEARNED
Kathleen Cloud
The Gender and Agribusiness Project (GAP)
University of Illinois
k-cloud@uiuc.edu
This study was made possible through support provided by the U.S. Agency
for International Development, Office of Women in Development (G/WID),
Global, under Award No. LAG-G-00-98-00062-00. The opinions expressed
herein are those of the author and do not necessarily reflect the views
of the U.S. Agency for International Development. Further information
on this study, as well as additional case and research tools are available
on the GAP webpage at http://www.ips.uiuc.edu/gap.
August 2001
This is the final report on the USAID-funded Gender and Agribusiness
Project (GAP) to document the "best practices" of multinational
agribusinesses in the employment of poor rural women in developing countries
and to disseminate our findings within the agribusiness community as
a way of improving these conditions of employment more widely. In order
to accomplish our objectives, we created partnerships with Cargill and
Land O'Lakes to document their best practices in selected sites. We
studied two Cargill operations: cotton purchasing and ginning in Zimbabwe
(Appendix XX) and chicken production, processing, and freezing in Thailand
(Appendix YY). We have also done a case study of the Land O'Lakes dairy
operation in Poland (Appendix ZZ). In the process we talked to a range
of people in other companies and located a number of groups working
on issues of equity in global employment.
REPORT SUMMARY
In our explorations we found a substantial number of possible gendered
issues in employment. These included:
|
Hiring
Retention
Training
Promotion
Working Conditions
Transportation
|
Health and Safety
Sexual Harassment
Management Style
Worker Representation
Work/Family Issues
Pregnancy Policies |
Among the three case studies we found best practices in all these areas.
Among the best practices were the following:
-
Transparency and equal opportunity hiring for both
office jobs and
manual labor. (Zimbabwe).
-
Equal pay for women and men at each job grade. (Zimbabwe,
Thailand)
-
Raises for experience. (Zimbabwe, Thailand)
-
Equal access to training. (Thailand, Poland, Zimbabwe)
-
Equal access to promotion to supervisor. (Thailand,
Poland)
-
Protection from sexual harassment. ( Zimbabwe, Thailand
)
-
Bonuses for high worker attendance. (Thailand)
-
Flexibility in leaves for family needs. ( Thailand,
Poland)
-
Pregnancy reassignments to lighter work. ( Thailand)
-
Free transport to and from work. (Thailand)
-
Tuition assistance to workers and/or their children.
(Poland, Thailand)
-
Partial health care. (Thailand, Poland, some workers
in Zimbabwe)
-
Equal access to company housing for women and men
employees. (Zimbabwe)
Through our focus group discussions with women workers, we gained a much
fuller picture of their views on the problems and opportunities related
to their employment. These findings are discussed more fully in the concluding
section of the report. We also made an unexpected finding: the increasing
use of company codes of conduct provides a substantial opportunity for
improvement in the working conditions of women in many sectors of third
world employment. These opportunities are also discussed more fully in
the concluding section.
Dissemination
To assure the widest possible dissemination of our findings, each study
is written as a teaching case, on the same gender training model as the
earlier collections of cases on farming systems (Feldstein and Poats,
1989) and donor projects (Overholt et al, 1985). Our website, http://www.ips.uiuc.edu/gap,
includes the full text of all cases in teachable format, as well as other
resources on this topic. The University will continue to maintain this
site for the foreseeable future.
In order to draw attention to the website, we have created a brochure
which gives brief summaries of each case and the lessons learned. The
brochure will be widely disseminated to our partnership companies, to
university agribusiness management programs, and to business associations
such as the U.S. Chamber of Commerce and the Conference Board where we
have established relationships. We have also entered the GAP site with
the major web search engines, and we anticipate substantial worldwide
use of the materials, which are all formatted for easy downloading.
The cases have already been used in a variety of contexts including classes
in labor and industrial relations, agribusiness management, and gender
and development. Presentations to professional groups have included panels
at the International Agribusiness Management Association Conference in
Chicago, the International Association of Feminist Economics in Istanbul,
and several business management groups in China and Thailand. Doing the
Thai case has inspired Professor Lawler to locate other funding for a
study of the views of both male and female employees on "the usefulness
and importance of family supportive practices" in Kenya, India ,
and China as well as the United States.
Cargill has disseminated the findings from the case studies to the U.S.
