Forced Labor

Michelin opposes all forms of forced labor, on our sites and in our supply chain.

According to the ILO, in 2016, there were nearly 25 million people affected by forced labor. In the world, the sectors where forced labor is most prevalent are: mining and quarrying, tourism, agriculture, agro-food, construction and electronics manufacturing. In France, you can find forced labor in the construction and cleaning sectors, and all sectors that require low-skilled labor and chain subcontracting. Posted workers and undocumented workers can also find themselves in a situation of dependency and forced labor.

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Definition

Michelin rejects forced labor as it is defined in accordance with widely accepted general principles of international law to occur when workers are compelled to render work or services against their will, without pay and/or under unlawful threat of force, fraud, coercion, debt or retention of identity papers.

Forced labor can consist of:

  • Having a contract signed, the terms of which were not understood by the employee. For example: a contract that was not written in the employee's language.
  • Applying psychological or physical coercion to an employee to perform a job. For example: threatening to fire an employee for not performing a hazardous operation which is not a part of their job duties or for which they have not been trained.
  • Restricting the autonomy of a person. For example, by retaining their identity papers, forcing the person to sleep on company premises, to depend on the employer for the creation of a bank account, not to freely dispose of their free time, etc.
  • Getting an employee into significant debt before they start work, putting them in "debt bondage". In some regions, intermediaries (recruitment agencies) charge candidates particularly large sums (transport, accommodation, insurance costs, etc.) in the selection, recruitment or hiring phase; it will take years for employees to repay this debt to their employer.

 

Guiding Principles

The Group is committed to*:

  • Where employment contracts are used, designing readable and understandable employment contracts for all employees.
  • Not making an employee work under duress and respecting their autonomy.
  • Ensuring that each employee has free access to their identity papers and can terminate their employment contract at their own initiative according to the notice provided for by local regulations or the employment contract.
  • Prohibiting our recruiting services suppliers from charging any recruitment commission or fees to job seekers.
  • Working with recruitment and temping agencies that respect the ILO's General Principles of Fair Recruitment, and that do not induce employee debt, in order to avoid any form of bondage to the employer.
*References to employment contracts are applicable only where such contracts are used.

Michelin is also committed to combating forced labor in its subcontracting chain. The Group identifies the sectors/suppliers the most at risk and implements an approach to assess and manage this risk in its supply chain.

Particular vigilance is given to migrant workers. Migrant workers are among the most vulnerable populations in terms of respect for human rights. Usually not speaking the language of the country, they are often without the support of their relatives and therefore particularly dependent on recruitment agencies and their employer.

 

Requirements for people working on Michelin sites

Personnel managers, legal department personnel and site managers

Do: I must

  • Where employment contracts are used, have employment contracts signed which set out clear clauses (place of work, conditions for breach of contract, notice etc.) and are written in a language understandable by the employee.
  • Ensure, during the recruitment process by Michelin services, that no recruitment fees are billed to the candidate (such as, for example, application fees).
  • If the law of a country requires the employer to keep the employee’s identity papers, contract or residence permit, give a copy to the employee. Assure that the employee is able to retrieve these documents at any time.
  • Be vigilant for any "signs" that could reflect forced labor by an employee: excessive overtime, isolation, financial pressure, etc.
  • Provide employees with free access to information on their rights and working conditions.

Don't: I must not

  • Keep employee identity papers as a guarantee.
  • Accept that workers regularly work overtime without checking that they are not doing so under external pressure, with a view to repaying debts or "recruiting costs".
  • Threaten an employee in any way so that they continue working in the Group against their will.

Requirements for Group and Regional Purchasing Managers

Do: I must

  • Include the Purchasing Principles in all contracts.
  • Check that the practices of the recruitment and temping agencies with which the Group works on its sites, particularly in high-risk countries and for the specific case of migrant workers, comply with regulations and are fair (no costs for employees recruited, no worker bank account through the agency etc.).
  • Identify the countries and the categories of purchases most at risk in terms of forced labor in order to enrich the CSR risk mapping of suppliers and to target them to receive documentary assessments.
  • Propose a suitable action plan for suppliers or purchasing sectors the most at risk.
  • Make the Ethics Line accessible to suppliers and their employees. Publicize the alert procedure via the purchasing website.
  • Identify, for natural rubber suppliers, areas potentially exposed to forced labor. Put in place action plans to eradicate them.
  • Be attentive to the situation of employees of the Group's subcontractors when they are on assignment on a Group site.

Practical case

You are responsible for the personnel department in a country. Several workers, originally from a neighboring country, come to you to inform you that the recruitment agency has kept their identity papers as "financial guarantee" of the contract. What should you do?

It is a practice of forced labor. You contact this agency. You strive to find solutions so that employee "debt" is erased. You assess the agency's ability to change these practices. If not, you call on another provider that is more respectful of human rights. You make sure that the workers get their papers back. In the future, you will be more careful in the selection of your partners.

Whom to contact?

  • Personnel managers
  • The Ethics Line
  • The central Sustainable Development and Mobility team, or the local correspondent (country or region)
  • The Corporate Purchasing Operational Direction