EXTERNAL ASSESSMENT
MOZAMBIQUE LEAFTOBACCO LDA.
Flue Cured Virginia farmers in Lichinga and Molocue –Mozambique.

Agricultural Labor Practices ProgramFebruary, 2018

External Assessment

Table of Content

Executive summary .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3Market and company background .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 61. Implementation of the ALP Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.1. Commitment to the ALP Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.2. Strategy and objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.3. Internal capacity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.4. Communication of the ALP Code requirements to farmers . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.5. Internal monitoring: data collection, accuracy, and addressing issues. . . . . . . . . . . . . . . . . 17
1.6. Address systemic and/or widespread issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
2. Farm-level assessment of working conditions regarding the ALP Code Standards .  .  .  .  .  .  .  . 21
2.1. ALP Code Principle 1: Child labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.2. ALP Code Principle 2: Income and work hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
2.3. ALP Code Principle 3: Fair treatment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.4. ALP Code Principle 4: Forced labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.5. ALP Code Principle 5: Safe work environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
2.6. ALP Code Principle 6: Freedom of association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.7. ALP Code Principle 7: Compliance with the law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3. ALP Program: feedback from farmers, workers, and other stakeholders .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 32
Appendices.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 34
Appendix I – MLT Action Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Appendix II – Scope and methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Appendix III – Legal information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Appendix IV – Communication materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Appendix V – Reporting form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Appendix VI – Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

EXECUTIVE SUMMARY

EXTERNAL ASSESSMENT
Flue Cured Virginia farmers in Lichinga and Molocue –Mozambique.

External Assessment

In February 2018, Philip Morris International (PMI)
requested Control Union to conduct an external
assessment of the Flue-Cured Virginia (FCV) tobacco
growing operations of its supplier Mozambique
Leaf Tobacco LDA (MLT) in the Lichinga (NorthNiassa) and Molocue (North-Zambézia) regions,
Mozambique. The assessment evaluated the labor
practices at MLT-contracted tobacco farms, andwhether these were meeting the standards of theAgricultural Labor Practices (ALP) Code1 . Control
Union (CU) also evaluated MLT’s internal structure
and capacity to implement the ALP Program, theunderstanding of farm practices, and how issues
were being identified, recorded and addressed.
As part of this assessment CU interviewed ten MLT
management employees, 21 MLT field employees
and one PMI Regional employee. Over a threeweek period, CU visited 80 farms2 throughout the
Lichinga and Molocue regions, and interviewed 80
farmers, 51 family members and 41 workers. At 76
farms (95%) these visits were unannounced; at four
farms the field technician announced the visits the
day before, yet it was an isolated case.
Information triangulation was adopted to evaluate
farm practices. The three sources included
interviews, documentation and observation,
together with a “Five Whys Analysis” problem
analysis. The “Plan, Do, Check, Act” cycle was used
to analyze MLT’s management approach.
MLT began implementing the ALP Program in2012 with field staff trainings, and had included allcontracted farmers in the scope. The contracted
farms were mainly small-scale, with a tobacco areaof one hectare or less. Based on the findings of a CU
assessment in a different region of Mozambique in2015 and the associated action plan and internalrisk assessment, MLT was monitoring all seven ALP
Principles but focused its actions and programs on
Child Labor, Income and Working Hours, and Safe
Work Environment.
1.

2.

MLT had incorporated the ALP Program in its
processes and procedures. Job descriptions
included clearly defined ALP responsibilities.
Employees involved in ALP were committed to theprogram. Field technicians were trained regularly;
nevertheless, CU identified significant gaps in theirunderstanding of the ALP Code, particularly withregard to Principle 7 (Compliance with the Law).
In general, CU observed that the field technicians’
understanding of the ALP Code was limited bytheir low literacy level (a common problem in
Mozambique). The definition of Prompt Actions was
not well understood; the field team considered all
situations not meeting the standard to be Prompt
Actions.
Monitoring and Prompt Action (PA) procedures
were clear. However, MLT had not defined specificguidelines for follow-up visits or timelines forresolving Prompt Actions situations. In addition,
improvement plans for individual farms were madeonly in case of Prompt Action situations, not forsituations not meeting the standard. Furthermore,
the improvement plans – and MLT’s ALP Programin general – lacked in-depth root-cause analysis,
resulting in an challenge to effectively address
issues at the farm level. The methodology used by
the ALP team emphasized acting on Prompt Action
issues, rather than taking corrective actions toprevent issues from happening in the future.
MLT communicated ALP-related topics to farmers
mainly via group meetings and regular farm visitsby the field team. Printed communication materials
contained clear information and were available in
the official national language – Portuguese – as wellas in local languages. As of 2017, workers and family
members were also involved in the trainings.

The main goal of the ALP Code is to eliminate child labor and other labor abuses progressively where they are found,and to achieve safe and fair working conditions on all farms from which PMI sources tobacco (see link). For more
information on the background of the ALP Program see link.
The minimum sample size was 79 farms, which is the square root of the total number of farms within the scope (6184
at the time of the assessment).
4External Assessment

Awareness of the ALP program was high: 99%
of farmers, 61% of family members and 73% ofworkers knew at least one of the principles of the
ALP Code. The level of awareness was highest for
MLT’s focus areas of Child Labor and Safe Work
Environment, but significant knowledge gaps wereidentified regarding the other ALP Code Principles.
In particular, farmers and workers were generally
unaware of the farmers’ obligation to informworkers about their legal rights.
MLT’s field technicians collected monitoring dataand socio-economic farm information for FarmProfiles, and identified Prompt Actions during
regular farm visits. Prompt Actions were reported
both on paper forms and in MLT’s electronic system(called Mobileaf). CU identified that the farmby-farm monitoring and Prompt Action reporting
procedures had not captured all the issues observedby CU in the field, particularly with regard to
Principle 2 (Income and Working Hours). FarmProfiles were found to be accurate in most cases.
The main findings from CU’s farm visits were related
to four ALP code Principles: Child Labor, Income
and Work Hours, Compliance with the Law, andSafe Work Environment. The number of child laborcases was found to be relatively low, indicating that
MLT’s efforts to reduce child labor were paying off.
With regard to workers’ payment, CU found thatmost workers were underpaid (often far below
the legal minimum wage), and that many workers
were paid only at the end of the season, which is
not only against Mozambican law but also involves

a risk of forced labor. Furthermore, CU observeda lack of awareness among farmers and workers
about legal overtime rates and workers’ benefits,
which corresponds with the limited awareness onthese topics among field technicians. Finally, withregard to Safe Work Environment, CU identified ahigh number of practices not meeting the standard.
MLT’s initiative to distribute PPE for harvesting and
CPA application had not yet resulted in the desiredchange of behavior, and many farmers still had
limited awareness and understanding of the needfor safety measures.
Feedback received by CU from farmers, workers andfamily members showed that fewer children wereinvolved in tobacco production since the start of the
ALP Program. Several interviewees also reported
an improvement in safety conditions at the farms,
and that fewer pregnant and/or breastfeeding
women were involved in tobacco-related activities.
Field staff received feedback from farmers during
the farm visits and group meetings, but there
was no formal channel for farmers and workers
to provide feedback to the ALP team (other thancommunication through field technicians), nor was
there a structured process in place to collect andreport this information.
The outcome of this assessment can be used asa tool to facilitate management with continuous
improvement. CU acknowledges MLT’s commitment
to addressing the issues identified and defining
areas of improvement through the implementationof an action plan (see Appendix I).

5

MARKET AND COMPANY BACKGROUND

EXTERNAL ASSESSMENT
Flue Cured Virginia farmers in Lichinga and Molocue –Mozambique.

External Assessment

Flue Cured Virginia tobacco growing in Mozambiqueis concentrated in the provinces of North Niassa(Lichinga region) and North Zambézia (Molocue
region). In general, tobacco farms in Mozambique
are small-scale family farms. From 2013 to 2017
Mozambique experienced a rapid growth in FCV
tobacco production. As a result, MLT had a relatively
large number of new farmers who had not worked
with the company the years before. At the time of
the assessment (2018 crop), MLT had contracts
with 6,184 FCV tobacco farmers in the Molocue andLichinga regions, with a contracted production of
3,130 tons of FCV in North Niassa and 1,975 tons in
Zambézia (5,105 tons in total).

In 2003 MLT began to build the factory in Tete Cityand in 2017 MLT had eight agronomy centers and 33
buying/administrative centers across the country.
In 2012 MLT had the first FCV contracted crop.
In 2013 to 2014 they performed a upgrade in theprocessing facility, in line with crop growth. In the2017 crop year MLT had contracted a total of 97,568
farmers in Mozambique, across Burley, FCV and
Dark Fire-Cured crops and a contracted productionof 5,355 tons of FCV tobacco and 69,500 tons ofBurley tobacco across Tete, Niassa, Zambézia andManica provinces. The tobacco farmers contracted
by MLT were independent farmers; their production
contract with MLT ensured a guaranteed crop sale,technical and financial assistance, and transport oftheir tobacco to the buying centers.

7

Chapter 1

IMPLEMENTATION OF THE ALP PROGRAM

EXTERNAL ASSESSMENT
Flue Cured Virginia farmers in Lichinga and Molocue –Mozambique.

External Assessment

1.1. Commitment to the ALP Program
MLT’s field and management personnel showedcommitment to the ALP Program and acknowledged,
during the interviews, the relevance of the ALP
Code requirements in terms of the importance tomaintain good working conditions at the contracted
farms.
All those interviewed considered the ALP Program
an important step forward in achieving economicand environmental sustainability at the farms
and good labor conditions for tobacco workers. In
addition, field technicians felt that the program wascreating a cultural change in the market, especiallyin relation to children working or helping in the
tobacco crop.

1.2. Strategy and objectives
MLT’s objectives and strategies for implementationof the ALP Program were defined by the Steering
Committee based on the Prompt Actions situations
found at farm level. The Steering Committee held
three to four meetings each year to discuss ALP
strategies.
MLT had conducted a risk assessment to rate theprobability and severity of risks for each ALP
Code measurable standard, distinguishing four
categories: acceptable, adequate, tolerable, andunacceptable. Based on the experience of MLT staff
and information on past crop years, the conclusionof this risk assessment was that none of thecriteria for the STP people pillar (which encompass
ALP Principles) were considered ‘unacceptable’.
However, CU found that MLT’s risk assessment did
not fully agree with the situation observed at thefarms visited by CU, as several serious issues wereidentified, particularly with regard to ALP CodePrinciple 2 – Income and Work Hours (see Chapter
2.1). Additionally, it was found that MLT’s risk
assessment did not include a root cause analysis.

MLT’s risk assessment identified the following
measurable standards as involving a relatively highrisk of non-compliance:• No person below 18 is involved in any type of
hazardous work;• Wages or income from crops and work done are
not withheld beyond the legal and agreed payment
conditions;• No worker is permitted to use, handle, or apply
crop protection agents (CPA) or other hazardous
substances such as fertilizers, without having firstreceived adequate training and without using therequired personal protection equipment. Persons
under the age of 18, pregnant women, and nursing
mothers must not handle or apply CPA;
• Wages of all workers (including for temporary,piece rate, seasonal, and migrant workers) meet,at a minimum, the requirements of the country’s
laws or agricultural benchmark standards;• Wages of all workers are paid regularly, atminimum in accordance with the country’s laws.
Based on this risk assessment, the company´s ALP
strategy and objectives were focused on threeprinciples, namely Child Labor, Income and Work
Hour and Safe Work Environment. Initiatives for the
STP ‘people pillar’ were used to address some of therisks identified in the ALP risk assessment. In 2017
MLT was implementing the following initiatives inthe Lichinga and Molocue regions:9External Assessment

1. Employment contract template:
The target set for this initiative was for 2017
crop year 25% and in 2018 50% of farmers withlabor would provide their workers with a written
employment contract as required by national law.
According to MLT 84% of these farmers received
the template in the assessed region.
2. Seedbed PPE Kit:
The target set for this initiative was that allcontracted farmers would receive a kit withseeds, Crop Protection Agents (CPA) and PersonalProtection Equipment (PPE), including one pair of
harvesting gloves, one pair of CPA application gloves
and one mask per farmer. During the management
interviews it was mentioned that the target was toreach 100% of contracted farmers, but MLT had nodata available whether it was achieved.

MLT response:“MLT will concentrate its efforts on the four key focus
areas identified which fall within three broader ALP
principles - elimination of child labour, income andwork hours and safe work environment. MLT willcontinue to focus efforts on these three principles,with particular emphasis on farmers with labour
and labour (approximately 10% of all contracted
farmers). MLT’s strategy to reduce ALP-related risks
also included, and will continue to include, expanding
our communication activities beyond the farmer andproviding training sessions and materials to farmers’
family members and workers so as to fully train andengage all people on the farm.”

Furthermore, in line with its focus on the eliminationof child labor, MLT was considering to start a school
meal project in the Lichinga and Molocue regions.
This initiative (known as the Kukula Project) was
already being implemented in the Mandimba districtof the Niassa province (outside the assessmentarea), providing school children breakfast and lunch
to fight child labour and promote school attendance.
In addition to implementing these initiatives, MLT’s
strategy to reduce ALP-related risks was to address
their communication activities, training sessions
and communication materials not only to farmers,
but also to farmers’ family members and workers(see Chapter 1.4). Further details on the initiatives
are presented in Chapter 1.6.

10

External Assessment

Internal capacity
1.3.1.Dedicated organizational structure
MLT’s dedicated organizational structure for ALP
program implementation consisted of an STP
Steering Committee and ALP Team (see chart below).
The ALP Team included an Agronomy Team withstaff dedicated full-time to ALP-related activities.
MLT worked closely together with PMI Regional andreceived regular guidance on the implementation of
the ALP Program.
Field technicians were also part of the internal
structure to implement the ALP Program; they
provided the link between the management and thefarmers. To keep track of ALP implementation at thefarm level, MLT’s field technicians conducted regularfarm visits. Furthermore, 10% of these farms wereadditionally visited by other ALP Team personnel tovalidate the data collected by the field technicians
and to interview farmers and workers about the
ALP principles.
According to the data provided by MLT, each fieldtechnician in the assessment area had on average
110 FCV farmers under their supervision. Somefield technicians said they were overloaded anddid not always have enough time to perform theiractivities, and CU noted that some farms had notbeen visited as often as they should have been.
According to MLT each farmer should receive four
visits during the season.

Internal structure for ALP implementation

STP Committee

ALP team

Agronomy Director

ALP & Mobileaf
Manager

Tete
Head Agronomy
Manager

ALP National
Coordinator

North
Head Agronomy
Manager

7 Head Division/Production Managers
18 Division Managers
52 Sector Managers
483 Leaf Techniclans

Tete
1 ALP
Coordinator

Nilassa
1 ALP
Coordinator

Zambezia
1 ALP
Coordinator

6 ALP
Supervisors

5 ALP
Supervisors

3 ALP
Supervisors

18,000 Clubs
98,883 Farmers

11External Assessment

MLT response:” MLT will be reviewing the ALP establishment to ensure(i)Procure and engage with a third party organization

a better coverage, assistance and monitoring in the field.

for specific leaf technician training (identification

Taking into consideration the ongoing consolidationof gaps in skills/capacities and provision of training

process of its farmers, MLT will endeavor all efforts toto address them) – the main focus of this training to

restructure its ALP team and lower the current ALP Teambe an improvement in the systematic collection ofMember:Farmer ratio to encourage closer and moreaccurate data to ensure a true reflection of the reality

regular interaction. A full review of the establishment isin the field;

expected to be concluded by the end of December 2018.

(ii)Provide specific trainings on child labour and income

To further improve the skills and knowledge of Leafand working hours in Leaf Technicians’ weekly

Technicians and ALP supervisors, the main interlocutors

meetings and conduct monthly written tests.”

with farmers in the field, MLT will promote the following
actions:

1.3.2. Roles and responsibilities
All members of the Steering Committee and ALP
Country Team had defined ALP-related roles andresponsibilities, which were included in their job
descriptions. The ALP team was responsible formanaging the ALP Program in general, drafting
quarterly reports for the PMI Regional Office,planning and training field staff, performing
unannounced farm visits, and analyzing farm datacollected by the field technicians.
At the time of CU’s assessment, MLT wasgoing through a transition where the ALP &Mobileaf Manager was succeeded by a new ‘ALP
National Manager’. Both persons were present
at the assessment’s Opening Meeting and farmassessments in Molocue. The new ALP National
Manager, who was still in training at the time of
the assessment, was responsible for setting theobjectives and strategies per crop together with
the Head of Agronomy and field team, and for
updating the team regarding any ALP changes.
The ALP Regional Coordinators were responsible
for compiling Prompt Action and training reports
for the region under their responsibility, as well
as for training ALP Supervisors, evaluating theperformance of field technicians in the trainings,
and creating the training plan for their region.

1.3.3. Training and knowledge of the ALP
Program
MLT’s management had received an ALP training
from PMI in 2012, when the company started
implementing the program. Since then no formal
refresher trainings had been organized for higher
management staff. However, the ALP Regional
Coordinators had been receiving regular ALP
trainings (two to three times a year) addressing
all seven ALP Principles, with special focus on
the Principles with higher violation risk (Child
Labor, Income and Work Hours, and Safe Work
Environment). In general, all management staff had
a good understanding of the ALP Code.
Since 2012 the field technicians had been receiving
ALP trainings twice a year from the ALP Regional
Coordinators, who defined the training plan at the
beginning of each crop season. Furthermore, ALP
topics were addressed at the weekly meetings
between the field technicians and Agronomy Team.
The field technicians found the trainings useful for
obtaining knowledge and staying updated on the
ALP Program. Written tests and witness visits werein place to assess their knowledge and the results
were used to determine areas of improvement.

12External Assessment

In general, CU found that the level of ALP knowledge
among field technicians was low, which was partly
due to their low literacy level and limited education(a common problem in Mozambique). Especiallyfor the principles “Income and working hours”
and “Compliance with the law”. ALP knowledge
was relatively better among the technicians who
had been involved in the program longer. CU’s
assessment of the field technicians’ knowledgeof the ALP Code Principles showed the following
results:
1.  Child labor:To facilitate communication
with field technicians and farmers, MLT had
defined the minimum age to be involved in
any tobacco-related activity as 18 years old(see Appendix III section one). Three (14%)
of the 21 field technicians interviewed by CU
mentioned the minimum working age as 15
years old as defined per local law, the others(86%) mentioned the minimum age as definedby MLT – 18 years old.
2.  Income and work hours:All field technicians
mentioned the correct legal minimum wage,
but one (5%) field technician said that farmers
and workers could negotiate the wage at theend of the season. None mentioned overtime
limits and three (14%) said that overtime
payment should be agreed between farmers
and workers. Only four (19%) were able tostate all the benefits required by law (seeAppendix III section two).
3.  Fair treatment: All field technicians
understood that workers must be treatedfairly. However, five (24%) did not specificallymention that fair treatment also meant that
there should be no sexual, verbal or physicalabuse or harassment, and none of themmentioned that farmers must be available totheir workers to discuss potential grievances,or that workers should have access toan independent support mechanism (seeAppendix III section three).

4.  Forced labor: All field technicians were able
to explain this ALP Code Principle, mentioningthat workers should be free to leave theiremployment and that farmers are not allowed
to withhold workers’ identity documents ordelay payments (see Appendix III sectionfour).
5.  Safe work environment: All had a goodunderstanding of the required safetymeasures at tobacco farms, such as the useof Personal Protective Equipment (PPE) andsafe storage of Crop Protection Agents (CPA).
However, when asked to identify “hazardous
activities”, ten field technicians (48%) did not
mention “harvesting” as a hazardous activity(see Appendix III section five).
6.  Freedom of association: All field technicians
had an adequate understanding of this ALP
Code Principle (see Appendix III section six).
7. Compliance with the law: None of the
field technicians explained this principle
completely. Thirteen field technicians(62%) defined it as general compliance withnational laws and ALP principles. Twelve
field technicians (57%) mentioned that
farmers should provide their workers with
an employment contract, but were not able
to mention the terms and conditions of thecontract and the need to inform workers of
their legal rights and conditions when they
start employment(see Appendix III section
seven).

13

External Assessment

MLT response:“To address the relatively low literacy levels of Leaf
Technicians, as mentioned above, MLT will continue
to focus on:(i)

Improving

Leaf

Technicians’

weeklytraining and providing specific teachings on the
few aspects identified by Control Union as less
known, such as the minimum working age as
defined by MLT and hazardous activities;(ii)

Testing their knowledge by conducting

monthly written tests; and(iii)

Engaging with a third party to promote

specific farm monitoring and data collection
training.
In addition, MLT will also review existing trainings
materials and explore alternative ways of training
and testing.”

1.3.4. Internal communication
The STP Steering Committee held quarterly
meetings, in which they discussed and documented
topics such as Prompt Actions, trainings for fieldtechnicians and farmers, and general market andcompany developments. In addition, they held
annual meetings to discuss the present crop results
and the objectives for the next crop based on the
Prompt Actions reported.
The STP Steering Committee produced quarterly
reports including progress on ALP implementation,and sent these to the PMI Regional Office. The ALP
National Manager was responsible for producing
monthly reports on trainings and Prompt Actions,as well as overall MLT progress reports.

also held informal meetings, kept in touch via phone,
and accompanied field technicians (unannounced)
during farm visits. For 2018 crop year the target
would be that Sector Manager have to audit 10%of the farmers per field technician and Division
managers audit 10% of the sample of the Sector
mangers. This scheme would include all personnel
up to the Head Agronomy Manager.

1.4. Communication of the ALP Coderequirements to farmers
1.4.1. Communication strategy andtactics
MLT started communicating the ALP Code tofarmers in 2012. At that time, communication efforts
focused on the principles of Child Labor, Income andWork Hours, Fair Treatment, Forced Labor, and Safe
Work Environment, and this information was shared
mainly through drama groups, radio programs
and group meetings. For the 2017 crop year MLT
focused its communication on Child Labor, Income
and Work Hours, and Safe Work Environment,
through trainings which addressed farmers as well
as family members and workers.
MLT had several communication channels with
farmers (see also Appendix V):• Field technician visits:
MLT’s field technicians conducted regular visits tothe farms. The target was to visit each farm fourtimes during the tobacco season.
• Unannounced visits by the Agronomy Team:
Each year, during the harvest period, the Agronomy
Team paid unannounced visits to 10% of tobacco
farmers (randomly selected).