Chamber of Commerce and included them in their report on corporate citizenship
as well as their external website. They are currently considering a plan
to disseminate the brochure outlining best practices to managers of all
their Asian operations as a way of recommending such practices more widely.
We are also in dialogue with the Cargill training office on possible ways
of using the cases in their in-house management training. Discussions
with Land O'Lakes are in an earlier stage because our partnership is more
recent.
DISCUSSION
Multinational Direct Investment and Women's Employment
Multinational agribusiness is one sector in the rapidly expanding globalization
of business activities throughout the world. Direct foreign investment
is increasing rapidly in developing countries at the same time that bilateral
and multilateral official assistance flows are dropping. According to
the World Bank, (2000) between 1990 and 1998, direct foreign investment
in developing countries increased from 20 billion US dollars to nearly
$145 billion, while official flows dropped from US$ 57 billion to $49
billion.
Global trade is not a new phenomenon; it has been expanding for centuries.
Historically, the trade of agricultural products has been a major engine
of economic development. The woolen trade was the basis of early English
wealth, while grain from the Ukraine, and the New World fed much of Europe
during the eighteenth and nineteenth centuries. Fortunes were made and
lost on trade in grains and textiles. Gradually, as the world economy
widened and deepened, processed foods also began to move through international
markets. With the advent of refrigeration and freezing techniques, fruits,
vegetables, flowers, and seafood joined the flow of products from south
to north. Over the past three decades, the growth of agribusiness production
and processing has grown exponentially in developing countries, providing
substantial new employment opportunities in farming, processing, transportation,
and marketing.
With the rapid growth of a middle class in many countries, the operation
of Engel's law increases demand for a wider range of foods (Timmer et
al, 1983; Mellor, 1966). Domestic markets for agribusiness products have
grown to respond to this demand. Many governments also encourage multinational
companies to operate in their country, buying and often processing products
for sale both domestically and internationally. Today, the worldwide agribusiness
sector is a mix of small, mid-size, and very large companies selling to
domestic and international markets. Some companies are locally owned;
others are large multinationals such as Cargill, Quaker Oats, Kelloggs,
Cadbury, Nestles, and Novartis.
Developing countries have generally welcomed this growth, which provides
not only employment, but also taxable exports. Some have tried to capture
the full benefits by creating parastatel companies, owned by the government,
which purchase products from farmers, and sell them on the world market.
Over the past decade under pressure from the IMF and the World Bank, many
national parastatels have been privatized as it has become clearer that
this is not usually an effective business strategy. Yet privatization
has also generated a range of outcomes, both good and bad (Beneria, 2000;
Elson and Catagay, 2000; Grown et al, 2001).
Rapidly growing populations in much of the developing world have increased
the pressure for jobs to support new workers. The International Labor
Organization (ILO, 2000) has identified the worldwide need for decent
jobs as a top development priority. The creation of millions of small
businesses in the informal sector is one response to this need. Larger
local businesses have also grown and multiplied. However, in situations
of high unemployment, wages are often low, and working conditions less
than ideal. Although the labor laws may be relatively good, they are often
not vigorously enforced.
Not surprisingly, as multinational direct investment in developing countries
has increased, it has been accompanied by controversy about issues of
fair labor practices and environmental impacts (Braunstein, 2000; UN,
1995). In the home countries of some multinationals there have been strenuous
efforts to make companies accountable on these issues. Efforts have included
not only political pressure from unions in industrial countries but also
consumer boycotts and demonstrations such as those in Seattle during the
World Trade Organization meetings. There is pressure for accountability
on these issues from church groups as well as pension funds whose large
number of shares entitles them to seats on some company boards (Elson,
2000). Recent revelations in the garment industry, sporting goods, and
toy manufacturers have created pressures on many multinational companies
to improve their practices and to submit to outside monitoring to document
their improvement (Council on Economic Priorities, 2000; Berenbeim, 1999).
To date, there has been very limited attention to agribusiness employment
practices (Orton et al, 2000), but because of their direct dependence
on the good will of the consumer, they are very vulnerable to such pressures.
Many of the workers employed by the multinationals are women. With longer
life, better education, and fewer children, women are entering the labor
force in large numbers all over the world UN, 1995, 1999). According to
the World Bank (2000), there were 880 million women in the formal labor
force in 1995, double the number in 1950. Our knowledge of the situation
of women workers in the developing world is focused on the working conditions
of urban women and those in enterprise development zones. In both local
and multinational firms, conditions are often not good; long hours, low
pay and poor working conditions are common.
