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Supply Chain Innovation

Olam

Olam International Cocoa Code d’Ivoire and Hazelnut Turkey  supply chains are assessed by the FLA.

From the Olam website:  As Olam has grown, so has our direct workforce – employed across our upstream operations in plantations, concessions and farming to our downstream processing. These employees and contractors are governed by the Olam Code of Conduct and ILO compliant labour standards.

The Fair Labor Association requires farm in the supply chains to be subject to FLA’s annual Independent External Assessment (IEA). Olam International (Olam) has been affiliated with the FLA since 2012 and executes its Sustainable Palm Oil Policy in its palm owned-operations and supply chains globally. For 2019 assessment cycle, FLA conducted an assessment at one of Olam’s palm suppliers in their operations located in the Lahad Datu district of Sabah (East Malaysia).

The FLA outlines the findings of research to test interventions designed to protect workers in the supply chains of three affiliates. The evaluation, called a social impact assessment, included interventions executed by Nestlé and its two suppliers, Balsu and Olam, in the hazelnut supply chain in Turkey and identified the most effective at upholding workers’ rights.

In March 2018, the FLA received a Third Party Complaint from the Tekgida-IS trade union (Tekgida) in Turkey concerning allegations of noncompliance with ILO Conventions 87 and 98 (freedom of association and the right to organize and bargain collectively) and, by extension, relevant provisions in the FLA Workplace Code of Conduct and Benchmarks at the Progida production facility in Piraziz / Giresun owned and operated by Olam Group (Olam), an FLA-affiliated company.  Olam had acquired the Progida Group, a leading hazelnut exporter with headquarters  in Istanbul, in 2011, including this proce

The Fair Labor Association commissioned this study to explore the relationship between the procurement price and working conditions in hazelnut production in Turkey (with a special focus on child labor and forced labor), and review different actors’ roles in the supply chain, as part of the project “Piloting the USDA Guidelines for Eliminating Child Labor and Forced Labor in the Hazelnut Supply Chain in Turkey”.

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