The Agronomy Team and field technicians held
weekly meetings, in which they discussed the
ALP Code Principles, Prompt Actions, reporting
procedures, field data and other topics. Apart fromthese formal weekly meetings, the Agronomy Team14

External Assessment• Drama groups:• GTS leaflet:

MLT had organized several drama groups inthe villages/farmers’ meetings/buying centers toaddress ALP topics.

This leaflet provided written information andillustrations to explain green tobacco sickness (GTS),
including symptoms, causes, and how to preventand treat the sickness. During CU’s field visits thismaterial was found at the farms in Portuguese andlocal languages.

• Group meetings:
About twice a month, field technicians held groupmeetings with farmers and workers to address ALP
principles.
• Purchase/sale contracts:
MLT’s contracts with farmers clearly stated some of
the ALP principles and the required commitment offarmers to comply with these principles.
• Communications materials:
see below.

MLT had developed ALP-related communicationmaterials (see Appendix IV) and distributed theseamong their tobacco farmers:• ALP Principles leaflet:This leaflet provided written information about theseven ALP Principles and the measurable standards.
During CU’s field visits this material was found at
the farms in Portuguese and local languages.

• Tenants leaflet:This leaflet (in Portuguese only) provided general
information about tenant farmers, their rights andminimum payment standards. Note that the tenantsystem was not common in the assessment area;none of the farms visited by CU had tenants.
All except one of the 80 farmers interviewed by CU(99%) were familiar with the term ALP and could
recall several ALP Code Principles. Awareness was
also relatively high among family members andworkers, with 31 (61%) and 30 (73%), respectively,of the interviewees being aware of the ALP Code.

Among the farmers, workers and family members
who were aware of the ALP Code, the highest levelsof awareness were found for the topics of Child
Labor and Safe Work Environment, but awarenesswas low with regard to some of the other Principles– Compliance with the Law and Freedom of
Associaton, in particular (see table below).

• Child Labor leaflet:This leaflet presented written information andillustrations on child labor in the tobacco crop.
During CU’s field visits this material was found at
the farms in Portuguese and local languages.

15External Assessment

Level of awareness of ALP Code Principles*
Farmers (T=80)

Family members (T=31)

External workers (T=30)

Child labor77 (97%)30 (97%)27 (90%)

Income and work hours

45 (57%)5 (16%)

10 (33%)

Fair treatment

41 (52%)3 (10%)

11 (37%)Forced labor21 (27%)

1 (3%)

1 (3%)

Safe work environment

73 (92%)21 (68%)21 (70%)Freedom of association

3 (4%)

00Compliance with the law

4 (5%)0

2 (7%)*Note that this data only shows whether the interviewees remembered the principles, and not whether they fully
understood their meaning.

Farmers reported to have learned about ALP-related topics mainly during the regular visits by the fieldtechnicians and group meetings in the villages (see table below).

Means of communication through wich ALP- related information
Farmers (T=80)

During regular visits by the field technician

75 (94%)

Group meetings

72 (90%)

Drama group36 (45%)Radio

2 (3%)

Communication materials

2 (3%)*Farmers could be informed in multiple ways.

Means of communication through which the ALP-related information
was received by family members and external workers*
Family members (T=31)

External workers (T=30)

Verbally from the farmer

28 (90%)27 (90%)

Verbally from the field technician

14 (45%)25 (83%)Radio

4 (13%)

1 (3%)

Flyer/poster-

1 (3%)Other-

8 (25%)*External workers and family members could be informed in multiple ways
16

External Assessment

1.4.2. Farmers’ responsibilities
MLT included ALP Principles in the growing contract,
clearly stating the farmers’ responsibility to comply
with the ALP Program standards and their duty toaccommodate MLT’s visits and external audits. The
following Principles were explicitly stated in thegrowing contract: Child Labor, Income and Working
Hours (referring to compliance with national law),
Fair Treatment, and Forced Labor.
MLT declared that in case a farmer repeatedly
breached the ALP Code and the situation could not
be solved, they ultimately would stop contracting
the farmer in question. However, the company had
no defined procedure for contract termination inthese cases. There had been only one case where a
farmer’s contract had not been renewed, because
there was a case of physical abuse at the farm.

MLT response:“MLT will (i) design a Farmer Categorization policy
to guide its consolidation process in the upcoming
seasons and (ii) include the repeated breach of ALP
Code as criteria in such policy. MLT’s categorization
policy is a grading scheme that evaluates farmers’
overall performance ranking them accordingly – thisnaturally considers several ALP aspects, which aresome of the most relevant criteria in line with thementioned Support & Enforcement. In addition to
ALP, farmers are also assessed based on yield, credit
recovery and forestry, among others. Farmers with

1.5. Internal monitoring data collection,accuracy, and addressing issues
At the time of the assessment MLT was collecting
two types of ALP-related data from the farms:
socio-economic information (Farm Profiles) and
Prompt Action reports. This data was collected andcompiled in quarterly reports shared with PMI’s
Regional Team.
Farm Profile data was collected by the fieldtechnicians at the beginning of the season using
the Mobileaf system (computer tablets), updated
throughout the season and analyzed and compiledby the ALP National Manager for the monthly
and quarterly reports. The field technicians were
responsible for updating the socio-economic data
during each of their regular visits (See Chapter
1.5.1), which was not occurring in all visited farms.
Data related to Prompt Actions was gathered in
the paper document Folha de Registro de Incidências(see Appendix V), and entered into the digital
Mobileaf system to generate the document ALP
Prompt Action Issue Reports. When a Prompt Action
situation had been reported, field technicians had toagree on an action plan with the farmer and returnto the farm later to verify if the situation had beencorrected, no time frame was defined for follow up.
If the field technician and farmer could not agree onan action plan, higher-level staff would be involvedin the case and accompany the field technician
during the next visit (see Chapter 1.5.3).

low grading will not have contracts renewed as MLT
consolidates a compliant contracted farmer base.”

17

External Assessment

1.5.1. Socio-economic data: FarmProfilesIn 2017 socio-economic data for Farm Profiles
had been collected by field technicians, based on
farmer´s declaration and visits on the farms, using
the Mobileaf system and had been compiled by the
ALP National Manager. Information collected in the
Farm Profiles included the number of people living
at the farm, number of children, school attendanceof children, number of workers, whether workers
lived on-farm or off-farm, contract type (verbal or
written), employment scheme (full-time, temporary),
and the tobacco-related activities performed by theworkers and others.
CU verified whether the information in the FarmProfiles matched with the situation observed during
the farm visits. Profiles were complete for 77 (96%)
of the farms visited by CU. For the remaining
three farms (4%) Farm Profiles were not available
because the field technician for these farms
apparently had difficulties with the computer tablet(Mobileaf system). In 15 (19%) of the available
Farm Profiles CU identified minor discrepancies.
In nine of these cases the number of workers wasfound to be different compared to the Farm Profile
information. In three cases information on people
on the farm (number and gender) was slightly
different compared to the situation found during
CU visits. Furthermore, there was one case where
farmer information was not available, one casewhere the farmer gender was not correct, and one
case where information on the workers’ contract
was not correct. Slight inaccuracies are acceptablegiven that some of this information varies across thecropping season, but field technicians are expected
to update the Profiles at every farm visit.
MLT response:“MLT wants to improve its Leaf Technicians’
awareness, full comprehension and application of
all Mobileaf sections/screens and will therefore retrain all of them on its usage at the beginning of theseason and provide continuous training throughout.
Training on Mobileaf system has been included in the
curriculum taught at the Instituto Agrário de Chimoio,
an agricultural institute many MLT Leaf Technicians
attend.”1.5.2. Systematic monitoring: situations
not meeting the ALP Code standards
MLT was not monitoring situations not meeting thestandard. During the interviews seventeen fieldtechnicians (81%) claimed that any situation notmeeting the ALP Code standard was treated as aPrompt Action situation.

MLT response:“Although MLT has been providing training on all
ALP principles it has prioritized monitoring prompt
actions, which are related to five of the sevenprinciples and refer to more pressing and relevant
issues. Given the size of our operation and a few otherchallenges encountered, MLT believes it is beneficial tothe implementation of ALP to concentrate on certain
aspects at the time, as opposed to treating all ALP
aspects indiscriminately and risking inefficiencies. No
areas of the ALP Program are neglected, as training is
global, but there is a clear focus on certain aspects,
which is aligned with the ALP implementation stage ineach moment and the rationale behind Step Change
as well.”

1.5.3 Prompt Actions
Prompt Actions were reported using the paper
form Folha de Registro de Incidências and thentransferring the data to the digital Mobileaf system(see Appendix V). The paper form was filled out in
triplicate, with one copy for the farmer, one copy forthe office and one copy for the field technician tokeep in the Registro de Incidências book.
During the assessment CU auditors visited 12 farms(15%) with reported Prompt Actions, in eight cases(67%) farmers were not aware of any raised Prompt
Action at the farm. In seven cases the same Prompt
Action was happening again during the visit by CU,
four cases where people below 18 years old wereinvolved in tobacco related activities; two cases of
PPEs not being used for harvesting and stringing
tobacco and one case of PPEs not being used for
harvesting tobacco, with one of them (farmer´s son)being below 18 years old.
18

External Assessment

When a Prompt Action situation was observed by
the field technician, the reporting procedure was asfollows:
1.. Stop the risk activity;
2. Agree with the farmer on an action plan. If the
farmer is not willing to address the issue, thefield technician should contact a superior andplan a new visit with them to the farmer inquestion (see 4);
3. If the farmer does agree on an action plan,
record the Prompt Action and the agreed
action plan in the Registro de Incidências
book and Mobileaf;
4. If the farmer does not immediately agree
to an action plan, plan a new visit together
with a superior to ensure that an agreement
is reached. The situation will be escalated
within company until solved;
5. Conduct a follow-up visit to check if thePrompt Action situation is solved.
6. Prompt Action reports will be analyzed by the
ALP National Manager.
CU noted that this procedure did not include specificguidelines for follow-up visits or specific timelines
for resolving Prompt Actions situations dependent
on the severity of the issue. Furthermore, MLT was
not using the latest version of the Prompt Actions
list provided by PMI. According to the company,
the reason was that the change would be difficult
for the field technicians to manage, due to their
low literacy and education level and the inability tochange it on Mobileaf, furthermore it was agreed
between MLT and PMI to keep the earlier version(see also Chapter 1.3.3).

All field technicians interviewed by CU knew thePrompt Action reporting procedure. However, as
mentioned in Chapter 1.3.3, the meaning of Prompt
Actions was not well understood by all members of
the field team:• Seventeen field technicians (81%) explained it as
any situation not meeting ALP standard.
• One field technician (5%) explained it was only
a situation where a child performed hazardous
work.
• One field technician (5%) explained it was only asituation where pregnant or breastfeeding women
worked in the tobacco field.
MLT’s field technicians had reported 1066 Prompt
Actions in the 2017 crop year and 114 Prompt
Actions in the 2018 crop year until the time of theassessment. These Prompt Actions were related to
the Principles of Child Labor, Forced Labor, and Safe
Work Environment, most of these related to Child
Labor (86% Of the PA´s raised in 2017 and 97%
in 2018). On three farms, CU found cases of childlabor that had not been reported as a Prompt Action
situation.

MLT response:“(i) Re-train all Leaf Technicians on Prompt Action
recording (both on Mobileaf and paper form),
particularly on the timings of follow up visits/
timelines for resolving these incidents, including
directing farmers to income generating initiatives,and ensure compliance by monthly monitoring;(ii) Continue to ensure farmers sign off and receive a
copy of the Prompt Action Paper Form.”

19External Assessment

1.5.4. Improvement plans for individual
farms
MLT only made improvement plans for individual
farms in case of Prompt Action situations, but not forsituations not meeting the standard. Furthermore,because root cause analysis was lacking, the actionplans only addressed the issues of the moment,
treating symptoms rather than addressing or solving
the underlying causes.

1.6 Address systemic and/or widespread
issuesBased on the risks and issues identified (seeChapter 1.2), leaf tobacco suppliers are expected toaddress systemic and/or widespread issues throughoperational (STP) initiatives, community programs(possibly supported by PMI’s Contributions) andengagement with key stakeholders.
At the time of CU´s assessment, MLT had
implemented the following operational initiatives:• Distribution of PPE for CPA application andharvesting: MLT provided kits with seeds, CPA and
PPE, including one pair of harvesting gloves, onepair of CPA application gloves and one mask per
farm, regardless the size of the farm nor numberof workers. The majority of farmers found the
PPE very useful as this equipment provided more
protection, and stated that they would not haveaccess to PPE otherwise. However, CU found two
farmers (3%) who claimed they had not received
any PPE, and 19 farmers (24%) who said they had
not received the harvesting gloves.
• Distribution of Employment contract templates:
MLT provided contracted farmers with written
employment contract templates for their workers.
In the template, farmer could insert information
about worker´s remuneration but there wasnothing stated regarding the timeframe theamount was related to. All farmers found thisinitiative helpful. Among the farmers with hired
labor, CU found ten (13%) who claimed they had
not received the template.
20Chapter 2

FARM-LEVEL ASSESSMENT OF
WORKING CONDITIONS REGARDING
THE ALP CODE STANDARDSEXTERNAL ASSESSMENT
Flue Cured Virginia farmers in Lichinga and Molocue –Mozambique.

External Assessment

This chapter describes CU’s assessment of theworking conditions on MLT contracted tobacco
farms with regard to the ALP Code Principles
and Measurable Standards. ALP Code Principles
are short statements designed to guide farmers
on specific practices, resulting in safe and fairworking conditions. A Measurable Standard
defines a good practice and over time can beobjectively monitored to determine whether, andto what extent, the labor conditions and practices
on a tobacco farm are in line with each ALP CodePrinciple.

2.1 ALP Code Principle 1: Child labor
There shall be no child labor.
Main findings and challenges

2.1.1 Children working and activities
performed
At the farms visited CU identified nine children
involved in tobacco-related activities – six childfamily members and three minors employed at thefarm. At one farm (1%) a child aged 14 was employed
as a piece worker and was found stringing tobacco.
At nine farms (11%) there was evidence of family
members and workers below 18 years old involved
in hazardous activities. At two farms (3%) there wasevidence of child family members below 13 helping
with tobacco (on one farm, stringing tobacco; on
the other farm, harvesting and carrying tobacco).
In addition, CU found two workers who looked likeminors but whose age could not be verified because
these workers did not know their own age.
Nine farmers (11%) and 15 workers (37%)
interviewed by CU were not aware of the minimum
working age defined by MLT (18 years) and did notknow that minors were not allowed to work in any
tobacco-related activity. Although the minimum
employment age defined by Mozambican law was
15 years, MLT had defined and communicated 18
years as the minimum age for being involved in any
tobacco-related activity on the farms contracted by
MLT.

Analysis and priorities
This ALP Code Principle was one of the focus
areas of MLT, and had been monitored (by fieldtechnicians and Prompt Action procedures) andaddressed since the company started implementing
the ALP Program in 2012. For the crop years 2017and 2018, MLT aimed to train 95% of contracted
farmers each season on Child Labor. For the 2017
crop year this target had been achieved with 99%
of farmers trained, according to the data presented
by MLT.

MLT response:“To further address the issues identified, MLTC has planned the following actions:(i)

Review current position on minimum age thresholds:(ii)

Continue with the training of Vulnerable Groups (Children, Women, Labour) focusing on priority areas,
including minimum working age requirements reviewed as mentioned in (i) and hazardous tasks:(iii) Re-train all farmers and field teams (DMs, SMs and LTs) on minimum age requirements and hazardous
tasks in the terms mentioned above in points (i) and (ii):(iv) KUKULA PROJECT – Fighting Child Labour and Promoting School Attendance and Performance in
Tobacco-Growing Areas:(v)

CLAP – Community Leaders Accountability Program(vi) The Little Story Club(vii) Distribution of Treadle Pumps to Facilitate Watering of Seedbeds(viii) Income Generating Initiatives(ix) Support & Enforcement”
Please check appendix I for more information.
22

External Assessment

2.2 ALP Code Principle 2: Income andwork hours

Among the visited farms with hired labor (43 farms),
CU identified different labor arrangements between
farmers and workers: 37 farms (86%) with seasonal
workers3 , one farm (2%) with monthly workers,
three farms (7%) with daily workers, and four farms(9%) with piece-rate workers (note that more than
one type of labor arrangement could be present at
the same farm). Labor agreements included workers
who worked full shifts in a full work week (at 90% of
farms), full shifts for less than 5 days a week (5%), or
only working on mornings or afternoons (5%).

Income earned during a pay period or
growing season shall always be enoughto meet workers’ basic needs and shallbe of a sufficient level to enable thegeneration of discretionary income.
Workers shall not work excessive orillegal work hours.

Main findings and challenges

2.2.1. Payment of workers
At the time of the assessment, the minimum
wage in Mozambique for the agricultural sector
was 3,642.00 Meticais (Mzn) per month, to be
paid at least monthly. Furthermore, according toMozambican law at least 75% of the total salary had
to be paid in cash; in other words, a maximum of
25% of the salary could be paid in kind such as foodand accommodation (see Appendix III section two).

To assess the workers’ wages on the visited farms,
CU calculated the payment per hour for eachworker using an equation of Decree No. 62/2009 4
and compared this to the legal minimum hourly
rate defined in the Mozambique law for permanent
workers. The latter was calculated using the legalmonthly wage and the legal weekly working hours
resulting in a minimum hourly wage of 17,50 Mzn(excluding legal benefits), of which at least 13,13
Mzn/hour (75%) should be paid out in cash and not
in-kind payments. The workers’ wages found during
CU´s assessment were benchmarked against thishourly rate (see table below).

Breakdown of calculated cash salaries

Salary range

0>3
Mzn/hour

3>6
Mzn/hour

6>13,12Mzn/hour

13,13>17,49
Mzn/hour

17,50- more
Mzn/hour

Minimum(Mzn/hour)

Maximum(Mzn/hour)

Piece-rate wages

-

-

-

1 (33%)

2 (67%)

17,19

33,3

Daily wages-

1 (33%)

1 (33%)-

1 (33%)

5,56

40

Montly wages

1 (100%)

-

-

-

-

-

-

End of season wages(3-12 months)*

10 (29%)14 (40%)11 (31%)

-

-

1,46

12,36

Type of wages*season varies from three to 12 months.

At two of the farms with seasonal workers,the workers did not know/had no agreements with the farmer on how muchthey would be paid. So for these to farms no information on payment is included in the rest of this chapter. Thisfinding is further discussed in section 2.7.1. .
4
Employees’ hourly base pay is calculated in accordance with the following formula: (VM x 12) / (52 x N), where “VM” isthe employee’s monthly base pay and “N” is the number of hours worked each week.
3

23

External Assessment

To summarize, 35 farmers (95%) did not pay at least
the legal minimum wage to all their workers. Some
farms had more than one type of worker, whose
hourly rates were not the same, with some been
paid more than others as shown in the table above.

of the hourly wages were the hours performed at
the time of CU’s farm visits, which was the peaktime for the tobacco season.

In addition to salary, at 18 farms (42%) workers
received in-kind payment in the form of food andaccommodation. However, currently there wasno methodology universally accepted by various
stakeholders in Mozambique to calculate both costof living, but also the “value” or particular types of inkind payments. While basic costs were established
by CU during the assessment, a purposeful review ofthese costs was not conducted within MLT’s tobacco
supply chain (or in the diverse tobacco growing
regions). Furthermore, it should be noted that foodprices were subject to fluctuations, including within
the regions visited in Mozambique. With this inmind, CU interviewed several persons (two farmers,
three field technicians and a community member)during the assessment to get an indication of the inkind value. Their declarations provided indications
for the value of accommodation in the range of 200
to 500 Mzn and for food in the range of 110 to 580
Mzn per month.

According to Mozambique law, payments should bedone at least on a monthly basis (see Appendix III
section two), CU found that the workers’ salaries
were either paid daily, monthly, or at the end of
the season (more than one payment schedule wasfound to be present at the same farm). At 37 farms(95%) workers were not paid according to the law
as the payments were at the end of the season andthe season varied between three to 12 months,andpayments should be done on a monthly basis.
Workers that received in kind payment (food andaccommodation) received this provision regularly,
but their wages in cash were not paid until the endof the season, which is against the law.

Two important conclusions remain. Firstly, MLT did
not have a system to evaluate the value of in-kindpayments themselves, or did not create systems/
plans/risk assessments to understand the degreeof the problem or otherwise shed more light on
the situation. Secondly, it was clear that workers
were underpaid against the legal minimum wage.
Independently of the value of the in-kind payments,
the law described that workers should at least
receive 75% (13,13 Mzn) of their salary in cash.
In all cases, except for one, workers received cash
payments below this threshold.
Furthermore, evaluating the payments for seasonal
workers, it can be concluded that wages were foundto be far below the minimum, considering that at 24
farms (69%) these workers were paid less than half
(6 Mzn) of the legal minimum. In addition, CU foundthat farmers did not have any mechanism in place
to record working hours or any other benchmark
available. Hence, the hours used in the calculation

2.2.2. Payment schedule

2.2.3. Work hours
Among the farms with hired labor there were eight
farms (21%) where the daily work hours were notin accordance with Mozambican law (which limits
the working week to 48 hours and work days to
8 hours, see Appendix III section two). On thesefarms, workers worked more than eight hours perday, up to eleven hours per day during the peakseason (harvesting and curing). According to theinterviewees on the eight farms, this was considered
common practice in the area.
At nine farms (25%) workers did not receive at least
one resting day per week.
At 20 of the farms (95%) where workers worked
overtime hours, these hours were not paid at thelegal overtime rate. Furthermore farmers andworkers were found to be unaware of the correct
legal requirements for the overtime rates. Most
workers were paid a fixed sum at the end of theseason regardless of the number of hours worked.

24External Assessment

The table below shows the breakdown of work
hours the farms:

Breakdown of
work hours

Farms

0>8
hours

8 hours

8> morehours

10 (27%)19 (51%)8 (22%)

and farmers with hired labor. According to MLT, in2016 they had trained 980 workers and reached thenumber of training planned on Income and Working
Hours with farmers across Mozambique. The target
for the 2017 crop year was to train 50% of all
workers and farmers with hired labor on payment
frequency; according to MLT they had achieved 85%
of all workers and farmers with hired labor.