For the eighty percent of women in developing countries who live in rural
areas, less is known about their opportunities for formal employment.
In rural areas, life-shaping changes come more slowly, and womens
access to schooling, health care, and paid employment have been more limited.
Because traditional rural labor markets discriminate against women, most
have worked in household production, agriculture, and the informal sector.
Thirty years of research have given us a solid understanding of womens
work in these areas (Feldstein and Poats, 1989; Gladwin, 1991; Cloud,
1988; Binswanger et al, 1980; Quisumbing et al, 1995; World Bank, 1996),
but the literature on the formal employment of rural women is still small
and scattered (Davis, 1979; Alberni, 1999; Orton et al, 2000).
Yet we know that many multinational agribusinesses are now present in
rural areas around the world, employing both men and women in the production
and processing of a variety of crops; some exported to the industrialized
countries, some sold in local and regional markets. (Idowu and Guyer,
1991; Nigro and Miles, 1999; Orton et al, 2000; USAID, 1999; Williams
and Karen, 1985). In many rural areas there are also increasing numbers
of younger women with substantial education who are having fewer children
and having them later (UN, 1995). Such younger women, rather than their
often illiterate mothers, present an attractive labor pool, and it appears
that many companies are employing them in substantial numbers. Those with
less education may do field work, pick and pack crops, or work in food
processing factories. Those with more education may serve as clerks, office
staff, computer operators, or managers.
Why are the companies hiring women? There are a variety of reasons. The
simplest is location. The companies are in rural areas, and so are the
women. Women are often more willing to accept the seasonal work characteristic
of agribusiness because it permits them to fulfill other family responsibilities
and still generate cash income. In many areas, there is substantial male
out-migration to urban areas, leaving women behind to care for the household.
For some types of production, women are seen as better workers, more careful
in picking and packing delicate crops. For many multinational companies,
equal opportunity employment is company policy, and hiring women is simply
a routine part of business.
Our Methodology
The GAP project has been an attempt to draw a clear and detailed picture
of the employment practices of a small number of multinational operations.
Because we wanted to document "best practices" we approached
companies with a reputation for good practices and created formal partnership
agreements for each case study. We asked companies to designate a site
where they felt that their employment of women exhibited company values.
One or two UIUC team members then traveled to the site for data collection.
The case studies were shaped by the analytic framework and matching data
collection guide which outline the major issues of concern (Appendix DD).
This framework reflects the interdisciplinary approach of the project
by drawing on the expertise of faculty from several disciplines (agricultural
economics, labor and industrial relations, human and community development,
labor economics, journalism, and public policy).
At each site the team interviewed company management, reviewed company
documents, visited company sites and went onto the work floors, and then
held focus groups discussions with at least 100 women employees in each
Cargill company and some 50 at Land O'Lakes. On each group we utilized
women native speakers as co-investigators. We also interviewed local womens
NGOs and government officials to gain a better feeling for the context
and to cross check the information gained from the company.
Upon our return we created a series of case drafts, asking our company
partners for additional information as needed. Then we submitted a next-to-final
draft for company feedback and then final signoff. When these were received,
we did a final editing and began to circulate the cases for teaching.
As the case studies were completed, we began to synthesize the lessons
learned into brief reports and discussion papers and to present them in
professional and business conferences and publications. A major element
in distribution of the cases and lessons learned has been our website,
http://www.ips.uiuc.edu/gap, which makes the cases available to trainers
and researchers worldwide. The site also contains research tools, project
reports, and discussion of lessons learned, as well as hot links to other
relevant sites.
This report gives a short summary of each case, together with a summary
of best practices, lessons learned, and directions for further activity.
THE CASES
Cargill
Cargill is a privately held international marketer, processor, and distributor
of agricultural, food, financial, and industrial products. The company,
headquartered in Minneapolis, has more than 80,600 employees in 65 countries
and business activities in 130 more. Because Illinois is one of five Universities
with a "special relationship" with Cargill, we began by contacting
Bonnie Raquet, Cargillls worldwide public affairs director. She
gave us her support and referred us to regional directors and company
managers in Zimbabwe and Thailand. In each case, planning was done by
e-mail, and the site visit was followed by continuing contact with the
company over time.
