Labor law violations | Costa Rica: Success through supply chain law

Jardín del Tigre is a banana plantation on Costa Rica's Atlantic coast that has attracted attention due to reports of labor rights violations and the dismissal of unionized workers. After more than two years, these workers are now finally receiving their severance pay: a successful Oxfam complaint under the Supply Chain Act .

Cristino Hernández received his dismissal papers on August 11, 2023, after campaigning for workers' rights. The now 59-year-old plantation worker was unemployed for months and it took him a long time to find a new job. Regarding the severance payment he has now received, he told the newspaper "nd": "This is positive, and I appreciate the work of my union."

The farm worker, like his colleague Miguel Anchia, was dismissed. The two had worked for about four years on the banana plantation in the Limón administrative district on Costa Rica's Caribbean coast. They were among a group of 16 unionized workers who were the first to be laid off when the plantation changed hands in August 2023. Didier Leitón, secretary of the Sitrap union, suspected even then that there could only be one motive: "They wanted to get rid of the unionized workers on the farm first."

This is supported by the fact that large parts of the original workforce of 180 workers were rehired, but not the unionized workers. The fact that the Compañeros have now received severance pay some two years after their dismissal is a success of the persistence of union representative Leitón and his good contacts with the aid organization Oxfam. Oxfam's Berlin office investigated and found evidence that the plantation was sprayed with hazardous pesticides from the air, even while the workers were present.

Oxfam filed a complaint and sent it to the Federal Office for Economic Affairs and Export Control (BAFA), which is responsible for the supply chain law, as well as to the importing company – in this case, Aldi. The discount retailer then contacted Sitrap, the producer, and the exporters on site.

Even though the supply chain law stipulates such a procedure, it appears that not all companies are acting in such a solution-oriented manner. Oxfam reports that in a similar case, the supermarket chains Rewe and Edeka took no measures to resolve comparable conflicts. Aldi, on the other hand, conducted its own investigations and actively pressed for a solution for those affected.

Oxfam wishes all companies would do the same, says Tim Zahn, supply chain expert who has been involved in the case for more than two years. It was a rather tough negotiation process, but "the result shows that the supply chain law is effective, because it very concretely strengthens the rights of those affected." Bringing unions and companies to the table is essential, which was achieved in Costa Rica.

Even for the Aldi Group, which Oxfam typically criticizes for supply chain deficiencies rather than praises, the outcome after more than two years of tough negotiations is positive: "We explicitly support human rights due diligence legislation such as the German Supply Chain Act," explains Maximilian Vogt, Director of Sustainability at Aldi Süd. Cases like that of Jardín del Tigre demonstrate that such regulations make a concrete contribution to protecting those affected.

Union secretary Didier Leitón points out that this is the first time in such a case that payments have been made to the laid-off workers. "These payments provide direct help to the people. We wouldn't have achieved this without the Supply Chain Act," he emphasizes. Several unions have hired lawyers to explore the new possibilities arising from this legislation, as Costa Rica lacks a sufficiently independent judiciary. This also applies to neighboring countries with large banana production, such as Guatemala, Honduras, and Ecuador.

For banana worker Cristino Hernández, the success has another positive side effect: he is free of his debts.