MLT response:“MLT has been approaching this in a systematic way,prioritizing certain aspects deemed as essential andbasic, such as minimum wage timely payment, and2.2.4 Legal benefits
None of the farmers provided workers with all thebenefits required by law (see Appendix sectiontwo)5. The reason for this was that farmers andworkers lacked awareness about workers’ legal
benefits.

leaving other topics for a later stage when the first
concepts are fully comprehended and engaged with.
MLT distributed, and will continue to distribute,
employment contract templates to all farmers withseasonal labour (estimated 10%), which work both asa training tool for farmers and workers and as a way of
avoiding disputes at the end of the season.”“To ensure all the actions lead to effective change inAnalysis and priorities
The ALP Code Principle of Income and Work Hours
was one of MLT´s focus areas. Their 2017 risk
assessment had identified various issues related
to this principle, and had classified all of these as
tolerable risks (look to improve within specified
timescale) – i.e. none as unacceptable risks (thehighest classification). However, CU found thatpayment (far) below the minimum wage waswidespread, and that many workers were paid
only at the end of the season (which is not only
against Mozambican law but also involves a risk offorced labor). Furthermore, CU observed a lack ofawareness among farmers and workers about legal
overtime rates and workers’ benefits, which is in linewith the limited awareness on these topics among
field technicians (see Chapter 1.3.3).

behaviour, there will also be external verifications ofamounts actually paid to workers vs. payments agreed
in the contract. These verifications, initially towards
the cost of production hours and secondly towards
minimum wage (including in-kind payments), will be
conducted by a third party. For CY19 verifications,this assessment will be done in August/September
2019 in relation to returning workers (upon returnto the farm, the third party organization will be able
to assess whether the amount agreed in the previous
season was effectively paid).”

MLT had set targets to raise awareness on payment
frequency through trainings sessions for workers

5

According to Mozambican law these benefits are: one mandatory rest day per week (Sunday), social security benefits,
and annual leave.
25External Assessment

2.3 ALP Code Principle 3: Fair
treatment

Farmers shall ensure fair treatment ofworkers. There shall be no harassment,
discrimination, physical or mental
punishment, or any other forms of abuse.

Main findings and challenges

2.3.1 Treatment of workers
No evidence was found of sexual or physical abuseon the assessed farms. However, at one farm (3%)
CU identified a case of verbal abuse where thefarmer was threatening workers to deduct 100 Mzn
from their payment each time they did something
wrong or something he did not approve of. Although
no evidence that the farmer realized the deductions
was found, this was considered a case of verbal
abuse since it was a threat to the workers (seeAppendix III section three).
In addition, one farm (3%) was identified where
one worker earned a lower salary than the otherworkers, for the same tasks. The worker in question
received 4000 Mzn while the other workers were
paid 7500 Mzn per season for performing the samework. The worker who earned less was aware about
the difference in payment and found it normal as he
was a relative of the farmer.

2.3.2 Support mechanism
Support mechanisms facilitate workers’ access to
information, assist workers in difficult situations,and mediate disputes between farmers and workers.
PMI’s leaf tobacco suppliers are expected to ensurethat farmers and workers have access to such amechanism. There are clubs where farmers work
together with MLT to implement training or othercommunication, but these clubs are not used as asupport mechanism (see Appendix III section three).
At the time of CU’s assessment MLT had no
independent and anonymous support mechanism
in place. In addition to a formal support mechanism,
farmers should make themselves available to theirworkers, to discuss potential grievances so thatthese do not need to be escalated. At all but one(1%) of the farms visited by CU, farmers were foundto be available to their workers. In one case theworker mentioned that he did not feel free to talk to
the farmer about issues.

Analysis and priorities
Workers did not have access to an independent andanonymous grievance support mechanism. Cases ofverbal abuse and where farmers were not available
for their workers to discuss problems were found.
Although many workers reported to be satisfied
with their work, an independent service should beavailable for workers – both migrant and local – todiscuss issues at their workplace.

Furthermore, at one farm (3%) a cultural practicewere the farmer had two wives led to a risk of unfair
treatment. The wife reported that the farmer spendmoney only on the other spouse and not on her.
She didn’t have the money to pay for school for thechildren for example. Although this case was notconsidered a labor relation, it is important to verify
because potentially this is a situation in which thefarmer had engaged with more women to have them
contribute to the work at the farm.

26

External Assessment

2.4.2 Direct payment
MLT response:“In general, the findings under this ALP principle
are considered either acceptable or adequate andno situation that requires immediate action was
identified. However, MLT will reinforce certain aspectsof its operation to ensure workers continue to betreated fairly. These actions, of course, complement
the ones described above on income and work hours,
as payment of minimum wage, for instance, can also
reflect the fair treatment principle.
In past seasons, MLT has mediated several disputes
between farmers and workers, most of which led tosuccessful outcomes. Whenever situations exceed
MLT’s authority or mandate, they are escalated to theappropriate authorities. MLT now intends to further
promote this interim informal mediation system
while a more independent mechanism is sought. This
will be done by conveying to farmers and workers its

At one farm (2%) evidence was found of indirect
payment; here, the worker’s salary was paid to theworker’s parents, not directly to them.

2.4.3 End of harvest payment
At 33 farms (92%) workers were unlikely to leave
their employment at any time because they were
paid at the end of season and farmer had no othersource of income to pay workers in case of contract
termination.
Furthermore, during CU’s visit a situation was
identified that potentially put this ALP Principle
at risk: one farmer was found who did not allow
his workers to make weekend visits to their homevillages for two months, because during a previous
visit the workers had stayed away more days thanagreed with the farmer.

availability to mediate employment related disputes
both by disclosing and publicizing the escalation
process in trainings (group meetings and on-farmvisits) and by posting this information in baling
centres and buying centres.”

2.4 ALP Code Principle 4: Forced labor

All farm labor must be voluntary. There
shall be no forced labor.

Main findings and challenges

2.4.1 Involuntary labor

Analysis and priorities
In MLT’s risk assessment, the measurable standard
4.4 (Wages or income from crops and work done
are not withheld beyond the legal and agreed
payment conditions) was considered a tolerable
risk, which is confirmed by CU’s assessment. As
mentioned in Chapter 2.2, MLT had set the objective
to raise awareness on payment frequency among
farmers and workers through trainings sessions.
According to the company, in 2016 they had trained
980 workers and held over 170.000 trainings on
Income and Working Hours with farmers acrossMozambique. The target for the 2017 crop year was
to train 50% of all workers and farmers with hired
labor on payment frequency; according to MLT they
had achieved 85% of this target.

No evidence was found of workers being unable toleave their employment or working against theirwill, or of contracted prison labor. Also, no evidence
was found of workers being obliged to hand overtheir original identity documents or pay a financial
deposit.

27External Assessment

MLT response:

Protective clothing used

Number of farms

Long sleeves

69 (86%)

Gloves22 (28%)generating activities and improved management

Long pants

56 (70%)skills by the farmer (particularly on actual hiring

Shoes

17 (21%)

needs), which are expected to enable the farmers

Rain gear

1 (1%)“To address both direct and end of harvest payments,
MLT will focus its efforts in promoting income

to pay workers more frequently throughout theseason. Please refer to all income and work hours for

The various reasons given for not using the complete

additional details.”

set of PPE are shown in the table below:

Reasons for not wearing PPE

Numberof farms

Farmer does not provide

21 (26%)

Unware7 (9%)

Farmers shall provide a safe work

Uncomfortable

2 (3%)

environment to prevent accidents andNone available

55 (69%)

2.5 ALP Code Principle 5: Safe work
environment

injury and to minimize health risks.
Accommodation, where provided, shallbe clean, safe and meet the basic needs

According to the interviewees, at 34 farms (43%)
not all persons applying fertilizer were wearing
gloves.

of the workers.
MLT response:o “Re-train all farmers on safe work environment
focusing on hazardous tasks using the new training

Main findings and challenges

2.5.1 Training and awareness of GTS
At 20 farms (25%) not all persons handling green
tobacco were trained, and at 15 (19%) farms not all
persons handling green tobacco were aware of theexistence and avoidance of GTS. At 12 farms (15%)
farmers did not fully understand what GTS was and/or how to avoid it (see Appendix III section five).
Consequently, the use of protective clothing was
limited at the majority of the farms.
Furthermore, CU found that at 75 farms (94%) not
all persons handling green tobacco were wearing
the full set of required harvesting clothes (see tablebelow). The main reason, according to workers andfamily members, was that PPE sets (gloves and/or
mask) were not available at the farm or not available
in sufficient quantities for everybody to use PPE.

materials and promoting specific training sessions
as mentioned above in the child labour section.
o Promote PPE availability to ensure harvesting isdone in a safe manner: distribution of sufficient GTS
gloves for all people on farm (CY19 = 8 pairs/ha)and inclusion of GTS gloves as part of input package
from CY20.
o Under the abovementioned Support & Enforcement,
farmers will be informed on the consequential
action of non-complying with ALP and there will
be consequential actions in case of prompt action
incidents related to harvesting/GTS.”

28

External Assessment

2.5.2 Training and handling of CPA
Handling CPA proved to be a challenge at mostof the farms visited. At eight farms (10%) not all
persons handling and/or applying CPA were trained.
Although farmers were generally trained in CPA
use, their family members and external workers,
who also applied CPA occasionally, were often nottrained.
Furthermore, at 79 farms (99%) people responsible
for CPA application did not use the complete setof PPE. The main reason, according to workers
and family members, was that PPE sets were notavailable at the farm. No evidence was found of
pregnant and/or nursing women involved in CPA
application.
The following table shows which PPE was used for
CPA application on these farms:

empty containers to field technicians, as defined by
MLT.
Disposal of empty
CPA containers

Numberof farms

Containers being burried

50 (79%)Containers being burnedand buried

6 (10%)

Containers being burned

5 (8%)

Containers kept and reused

2 (3%)* In one case the container was reused for household
purposes including for water storage.

MLT response:o “Re-train all LTs and farmers on safe work
environment focusing on accommodation;o Under the Early Flagging System described above,Protectieve clothing used

Numberof farms

monitor general status of accommodation provided

Overall/Apron

1 (1%)

up with farmers if improvements needed.

Mask

67 (84%)o Update current minimum standards for labourBoots

14 (18%)accommodation (which, in the absence of statutory

Gloves64 (80%)

Goggles

2 (3%)Long sleeve and long pants

15 (19%)None of the above

6 (8%)

Regarding CPA re-entry periods, CU found that at 73
farms (91%), farmers were not aware of the specificre-entry period for each CPA – they all mentioned
different periods. Among this group, 63 farmers(79%) did not use a warning sign to ensure no one
entered the field after recent CPA application.

since the beginning of the season and closely follow-

guidelines were settled by MLT and should follow
the farmer’s accommodation) with materials that
may be used;o Engage with a third party for validation of suchrequirements;o Benchmark with international standards and, incase of a significant gap, revisit minimum standards
to align.
o Following the diligence on labour accommodation
minimum requirements, conduct assessment tocreate baseline on accommodation currently

In terms of CPA storage, CU identified 45 farms(56%) where CPA were not stored in a safe andlocked storage: at 42 of these farms (93%) farmers
buried CPA in the crop area, and at 3 farms (7%)
they stored the CPA inside their house and the CPA
was easily accessible.

provided;o Sensitise farmers to improvements needed andmonitor to ensure completion.
o In case of systemic problem, resort to contingency
fund

and

assistfarmerswithmaterials

and potentially builders to upgrade labour

Regarding the disposal of empty CPA containers, CU
identified 63 farms (79%) where empty containers
were not disposed of properly, as shown in the tableaccommodation to meet standards. In case of
persistent non-compliance, reduce farmer’s area to
0.5 ha.”below. The remaining 17 farms (21%) returned the29External Assessment

2.5.3 Workers accommodation
Among the farms where workers lived on-farm,eight farms (10%) had inadequate worker´saccommodation, as shown in the table below:

Reason for being inadequate

Numberof farms

Lack of toilet facilities

5 (50%)

Unsafe2 (20%)

Lack of personal space

2 (20%)

Open shelter

3 (30%)

MLT response:o “Re-train all farmers on safe work environment
focusing on hazardous tasks using the new training
materials and promoting specific training sessions
as mentioned above in the child labour section.
o Promote PPE availability to ensure CPA application
is done in a safe manner by distributing PPE withseedbed kits, focusing particularly on farmers withlabour to ensure it is sufficient for all people on farm
applying CPAs.
o Under the abovementioned Support & Enforcement,
farmers will be informed on the consequential
action of non-compliance with ALP and there will
be consequential actions in case of prompt action
incidents related to CPA application.
o Review current PPE suitability to assess whether

2.5.5 Basic safety measures
Most farmers contracted by MLT had taken basic
safety measures, including: (1) having a means oftransport available to go to the hospital in caseof an accident (80%); and (2) ensuring that theirequipment and tools were stored safely (76%).
However, only 12 farmers (15%) had materials togive first-aid on the farm, while none had taken
first-aid training, and none had resources to act incase of fire.

Analysis and priorities
CU identified a high number of practices not meetingthe standard regarding this ALP Code Principle.
MLT had distributed PPE for harvesting and CPA
application, to ensure that all farmers would be able
to take the required safety measures. However,CU’s findings demonstrate that these initiatives had
not yet resulted in the desired change of behavior
and also, that not all farmers had actually received
the PPE kits or received it incomplete. As unsafe
practices have been in place for a long time, it isunlikely that they will change quickly. Therefore,
it is important to understand the reasons behindthese practices and set targets referring to actualchange of behavior. CU’s findings indicate thatmany farmers still have limited awareness andunderstanding of the need for safety measures.

2.6 ALP Code Principle 6: Freedom of
association

more PPE items are needed and whether the
specifications of the current ones are compliant
with international guidelines. Assess potential

Farmers shall recognize and respect

alternatives to strengthen farmers and workers

workers’ rights to freedom of association

protection when applying CPAs and/or harvesting”

bargain collectively.

2.5.4 Clean drinking and washing waterNo evidence was found of farmers not providing
clean drinking water to family members andexternal workers. Twenty-three farms (37%) did nothave sanitary facilities close to where they worked.

30External Assessment

Main findings and challenges

2.6.1 Workers’ right to freedom of
association
No evidence was found of farmers disrespecting
the workers’ right to freedom of association. Labor
unions were not active in the region (see Appendix
III section six).

Analysis and priorities
This ALP Code Principle was not a focus area for
MLT, which is justified, as there seemed to be norisk of violation of the workers’ right to freedom of
association.

lacked the legal knowledge to inform their workers
properly, and did not know that it was their duty to
inform their workers about legal rights

Analysis and priorities
In line with the limited understanding among
field technicians of this topic (see Chapter 1.3.3),
farmers were generally unaware of the legal rights
of workers. MLT was implementing an initiative
to provide farmers with contract templates topromote the use of written contracts. However,
CU found that this template was not always used,perhaps because it was available in Portuguese only
(and not in the local languages). Low literacy levels
among farmers, workers and field technicians may
have also played a role.

2.7 ALP Code Principle 7: Compliancewith the law
MLT response:

Farmers shall comply with all laws of
their country relating to employment.

o “Improve awareness of basic Mozambique labourlaws amongst workers;o In areas with high number of farmers with labour,
promote the participation of workers in groupmeetings/trainings, preceded by a sensitization
campaign with farmers who are often the main

Main findings and challenges

2.7.1 Information on legal rights andworking conditions
None of the farmers informed their workers fully
about their legal rights (see Appendix III section
seven). Workers typically were only informed about
their basic employment conditions, such as thewage they would receive, the hours they needed
to work, their tasks, and payment conditions.
However, at two (5%) of the farms workers were notaware of how much they would be paid for the work
performed (in both cases these were farms where
payment was end-of-season, see Chapter 2.2).

challenge to labour being informed;o Conduct meetings closer to the farms so distance is
not a barrier for workers’ participation.
o In addition, always ensure the workers presence at
on-farm trainings;
o Labour training also centred on key focus areas;o Distribution of written employment contract
templates and labour law flyers.”

At 16 farms (39%) not all workers had written
contracts as required by national law. Some cases
were found where, at the same farm, some workers
had contracts and others did not.
The main reason identified was that farmers
31Chapter 3

ALP PROGRAM: FEEDBACK FROMFARMERS, WORKERS, AND OTHERSTAKEHOLDERS

EXTERNAL ASSESSMENT
Flue Cured Virginia farmers in Lichinga and Molocue –Mozambique.

External Assessment

3. ALP Program: feedback from farmers,
workers, and other stakeholders
As part of the assessment, CU asked farmers, family
members and external workers what had changed
at the farms since the start of the ALP Program.
Sixteen farmers (20%) declared that the safety on
the farms had improved and/or that people were sickless frequently. Twenty-six farmers (33%) reported
that involvement of children in tobacco growing
had been reduced since the beginning of the ALP
program, and six farmers (8%) stated that, similarly,
involvement of pregnant and nursing women had
been reduced.

MLT response:o “Improve awareness of basic Mozambique labourlaws amongst workers;o In areas with high number of farmers with labour,
promote the participation of workers in groupmeetings/trainings, preceded by a sensitization
campaign with farmers who are often the main
challenge to labour being informed;o Conduct meetings closer to the farms so distance is
not a barrier for workers’ participation.
o In addition, always ensure the workers presence at
on-farm trainings;

Twenty-eight farmers (35%) declared they had
provided feedback to their field technicians;
however, 12 of them (43%) felt that MLT had notlistened to or acted upon this feedback. Among themwere seven farmers who said they had requested
PPE but still had not received this; according tothese farmers, their field technicians claimed there
was none available.

o Labour training also centred on key focus areas;o Distribution of written employment contract
templates and labour law flyers.”

Of the 51 family members interviewed, 31 (61%)
had heard of the ALP Code. Among this group, nine(29%) mentioned that the ALP Program had reduced
the involvement of children in tobacco growing;eight (25%) mentioned a general improvement inhealth; and five (16%) mentioned an improvementin safety when handling CPAs.
Of the 51 external workers interviewed, 30 (59%)
had heard of the ALP Code. Among this group, sixworkers (20%) mentioned that the ALP Program
had reduced the involvement of children in tobacco
growing; seven (23%) mentioned that PPE usage
had increased; and two (7%) mentioned that now
they had written contracts.
During their farm visits field technicians
communicated with several people on the farms,
i.e. not only with farmers, but also with workers andfamily members. The field technicians discussed
the received feedback during meetings with theAgronomy Team. However, there was no formal
procedure and channel for farmers and workers toprovide feedback to the ALP team.

33

Chapter 4

APPENDICESEXTERNAL ASSESSMENT
Flue Cured Virginia farmers in Lichinga and Molocue –Mozambique.

External Assessment

Appendix I – MLT Action Plan
1.

INTRODUCTION

Mozambique Leaf Tobacco Limitada (“MLT”) has been implementing the ALP Program since 2012 andbelieves significant progress has been made in the past years, particularly regarding the fight against childlabour. Until now, the implementation of ALP has been based on a continuous improvement model, whichenabled for systematic training/awareness-raising and progressive accomplishment of the targets. In spiteof all that has been achieved, MLT acknowledges there is still room for improvement, as effective and longlasting behaviour change requires time.
To lead ALP to the next level, the new Step Change approach will require that PMI and its suppliers, such as
MLT, “will focus on the most recurring and serious issues and develop bolder plans that address their root
causes”. This new approach aims to promote effective behaviour change and will require ongoingcommitment and increased effort from MLT to achieve the targets set under this program.
MLT also intends to progress to the next ALP level, taking this program even further. Given the ambitious
targets and tight deadlines established, MLT will concentrate its efforts on the four key focus areas
identified which fall within three broader ALP principles – elimination of child labour, income and work
hours and safe work environment. The latter two are linked with the use of labour which divides itself
between seasonal and temporary (“ganho-ganho”) – labour is considered seasonal if work at the farmexceeds 90 days. As with several other topics, MLT will approach this systematically, i.e. prioritizing theliving and working conditions of permanent labour.
The table below summarizes the targets and timescales for each of the mentioned key focus areas:
ALP PRINCIPLEKEY FOCUS AREA

CHILD LABOUR

Hazardous work performed by children

INCOME AND
WORK HOURS

Payment of, at least, the legal minimum wage
for workers
Personal Protective Equipment (PPE) for Crop
Protection Agents (CPA) and Green Tobacco
Sickness (GTS) prevention – usage andavailability

SAFE WORKENVIRONMENTAppropriate accommodation for workers(where provided)

TARGETNo
childrenperforming
hazardous tasks in tobacco by2022
100% of workers paid, at least,
the minimum wage by 2022
100% of PPE for CPA & GTS
availability and usage by forworkers/farmers by 2020100% of workers with safe andclean accommodation (where
provided) by 2020

As part of its four-year plan, MLT will be conducting a series of actions to achieve the set targets and ensure
actual change in the Mozambican context which will be outlined in this document.
Given its very ambitious nature, MLT will concentrate efforts on a controlled and manageable number of
initiatives/actions in order to achieve the best possible results.
In reference to Child Labour and Income and Work Hours targets, MLT would propose further engagementwith PMI and third parties as there are serious challenges, such as farmer cash flow, and elements that arecross sectional and may exceed our influence and resources.
Appendix I - MLT Action Plan_ page 1 of 36

35

External Assessment

2.
2.1.

IMPLEMENTATION OF THE AGRICULTURAL LABOUR PRACTICES PROGRAM (“ALP”)
Commitment to the ALP Program

During its assessment, Control Union found that “MLT’s field and management personnel showedcommitment to the ALP Program and acknowledged, during the interviews, the relevance of the ALP Coderequirements in terms of the importance to maintain good working conditions”.
Building on these efforts from previous years, MLT reiterates its full commitment and dedication to the ALP
Program and will continue to endeavour to improve the living and working conditions of its farmers, theirfamilies and workers.
This commitment will be particularly visible in MLT’s proposed Support & Enforcement, both by informing
all farmers that non-compliance with ALP will not be accepted and may lead to contract termination or nonrenewal of their contract meanwhile providing them with the necessary training and relevant support, andby taking effective measures in case of non-compliance. The latter will be done within the categorization
policy MLT has designed, which grades farmers according to several criteria, among which is ALP. Further
details on this policy will be provided below.
2.2.