CARGILL ZIMBABWE
(The full case is in Appendix XX)
Author: Kathleen Cloud, Human and Community Development, k-cloud@uiuc.edu
In the early 1990s, during privatization of the Governments cotton
marketing board, Cargill purchased twenty percent of the operations. The
company buys high quality cotton from small holder farmers at thirteen
stations in the communal areas, gins it, moves it twelve hundred miles
by truck to the port of Durban and sells it around the world.
The company employs some 2,000 workers; a small proportion are permanent,
the rest are seasonal contract workers with more limited benefits and
rights. By law, all workers are unionized. Salaries and working conditions
are negotiated for the entire sector at one time by the companies and
the unions. Labor laws are favorable to workers, but enforcement is lax.
Cargill pays slightly more than union negotiated minimum wages, and pays
serious attention to worker health and safety issues.
Cargills company code of conduct also commits them to equal opportunity
employment. Although the marketing board limited womens employment
to a few office jobs, Cargill also employed women as laborers. In 1999
with half the nation's work force unemployed, nearly 15 % of Cargills
contract workers and 20% of the permanent workers were women. These women
were young and educated, most through O level (7 years). Workers lived
with their families in nearby areas. About half of the women had one or
two children. Most contract workers also farm, and engage in the informal
sector during other times of the year.
Best Practices
Equal opportunity policies included:
- transparency in hiring for both office jobs and manual labor.
- equal pay for men and women at each job grade.
- equal access to training.
- equal access to promotion.
- Protection from sexual harassment.
- Free condoms and company workshops on AIDS prevention.
For women farmers, Cargills policy of immediate cash payment at
point of sale gave them more control over the proceeds. Because the marketing
board had paid several months later in larger towns far from the farms,
husbands usually collected the proceeds, even if they did little of the
farming. Historically, female suicide rates were highest right after cotton
payments were issued.
CARGILL, SUN VALLEY THAILAND (SVT)
(Full case in Appendix YY)
Authors: John Lawler, Institute of Labor and Industrial Relations,
j-lawler@uiuc.edu, with Vinita Atmiyanandana
Sun Valley Thailand (SVT), begun in 1990, is a fully integrated poultry
production system which raises, slaughters, and processes chicken products
for both domestic consumption and export. Operations are in a peri-urban
area, and the work force, which is 80 % female, is primarily rural in
origin. Most of the women are young, have 6 or more years of education,
and many have one or two children. Workers in the processing plant are
organized in teams of 30/40 members, with one or more supervisors. Floor
workers received minimum wage, with some premium for experience, while
supervisors received somewhat higher pay. Pay for women and men at each
job grade was equal.
Because chickens are vulnerable to disease, and food safety is crucial
to product acceptance, the farms, the processing plants and the workers
themselves were subjected to a rigorous regimen of disinfectants and cleanliness.
The processing rooms are kept very cool, and processing is not intrinsically
pleasant work. Many women faced family demands for help during harvest,
or care of sick children. For all these reasons, by 1995, SVT was facing
an employee turnover rate of 100% pr year, and high work absences. Because
it takes six months for a worker to develop full productivity, the high
turnover was constraining profitability.
Over the next five years SVT instituted a series of policies which reduced
the turnover rate to 20% annually, and substantially reduced absenteeism.
The fundamental change was to develop a company culture based on Thai
ideas of family, and to emphasize the pi-none relationships of big sister/brother
and little sister/brother who take care of one another. Flexibility in
meeting the family needs of the workers was particularly stressed.
In addition to equal employment opportunity practices, policies to promote
retention included:
- bonuses for high group attendance, and for low poultry mortality rates.
- raises for experience.
- flexibility in leaves for family needs.
- pregnancy reassignments to lighter work.
- free transport to and from work.
- tuition assistance for children, and some scholarships.
- partial health care.
- monthly parties with major door prizes. ( refrigerators, TVs, etc.)
- on-site classes for completion of high school and junior high together
with overtime payment for attendance.
LAND O'LAKES, POLAND
(Full case in Appendix ZZ)
Author: Hamish Gow, Agricultural Economics, hgow@uiuc.edu
ICC- Paslek is a Polish dairy company owned jointly by OSM, an 800-member
Polish dairy cooperative, and Land O' Lakes, a very large American dairy
co-op. Since its founding in 1990 the business has grown to include production
of butter, cheese, and calf- replacement formula for sale both in Poland
and the European Union. The firm has had a bumpy ride. The shift to a
western orientation of the Polish economy has meant the introduction of
tougher food quality grades in order to qualify for export certification.