Strategy and Objectives

Before the Control Union audit, and based on the risk assessment previously conducted, MLT’s ALP strategy
and objectives were mainly focused on the Child Labour, Income and Work Hours and Safe Work
Environment principles. Given the new approach and targets abovementioned, MLT will continue to focus
efforts on these three principles, with particular emphasis on farmers with labour and labour(approximately 10% of all contracted farmers).
In light of the above, MLT is seeking to outline longer-term plans, with specific objectives and strategies foreach focus area and timeline.
Thus far, in the ALP implementation process, MLT’s focus was to raise awareness through training. Thisapproach will now be complemented and strengthened by the abovementioned Support & Enforcement
which will, as anticipated by its name, bring enforcement and promote effective behaviour change amongst
farmers with consequences if not adhered to.
MLT’s strategy to reduce ALP-related risks also included, and will continue to include, expanding ourcommunication activities beyond the farmer and providing training sessions and materials to farmers’ family
members and workers so as to fully train and engage all people on the farm.
2.3. Internal Capacity
2.3.1. Dedicated Organizational Structure
MLT has an organizational structure dedicated to the implementation of ALP both at field and managerial
levels. As part of its Agronomy department, MLT has a field team dedicated full-time to ALP-related
activities.
This is complemented by Leaf Technicians who, of course, are also a part of the internal structure
responsible for implementing ALP – their regular presence in the field means they are one of the best
vehicles to promote ALP. There is also a Steering Committee at a senior managerial level who is responsible
for strategy and high-level decisions.
Appendix I - MLT Action Plan_ page 2 of 3636External Assessment

MLT’s ALP structure in the field is a mature and practiced team that has been promoting and implementing
the code for several years now. Their effort over these past years had very positive results and ensures thatall MLT’s contracted farmers are acquainted with ALP. This is fully supported by Control Union’s analysis
that concluded that “Awareness of the ALP program was high”.
Acknowledging the importance of ALP, and to promote its full compliance in the field, MLT will be reviewing
the ALP establishment to ensure a better coverage, assistance and monitoring in the field. Taking into
consideration the ongoing consolidation process of its farmers, MLT will endeavor all efforts to restructure
its ALP team and lower the current ALP Team Member:Farmer ratio to encourage closer and more regularinteraction. A full review of the establishment is expected to be concluded by the end of December 2018.
To further improve the skills and knowledge of Leaf Technicians and ALP supervisors, the main interlocutors
with farmers in the field, MLT will promote the following actions:
(i)

(ii)

Procure and engage with a third party organization for specific leaf technician training (identificationof gaps in skills/capacities and provision of training to address them) – the main focus of this training
to be an improvement in the systematic collection of accurate data to ensure a true reflection of thereality in the field;
Provide specific trainings on child labour and income and working hours in Leaf Technicians’ weekly
meetings and conduct monthly written tests.

2.3.2. Roles and Responsibilities
As mentioned above, there are various teams engaged in implementing ALP in Mozambique, both atmanagerial and field levels, as verified by Control Union – “All members of the Steering Committee and ALP
Country Team had defined ALP-related roles and responsibilities, which were included in their job
descriptions”.
The liaison between MLT and PMI is carried out by the ALP National Manager with regular interaction with
PMI Regional to inform on the progress of the action plan and to align future actions. The ALP National
Manager is supported by an Assistant ALP Manager who also assists in coordinating the field teams via thethree provincial coordinators. The ALP Coordinators are responsible for coordinating and supervising the
ALP Supervisors and the Drama Groups present in each Division.
The ALP Supervisors and Drama Groups assist the Leaf Technicians in training the farmers and monitoring
ALP-related situations. In addition to training the Leaf Technicians, ALP Supervisors also participate infarmers’ group meetings and are key in the training of Vulnerable Groups (Women, Children and Workers).
As mentioned above, the ALP establishment will be reviewed and strengthened by the end of December
2018 with the hiring of new ALP Supervisors to shorten distances and allow for better coverage andassistance, training and monitoring of farmers.
2.3.3. Training and Knowledge of the ALP Program
In general, Control Union found “that despite low literacy levels and limited education in Mozambique (acommon problem in Mozambique) the level of theoretical ALP knowledge on most of the ALP Principles”
had improved among MLT’s Leaf Technicians. In its 2017 Human Development Index report, UNDP ranked
Mozambique 180 out of 189 countries, which puts the country in the lowest levels of human development
Appendix I - MLT Action Plan_ page 3 of 36

37

External Assessment

worldwide. According to the same report, on average, Mozambicans only study for 3.5 (opposed to the 9.7
expected years of schooling), which explains the low literacy levels found nationwide, particularly in morerural areas where MLT operates.
However, Control Union also considered that Leaf Technicians “still lacked the ability to effectively apply
their knowledge practically to field situations”, particularly for the income and work hours and compliancewith the law principles. This is, of course, also related to the (even lower) literacy levels of farmers – evenwhen systematically trained on a certain subject the change in behaviour may take some time or not happen
at all. The existing cultural traits, such as teaching agriculture being seen as providing life skills to theirchildren, are very often barriers to a full and timely ALP implementation in the field, as the farmers’ active
collaboration is vital for success. Building on training and awareness to date, the new focus on consequences
for non-compliance is intended to lead to behaviour change.
Control Union also noted that “ALP knowledge was relatively better among the technicians who had been
involved in the program longer”. In fact, Leaf Technicians mostly come from the same background and,
although slightly higher than those of farmers, also have low literacy levels and limited education, which, inturn, explains the importance of systematic and continuous training of both farmers and Leaf Technicians.
Since the beginning of its implementation in Mozambique, MLT has provided regular ALP trainings to all
Leaf Technicians who, in addition to a global training at the beginning of the season, receive regularrefreshments on the most pressing issues. During the 2017/2018 season, Leaf Technicians received, on
average, 11 ALP trainings. In addition, many Leaf Technicians attend the IAC (Instituto Agrário de Chimoio),
completing a six-month agricultural course, which now includes ALP and Mobileaf training (please refer toAnnex I). To date, over 200 Leaf Technicians have attended.
To address the relatively low literacy levels of Leaf Technicians, as mentioned above, MLT will continue tofocus on:
(i)

(ii)
(iii)

Improving Leaf Technicians’ weekly training and providing specific teachings on the few aspects
identified by Control Union as less known, such as the minimum working age as defined by MLT andhazardous activities;
Testing their knowledge by conducting monthly written tests; andEngaging with a third party to promote specific farm monitoring and data collection training.

In addition, MLT will also review existing trainings materials and explore alternative ways of training andtesting. Further details on this are provided below.
2.4. Communication of the ALP Code Requirements to Farmers
2.4.1. Communication Strategy and Tactics
Following several years of training and communication, MLT believes all of its contracted farmers are now
acquainted with the ALP Program, which is supported by Control Union’s finding that 99% of all farmers
interviewed “were familiar with the term ALP and could recall several ALP Code Principles”.
It should also be noted that, according to Control Union, “awareness was also relatively high among family
members and workers”.
This is also confirmed by CY18 data:
(i)
(ii)

All farmers received a minimum of 4 (four) field visits by their Leaf Technicians;
99.57% of all farmers trained on child labour;

Appendix I - MLT Action Plan_ page 4 of 36

38

External Assessment

(iii)
(iv)
(v)
(vi)
(vii)

93.88% of all farmers trained in income and work hours;• 90.87% of farmers with labour trained in minimum wage;
83.26% of all farmers trained in fair treatment;
81.74% of all farmers trained in forced labour;
82.65% of all farmers trained in safe work environment;• 89.75% of farmers with labour trained in safe work environment;
79.65% of all farmers trained in compliance with the Law.

This was accomplished through several communication best practices, means and materials that MLT has
in place since the inception of ALP and which have proven very effective in transmitting the ALP code tofarmers:
(i)
(ii)

(iii)
(iv)

Field Visits Best Practice – a minimum of four field visits per season by the Leaf Technicians who, as
mentioned above, are responsible for any key elements in training and monitoring farmers on ALP;
Farmers Group Meetings – in these meetings, which are held every two weeks, Leaf Technicians and
ALP supervisors (often joined by sector managers and ALP coordinators) address ALP principles andshare experiences and situations detected in farm-by-farm monitoring so all farmers gain fromothers’ examples and there is a single understanding of what is intended under the ALP program;
Drama Groups – these groups are present in every MLT division and work under and closely with the
ALP supervisors. MLT drama groups have proven to be a very popular training method with farmers;
Communication Materials – throughout the years, MLT has developed various leaflets with ALPrelated themes, most of which are illustrations (cartoons), given the low literacy level of its farmers
and the more appealing/effective nature of visual materials. These were translated into local
languages and have been distributed to farmers for several years now, which was confirmed byControl Union during their field visits – “During CU’s field visits this material was found at the farms
in Portuguese and local languages”.

Actions described in points (i) to (iii) above are all recorded and documented on Mobileaf and/or paper.
MLT fully encourages farmers to convey their ALP knowledge to all people on farm (family members andworkers, if any). Farmers are ultimately responsible for everything that happens in their farm and therefore
are treated as leaders of a team, in charge of compliance by everyone.
At this advanced stage of ALP implementation in Mozambique, MLT believes all its farmers are fullyacquainted with the program. However, acknowledging there is always room for improvement, in the next
few years, MLT will evaluate and review its current training methods and materials, including a review of
the ALP Guide & Farmer Handbook, as a refresher on all ALP principles and main guidelines.
As mentioned before, MLT realizes that the awareness may not have translated fully into behaviouralchange. For this reason, all the training given so far will now be complemented by the Support &Enforcement referred to above and detailed below. MLT is confident that supplementing all the trainingthat has been given to its farmers with a strong consequential impact in case of non-compliance will lead tothe desired change in behaviour.
2.4.2. Farmers´ Responsibilities

Appendix I - MLT Action Plan_ page 5 of 36

39

External Assessment

Although MLT included the ALP Principles in the growing contract, clearly stating the farmers’ responsibility
to comply with the ALP Program standards and their duty to accommodate MLT’s visits and external audits,
Control Union found that there was no defined procedure for contract termination in these cases.
To address this issue, MLT will (i) design a Farmer Categorization policy to guide its consolidation process inthe upcoming seasons and (ii) include the repeated breach of ALP Code as criteria in such policy. MLT’s
categorization policy is a grading scheme that evaluates farmers’ overall performance ranking themaccordingly – this naturally considers several ALP aspects, which are some of the most relevant criteria inline with the mentioned Support & Enforcement. In addition to ALP, farmers are also assessed based onyield, credit recovery and forestry, among others. Farmers with low grading will not have contracts renewed
as MLT consolidates a compliant contracted farmer base.
Once again, the Support & Enforcement and its consequences will be clearly communicated to all farmers
from the beginning and throughout each season. Following this communication, at the beginning of eachseason, MLT will reinforce its message by carrying out a Pre-Season Due Diligence where farmers who didhire labour the previous season are strongly discouraged to hire labour if they have 0.5 ha or less as being
unnecessary and reminded of all the labour related requirements, with emphasis on the importance of
paying the minimum wage and providing adequate accommodation.
2.5.

Internal Monitoring: Data Collection, Accuracy and Addressing Issues

As mentioned by the report, MLT collects two types of ALP-related data from the farms: socio-economic
information (Farm Profile) and Prompt Action incidents. Thus far, MLT was mainly focused on monitoring
prompt action incidents.
Farm Profile data is collected by Leaf Technicians using a mobile app, specifically developed for this purpose,
called Mobileaf and data is uploaded to a central database once the leaf technician synchronizes the tablet.
This data is provided by the farmer and, if necessary, should be updated by Leaf Technicians throughout theseason. Prompt Action incidents are recorded both on the tablet and on paper (please see below).
All the data collected through Mobileaf is then available to be analysed using an analytics tool, Power BI,
which enables the managerial teams to get a better insight of the operation, particularly at field level, andaddress any issues that may arise.
Making good use of Power BI, the ALP National Manager will implement a series of control reports, which
will enable a more regular analysis and understanding of the reality in the field and facilitate faster
responses to any non-compliances that may occur.
2.5.1. Socio-economic Data: Farm Profiles
Upon verification, Control Union confirmed that in 96% of cases Farm Profiles were complete and accurate,
matching the situation observed during the farm visits. There were, however, minor inaccuracies which, asmentioned by Control Union, are acceptable.
Although most profiles were precise and reflected the farm reality, one of the Leaf Technicians included in
the assessment “apparently had difficulties with the computer tablet (Mobileaf system)”. Therefore, inorder to further promote data accuracy, MLT wants to improve its Leaf Technicians’ awareness, fullAppendix I - MLT Action Plan_ page 6 of 36

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comprehension and application of all Mobileaf sections/screens and will therefore re-train all of them on
its usage at the beginning of the season and provide continuous training throughout.
As mentioned above, training on Mobileaf system has been included in the curriculum taught at theInstituto Agrário de Chimoio, an agricultural institute many MLT Leaf Technicians attend.
2.5.2. Systematic Monitoring: Situations not meeting the ALP Code Standards
According to Control Union, when interviewed, many Leaf Technicians stated “any situation not meeting
the ALP Code standard was treated as a Prompt Action situation” and “MLT was not monitoring situations
not meeting the standard”.
Although MLT has been providing training on all ALP principles it has prioritized monitoring prompt actions,which are related to five of the seven principles and refer to more pressing and relevant issues. Given thesize of our operation and a few other challenges encountered, MLT believes it is beneficial to theimplementation of ALP to concentrate on certain aspects at the time, as opposed to treating all ALP aspects
indiscriminately and risking inefficiencies. No areas of the ALP Program are neglected, as training is global,
but there is a clear focus on certain aspects, which is aligned with the ALP implementation stage in each
moment and the rationale behind Step Change as well.
2.5.3. Prompt Actions
Prompt action incidents are currently recorded both on Mobileaf and paper. In their paper form, theseincidents are recorded in triplicate (one copy for the farmer, one for ALP records and the last kept in thebook for reference), to ensure the farmer is fully informed and aware of the situation.
In this section, there were two main findings by Control Union:
(i)
(ii)

In eight cases, farmers were not aware of any raised Prompt Action at the farm;
MLT was not using the latest version of the Prompt Actions list provided by PMI.

However, it should be noted that MLT continues to record prompt actions on paper precisely to ensure thefarmer is informed of the violation and action is to be taken (these records are done in triplicate and a copy
stays with the farmer).
As for the list of Prompt Actions, it was agreed by PMI and MLT that the previous list would remain the samefor field purposes and MLT would then match it with the new one for reporting purposes.
To address these issues, MLT will complete the following actions:
(i)

(ii)

Re-train all Leaf Technicians on Prompt Action recording (both on Mobileaf and paper form),
particularly on the timings of follow up visits/timelines for resolving these incidents, including
directing farmers to income generating initiatives, and ensure compliance by monthly monitoring;Continue to ensure farmers sign off and receive a copy of the Prompt Action Paper Form.

2.5.4. Improvement Plans for Individual Farms
According to Control Union, “MLT only made improvement plans for individual farms in case of Prompt
Action situations, but not for situations not meeting the standard. Furthermore, because root cause analysis
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was lacking, the action plans only addressed the issues of the moment, treating symptoms rather thanaddressing or solving the underlying causes.”.
MLT has identified several root causes, in particular for child labour and minimum wage related issues and,following a more generic analysis, will now promote several initiatives to address this situation. As detailed
further below, poverty is undoubtedly one of the main root causes for child labour both due to the lack ofresources for hiring necessary labour and to the struggles faced to send children to school. Bearing that inmind MLT aims to link child labour and income generating activities to promote an integrated approach toboth problems.
Once farmers are segmented into categories with their main challenges identified, MLT will direct these
initiatives prioritizing more critical areas (e.g. setting up a savings group in a community that is facing
challenges with paying minimum wage).
2.6.

Address Systemic and/or Widespread Issues

In its report, Control Union states that “based on the risks and issues identified (see Chapter 1.2), leaf
tobacco suppliers are expected to address systemic and/or widespread issues through operational (STP)
initiatives”.
Aligned with the key focus areas identified and mentioned above, currently there are several
STP/operational initiatives scheduled and approved:
(i)
(ii)
(iii)
(iv)
(v)

Expansion of KUKULA – School Meals Program that aims to eliminate child labour and promoteschool attendance in tobacco-growing communities;
Distribution of written employment contracts together with a labour law leaflet;
Distribution of GTS gloves to all people on the farm, with the objective of distributing 4 pairs ofgloves/0.5 contracted ha (8 pairs/contracted ha);Contingency fund for labour accommodation;
Installation of 40 boreholes in 2019 to promote basic access to water by all farmers.

To date, MLT has carried out many actions to achieve the targets set within ALP (these will be further
explained below under each principle).
Early Flagging System
In addition to this, MLT will be working on an Early Flagging System (EFS), which focuses on farmers withlabour, given most of the key focus areas are connected with the use of labour in the field.
Although this is still in its inception phase, the objective of EFS is to closely monitor farmers with labour toensure they fully comply with ALP on three main levels: employment contract, PPE usage and labour
accommodation.
EFS Phases:•

Phase 1 – Identification of farmers with labour in CY18 and confirmation of CY19 status;

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External Assessment•

Phase 2 – Close monitoring of identified subset of farmers regarding execution of written
employment contracts, payment of minimum wage, usage of Personal Protective Equipment (PPE)and accommodation provided to workers.

Please refer to Section 3.2. ALP Code Principle: Income and Work Hours below for further details on thisinitiative.

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3.
3.1.

FARM-LEVEL ASSESSMENT OF WORKING CONDITIONS REGARDING THE ALP CODE STANDARDSALP Code Principle 1: Child Labour

Main findings and challenges identified during the 2018 Control Union Assessment
During its assessment, CU identified the following child labour situations:•••

At 1 farm (2%), CU found evidence of employment below 15 years of age;
At 9 farms (11%), CU found evidence of people under 18 involved in Hazardous Tasks;
At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco.

In addition, CU found two workers who looked like minors but whose age could not be verified because
these workers did not know their own age.
9 farmers (11%) and 15 workers (37%) interviewed were not aware of the minimum working age definedby MLT and did not know minors were not allowed to work in any tobacco-related activity.
Although the minimum employment age defined by Mozambican law was 15 years, MLT had defined andcommunicated 18 years as the minimum age for being involved in any tobacco-related activity on the farms
contracted by MLT. This decision was initially taken by MLT for the sake of simplicity and clarity whenconveying the message to farmers (as a first training approach, it was decided that setting a single thresholdwould help farmers better understand the limitations).
Root Causes
From its experience in the field and in implementing the ALP Program, as well as cross-pollinating at aregional level, MLT has identified several root causes, which may lead to child labour in tobacco-growing
areas:(i)
Lack of classrooms / teachers;(ii)
Low involvement by Government and/or Community Leaders (No enforcement);(iii) Lack of integration and awareness;(iv) Succession Planning (parents teaching children to farm is providing life skills);(v)
Demotivated teachers;(vi) Long distance to schools;(vii) Poor profitability (resorting to children instead of workers);(viii) No enforcement measures;(ix) LTs come from/live in the communities and at times “see no wrong”;(x)Lack of caregivers;(xi) No kids activities;(xii) Inadequate financial resources to hire workers;(xiii) Lack of money for school items;(xiv) Excessive work at peak season;(xv) Poor accessibility to schools (e.g. during heavy rains);(xvi) Parents sick/ attending funeral during peak season;(xvii) Hired workers using children to cover more work when paid in piece rate;(xviii) Children of workers not attending school (particularly Malawi migrants);(xix) Children are low cost labour.
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Although it may not be possible to address all root causes, by identifying the main underlying root causes,
MLT is able to better outline the initiatives it will promote to eliminate or improve each finding.
Actions developed prior to the 2018 Control Union Assessment
According to the Control Union report, of the 80 farms visited and assessed:
(i)
(ii)

89% (71 farms) did not have children performing hazardous tasks; and
97% (78 farms) did not have children under 13 working in tobacco.

These very positive results were achieved because MLT has focused on the elimination of child labour since
the beginning of ALP in Mozambique, not only by training all of its farmers on the subject, but by also
carrying out several initiatives to address the issue in a more proactive manner:
MLT annually trains over 95% of its farmers on the risks and negative impacts of using children in
tobacco productions and has focused on training vulnerable groups (children, women and workers)
on the same subject by promoting specific trainings and performances by the drama groups at schools
and group meetings;
In 2015, MLT implemented KUKULA, a school meals program that aims to fight child labour andpromote school attendance and performance while overall improving the children’s general health.
KUKULA is currently operating in five schools (one of which is funded by PMI) in Mandimba district
and benefits over 1,500 children every day. In 2017 school year, when compared to neighbouringcontrol schools, KUKULA schools recorded a 76% higher attendance rate. In addition, KUKULA has
also seen a few secondary positive effects such as higher teacher discipline and attendance andincreased awareness by the community on the hazardous effects of children working in tobacco;
MLT Drama Groups regularly visit schools for performances that train both children and teachers on
the importance of education and the hazardous effects of working in tobacco under 18 years old. MLT
also resorted to local community radios to convey the ALP teachings;
To facilitate the learning process by farmers, MLT created various cartoons illustrating the ALP
principles and has been distributing them to farmers and hanging them at schools and buying centres
ever since.

•

•

•

•

Action Plan & Expected Outcomes following 2018 Control Union Assessment
To further address the issues identified, MLTC has planned the following actions:(i)

Review current position on minimum age thresholds:• FINDING ADDRESSED:o 9 farmers (11%) interviewed were not aware of the minimum working age defined by MLT
and did not know minors were not allowed to work in any tobacco-related activity.
• ACTIONS:o As mentioned, for clarity and simplification purposes, MLT had initially set 18 years of age
as a minimum threshold to work in tobacco. However, at this stage, MLT will revisit its
position, aligning with the ILO, Mozambican law and the ALP Code.
o Training materials will have to be adapted to reflect this new position and will include
several age ranges and tasks acceptable for each. Firstly, MLT will prepare training materials
that reflect the legal employment age ranges and tasks that can be performed within eachAppendix I - MLT Action Plan_ page 11 of 36

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External Assessment

category. The ALP field team will then be trained accordingly to then train all field teams
who, in turn, will convey the message to farmers and their households. Training materials
will be posted at baling and buying centres to further publicize this new position.
• EXPECTED OUTCOMES: By reviewing its current position, MLT aims to get further buy-in fromgrowers by showing alignment with certain cultural aspects, such as teaching agriculture toyour children, which is seen by Mozambican growers as ensuring life skills to your children. In
any case, MLT will never permit hazardous tasks to be performed by persons under the age of18.
• TIMELINES: Training materials to be reviewed and distributed by the end of March 2019 andmessage conveyed from there on until the end of CY19. Materials to be posted at baling andbuying centres before the buying process starts. For following seasons, training will continue
to rely on the new materials.
• TARGETS: 100% of field teams informed and trained on age ranges and tasks acceptable foreach by the end of CY19 followed by yearly refreshments. Training materials displayed at all
buying centres in CY19 and all baling centres in CY20.
(ii)

Continue with the training of Vulnerable Groups (Children, Women, Labour) focusing on priority
areas, including minimum working age requirements reviewed as mentioned in (i) and hazardous
tasks:• FINDINGS ADDRESSED:o At 1 farm (2%), CU found evidence of employment below 15 years of age;o At 9 farms (11%), CU found evidence of people under 18 involved in Hazardous Tasks;o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco.
• ACTIONS:o Naturally, the more people at the farm involved and acquainted with ALP, the better results
will be. Therefore, MLT will continue to invest in the training of children, women and labour
so they too can act as ALP enforcement agents (e.g. if labour is informed it will less likely
accept unlawful working conditions);
o The specific trainings given on hazardous tasks will focus and address the prevailinghazardous tasks in each crop stage. MLT will be revisiting its training materials and will
prepare new ones specific to the initiatives described and always focusing on more visualteaching materials which facilitate learnings, particularly areas where farmers are illiterate;o Given the scope and target audiences of this training, priority will be given to areas withhigher levels of child labour and higher numbers of farmers with labour.
• EXPECTED OUTCOMES:o Vulnerable Groups trained and informed on various age ranges and tasks each can carry out
and fully acquainted with hazardous tasks in each crop stage;o Informed members of Vulnerable Groups are able to act as enforcement agents andpromote further ALP compliance at farms (e.g. woman informed of hazardous effects ofchild working in tobacco is herself motivated to terminate such practice and can persuade
the farmer in not resorting to child labour).
• TIMELINES: The training of Vulnerable Groups continue to be carried out every season in acontinuous effort to strengthen their members as ALP enforcement agents. Training materials
to be reviewed and distributed by the end of March 2019 and message conveyed from there
on until the end of CY19.
• TARGETS:

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External Assessmento Under this initiative, Vulnerable Groups will be trained according to the following targets
on all women, children and labour recorded on Mobileaf:- CY19 - 70%;
- CY20 - 80%;
- CY21 - 90%;
- CY22 - >95%.
(iii)

Re-train all farmers and field teams (DMs, SMs and LTs) on minimum age requirements andhazardous tasks in the terms mentioned above in points (i) and (ii):• FINDINGS ADDRESSED:o At 1 farm (2%), CU found evidence of employment below 15 years of age;o At 9 farms (11%), CU found evidence of people under 18 involved in Hazardous Tasks;o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco;o 9 farmers (11%) interviewed were not aware of the minimum working age defined by MLT
and did not know minors were not allowed to work in any tobacco-related activity.
• ACTIONS: The new approach and Support & Enforcement MLT aims to adopt requires, as an
initial step, that all farmers and field teams are fully aware of the requirements to be able toapply and enforce them properly in the field. Therefore, once the materials are reviewed as
described above, all farmers and MLT field staff will receive two specific training sessions on
the minimum age requirements and hazardous tasks. As mentioned before, training materials
will also be posted at baling and buying centres.
• EXPECTED OUTCOMES: By the end of CY19, all farmers and field teams will have received
specific training on minimum age requirements and hazardous tasks and will be able to identify
tasks suitable for each age range and to differentiate between hazardous and non-hazardous
tasks. Further buy-in from growers by showing alignment with certain cultural aspects, such asteaching agriculture to your children, which is seen by Mozambican growers as ensuring life
skills to your children.
• TIMELINES: Training material reviewed by the end of January 2019 and two specific trainings
to be provided between February and April 2019. For following seasons, training will continue
to rely on the new materials.
• TARGETS:
o 100% of Field Teams (Leaf Technicians, Sector Managers, Division Managers) by end of
CY19;
o 100% of Farmers by end of CY19.

(iv)

KUKULA PROJECT – Fighting Child Labour and Promoting School Attendance and Performance in
Tobacco-Growing Areas:• FINDING ADDRESSED:o At 1 farm (2%), CU found evidence of employment below 15 years of age;o At 9 farms (11%), CU found evidence of people under 18 involved in Hazardous Tasks;o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco.
• ACTIONS:o Continue supporting KUKULA in four schools in Mandimba district and conduct an external
assessment to assess degree to which established strategic objectives are being achieved
and explore the possibility of expanding KUKULA to other MLT operation areas;

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External Assessmento Expand KUKULA to two additional schools in tobacco growing areas and maintain theexisting one at Naucheche school:- This expansion will target MLT operating areas with highest levels of child labour
incidents and will also be a part of an integrated approach to address child labour root
causes (connection with income generating initiatives so farmers are able to hire adultlabour and not resort to children);- MLT will also discuss with the implementing NGO the possibility of trialling a moresustainable and community-owned model in one of these communities/schools. In this
scenario, the setup and initial period of KUKULA would be conducted by the
implementing NGO but, following a certain period, the community would assume fullcommand for the project. The outline of this model will also include income generating
activities and different community collaboration methods;
o Conduct a third party assessment of KUKULA to:- Identify secondary outcomes and possible project improvements;- Recommend alternative or complementary activities that could be undertaken to fightchild labour and to encourage school attendance;- Identify a more scalable community owned model, which would enable for a bigger
coverage in less time and with lower costs;• EXPECTED OUTCOMES:o Lower child labour incidences and higher school attendance and better performance inareas covered by KUKULA (when compared to control schools);
o Increased community awareness on adverse effects of child labour and importance of
education;o External assessment report, which may serve as starting point for potential expansion plan;o Recommendations on KUKULA model, including suggestions on a more sustainable andscalable community owned version and other actions that may complement KUKULA on theobjective of fighting child labour and promoting school attendance.
• TIMELINES:o Existing KUKULA kitchens operating since the beginning of the school year (February 2019)and expansion to three new ones by the end of June 2019;o External assessment to be concluded by June 2019;• TARGETS:o 7 KUKULA kitchens functioning by the end of 2019 school year;
o Approximately 2,800 children benefited by KUKULA every day.
(v)

CLAP – Community Leaders Accountability Program• FINDING ADDRESSED:o At 1 farm (2%), CU found evidence of employment below 15 years of age;o At 9 farms (11%), CU found evidence of people under 18 involved in Hazardous Tasks;o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco.
• ACTIONS:o As mentioned before, MLT believes the full engagement of all stakeholders will lead to abetter understanding of ALP and higher compliance levels. Therefore, MLT has designed
CLAP, a program that aims to engage a broad range of stakeholders at various authority
levels to strengthen its message and enforcement levels. Under CLAP, accountability levels
will be increased, which in turn will lead to more compliance. This engagement will first

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External Assessment

include a refreshment on the ALP Program and secondly a clear explanation on MLT’s
Support & Enforcement, i.e. the need for the entire tobacco-growing community to comply
with ALP, otherwise farmers may see their contracts terminated or not renewed. Thisinitiative will cover all MLT operating areas, prioritizing the zones with higher incidences ofchild labour and will be linked with our SRP Program (i.e. cooperating and compliant
communities will be preferred beneficiaries for MLT’s social responsibility investments);- Phase 1 – Engage with community leaders and school councils to reinforce message ofzero tolerance towards child labour and accountability for community behaviour.
Although both structures will be expected to collaborate and work together, community
leaders will be mainly responsible for reinforcing the ALP message with farmers andworkers and the school councils for promoting and monitoring school attendance within
the community;- Phase 2 – Engage with Government at all levels to jointly promote awareness on thenegative effects of child labour and importance of education.
• EXPECTED OUTCOMES:o Phase 1 – Full community engagement in addressing child labour problems and peer to peer
enforcement sponsored and promoted by local leaders (with a particular focus on farmers)
and school councils (with a particular focus on school attendance);o Phase 2 – Authority levels engaged and cooperative in the fight against child labour,sponsoring MLT’s position and Support & Enforcement. Community will be made aware ofGovernment's support at all levels and even more committed to eliminating child labour at
grass root level.
• TIMELINES:o Phase 1 – Initial meetings from February 2019. For following seasons, there will be at least
one refreshment meeting per year;o Phase 2 – Meetings under phase 2 will take place in parallel with those of phase 1 but will
have to take in to consideration the presidential elections scheduled for October 2019.
• TARGETS:o Under CLAP, MLT aims to engage with all abovementioned stakeholders in all its operatingzones, prioritizing areas with higher levels of child labour and lower levels of school
attendance.
(vi)

The Little Story Club
• FINDING ADDRESSED:o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco.
• ACTIONS:o Educating school-aged children on the importance of education and the negative effects ofworking in tobacco;o Implement extra-curricular activities to both entertain children and reduce free time to
avoid them going in to the tobacco fields.
• EXPECTED OUTCOMES:o Children that participate have less free time and are less idle and therefore less prone tochild labour.
o Community more aware on the importance of education and adverse effects of child labour
and working in tobacco.
• TIMELINES:

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External Assessmento Timelines on this initiative are still being internally discussed.
• TARGETS:o Targets on this initiative are still being internally discussed but its setup would prioritise
schools/communities where KUKULA is already operating.
(vii) Distribution of Treadle Pumps to Facilitate Watering of Seedbeds• FINDINGS ADDRESSED:o At 9 farms (11%), CU found evidence of people under 18 involved in Hazardous Tasks;o Many of child labour prompt actions are related to children watering seedbeds.
• ACTIONS:o One of the highest child labour incidents recorded is the watering of seedbeds often
representing more than 20% of all prompt actions recorded. Therefore, by providing treadle
pumps to farmers, which aim to facilitate watering, MLT will be addressing one of the mostprevailing issues within child labour. These treadle pumps have already been trialled andcan also be used as a diversification tool, particularly by promoting winter crops. Initiallythis distribution will cover 4,000 farmers in areas with higher levels of watering seedbeds
incidents and zones where labour is mostly hired for irrigation purposes.
• EXPECTED OUTCOMES:o By providing treadle pumps to the farmers, MLT aims to facilitate the seedbed watering
process, which will not only reduce time employed by farmers (and/or workers) in this task,
but also eliminate situations where children carry heavy watering cans to assist them,
particularly during the seedbed period.
o Given the possibility of farmers using these treadle pumps for other crops, this action may
also lead to positive diversification outcomes (linkage between this action anddiversification initiatives to be discussed).
• TIMELINES:o Meetings with NGOs and proposal requests to be completed by the end of December 2018;
o Pending availability of NGOS, distribution will occur between April and June 2019 in
preparation for the new season;o Discussions with Diversifications teams to be held during the first semester of 2019.
• TARGETS:
o For CY19 the target will be 4,000 farmers distributed between Tete and Niassa Provinces,prioritising areas with highest levels of children watering seedbeds recorded. Should thisinitiative prove successful, MLT will explore the possibility of rolling it out, particularly inareas with high levels of farmers with labour or watering seedbeds incidents recorded.
(viii) Income Generating Initiatives – Poverty is undoubtedly one of the main root causes for child labour
both due to the lack of financial resources for hiring necessary labour and to the struggles faced tosend children to school. Bearing that in mind MLT aims to link child labour and income generating
activities to promote an integrated approach to both problems:• ACTION 1 – Village Savings and Loans Associations:• FINDING ADDRESSED:o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco.
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External Assessmento Village Savings and Loans Associations (VSLA) – In a partnership with an expert NGO, MLT
will promote the setup of, at least, 50 VSLAs, prioritizing areas with the highest levels ofchild labour and with farmers with labour.
• EXPECTED OUTCOMES:o By participating in a VSLA, farmers or their spouses will be able to access small loans tocover both school supplies and labour if necessary.
• TIMELINES:o Meetings with NGOs and proposal requests to be completed by the end of November 2018;
o Pending availability of NGOS, initial setup of 20 VSLAs to be concluded by March 2019 andthe setup of the remaining 30 VSLAs to be concluded by May 2019.
• TARGETS:o The implementation of the VSLAs will begin with a trial of 50 groups covering between 750
and 1,250 farmer households in total (each group has approximately 15-25 members). Thisaims to measure results and analyse its potential rollout to all operating zones, prioritizing
areas with predominance of workers and child labour concerns.
• ACTION 2 – Business Planning and Financial Literacy Trainings:• FINDING ADDRESSED:o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco.
• ACTIONS:o Combined with the previous point, MLT will also provide farmers with specific training on
business planning and financial literacy in an attempt to improve farmers’ management
skills. This action will also have a connection with the Diversification initiatives that MLT iscurrently planning and, therefore, will have to be discussed and aligned with the respective
team.
o ALP field teams will also be trained as future trainers to expand the training to all farmers
during group meetings.
• EXPECTED OUTCOMES:o By providing this training to farmers, it is expected that their planning skills and overall
results improve (e.g. by properly assessing all inputs and labour he will actually need, thefarmer can better plan his agricultural activity). Better managed farm resources will improve
farmers’ profitability, thus enhancing their ability to hire labour and eliminating resorting
to children.
• TIMELINES:o Timelines on this action depend on outcomes of trials and development of supply chains.
• TARGETS:o Timelines on this action depend on outcomes of trials and development of supply
chains. Initially this action will target areas with farmers that are hiring workers andareas with the highest child labour levels.
• ACTION 3 – Liaison with Microfinance Institutions:• FINDING ADDRESSED:o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco.
• ACTIONS:o MLT will procure and identify reliable microfinance institutions and convey their contacts
to farmers as a possibility for them to access small credit to address their labour needs.
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External Assessment• EXPECTED OUTCOMES:o The linkage of farmers to reliable microfinance institutions aims to facilitate their access tosmall credit to address day-to-day needs, such as school supplies, but also to assist with
their agricultural activity (e.g. access to labour during peak periods) or help them start a
new business. If farmers resort to these microfinance institutions, they will also beprotected from “loan sharks” who often take advantage of the lack of formal banking
mechanisms to charge exorbitant interest rates.
• TIMELINES:o Procurement of reliable microfinance institutions to be completed by February 2019;o Once procured, contacts will be conveyed to farmers by publicizing at baling centres which
will be done in March 2019 at the beginning of baling period.
• TARGETS:
o Identification of three reliable microfinance institutions and display of contacts at baling
and buying centres.
o Farmers informed of microfinance institutions and, should they wish to, able to resort tosmall credit, able to address money needs during lean period whilst waiting for theirrevenue from tobacco.
(ix)

Support & Enforcement• FINDINGS ADDRESSED:o At 1 farm (2%), CU found evidence of employment below 15 years of age;o At 9 farms (11%), CU found evidence of people under 18 involved in Hazardous Tasks;o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco;o 9 farmers (11%) interviewed were not aware of the minimum working age defined by MLT
and did not know minors were not allowed to work in any tobacco-related activity.
• ACTIONS:o As mentioned above, MLT is now adopting a strong enforcement message whereby all
farmers, vulnerable groups and field teams are fully aware of the consequential impact of
ALP breaches. The second part of this strategy comes with MLT’s categorization policy.
Within its consolidation efforts, MLT has designed a grading scheme that evaluates farmers’
overall performance ranking them accordingly – this naturally considers several ALP
aspects, which are some of the most relevant criteria in line with the mentioned Support &Enforcement.
o Firstly, the ALP Team will refresh all field teams and train them on new Support &Enforcement, including on the categorization policy according to which farmers are given a
grade depending on performance and overall compliance with the company's procedures,
including ALP. Field teams will then convey this enforcement message to all growers, sothey are fully informed of the contractual impact in case of non-compliance with ALP in
particular (possibility of contract termination or non-renewal). By the end of CY19, allfarmers will be made aware of this. As mentioned above, the Support & Enforcement will
be completed during the categorization that precedes the selection of growers for thefollowing season under MLT’s categorization policy.
o One of the main action under this Support & Enforcement is CLAP as described above.
• EXPECTED OUTCOMES:o Change in behaviour towards ALP because both field teams and farmers fully aware of theconsequential impact of breaching company procedures, in particular ALP-related.

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External Assessmento Once the categorization process is complete, non-compliant farmers will be identified andtheir contracts not renewed for following season, which clear indication of the reasons for
non-renewal.
• TIMELINES:o From CY19 onwards.
• TARGETS:
o 100% of field teams and 100% of farmers informed on Support & Enforcement by the end
of CY19, with yearly refreshments.
3.2.

ALP Code Principle 2: Income and Work Hours

Main findings and challenges identified during the 2018 Control Union Assessment
During its assessment, CU identified the following situations related with income and work hours:
(i)
(ii)
(iii)
(iv)
(v)
(vi)

35 farmers (95%) did not pay at least the legal minimum wage to all their workers;
At 37 farms (95%) workers were paid at the end of the season;
At 8 farms (21%), workers worked more than 8 hours per day and at 9 farms (25%) workers did notreceive at least one resting day per week;
At 20 of the farms (95%) where workers worked overtime, these hours were not paid at the legal
overtime rate;
Farmers and workers were found to be unaware of the correct legal requirements for overtime rates;
None of the farmers provided workers with all the benefits required by law.

Root Causes
From its experience in the field and in implementing the ALP Program, as well as cross-pollinating at aregional level, MLT has identified several root causes, which may explain some underachievement in theincome and work hours section, particularly regarding the full and timely payment of minimum wage toworkers:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)

Lack of Business Planning;
Profitability (keep money at home);
Farmers are not held accountable (“can get away with it”);
Hiring without need (over hiring);
Hiring for status / replicating others;
Lack of affordability;
Lower yields;
Insufficient cash flow/ End of season payments;
Understanding of work done by worker and how it relates to minimum wage;
Migrant workers staying at farms for full tobacco growing period;
Receipt of in-kind payments (understanding);
Lack of enforcement;
Tobacco being the main or only income (“cash cow”).

Although it may not be possible to address all root causes, by identifying the main underlying root causes,
MLT is able to better outline the initiatives it will promote to eliminate or improve each finding.
Appendix I - MLT Action Plan_ page 19 of 36

53

External Assessment

Actions developed prior to the 2018 Control Union Assessment
Although there is still much to be done in terms of income and works hours and compliance with the law,
MLT has made relevant progress in training farmers and workers with many legal aspects related to theemployment of labour, such as work hours and minimum wage. As with other matters, MLT has been
approaching this in a systematic way, prioritizing certain aspects deemed as essential and basic, such as
minimum wage timely payment, and leaving other topics for a later stage when the first concepts are fullycomprehended and engaged with.
MLT distributed, and will continue to distribute, employment contract templates to all farmers withseasonal labour (estimated 10%), which work both as a training tool for farmers and workers and as a wayof avoiding disputes at the end of the season.
MLT promotes the biggest food security program developed by a private company in Mozambique,distributing maize seed to all its farmers (the best ones also receiving fertilizer).
Action Plan & Expected Outcomes following 2018 Control Union Assessment
To address the issues identified, MLTC has planned the following actions:(i)

Early Flagging System / Pre-Season Due Diligence with Farmers:• FINDING ADDRESSED:o 35 farmers (95%) did not pay at least the legal minimum wage to all their workers.
• ACTIONS:o Pre-Season Due Diligence with Farmers - Farmers informed and trained throughout theentire season on ALP requirements should they employ labour. Awareness campaign tostrongly discourage labour hiring by farmers with 0.5 ha or less and emphasise importanceof paying the minimum wage.
o Early Flagging System:- Phase 1 – Following the identification of farmers with labour in CY18 and confirmationof CY19 contractual status, train and sensitize farmers on hiring needs and CoP basic
criteria (i.e. no need for labour at 0.5 ha or less). Upfront communication of expectations
and warning of contractual consequences of non-compliance, as well as delivery of thetools and support available to ensure compliance.
- Phase 2 – Close monitoring of identified subset of farmers regarding execution of written
employment contracts, usage of PPE and accommodation provided to farmers
throughout the season.
• EXPECTED OUTCOMES:o Farmers fully informed of ALP mandatory nature and consequences of non-compliance.
o Change in behaviour towards ALP because both field teams and farmers fully aware of theconsequential impact of breaching company procedures, in particular ALP-related. Farmers
with labour fully compliant in key focus areas identified (written employment contract, PPE
usage and accommodation).
• TIMELINES:o Both actions will be continuously developed throughout the season so farmers are properly
trained and informed by the beginning of the following season and discouraged from
employing unnecessary labour.

Appendix I - MLT Action Plan_ page 20 of 36

54

External Assessment• TARGETS:
o Training on Principle 2 of the ALP Code will be given to all farmers but, due to its nature, the
Early Flagging System will focus on farmers with labour.
(ii)

Farmer Segmentation based on Salary Paid to Workers:• FINDING ADDRESSED:o 35 farmers (95%) did not pay at least the legal minimum wage to all their workers.
• ACTIONS:o Farmer Segmentation based on salary paid to workers - Farmers categorized according topercentage of minimum wage paid and subsequent action plan to address gap between
amount paid and minimum wage. Initially, collect data on amounts paid in CY19 andcompare to values due according to hours worked on tobacco. With this information,
segment farmers and draft action plans per range, prioritizing those further away frommeeting minimum wage requirements. Once the Farmer Segmentation is complete, theaction plans per category/segment will be outlined linking with income generating
initiatives.
o This process will be strengthened by the Support & Enforcement MLT adopted, whereby
farmers are informed that they will be required to pay minimum wage to labour(training/message focused on effective need to hire, importance of improving yields, etc.).
• EXPECTED OUTCOMES:o Report with analysis on percentage/amount of minimum wage paid by farmers(segmentation) and action plans to address gaps.
o Change in behaviour towards ALP because both field teams and farmers fully aware of theconsequential impact of breaching company procedures, in particular ALP-related.
o Non-compliant farmers identified and contracts not renewed for following season, withclear indication of the reasons for non-renewal.
• TIMELINES:o Data collection and analysis by the end of CY19.
o Action plans prepared for CY20.
o Support & Enforcement implementation as of CY19 Q3.
• TARGETS:
o 100% of workers paid, at least, the minimum wage by CY22..