Most Polish farms and dairy herds are very small, and cant afford
the cost of on-farm milking and cooling technologies which improve milk
quality. Buying from many small farms also increases the costs of milk
collection. As government subsidies have been cut, increasing numbers
of farmers with very small herds are no longer selling to the co-op. Nevertheless,
the co-op produces enough high quality milk products for the joint venture
to compete successfully for market share in all three products, although
profitability is still intermittent.
Womens labor force participation rates are historically very high
in Poland, and since 1990 their unemployment rates have consistently been
higher than mens. They are actively involved in dairy production
on Polish farms, as well as in the joint venture. Of the 243 employees,
101 are women and 142 are men, with 26 additional women employed as short-term
contract workers. Given their socialist history Polish employment policies
are very protective of workers; policies on wages, dismissals, health
insurance, maternity leave, and social security are nationally mandated,
and two unions represent differing segments of the work force.
The best practices of OSM Paslek include:
- Equal opportunity employment, albeit with some gender sorting by job
type.
- Management includes both women and men in substantial numbers.
- Two active unions represent workers.
- Good health and safely practices.
- Health insurance and paid sick leave.
- Paid maternity leave of 140 days.
- Prompt salary payments, no arrears.
- Employee tuition payments for work related classes.
LESSONS LEARNED
What We Learned About Women Workers
There is an interaction between traditional gender
norms and equal opportunity policies.
Just as in the industrialized north, there was substantial gendered occupational
segregation (Reskin and Hartman,1986), but the degree and type of segregation
varied. Jobs that were seen as "women's jobs" seemed to promote
the hiring of women in both Thailand and Poland. New types of work that
involve technology often go to men, but both cheese production in Poland
and chicken processing in Thailand, which are quite highly mechanized,
went to women. In Zimbabwe, highly desirable permanent computer jobs went
to women because computer skills are taught in secretarial schools which
are dominated by women.
Just as in the north, pay scales for jobs of comparable worth varied (England,
1992). In Poland, women in cheese production were sure they were underpaid
relative to men in comparable jobs. In Zimbabwe the pay scales by job
grades were clearly equitable, and in Thailand they appeared to be relatively
equal.
Women appeared to have good access to supervisor's jobs in all three companies.
Those promoted to supervisor were usually older and/or more educated than
their fellow workers. There were substantial numbers of women in management
jobs in Poland and Zimbabwe, most in staff jobs seen as appropriate for
women such as human resources, accounting, and computers (Ferber and Blau,
1998).
Gendered Responsibilities
Whether single or married, the women who talked with us carried major
responsibilities for family economic support, as well as for health care
and childrens education. Confirming many other studies, the income
of these women was going to meet family responsibilities (Cloud and Garrett
1994; Ferber and Nelson, 1993; Folbre, 1994). In all three companies the
focus groups agreed that women were more committed to their jobs, would
take less desirable jobs and work harder than men in order to meet their
responsibilities. These women saw men as less reliably committed to providing
family support.
Education
The case studies confirm the importance of womens education. None
of the companies hired illiterate women and few were employed with less
than six years of education. Women with higher levels of education had
access to better jobs as clerks and supervisors, and in some cases, to
management positions. In Zimbabwe, women who had one year in secretarial
school after finishing high school had access to permanent, well-paid,
computer operator positions which included full benefits. These policies
tend to favor younger women, and reflect the increasing investment in
rural schools in both countries over the past two decades (UN, 1995).
This is not to say that more education guarantees women a better job,
or indeed, any job at all. It is simply to note that in both countries,
most rural women in their thirties and beyond are effectively closed out
of formal employment in multinational firms by their lack of education.
The growth of womens education appears to be changing rural womens
access to formal employment.
What Else We Learned from the Focus Groups with Women Workers
Most women felt they were treated by the companies with dignity and fairness.
In Zimbabwe and Thailand this was very clearly stated, but the situation
in Poland was more ambiguous. The women on cheese production line felt
that they were not receiving sufficient respect for their skills, and
that they were underpaid in relation to men with comparable jobs.
There was little sexual harassment, and what there was usually came from
fellow workers or customers rather than superiors. In the few cases where
there was serious harassment, most women felt the companies dealt with
it fairly. However, channels for reporting harassment were not clearly
understood in most workplaces.