(iii)

Income Generating Initiatives:• ACTION 1 – Village Savings and Loans Associations:• FINDINGS ADDRESSED:o 35 farmers (95%) did not pay at least the legal minimum wage to all their workers;o 37 farmers (95%) did not pay workers according to the law as the payments were at the endof the season.
• ACTIONS:o Village Savings and Loans Associations (VSLA) – In a partnership with an expert NGO, MLT
will promote the setup of, at least, 50 VSLAs, prioritizing areas with the highest levels ofchild labour and with farmers with labour.
• EXPECTED OUTCOMES:Appendix I - MLT Action Plan_ page 21 of 36

55

External Assessmento By participating in a VSLA, farmers or their spouses will be able to access small loans tocover both school supplies and labour if necessary.
• TIMELINES:o Meetings with NGOs and proposal requests to be completed by the end of November 2018;
o Pending availability of NGOS, initial setup of 20 VSLAs to be concluded by March 2019 andthe setup of the remaining 30 VSLAs to be concluded by May 2019.
• TARGETS:o The implementation of the VSLAs will begin with a trial of 50 groups covering between 750
and 1,250 farmer households in total (each group has approximately 15-25 members). Thisaims to measure results and analyse its potential rollout to all operating zones, prioritizing
areas with predominance of workers and child labour concerns.
• ACTION 2 – Business Planning and Financial Literacy Trainings:• FINDING ADDRESSED:o At 2 farms (3%), CU found evidence of child family members below 13 helping with tobacco.
• ACTIONS:o Combined with the previous point, MLT will also provide farmers with specific training on
business planning and financial literacy in an attempt to improve farmers’ management
skills. This action will also have a connection with the Diversification initiatives that MLT iscurrently planning and, therefore, will have to be discussed and aligned with the respective
team.
o ALP field teams will also be trained as future trainers to expand the training to all farmers
during group meetings.
• EXPECTED OUTCOMES:o By providing this training to farmers, it is expected that their planning skills and overall
results improve (e.g. by properly assessing all inputs and labour he will actually need, thefarmer can better plan his agricultural activity). Better managed farm resources will improve
farmers’ profitability, thus enhancing their ability to hire labour and eliminating resorting
to children.
• TIMELINES:o Timelines on this action depend on outcomes of trials and development of supply chains.
• TARGETS:o Timelines on this action depend on outcomes of trials and development of supply chains.
o Initially this action will target areas with farmers that are hiring workers and areas with thehighest child labour levels.
o• ACTION 3 – Liaison with Microfinance Institutions:• FINDINGS ADDRESSED:o 35 farmers (95%) did not pay at least the legal minimum wage to all their workers;o 37 farmers (95%) did not pay workers according to the law as the payments were at the endof the season.
• ACTIONS:o MLT will procure and identify reliable microfinance institutions and convey their contacts
to farmers as a possibility for them to access small credit to address their labour needs.
Appendix I - MLT Action Plan_ page 22 of 36

56

External Assessment• EXPECTED OUTCOMES:o The linkage of farmers to reliable microfinance institutions aims to facilitate their access tosmall credit to address day-to-day needs, such as school supplies, but also to assist with
their agricultural activity (e.g. access to labour during peak periods) or help them start a
new business. If farmers resort to these microfinance institutions, they will also beprotected from “loan sharks” who often take advantage of the lack of formal banking
mechanisms to charge exorbitant interest rates.
• TIMELINES:o Procurement of reliable microfinance institutions to be completed by February 2019;o Once procured, contacts will be conveyed to farmers by publicizing at baling centres which
will be done in March 2019 at the beginning of baling period.
• TARGETS:
o Identification of three reliable microfinance institutions and display of contacts at all baling
and buying centres.
o Farmers informed of microfinance institutions and, should they wish to, able to resort tosmall credit, able to address money needs during lean period whilst waiting for theirrevenue from tobacco.
(iv)

Record of In-Kind Payments:• FINDING ADDRESSED:o 35 farmers (95%) did not pay at least the legal minimum wage to all their workers.
• ACTIONS:o Training of farmers and leaf technicians on calculating the in-kind payments and its relation
to minimum wage.
o Create contract addendum to enable farmers to record in-kind payments throughout theemployment period and relate it to local market value to assess actual value of payments
made in-kind.
• EXPECTED OUTCOMES:o By the end of CY20, it will be possible to verify the effective value of in-kind payments andrelate it to the 25% legally accepted to be paid in kind.
• TIMELINES:o Contract addendum to be drafted and incorporated in the employment contract template
before CY20 begins to meet targets below.
• TARGETS:
o All employment contract templates to have the in-kind record addendum.
o 75% of all farmers with labour record in-kind payments in CY20 and 100% of all farmers withlabour record in-kind payments in CY21.

(v)

Improved Training Materials:• FINDING ADDRESSED:o At 8 farms (21%), workers worked more than 8 hours per day and at 9 farms (25%) workers
did not receive at least one resting day per week.
o At 20 of the farms (95%) where workers worked overtime, these hours were not paid at thelegal overtime rate. Furthermore, farmers and workers were found to be unaware of thecorrect legal requirements for overtime rates.
o None of the farmers provided workers with all the benefits required by law

Appendix I - MLT Action Plan_ page 23 of 36

57

External Assessment• ACTIONS:o Create income and work hours specific training materials;o Review and strengthen training on income and work hours:- Cost of Production Calculation Basis = No need for labour at 0.5 Ha or less (this will be
explained to discourage unnecessary hiring);- Refresh on minimum wage and work hours;- Train on in-kind payments, rest periods and overtime rules.
o Distribute written contract templates together with labour law flyer.
• EXPECTED OUTCOMES:o Revised training materials;
o Farmers with 0.5 Ha or less do not hire unnecessarily;o Farmers and labour expected to know several aspects related to income and working hours(legal min wage, in-kind payment, overtime, legal benefits, etc.) and have a written contractfor every season;o Farmers ensure labour receives all legal benefits.
• TIMELINES: Training materials to be reviewed and distributed by the end of March 2019 andmessage conveyed from there on until the end of CY19.
• TARGETS: Training on Principle 2 of the ALP Code will be given to all farmers but, due to its nature,
this action will prioritize farmers with labour and their workers. Once again, MLT will continue toinvest in the training of labour so they too can act as ALP enforcement agents (e.g. if labour isinformed it will less likely accept unlawful working conditions).
(vi)

Review of Employment Contract Template & Trial on Time Worked in Tobacco:• FINDING ADDRESSED:o At 8 farms (21%), workers worked more than 8 hours per day and at 9 farms (25%) workers
did not receive at least one resting day per week. At 20 of the farms (95%) where workers
worked overtime, these hours were not paid at the legal overtime rate. Furthermore,
farmers and workers were found to be unaware of the correct legal requirements forovertime rates.
• ACTIONS:o Study contractual alternatives under Mozambican law with the aim of identifying the mostsuitable one to regulate work periods of tobacco workers.
o Conduct a trial under which farmers fill out a time recording template to assess actual time
worked in tobacco.
o Trial to include two scenarios:- 50 templates with Morning and Afternoon periods;- 50 templates with Morning Hours and Afternoon Hours.
• EXPECTED OUTCOMES:o Farmers and seasonal workers are distributed the most suitable employment contract
template, which covers all specific aspects associated with tobacco culture, such as work
periods.
o Farmers and workers are able to jointly record the time that has been worked in tobaccoand thus able to link it to that payment due to the worker.
• TIMELINES:o Trial in CY19 during harvesting season (tentatively March 2019) with aim to roll-out in CY20.
• TARGETS:

Appendix I - MLT Action Plan_ page 24 of 36

58

External Assessmento Distribution of employment contract templates to all farmers with seasonal labour fromCY91.
o The time recording trial in CY19 will cover 100 farmers with labour.
o If rolled out in CY20, this recording template would cover all farmers with workers.
(vii) Third Party Verification on Direct Payments
To ensure all the actions described above lead to effective change in behaviour, there will also be externalverifications of amounts actually paid to workers vs. payments agreed in the contract. These verifications,
initially towards the cost of production hours and secondly towards minimum wage (including in-kindpayments), will be conducted by a third party.
For CY19 verifications, this assessment will be done in August/September 2019 in relation to returning
workers (upon return to the farm, the third party organization will be able to assess whether the amountagreed in the previous season was effectively paid).
3.3.

ALP Code Principle 3: Fair Treatment

Main findings and challenges identified during the 2018 Control Union Assessment
During its assessment, CU identified the following situations related with fair treatment:
(i)

(ii)

Control Union did not find any evidence of sexual or physical abuse. Only a single case of verbal abuse
was identified which involved a farmer threatening workers to deduct 100 MZN from their payment
each time they did something wrong or something he did not approve of;At the time of CU's assessment, MLT had no support mechanism in place. At all but one of the farms
visited by CU, farmers were found to be available to their workers.

In general, the findings under this ALP principle are considered either acceptable or adequate and nosituation that requires immediate action was identified. However, MLT will reinforce certain aspects of its
operation to ensure workers continue to be treated fairly. These actions, of course, complement the ones
described above on income and work hours, as payment of minimum wage, for instance, can also reflect
the fair treatment principle.
Action Plan & Expected Outcomes following 2018 Control Union Assessment
To address the issues identified, MLTC has planned the following actions:(i)Treatment of Workers:• FINDINGS ADDRESSED:o Control Union did not find any evidence of sexual or physical abuse.
o Only a single case of verbal abuse was identified which involved a farmer threatening
workers to deduct 100 MZN from their payment each time they did something wrong or
something he did not approve of.
• ACTIONS:o Create fair treatment specific training materials, particularly focusing on the prohibition ofsexual abuse or harassment of workers’ wives and the prohibition of all discrimination(focus on nationality discrimination due to the presence of many Malawian workers);o All actions above mentioned in (iv) Improved Training Materials under ALP Code Principle
2: Income and Work Hours also apply to the treatment of workers;

Appendix I - MLT Action Plan_ page 25 of 3659

External Assessment• EXPECTED OUTCOMES:o New training materials on fair treatment of workers;o Farmers trained and aware of all aspects under the fair treatment principle but particularlyon the prohibition of sexual abuse or harassment and of discrimination based on nationality;o All expected outcomes actions above mentioned in (iv) Improved Training Materials under
ALP Code Principle 2: Income and Work Hours.
• TIMELINES: Training materials to be reviewed and distributed by the end of March 2019 andmessage conveyed from there on until the end of CY19. Training to continue in the following
seasons, resorting to new materials.
• TARGETS: Training on Principle 3 of the ALP Code will be given to all farmers but, due to its nature,
this action will prioritize farmers with labour and their workers. Once again, MLT will continue toinvest in the training of labour so they too can act as ALP enforcement agents (e.g. if labour isinformed it will less likely accept unlawful working conditions).
(ii)

Grievance Mechanism• FINDINGS ADDRESSED:o At the time of CU's assessment, MLT had no support mechanism in place.
o At all but one of the farms visited by CU, farmers were found to be available to theirworkers.
• ACTIONS:o In past seasons, MLT has mediated several disputes between farmers and workers, most ofwhich led to successful outcomes. Whenever situations exceed MLT’s authority or mandate,they are escalated to the appropriate authorities.
o MLT now intends to further promote this interim informal mediation system while a more
independent mechanism is sought. This will be done by conveying to farmers and workers
its availability to mediate employment related disputes both by disclosing and publicizing
the escalation process in trainings (group meetings and on-farm visits) and by posting thisinformation in baling centres and buying centres.
• EXPECTED OUTCOMES:o Farmers and workers aware of the informal mediation system MLT leads, including theprocedure they must follow for such purpose.
• TIMELINES: Convey message on informal mediation system to farmers and workers throughout
CY19. Explore options to formalize grievance mechanism as of CY20.
• TARGETS:o Farmers and labour fully aware of MLT's availability to assist and mediate employment
related disputes.
o Escalation process documented and posted at all baling and buying centres.

3.4.

ALP Code Principle 4: Forced Labour

Main findings and challenges identified during the 2018 Control Union Assessment
During its assessment, CU identified the following situations related with forced labour:(i)

At one farm (2%) evidence was found of indirect payment, where the worker's salary was paid to theworker's parents;

Appendix I - MLT Action Plan_ page 26 of 36

60

External Assessment(ii)

At 33 farms (92%), workers were unlikely to leave their employment at any time because they were
paid at the end of season.

Action Plan & Expected Outcomes following 2018 Control Union Assessment
To address both direct and end of harvest payments, MLT will focus its efforts in promoting income
generating activities and improved management skills by the farmer (particularly on actual hiring needs),
which are expected to enable the farmers to pay workers more frequently throughout the season. Pleaserefer to all income and work hours above for additional details.
3.5. ALP Code Principle 5: Safe Work Environment
3.5.1. Training and Awareness of GTS and Training and Handling of CPA
Actions developed prior to the 2018 Control Union Assessment
The Control Union report identified the following positive findings at the farms assessed:
(i)
(ii)
(iii)
(iv)

At 75%, all persons handling green tobacco were trained on GTS;
At 81%, all persons handling green tobacco were aware of the existence and avoidance of GTS;
At 85%, farmers fully understood what GTS was and/or how to avoid it;
At 90%, all persons handling and/or applying CPA were trained on its usage.

These very encouraging results are a product of MLT’s investment in adequately training farmers on training
and promoting awareness of GTS and handling of CPAs. Annually, MLT not only refreshes farmers, family
members and workers on how to avoid GTS and how to, proper and safely, apply CPAs, but also distributes
PPE for CPA application and harvesting.
Main findings and challenges identified during the 2018 Control Union Assessment
During its assessment, CU identified the following situations related with training and awareness of GTS andtraining and handling of CPA:
(i)
(ii)
(iii)
(iv)
(v)

At 20 farms (25%), not all persons handling green tobacco had been trained and at 15 (19%) farms
not all persons handling green tobacco were aware of the existence and avoidance of GTS;At 12 farms (15%) farmers did not fully understand what GTS was and/or how to avoid it;
At 75 farms (94%) not all persons handling green tobacco were wearing the full set of required
harvesting clothes;
At 8 farms (10%) not all persons handling and/or applying CPA were trained in CPA use;
At 79 farms (99%) people responsible for CPA application did not use the complete set of PPE.

Action Plan & Expected Outcomes following 2018 Control Union Assessment
To address the issues identified, MLTC has planned the following actions:(i)Training and Handling of CPA• FINDINGS ADDRESSED:o At 8 farms (10%) not all persons handling and/or applying CPA were trained in CPA use;o At 79 farms (99%) people responsible for CPA application did not use the complete set of
PPE required harvesting clothes.
• ACTIONS:Appendix I - MLT Action Plan_ page 27 of 36

61

External Assessmento Re-train all farmers on safe work environment focusing on hazardous tasks using the new
training materials and promoting specific training sessions as mentioned above in the childlabour section.
o Promote PPE availability to ensure CPA application is done in a safe manner by distributing
PPE with seedbed kits, focusing particularly on farmers with labour to ensure it is sufficient
for all people on farm applying CPAs.
o Under the abovementioned Support & Enforcement, farmers will be informed on theconsequential action of non-compliance with ALP and there will be consequential actions incase of prompt action incidents related to CPA application.
o Review current PPE suitability to assess whether more PPE items are needed and whether
the specifications of the current ones are compliant with international guidelines. Assess
potential alternatives to strengthen farmers and workers protection when applying CPAs
and/or harvesting (also applicable to GTS section below).
• EXPECTED OUTCOMES:o All people handing/applying CPAs must be trained;o Most suitable PPE for CPA application provided to farmers and workers;o PPE distributed is sufficient for all people applying CPAs;o Change in behaviour towards ALP because both field teams and farmers fully aware of theconsequential impact of breaching company procedures, in particular ALP-related;o Non-compliant farmers identified and contracts not renewed for following season, withclear indication of the reasons for non-renewal.
• TIMELINES:o Training to be done continuously throughout the season, with particular focus on workers
from CY19 onwards;o Review of PPE suitability to be completed in time for updates (if any) to occur in CY20.
• TARGETS:o Farmers Training Targets:- CY19 - >95%
- From CY20 - 100%o Labour Training Targets:- CY19 - >95%
- From CY20 - 100%o Distribution of appropriate and sufficient PPE for CPA application to farmers and workers:- CY19 - >95%
- CY20 - 100%(ii)

Training and Awareness of Green Tobacco Sickness (GTS):• FINDINGS ADDRESSED:o At 20 farms (25%), not all persons handling green tobacco had been trained;o At 15 (19%) farms not all persons handling green tobacco were aware of the existence andavoidance of GTS;o At 12 farms (15%) farmers did not fully understand what GTS was and/or how to avoid it;o At 75 farms (94%) not all persons handling green tobacco were wearing the full set of
required harvesting clothes.
• ACTIONS:Appendix I - MLT Action Plan_ page 28 of 36

62

External Assessmento Re-train all farmers on safe work environment focusing on hazardous tasks using the new
training materials and promoting specific training sessions as mentioned above in the childlabour section.
o Promote PPE availability to ensure harvesting is done in a safe manner: distribution of
sufficient GTS gloves for all people on farm (CY19 = 8 pairs/ha) and inclusion of GTS gloves
as part of input package from CY20.
o Under the abovementioned Support & Enforcement, farmers will be informed on theconsequential action of non-complying with ALP and there will be consequential actions incase of prompt action incidents related to harvesting/GTS.
• EXPECTED OUTCOMES:o All people handing green tobacco and/or CPA must be trained. Again, training will place a
lot of focus on workers.
o All people on farm who come into contact with green wet tobacco have a pair of GTS gloves
to work with and harvesting is done with usage of appropriate PPE.
• TIMELINES:o Distribution of GTS gloves in CY19 to be completed by the end of February, prior to reaping.
o Inclusion of GTS gloves as part of the CY20 input package to be discussed and outlined
during CY19 season.
• TARGETS:o Farmers Training Targets:- CY19 - >95%
- From CY20 - 100%o Labour Training Targets:- CY19 - >95%
- From CY20 - 100%o Distribution of GTS PPE to 100% of farmers and labour (CY19).
3.5.2. Workers’ Accommodation
Actions developed prior to the 2018 Control Union Assessment
The Control Union report identified the following positive findings at the farms where workers lived onfarm that were assessed:
(i)
(ii)

At 90%, farmers provided adequate accommodation to workers;
At 63%, there were sanitary facilities close to where labour worked.

The results of Control Union’s assessment regarding labour accommodation show MLT has been successfulin training and promoting awareness among farmers regarding the need to provide housing as per theirown basic needs.
Main findings and challenges identified during the 2018 Control Union Assessment
During its assessment, CU identified the following situations related with labour accommodation:
(i)
(ii)

8 farms (10%) had inadequate workers' accommodation;
23 farms (37%) did not have sanitary facilities close to where workers worked.

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63

External Assessment

Action Plan & Expected Outcomes following 2018 Control Union Assessment
To address the issues identified, MLT has planned the following actions:(i)

Improve Farmers and Labour’s Awareness of basic Mozambican labour laws, specially labour
accommodation requirements• FINDING ADDRESSED:o 8 farms (10%) had inadequate workers' accommodation.
• ACTIONS:o Re-train all LTs and farmers on safe work environment focusing on accommodation;o Under the Early Flagging System described above, monitor general status ofaccommodation provided since the beginning of the season and closely follow-up with
farmers if improvements needed.
• EXPECTED OUTCOMES:o All farmers with labour and labour must be aware of minimum accommodation
requirements.
o Farmers with labour provide adequate and compliant accommodation.
• TIMELINES: Training to be done continuously throughout the season, with particular focus on
workers from CY19 onwards.
• TARGETS:o Farmers Training Targets:- CY19 - >95%
- From CY20 - 100%o Labour Training Targets:- CY19 - >95%
- From CY20 - 100%(ii)

Update and Validate Labour Accommodation Minimum Standards• FINDING ADDRESSED:o 8 farms (10%) had inadequate workers' accommodation.
• ACTIONS:o Update current minimum standards for labour accommodation (which, in the absence ofstatutory guidelines were settled by MLT and should follow the farmer’s accommodation)with materials that may be used;o Engage with a third party for validation of such requirements;o Benchmark with international standards and, in case of a significant gap, revisit minimum
standards to align.
• EXPECTED OUTCOMES:o Updated and validated labour accommodation minimum standards;
o Compliant accommodation provided to all workers.
• TIMELINES:o Minimum standards to be reviewed, updated and validated by February/March 2019.
• TARGETS:
o 100% of farmers with labour provide compliant (safe and clean accommodation) to workers
who live on-farm.

Appendix I - MLT Action Plan_ page 30 of 3664

External Assessment(iii)

Baseline Assessment on Labour Accommodation• FINDING ADDRESSED:o 8 farms (10%) had inadequate workers' accommodation.
• ACTIONS:o Following the diligence on labour accommodation minimum requirements, conduct
assessment to create baseline on accommodation currently provided;o Sensitise farmers to improvements needed and monitor to ensure completion.
o In case of systemic problem, resort to contingency fund and assist farmers with materials
and potentially builders to upgrade labour accommodation to meet standards. In case of
persistent non-compliance, reduce farmer's area to 0.5 ha.
• EXPECTED OUTCOMES:o Upgrade on labour accommodation identified as requiring improvements.
o Compliant accommodation provided to all workers.
• TIMELINES:o Baseline on Accommodation provided by farmers with labour within three months ofminimum standards validation.
• TARGETS:
o 100% of farmers with labour provide compliant (safe and clean accommodation) to workers
who live on-farm by CY20.

3.6.

ALP Code Principle 7: Compliance with the Law / Terms of Employment

Main findings and challenges identified during the 2018 Control Union Assessment
During its assessment, CU identified the following situations related with compliance with the Law:
(i)
(ii)

None of the informed their workers fully about their legal rights. At two (5%) of the farms workers
were not aware of how much they would be paid;
At 16 farms (39%) not all workers had written contracts as required by national law.

Action Plan & Expected Outcomes following 2018 Control Union Assessment(i)

Information on Legal Rights and Working Conditions• FINDINGS ADDRESSED:o None of the informed their workers fully about their legal rights. At two (5%) of the farms
workers were not aware of how much they would be paid;o At 16 farms (39%) not all workers had written contracts as required by national law.
• ACTIONS:o Improve awareness of basic Mozambique labour laws amongst workers;o In areas with high number of farmers with labour, promote the participation of workers ingroup meetings/trainings, preceded by a sensitization campaign with farmers who are often
the main challenge to labour being informed;o Conduct meetings closer to the farms so distance is not a barrier for workers' participation.
o In addition, always ensure the workers presence at on-farm trainings;
o Labour training also centred on key focus areas;o Distribution of written employment contract templates and labour law flyers.
• EXPECTED OUTCOMES:Appendix I - MLT Action Plan_ page 31 of 36

65

External Assessmento Farmers and labour expected to know several aspects related to income and working hours(legal min wage, in-kind payment, overtime, legal benefits, etc.);o Farmers and seasonal labour expected to have a written employment contract for every
season;o All farmers with seasonal labour enter into employment contracts with all workers on farm.
• TIMELINES: Training and contract distribution to be done continuously every season, withparticular focus on workers from CY19 onwards.
• TARGETS:o Farmers Training Targets:- CY19 - >95%
- From CY20 - 100%o Labour Training Targets:- CY19 - 65%- CY20 - 75%- CY21 - >85%
- From CY22 - >95%
o Employment contract distribution – 100% of farmers with seasonal workers

Appendix I - MLT Action Plan_ page 32 of 36

66

External Assessment

4.

CONCLUSION

MLT’s proposed action plan is an ambitious and rigorous program, particularly challenging to enforce in an
adverse context like Mozambique. However, the entire company is fully engaged and committed inachieving the set targets and contributing to an actual behavior change in the tobacco-growing
communities.
Following an initial phase focusing on training and awareness raising, MLT now wants to fully embrace a
Support & Enforcement to convert the levels of knowledge into practice. Main issues to consider will be theenforcement mechanism but also, and most importantly, exploring alternatives for farmers to be able toimprove their overall livelihood.
As mentioned, in order to focus efforts and promote the best possible results, MLT will be concentrating on
the four key focus areas and particularly on farmers with labour.

Appendix I - MLT Action Plan_ page 33 of 36

67

External Assessment

ANNEX ICURRUCULUM OF THE TOBACCO TRAINING COURSE AT IAC
1. Tobacco Production (400 hours) 11 Modules
a. Introduction
i. The importance of the tobacco in Mozambiqueii. Types tobacco produced in Mozambiqueb. MODULE I – SEEDBEND MANAGEMENT
i. Seedbed site selection
ii. Seedbed rotationiii. Seedbed preparation
iv. Seed and sowing
v. Germinationc. Knowledge Test
d. MODULE II – TRANSPLANTING AND SEEDLING CARE
i. Transplanting your seedlings into reset beds
ii. Disease managementiii. Weeding
iv. Top dressing
v. Hardening your seedlings
vi. Pulling your seedlingse. Knowledge Test
f. MODULE III – FIELD OPERATIONS
i. Crop rotation
ii. Field layout during land preparationiii. Ridge preparation and tie ridging
iv. Holing out
v. Transplanting
vi. Gap fillingvii. Fertiliser application
viii. Hand cultivationg. Knowledge Test
h. MODULE IV– INTEGRATED PEST MANAGEMENT
i. Cultural control
ii. Ecological and natural controliii. Chemical control Ridging and holing out
i. Knowledge Test
j. MODULE V – SOIL MANAGEMENT AND CONSERVATION TILLAGE
i. Soil quality and slopes
ii. Marker ridges and contour bandingiii. Growing vetiver (Chrysopogon zizandoides) hedgerows
iv. Agroforestry
v. Cover crops
vi. Gully reclamationvii. Minimum tillage (strip tilling and continuous row cropping)viii. Mulching
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68

External Assessmentk. Knowledge Testl. MODULE VI – SOIL PROPERTIES
i. Soil formationii. Soil properties
iii. Soil horizons
iv. Choosing the best soil for your crops
v. How to improve your soilm. Knowledge Test
n. MODULE VII – PESTS AND DISEASES (Part I & ii)
i. Part One: Diseases that affect tobacco production
ii. Part Two: Pests that affect tobacco production Burleyo. Knowledge Test
p. MODULE VIII – TOPPING AND SUCKERING
i. Toppingii. Sucker control
q. MODULE VIIIa – FCV TOPPING AND SUCKERING
i. Toppingii. Sucker controlr. Knowledge Tests. MODULE IX - BARN CAPACITY, REAPING AND CURING:
FLUE CURED VIRGINIA TOBACCO
i. FCV yield capacity
ii. Curing capacity and barn preparationiii. Recommended standard and rocket barns
iv. Reaping procedures
v. Loading leaf into a curing barn
vi. Curing FCV tobaccovii. Storage of cured tobaccot. Knowledge Testu. MODULE IX a – BARN CAPACITY, REAPING AND CURING: BURLEY TOBACCO
i. Burley yield capacity
ii. Barn capacity and preparationiii. Reaping procedures
iv. Handling reaped leaves
v. Curing Burley tobaccovi. Storage of cured tobacco
v. Knowledge Test
w. MODULE IX a – BARN CAPACITY, REAPING AND CURING: DFC TOBACCO
i. DFC yield capacity
ii. Barn capacity and preparationiii. Reaping procedures
iv. Handling reaped leaves
v. Curing DFC tobaccovi. Storage of cured tobaccox. MODULE X – AGRICULTURAL LABOUR PRACTICES
i. ALP principles
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69

External Assessment

ii. What is child labouriii. Child labor in tobacco production
iv. Understanding the hazards and risks in tobacco production
v. Why are children more vulnerable to these risks than adults
vi. How to manage the risksvii. Eliminating child labour in tobacco production
y. FORESTRY
i. Importance of trees in tobacco production
ii. Seedbeds preparation and sowingiii. Pot filling
iv. Seedbed management
v. Main trees species for MLT forestry programvi. Regeneration and bushfires control
vii. Woodlots and commercial plantations establishment and management,z. OTHER CROPS (Maize, beans, soy and pigeon peas)
i. Importance of food crops in tobacco production
ii. Plant morphologyiii. Land preparation
iv. Seed varieties available in the market
v. Sowing methods
vi. Basal fertilizer applicationvii. Weeds control
viii. Top dressing fertilizer and banking
ix. Pests control
x. Production estimatesxi. Harvesting and processing
aa. Communication
i. Extension methodologies
ii. Adult learning processiii. Importance of knowing the dynamics of rural communities
iv. Adoption of new technologies and reaction of rural communities
v. Importance of farmers training
vi. Communicationvii. Skills Instructors Training

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70

External Assessment

Appendix II – Scope and methodology

Assessment teamOpening meeting

The team responsible for conducting this assessment
consisted of three auditors from Mozambique andtwo coordinators – one from Brazil and one from
Germany. The auditors conducted farm assessments
and interviewed the field technicians, and wereaccompanied by the coordinators during the wholeassessment. The two coordinators interviewed
MLT management and the Agronomy team. The
auditors as well as the coordinators had been
trained by Verité and CU before the assessment.
This qualification process consisted of the following

On 27 February 2018, CU started the assessmentwith an opening meeting at MLT’s head office inTete, Mozambique. This meeting was attended by
MLT’s ALP Team and Steering Committee, including
the Managing Director, Strategy and Business
Planning Director, Agronomy Director, ALP &MobiLeaf Manager, ALP National Manager, ALP
National Manager and Head Agronomy Manager
for the North region. Furthermore, the meeting wasattended by a representative from PMI Regional. A
Verité consultant was also present at the opening
meeting. CU presented the objectives and approachof the assessment, while MLT provided a brief
overview of the market and company background.

stages:•  Selection of candidates by CU;•  Webinars organized by CU to verify suitability ofcandidates;•  Completion of online training provided by Verité;•  Full week classroom training conducted by Verité
with CU; and•  Two-day preparation training by CU directlyprior to starting the field visits.
Desk review
Prior to this assessment MLT was requested to send
documentation to CU to give the assessment teama better idea about the market characteristics andthe management systems that were in place. MLT
provided the legal information that was relevant to
the ALP Code (see Appendix III for more detailed
legal information). This was important to ensure athorough preparation of the assessment.

Methodology for ALP implementation systemreview
The methodology used for the evaluation of
MLT’s implementation of the ALP Program wasbased on the widely used PDCA6 cycle. This cycle
is a management method for the continuous
improvement of processes and products. CU spent
one and a half days (27 and 28 February 2018) at
MLT’s head office to interview management staff,
analyze documentation and evaluate MLT’s systems
to better understand how the implementationof the ALP Program was organized. In total, CU
interviewed ten management personnel7, 21 field
personnel8, and one representative of PMI Regional.
Scope and farm samplingThis assessment focused on the FCV farmers
located in the Molocue and Lichinga regions (seegraph below). The two regions were consideredhomogenous and comparable based on farm size,
geographical spread, language spoken and cultural
aspects, and were therefore assessed together
within the same scope.

Plan, Do, Check, Act
All members of the ALP Country team and Steering Committee
8
21 field technicians.
67

Appendix II - Scope and Methodology _ page 1 of 471

External Assessment

Scope of assessment: FCV farmers in North Niassa(Lichinga region) and North Zambezia (Molocue
region). Source: MLT.
In the two regions assessed, the majority of the
farmers grew an area of one hectare or less of•  Geographic spread; andtobacco contracted by MLT (see graph below).

•  Farm size: different farm sizes selected toensure diversity, but focus on the larger farms
to ensure labor practices could be assessed.

In 2017 MLT had contracted a total of 6,184 FCV
farmers in the Lichinga and Molocue regions. To
constitute a meaningful sample CU needed tovisit at least 79 farms, the square root of the total
population of farmers within the scope. In total,
CU visited 80 farmers, which were either sampled
randomly or selected based on the following
criteria::

Farm size (N=80)(ha contracted by MLT)

Over a period of three weeks, CU visited anaverage of twelve farms per day, with a reporting
day after each field day. The graphs below provide
demographic information about the selected
farms.

Farmers previously contraced by MLT(N=80)

14%
39%

61%

86%
0-1 hectareYes

1-2 hectare

No

Appendix II - Scope and Methodology _ page 2 of 472

External Assessment

Stage of tobacco production

80

78

76

60

40

20

16
3

0
Topping Harvesting

CuringDue to the openness and collaboration of MLT, CU
managed to conduct 95% of the visits unannounced9. This meant that the farmers had not been informed
about the visit and its objective prior to CU’s arrival.
MLT had informed farmers several weeks before
the assessment that a visit could take place withina certain period but said nothing in the days prior to
the visits. CU informed MLT about the names of theselected field technicians and selected farmers the
day before the visit would take place. The reason forthis was that CU wanted to obtain a realistic pictureof the farm practices, which was most likely to be
seen when arriving unannounced.

Classifying

Methodology for ALP farm practices review
Type of farm (N=80)
1% 3% 1%
3%

46%
31%

15%

Family farm with only family
members working
Farm with family members and local
workers
Farm with family members andmigrant workers
Farm with only migrant workers (nofamily members)
Farm with local and migrant
workers (no family members)

The methodology used during the farm visits was
based on triangulation of information. Auditors were
instructed to seek at least two, preferably three,sources of information. They used their findings
to draw conclusions about whether farm practices
were meeting the standard of the ALP Code. Thesesources could be interviews with farmers, family
members, workers, crew leaders, or sharecroppers.
Sources could also include documentation andvisual observation of the farm area, field, storage
facility, and curing barns. This methodology was
also used to investigate the underlying factors that
increase the risk of not meeting the standard. In
addition to information triangulation CU also used
the “Five Whys” methodology, a commonly usedtechnique to obtain an understanding of problems,
to investigate the reasons behind certain issues.
Before every interview CU explained the objectiveof the assessment and assured interviewees that all
information would be kept completely anonymous.
Next to assessing labor practices, CU also verified
the impact of MLT’s management systems at thefarms, to assess how these were perceived by thefield technicians, farmers, family members, andother people working at the farms.

Farm with family members and local
and migrant workers
Farm with only local workers (nofamily members)

9

At four farms, the field technician had announced the visits the day before. He faced disciplinary action for doing this.
Appendix II - Scope and Methodology _ page 3 of 473

External Assessment

People interviewed

Duration of employment of(41 people interviewed in total).

Wherever possible, interviews with family members
and workers were conducted individually andwithout the presence of the farmer, to avoid undue
bias. For the same reason, all interviews with
farmers were conducted without the presence ofthe field technicians. In total, CU interviewed 80
farmers, 51 family members and 41 workers.
Demographic information on the family members
and external workers interviewed:

hired

workers

2% 2%Less than 1 month
1-3 months
29%

45%

3-6 months
6-9 months

22%9-12 months

Type of interviewed
Closing meeting100%

On 16 April 2018 a closing meeting took place at
MLT’s head office in Tete, Mozambique. As with the

45%

75%

50%

External workers
55%

Family members

25%

0

ALP National Manager. Furthermore, the meeting
was attended by a representative from PMI Regional.
A Verité consultant joined the meeting by phone.
CU presented the initial findings and MLT requested
clarification of certain items. A constructive
discussion took place on several topics. Overall, CU’sfindings were considered a useful base for taking
action to improve the implementation of the ALP
Program.

Gender100%

opening meeting, this meeting was attended by MLT’s
ALP team and Steering Committee, including the
ALP Coordinator, Managing Director, Strategy andBusiness Planning Director, Agronomy Director and95%

Reporting procedure
75%
Male

50%

Female
25%

0

10

5%

Leaf tobacco suppliers can start drafting their actionplans after the closing meeting, as initial findings usually
do not differ much from the final report.
Appendix II - Scope and Methodology _ page 4 of 4

During the assessment, auditors reported after eachfield day to the coordinator. This person monitored
the auditors’ findings, and provided feedback
whenever necessary. The coordinator compiled all
findings and combined these with the findings fromthe management assessment. Public release of CU’s
assessment report demonstrates PMI’s commitment
to transparency, which is an important componentof the ALP Program. CU authored the final report,
which was evaluated by Verité. PMI reviewed thereport to ensure consistency of the presentation ofCU’s findings worldwide. Finally, MLT reviewed thereport to verify that all the information was correct,
and to finalize their action plan that was based on thisreport. 1074Appendix III – Legal information

DRAFT-Philip Morris International Work Product

MOZAMBIQUE
Agricultural Labor Practices
LEGAL INFORMATION QUESTIONNAIRE
Summary & Guidance

Understanding the legal situation in the markets from which PMI sources tobacco leaf is critical for ALP Code implementation. With this goal inmind, PMI produces a Legal Information Questionnaire (LIQ).
The LIQ is a key document for third party assessments of the ALP Program in your country.
Your review should cover all laws/decisions/regulations applicable to tobacco. This may include any relevant federal, state, municipal laws,
collective bargaining agreements, and court precedents (collectively ‘Laws’). If there are no Laws related to an items covered, please also indicate
this. We have also provided a separate document (Matters to consider when completing your LIQ) with further guidance.
PLEASE KEEP IN MIND THAT THE LIQ WILL BE READ AND USED MOSTLY BY LEGAL LAYPERSONSStructure

The LIQ is divided into 7 sections which correspond to the 7 ALP Code principles. For each, you will find the following:
Summaryü In a few words, provide an overview of the Market’s legal standards which match, exceed, or oppose the ALP measurable
standards for each principle.
ü Make comments (if any) including any local particularities or variations within your country. These can also be referenced infootnote format where a more detailed discussion is required.
ü Where no related market legal standard can be referenced, write NA (non-applicable) in the cells that apply.
Applicable laws
ü Provide a list of the applicable laws (i.e. Constitution, Employment regulation etc.) included in your answer.
Appendix III - Legal Information _ page 1 of 48

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DRAFT-Philip Morris International Work Productü References may be repeated if the same laws apply to more than one principle.
ü Please include, if possible a link to the official or reliable websites for the references.
ü It is no problem if the same laws appear in more than one section.
Your answer
ü Provide comprehensive yet concise answers to each listed item as identified by subheadings. Please avoid pooling items together
as much as possible.
ü Answer in bullet point format. Please do not use lettered or numbered bullets.
ü Provide context as needed.
ü Limit your answers only to tobacco or agricultural sectors, or explain the general rules applying to these sectors.
ü Include any authority references in footnote format to facilitate reading.
ü Avoid discussions of superseded law at national or international levels. References to current directly applicable law are all that isneeded.

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DRAFT-Philip Morris International Work Product

Agricultural Labor Practices
LEGAL INFORMATION QUESTIONNAIRE
MOZAMBIQUE
Author: Yelena Nairne
Date of Original Analysis: Q1 2017
Date of Updated Analysis: Q1 2018
Principle 1 – CHILD LABOR

Summary
ALP MEASURABLE
STANDARDS
Minimum age for admission
to work is not less than age
for completion of mandatory
schooling
In any case, minimum age foradmission to work is not lessthan 15 years OR theminimum age provided bylaw, whichever offers greater
protection

Appendix III - Legal Information _ page 3 of 48

MATCHESüMARKET LEGAL STANDARDSEXCEEDS
Minimum age foradmission to work is
15 y.o., whereas age
limit for compulsory
schooling is 12 y.o.

OPPOSESCOMMENTS
See further explanations in the answer
Age (or ages) limits for compulsory
schooling below.
Minimum employment age is 15
y.o.
See further explanations in theanswer to the minimum age
below.

77

DRAFT-Philip Morris International Work ProductNo person under 18 involved
in hazardous work

A person must be at least 18 y.o. old to
do hazardous work.
The PMI hazardous tasks list is usedbecause there is no legal definition or
list.

ü

A child may only help on thefamily farm if it is light work
AND if the child is between
13-15 years OR above theminimum age for light work
defined by law, which everaffords greater protection

General rule ofminimum
employment age of
15 years old applies.

The law does not provide any specificdefinition of light work, neither theconditions regarding farmer’s own
children. See further comments on
answer ‘Requirements applying tofarmers’ own children’.

Applicable laws
Constitution of the Republic of Mozambique (22 December 2004)
Civil Code (Decree-Law No. 47344, of 25 November 1966)
Labor Law (Law No. 23/2007, of 1 August 2007)
Law No. 6/92, of 6 May 1992
Your answer
Minimum age for employment (in tobacco)

15 years old, unless the work is unhealthy, dangerous or physically taxing.

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DRAFT-Philip Morris International Work Product

Persons younger than 18 years old can be employed only:(i)

Under authorization of the minor’s legal representative, a verbal authorization is not sufficient, it is necessary a written
authorization.1;

With a health certificate issued before employment, by an official medical center confirming that the child is physically and mentally fit forwork.2 The only condition specified by the law is that the health certificate must mention the minor’s fitness (mental and physical) for work. If
there are minors under employment contracts you should expect to see a health certificate.
Age (or ages) limits for compulsory schooling

12 years old. In Mozambique, schooling is compulsory until the completion of the 7th grade. Children must be enrolled in the year they
complete 7 y.o.3

Definitions of hazardous work (incl. agricultural activities that constitute hazardous work) as well as any tasks that workers under 18 are
specifically prohibited from participating in by law

Not defined specifically except of ‘unhealthy, dangerous or physically taxing occupations. Therefore, for further details please refer to PMI
list of hazardous work.
The law only states that minors under age of 18 are not allowed to work in unhealthy, dangerous or physically taxing occupations. There isno clarity which specific works could qualify as such.
In cases where work is performed in conditions that are particularly dangerous to the health or moral of the minor, the minor should betransferred to another workplace.

Requirements applying to farmers’ own children or other family members such as nieces and nephews helping on the farmers

Article 26.2 of the Labor Law.
Article 24.1 of the Labor Law.
3
Articles 5.1 and 5.3 of Law No. 6/92 of 6 May 1992.
1
2

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DRAFT-Philip Morris International Work Product

The law does not set forth any specific requirements regarding farmer’s own children nor for family members of the farmers, thus thegeneral rules set forth in the Labor Law applies. The law does not define neither ‘light work’.
Therefore, if as a result of your assessment you determine that there is a labor relation, then the minimum age for employment shallapply: 15 years old. If it is not a labor relation, you shall consider the application of the ALP Code, saying that a child may only help on his
or her family’s farm, provided that the work is light work, as defined in the ALP Code implementation guidelines4, and for the case ofMozambique the child is between the ages of 12 and 14.5
Other restrictions or requirements on the employment of workers under 18 years (e.g. limit on work hours, work permits, etc.)

The working schedule of employees under the age of 18 (children between 15 to 17 years old) cannot exceed 7 hours per day, and 38
hours per week.6
Minors under the age of 18 cannot work during night time. The law is not clear enough in the definition of night work. However,according to a valid legal interpretation of some articles of the law, we could consider that night work goes from 8 p.m. (20h00) of one day
to 5 a.m. of the following day.7
The labor authorities have a discretionary power to inspect the activities performed by children and order any additional protection
measures they deem appropriate.

The nature of the work has to be compatible with the development of the child, and free from dangers, i.e. environmental dust, chemicals, machinery, etc.
ILO Convention 138, exception granted for developing countries.
6
Article 23.3 of the Labor Law.
7
A legal interpretation of joint grounds of Article 91.1 and 91.2 of the Labor Law.
4
5

Appendix III - Legal Information _ page 6 of 48

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DRAFT-Philip Morris International Work ProductPrinciple 2 – INCOME AND WORK HOURS

Summary
ALP MEASURABLE
STANDARDS
Wages of all workers meet, at
a minimum, national legal
standards or agricultural
benchmark standards.

MATCHESüMARKET LEGAL STANDARDSEXCEEDSOPPOSESCOMMENTS
The law establishes specificcalculation of minimum wages fordifferent sectors of activity. In thiscase Agricultural sector shall apply.
National minimum wages arereviewed on an annual basis witheffect on 1 April.