Prompt company payment of wages as well as farm products was mentioned
by many workers in Zimbabwe and Poland as a major benefit. Often in both
rural areas, such payments are delayed by local companies and the delays
are difficult for poor households to manage.
Company-supported health care was seen as a major benefit where ever and
to whatever degree it existed.
Company support for education and training programs was also praised in
Poland and Thailand.
Issues of concern raised by the women
Overtime was viewed as a mixed blessing because it generates additional
income, but may interfere with household obligations, especially if it
is unplanned.
The same thing is true of night shifts, or rotating shifts. Women in all
three locations often find it helpful to change between day and night
shifts so that they have time for errands and time to spend with their
children, but if the shift changes are too close together, it disrupts
their ability to adjust their sleeping patterns and is difficult to cope
with. This appears to be a problem in Poland but not in Thailand and Zimbabwe.
Night travel is a problem in both Zimbabwe and Poland when women have
to return home after dark due to overtime or late shifts. The Thai operation
is large enough to provide bus transportation for all workers -- a policy
that is greatly appreciated.
Contract (seasonal) work is also a mixed blessing for many women. They
might prefer permanent work, but may also be responsible for labor on
family farms which limits their ability to work year round. These women
provide a convenient contract labor pool for agribusiness operations whose
production is tied to agricultural cycles. Such short-term jobs usually
carry few benefits, and there is no guarantee that workers will be rehired
in succeeding seasons. The contract workers in Zimbabwe and Poland wanted
two things, that contract workers be given preference in rehiring, and
that they be given higher wages with more years of experience. They also
wanted fair access to permanent jobs as they became available.
For all these issues, as well as many smaller ones, systems of feedback
up the line from women workers to management seems to be limited in both
Zimbabwe and Poland. The lack of communications unnecessarily limits worker
satisfaction, and sometimes deprives the company of useful information.
In Zimbabwe, for example, union offices are far away in Harare, and the
company's elected worker committee has no women representatives. Every
focus group identified a similar problem for women workers: They were
issued the same one-piece overalls for work as the men, but using the
squat toilets while wearing them created many accidents. Each worker got
only one uniform which, when washed, didnt dry overnight. They wanted
two-piece overalls to eliminate the problem, but the message had never
reached management until we shared it. Management was happy to make the
change.
The women were also unaware of Cargills equal opportunity policies,
and were very interested to understand that their equitable treatment
was a result of company policy rather than simply the kindness of the
manager. They were eager to have Cargill caps and T-shirts to wear in
the community, where their good will can be very helpful in increasing
the number of farmers willing to sell cotton to Cargill rather than COTCO,
the more established company.
What We Learned About the Influence of the Company Context on Employment
Practices
Each companys in-country history matters in shaping the conditions
for women workers. The companies in Zimbabwe and Poland were created through
purchase of previously state owned businesses, and have struggled since
to achieve profitability. Cargill seems committed to staying in Southern
Africa for the long run, and is willing to absorb short term losses for
the sake of long term access to market share. Thus they have a strong
interest in farmer and worker satisfaction, and their behavior reflects
this. By contrast, Land O'Lakes does not want to continue absorbing losses
from the Polish operation, and is striving to make the company profitable
so that they can sell it. As a result, personnel, wages, and benefits
have been trimmed back as far as possible within Polish laws
By contrast, Thailand was created from scratch with new technology and
new personnel, and has been profitable almost since the beginning. With
problems revolving around worker reliability, they have had the resources
to institute a range of incentives and benefits for their workers, and
they have been very clever in doing so.
Its clear that the nature of the production processes also influence
employment practices. Some
businesses such as cotton ginning experience high seasonal labor demand
and use contract labor. Others, such as chicken processing, run year round,
and here the challenge is worker stability in rural areas with many other
labor demands. The requirements of food safely and complexity of the technologies
influence the need for educated workers. Certain types of agribusiness
such as flower, vegetable and seed production may use sub-contractors,
which increases the likelihood of poor employment conditions.
The labor laws of the country also influence company behavior, both directly,
through enforcement, and indirectly, by influencing company policy. As
former socialist countries, both Poland and Zimbabwe have very good labor
laws and a history of union power. Clearly, these laws have influenced
company behavior, although in the Zimbabwe case, enforcement is very weak.
In Thailand, labor laws are less strong, but the practical demands of
the situation, together with Cargills company culture, have led
to excellent labor practices.
MORE GENERAL LESSONS
Equity and Efficiency
We began the research with the idea we would use our research findings
to build persuasive efficiency arguments about the efficiency effects
of treating women workers well, and use these arguments to affect company
policies in the wider business community. This argument is certainly true
for both Cargill cases, where equity issues are intertwined with efficiency
issues. Their employment practices tend to benefit both the company and
the women. This, however, is not the whole story.
To our surprise, according to our industrial relations colleagues, most
well managed multinationals have already accepted this argument (Brisco,1985;
Huselid, 1995). They now view their work force as their most valuable
resource, and link their profitability and sustainability to a well-trained,
energetic and equitably treated work force. At least they view their managers
in these terms, and there is substantial literature to document the prevalence
of this view (Jain, 1988; Mendennhall and Oddou, 1995; Rosenzweig and
Nohria, 1994; Taylor et al, 1996). There is, however, very little literature
on the degree to which this formulation extends in practice to less skilled
laborers (Lawler, 1999).
Codes of Conduct
Although Cargill is a privately-held company and is thus free from stockholder
pressures and seldom subject to consumer pressure, they have had a series
of explicit codes of conduct for all their international businesses going
back well over sixty years. Recent versions include equal opportunity
employment policies among other issues, and the code is taken very seriously
within the corporate culture. During our research we kept bumping up against
the code as the justification for whatever action was being explained.
In Zimbabwe, for example, when we asked how they had decided to hire women
for the manual labor jobs, and why, in an economy with 50% unemployment,
the answer given by the black African human resource officer was, "We
didnt decide. Thats just what we do. Cargill is an equal opportunity
employer." End of discussion.
Back in the United States, when we questioned Bonnie Raquet, Cargill Corporate
Vice President for Public Affairs, about the code, she told us that more
than 400 multinationals now have such codes, most created in the past
decade. Further exploration with the Conference Board and Business for
Social Responsibility showed this to be a growing trend. Typically, the
codes address issues of transparency (lack of bribery) and adherence to
local laws as well as environmental, health/safety, and employment issues.
Why? A survey by the Conference Board lists four reasons given by companies
for developing such codes: for legal protection from prosecution, for
public relations (to prevent boycotts), to make explicit the companys
values, and because it is simply good business to behave ethically. They
cite interesting national differences in the reasons given by companies
for their commitment to the codes (Berenbeim, 1999).
Although some companies have had codes for years, many have developed
them in the last decade, and are in the process of determining how the
implementation of their code can be monitored credibly. Some companies
monitor themselves; others pay someone, such as an accountancy firm, to
monitor for them. But many companies are beginning to work with consumer
groups or NGOs to monitor implementation in partnership with one company
or a group in a particular industry, such as toys or sports equipment.
Many multinational companies do much of their actual production through
sub-contractors, or joint venture firms which adhere to local norms in
their employment practices. Multinationals have tended to keep an arms
distance from sub-contractor practices, but this distance is now diminishing,
as companies such as Nike and Donna Karen are being held accountable for
the behavior of their sub-contractors. According to Conference Board Research,
in 1998, 86% of the companies they surveyed are committed to equal opportunity
employment, 23% require it of their suppliers and vendors, and 22% require
it of their joint venture partners (Berenbeim, 1999).
FUTURE DIRECTIONS
There are major opportunities here for both womens groups and technically
qualified women to participate in such monitoring, much as they have monitored
the implementation of government policies over the last decade.
In England a group of NGOs, organized by Christian AID, http://www.christian-aid.org.uk,
have worked with supermarket chains to assure that the African women who
pick and pack fruits and vegetables are being fairly treated. The Institute
for Development Studies at Sussex also maintains a website, http://www.id21.org/society/index.html,
which tracks the latest developments on this issue. As yet, there is no
comparable effort in the United States that is focused on gender issues.
AID/WID may wish to consider moving forward in this area. At least two
possibilities merit further consideration. One would be to do a training
workshop for NGOs on Codes of Conduct and how they can be used to the
benefit of women workers. A second possibility would be to work in collaboration
with one or more of the major business associations to survey the materials
used for monitoring codes, in order to see how they are currently addressing
issues of gender equity and to make whatever suggestions for improvement
that seem warranted. There are undoubtedly other ways of moving forward
on the issue of gender equitable rural employment, and we would be happy
to discuss them with you further.
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