ü

According to Mozambican law, wages
can be paid monthly, weekly,
biweekly (fortnight), pursuant to theagreement between employer andemployee, or on any applicablecollective labor regulation
instrument if it were any. To theextent of our knowledge the mostcommonly adopted is the monthly
payment.

üMaximum regular working hours are
48 hours per week and 8 hours perday.

Wages of all workers are paid
regularly, at a minimum, in
accordance with the country’s
laws.

Work hours are in compliancewith the country’s laws.

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DRAFT-Philip Morris International Work ProductExcluding overtime, work
hours do not exceed, on aregular basis, 48 hours perweek.
ü

In principle overtime is voluntary on
the basis of agreement withindividual employee or a collective
labor agreement.
However, the law also provides
special circumstances that could
demand the needs of overtime. See
further explanations in the answers.

Overtime work hours arevoluntary.

Overtime wages are paid at apremium as required by thecountry’s laws or by any
applicable collective
agreement.
All workers are provided withthe benefits, holidays, andleave to which they areentitled by the country’s laws.

Maximum regular working hours are
48 hours per week and 8 hours perday.

ü

There is additional compensation andtime off work (paid) provided for theovertime work.

üThe law establishes requirements forone mandatory weekly rest day(Sunday), social security benefits andannual leave.

Applicable laws
Labor Law (Law No. 23/2007, 1 August 2007)
Social Security Framework Law (Law No. 4/2007, of 7 February 2007)

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DRAFT-Philip Morris International Work Product

Regulations on the Mandatory Social Security (Decree No. 51/2017, of 9 October 2017)Your answer
Laws on regular and overtime wages including laws on in kind payment (e.g. minimum wages, minimum wages agreed with unions,agricultural wage benchmark standards). If a minimum monthly wage is referenced, please indicate how many hours this wage represents

The minimum wage shall be calculated by reference to each specific sector of activity.
For tobacco, we consider the agricultural sector to be of relevance.
Workers comprised in sector 1, which corresponds to agricultural activity, are entitled to a minimum wage of 3’642.00 Meticais8 (roughly
USD 60,13) per month.9 Under the law, the employer may determine a higher value for minimum wage in its company, but never aninferior amount.
Rest days and Holidays:

The work performed during a week-end, paid rest day (e.g., granted for the overtime) or public holidays, i.e. the exceptional work, should
be remunerated in the following manner:(i) as double of the normal wage10; and(ii) within 3 days, the employee should take half a day off (paid) if overtime on week-end, rest day or public holiday constituted 5(consecutive or interpolated) hours or a full day off (paid) if the overtime work continued more than 5 hours.

Ministerial Diploma No.31/2017, of 12 May 2017.
The Labour Law does not establish any criteria to calculate the employee’s daily or hourly base remuneration. However, Decree No. 62/2009, of 8 September
2009 (the “Civil Servants Regulations”), establishes that employees’ hourly base pay is calculated in accordance with the following formula: (VM x 12) / (52 x N),
where “VM” is the employee’s monthly base pay and “N” is the number of hours worked each week.
This formula is primarily used to calculate compensation for overtime, but Decree 62/2009 further establishes that the formula shall be used to calculate amounts
owed for any other fractions of a work period.
This being said, in the absence of criteria in the Labor Law for calculating employees’ daily or hourly base remuneration, the formula mentioned above should
apply on an analogic basis to the private sector and therefore be used to calculate hourly and daily rates of also private sector employees.
10
Article 115.2 of the Labor Law.
8
9

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DRAFT-Philip Morris International Work ProductIn-kind payments:

The Labor Law allows for salary payments to be made partially in cash and partially in kind. There are, however, some limits to payments
in-kind, as follows:(a) A mandatory minimum percentage of 75% of the global salary needs to be paid in cash;(b) Payments in kind must be appropriate to meet the personal interest and use of the employee or his/her family, and although the law issilent about the ‘written condition’, a written agreement between the employer and the employee will help to easily evidence the inkind payment conditions.
Wage and hours laws specific to piece rate workers, seasonal workers, and migrant workers

There are not specific references on the law about this matter.
A piece rate agreement shall fall under the concept of ‘service agreement’, which are not employment contracts.11
Therefore, in the event the work is performed under the service agreement regime the remuneration of the person shall be determinedby professional tariffs; in their absence, by custom and in the absence of either, on an equitable basis. Thus, assuming that there is no
applicable professional tariffs or custom, on an equitable basis one may still resort to the minimum wages set forth for the Agricultural
sector as benchmark to calculate the rate. No other labor benefits shall apply if you are under a piece rate agreement because thenature of your legal relation is a service agreement governed by the Civil Code rules.
Therefore, a piece rate agreement may fall under any of the following categories, depending on the actual facts of the situation you areassessing:
•
•
•

11
12

A worker under a real employment relationship with the beneficiary of the activity. In this case, the labor rules apply, as forexample those related to regular and overtime hours and their respective wages calculations.
A professional relationship under a service agreement with the beneficiary of the activity which places him/her in an economic
subornation situation with the beneficiary of the services. In this case, the labor rules shall also apply.
A professional relationship under a real service agreement with the beneficiary of the activity that does not place him/her in an
economic subornation situation before the latter. In this case, the labor rules shall not apply.12

Article 1154 of the Civil CodeSee further comments under the answers of Principle 7.

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DRAFT-Philip Morris International Work Product

Other specific rules applicable to migrant workers including any legal requirements to ensure they are legally permitted to work

The migrant workers must have the necessary academic or vocational qualifications and may only be employed when there are nonationals having the same qualifications, or where such nationals are insufficient number.
There are, however, some immigration issues that need to be considered, as well as limits to the number of foreign employee that can be
hired by Mozambican employers. As a general rule, in order to legally enter and stay in Mozambique for work purposes, foreign nationals
are required to obtain a work visa. The work visa request must be filed with the Mozambican Embassy or Consulate at the employee’s
country of origin. A copy of worker passport with the stamped visa and/or his or her residence permit (DIRE) shall be the key
documentation available. Please keep in mind that the holder of the work visa must work exclusively for the employer that requested andthus sponsored the issuance of such work visa.
In order to be able to apply for a work visa, foreign employees are, as a general rule, required to firstly enter into an employment contract
with a local company. Said employment contracts must be entered into for a maximum period of 2 years (fixed-term employment
contract) and cannot be converted into permanent contracts.
The hiring of foreign employees must be made through one of the following regimes:(i) Communication regime – The notice on the hiring of the foreign employee to the Ministry of Labour may be made through one of thefollowing legal regimes:(a) Quota Regime – The employer may have a percentage of foreign employees depending on the total number of employees at its
service. The percentage of expatriates varies according to the total average number of employees of the company in thepreceding calendar year, as follows:

i.
ii.
iii.

5 % of the total number of employees in large companies (companies with more than 100 employees);
8 % of the total number of employees in medium-sized companies (companies with 10 to 100 employees); and
10 % of the total number of employees in small companies (companies with up to 10 employees).

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DRAFT-Philip Morris International Work Product(b) Investment Project Regime – The essential and crucial difference with regard to the quota regime is that a company with a foreign
investment project approved by the Mozambican investment authorities may be granted the right to “automatically” employ
more expats than it would be entitled to under the general quota regime, as part of the benefits and incentives package.
(c) Short Term Assignment Regime – the short term assignment (“STA”) regime is outside the scope of both the quota and theauthorization regime. This means that foreign employees hired under a STA regime will not be subject to quota limitations. Under
the law, STAs cannot exceed 90 days per year, consecutive or non-consecutive. The entering into of a local employment contract
is not mandatory.
(ii) Work Authorization Regime – The work authorization regime applies to situations where the employer intends to employ additional
expats beyond those allowed by the quota/investment project regimes. This is a considerably more cumbersome procedure, inparticular because it is necessary to provide evidence that the prospective expat employees possess the required academic andprofessional qualifications and, most importantly, that there are either no or insufficient Mozambicans with those qualifications.
According to the applicable legislation, under this regime the Ministry of Labour has a rather wide discretionary margin to allow orrefuse the employment of expats above the expats quota to which each company is entitled. It seems unlikely that this authorization
would be possible in the agricultural sector.
Laws on payment of wages relevant to the frequency of payment in agriculture, for example, laws on whether end of season one-time
payments are permissible

According to Mozambican law, wages can be paid monthly, weekly, biweekly (fortnight) pursuant to the agreement between employer
and employee.13
Laws on regular and overtime hours (e.g. maximum work hours, requirements for overtime hours to be voluntary)

Regular hours:
Maximum working periods correspond to 48 (forty eight) hours per week and 8 (eight) hours per day. 14
Articles 110.1 , 111.3, 113.1 of the Labor Law. The Labor Law sets forth in its article 113(1)(c) that the employee’s remuneration must be paid monthly,
weekly, biweekly (fortnight) pursuant to the agreement between employer and employee. The scope of this rule is to allow employees to earn income on aregular basis in order to support themselves, and/or their family. Thus, it is our understanding that end of season payments are not legally allowed.
14
Article 85.1 of the Labor Law.
13

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DRAFT-Philip Morris International Work ProductHowever, applicable statutory provisions contemplate two exceptions to the general rule; (i) the possibility of extending said work period
by means of an agreement with the individual worker, in which the latter agrees to work up until 9 (nine) hours per day, provided that theemployer allows for a complementary (paid) half-day of rest per week; or (ii) the employer and the employees may, by means of collective
labor regulation instrument, extend the maximum daily working period by up to 4 (four) hours, as long as the maximum prescribed limit of
56 (fifty six) hours per week is respected.15
The normal daily working day must be interrupted by a break of at least half an hour, but not longer than two hours. Collective regulation
instruments may establish rest intervals of greater duration and frequency. Where the work schedule is a single uninterrupted shift, a
break of at least half an hour shall be mandatory, and this break shall be counted as actual working time.
The working hours schedule consists of the times established for the commencement and the end of the normal daily working period,
including rest periods. Employers shall, after prior consultation with the relevant trade union body, establish the employees’ working
hours schedule (the Labor Law does not set forth pre-established working hours schedule). The respective timetables shall be endorsed by
the relevant labor administration office and shall be displayed at a visible location in the workplace.
In companies where work is continuous and in those whose business hours are longer than the maximum limits on normal working hours,
as above referred, employers must arrange shifts of different staff, which: (i) cannot exceed said maximum limits; and (ii) must always
function in rotation, so that employees are replaced successively in regular periods of work. Shifts performed where work is continuousand shifts of employees whose work cannot, due to its nature, be interrupted must be arranged so that employees receive acompensatory rest period over and above the normal weekly rest period. The Labor Law does not set forth special compensation for the
performance of shift work.
Night work:

As said under Principle 1, we could consider that night work goes from 8 p.m. (20h00) of one day to 5 a.m. of the following day.16 Nighttime work must be paid at the hourly base pay for the corresponding work performed during the day plus 25%.17

Collective Labor Regulation Instruments can be concluded between a trade union or association and a single employer for a single company (company-levelagreement); between a trade union or association and several employers for several companies (multi-employer agreement); between trade union
associations and employer associations (association agreement).
16
A legal interpretation of joint grounds of Article 91.1 and 91.2 of the Labor Law.
17
Article 115.3of the Labor Law.
15

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DRAFT-Philip Morris International Work Product
Overtime:

The work performed beyond the daily normal work period (extraordinary work) should be compensated as follows18:(i) an additional of 50% of employee’s normal remuneration rate for the overtime work until 8:00 pm;(ii) an additional of 100% of employee’s normal remuneration rate for overtime work beyond 8:00 pm until the beginning of the normal
daily work period of the following day.19
The Labor Law does not establish any criteria to calculate the employee’s daily or hourly base remuneration. However, Decree No. 62/2009,of 8 September 2009 (the “Civil Servants Regulations”), establishes that employees’ hourly base pay is calculated in accordance with thefollowing formula: (VM x 12) / (52 x N), where “VM” is the employee’s monthly base pay and “N” is the number of hours worked each week.
This formula is primarily used to calculate compensation for overtime, but Decree 62/2009 further establishes that the formula shall be
used to calculate amounts owed for any other fractions of a work period.
This being said, in the absence of criteria in the Labor Law for calculating employees’ daily or hourly base remuneration. The formulamentioned above should apply on an analogic basis to the private sector, and therefore be used to calculate hourly and daily rates of alsoprivate sector employees.
Under the Labor Law, collective labor regulation instruments may be of a contractual or non-contractual nature. Typically, contractual
collective regulation instruments are entered into between Trade Unions or bodies thereof – acting as the employees’ representatives –and the employer and/or a relevant employer’s association. Contractual collective regulation instruments may take the form of (i)collective bargaining agreements; (ii) adhesion agreements; or (iii) voluntary arbitral awards.
Requirements that employers must meet to request overtime from workers

Mozambican law does not set forth any specific provisions in this regard. Although no prior requirements have to be observed, theemployer shall keep a separate record for the aforementioned work modalities. This record should provide the relevant justification,
made by the employer, for the need to perform exceptional or extraordinary work. In this regard, you may care to note that employees
may not refuse to perform exceptional work in cases of force majeure or foreseeable harm to the national economy, in the event of an
accident that has occurred or is imminent or to carry out urgent and unforeseen work on machinery and materials needed for the normal

18
19

Article 115.1, of the Labor Law.
Articles 85.2 and 89.4 of the Labor Law.

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DRAFT-Philip Morris International Work Productfunctioning of the company. In turn, extraordinary work may only be performed when (i) employers have to cope with workload increases
that do not justify the hiring of employees and (ii) for ponderous reasons.
Laws on basic entitlements or benefits to be paid to workers (e.g. social security, health care, holidays, other leave entitlements etc.)

Under the Labor Law, the employee must be provided with a number of entitlements or legal benefits. The legal benefits depend on thecontributions made, which also depend on the worker’s salary. The salary also depends on the type of the labor agreement.20
Social security:

All workers are subject to a mandatory social security regime, for which they should apply in order to collect the intended benefits.
Employers are responsible for enrolling themselves in the social security system 15 days after commencing their operations or having
acquired the company and are also responsible to enroll their employees during the 30 days after these have commenced to work.
The Social Security contributions are shared between the employer (4%) and employee (3%), amounting to a total contribution rate of 7%.
Employers pay their contributions by applying the 4% rate on top of employees’ base salaries and bonus, commissions and otheradditional payments made to the employee on a regular basis. Employers are also required to deduct from employees’ monthly
remuneration their 3% contribution, and remit the pertinent total contribution to the Social Security authorities (INSS).21 The above
applies to all types of workers.
In addition, the mandatory social security rules apply to independent contractors or service providers, even if they are under a pure piece
rate agreement governed by the Civil Law.22
The social security benefits are paid by the State. Such benefits span from health, injuries, maternity, disability / invalidity and deathpension. This framework applies to both nationals and foreign workers, provided they carry out their professional activity in Mozambiqueand are not excluded from the Mozambique Social Security regime. The law sets forth the amount of remuneration/paid days a worker

Article 11 of Decree 51/2017.
The minimum wage amount does not include the portion of the contribution to the social security (currently, 4%) borne by the employer. Accordingly, thismay not be deducted by the employer from the employee’s salary. Differently, the portion (3%) for which the employee is liable shall be deducted from his/hersalary. Furthermore, please note that Salaries and other wages are also subject to Personal Income Tax (IRPS) withholding. For resident employees, the grosswage/compensation is subject to a progressive schedule which may vary between 0% and to 32% withholding. For non-resident employees, the withholding
tax rate is of 20%. No other taxes are due.22 Decree No. 51/2017, of 9 October 2017, Regulations on the Mandatory Social Security, Articles 58 and thefollowing.
22
Decree No. 51/2017, of 9 October 2017, Regulations on the Mandatory Social Security, Articles 58 and the following.
20
21

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DRAFT-Philip Morris International Work Productshould receive in case of injuries, maternity, disability/invalidity and death pension, and these amounts are calculated on the basis of theworkers' remuneration.23
With regard to health and safety, the employer is required to take out an insurance against the risk of accidents at work and occupational
diseases, in order to transfer its liability for potential health hazards occurring in the workplace or related with professional activity
undertaken by the employee. This work-related insurance needs to be contracted with an insurance company duly authorized to carry out
insurance activity in Mozambique, unless a special authorization is obtained by the Mozambican Insurance Institute.
Insofar as compensation, the worker is entitled to same whenever the professional injury renders him incapacitated to work.
Compensation differs on the nature of the injury: (i) for permanent incapacity the worker is entitled to a pension for life, (ii) whereas for
temporary injury the worker is granted an indemnity.
Female employees benefit from a specific regime which entitles them to special rights conferred upon as a result of pregnancy24, such as
exemption from the performance of exceptional, extraordinary and nighttime work. This apply to all employment contracts.
Employees are entitled to a mandatory weekly rest day that usually shall be the Sunday.25 The weekly rest day may be on a day other than
Sunday in the following cases:(i) Employees who are required to ensure the continuity of services that cannot be interrupted;(ii) Employees in companies engaged in sales to the public or the provision of services;(iii) Staff that performs cleaning services or preparatory or complementary works that must be carried out on the rest day of theremaining employees;(iv) Employees whose activity, by its nature, shall be performed on Sundays.
Whenever the mandatory weekly rest day cannot correspond to the Sunday due to the foregoing exceptional reasons, an alternative
weekly day of rest shall be allocated, preferably in a systematic manner.

Article 17 et seq. of Decree No. 51/2017.
Female employees are entitled to a maternity leave of 60 consecutive days, during which they receive a maternity allowance from the Social Security Institute(INSS), provided that all eligibility requirements are duly met. Employers are not legally required to make any payment – such payment (maternity leave) is madeby the INSS.

23
24

25

Mandatory weekly rest day – Article 95 of the Labor Law.

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DRAFT-Philip Morris International Work ProductAnnual leave is an absolute right under Mozambican law and should be paid by the employer.26 Under justifiable circumstances, theemployer and the employee may agree to substitute annual leave for additional salary; however the worker which agrees to such ascheme shall be provided with at least six days of vacation leave. The duration of the holiday period is as follows: (i) one day for eachmonth of work, during the first work year; (ii) two days for each month of work, during the second year of work; (iii) thirty days for eachyear (which includes weekends, but excludes bank holidays), from the third year of work onwards. Any national holidays or sick leave
which occurs during annual leave shall not count as such.
In the case of temporary workers with limited period of time (fixed term) of more than three (3) months but less than one year (12months) shall be entitled to holidays of one day for every month of actual service.2726
27

Article 98 of the Labor Law.
Article 99.3 of the Labor Law.

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DRAFT-Philip Morris International Work ProductPrinciple 3 – FAIR TREATMENT

Summary
ALP MEASURABLE
STANDARDS
No physical abuse, threat ofphysical abuse, or physicalcontact with the intent toinjure or intimidate

MATCHES

MARKET LEGAL STANDARDSEXCEEDSOPPOSESCOMMENTSü

Physical abuse is prohibited.
There are criminal penalties forphysical or verbal abuses or threats.

üSexual abuse or harassment isprohibited. There are criminal
penalties for physical or verbal abusesor threats.

üVerbal abuse or harassment isprohibited. There are criminal
penalties for physical or verbal abusesor threats.

No sexual abuse or
harassment

No verbal abuse or
harassment

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DRAFT-Philip Morris International Work ProductNo discrimination on thebasis of race, color, caste,
gender, religion, politicalaffiliation, union
membership, status as aworker representative,
ethnicity, pregnancy, social
origin, disability, sexual
orientation, citizenship, or
nationality
Worker access to fair,transparent and anonymous
grievance mechanism

üEmployer must ensure equality of its
employees.

No specific provisions in the law.

Applicable laws
Constitution of the Republic of Mozambique (22 December 2004)
Civil Code (Decree-Law No. 47344, of 25 November 1966)
Labor Law (Law No. 23/2007, of 1 August 2007)
Law No. 19/2014, of 27 August 2014Your answer
Laws defining and prohibiting physical, sexual, or verbal threats, abuse, contact, or harassment

As per Article 5.1 of the Labor Law, employer is ought to respect the workers personality rights. According to the Civil Code, personality
rights protect all individuals against any illicit offence or threat of offence towards their physical or moral personality. This provision is further
regulated by Article 54.5(c) of the Labor Law which expressly provides that workers have the right “to be treated correctly and respectfully,
all acts against the honor, good name, public image, private life and dignity being punishable by law”.

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DRAFT-Philip Morris International Work ProductIn this regard, please note that physical or verbal abuses or threats of workers are criminal offences and the perpetrator will be subject tocriminal sanctions.
Laws defining and prohibiting discrimination

See in the section below.
Protection of workers from discrimination (workers’ rights and employers’ obligations)

Labor Law sets forth a catalogue of general rules which constitute the employer’s obligations and worker’s obligations, as well as theemployer’s rights and worker’s rights.
These rules attend to fundamental aspects of the parties’ professional relationship; as such, they should be observed when stipulating thecontractual obligations. Within this scope, relevant employer’s obligations and worker’s rights are as follows: the employer must ensure theworker equality of treatment at the workplace; regardless of his ethnic background, language, race, sex, and marital status, age, and social
status, religious, political or union affiliations. It shall not be considered discriminatory treatment if certain rules are adopted in favor ofminority groups, namely in terms of; sex, reduced work capacity, handicap or medical condition, seen as these measures are destined tocorrect such inequalities.
Furthermore, the worker has the right to a job position fit for his/her capacities and technical-professional experience, to be treated in apolite and respectful manner, good name, public image, private life and dignity. Remuneration shall be payable in accordance with thequality and quantity of the work rendered. Resting periods and maximum work periods set forth shall be respected by the employer. Safety
requirements must be put in place by the employer in accordance with the type of activity to be developed, along with safety and hygiene
mechanisms in order to safeguard the worker’s physical, moral and psychological integrity.

Laws on resources for victimized workers including any access to grievance mechanisms

There are not specific references on the law about this matter.

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DRAFT-Philip Morris International Work ProductPrinciple 4 – FORCED LABOR AND HUMAN TRAFFICKING

Summary
ALP MEASURABLE
STANDARDS
No work under bond, debt
or threat

MATCHES

Workers must receive
wages directly from theemployer.
üWorkers are free to leave
their employment at any
time with reasonable
notice, without threat or
penalty28
29

ü

MARKET LEGAL STANDARDSEXCEEDSOPPOSESCOMMENTS
No specific regulation on work underbond, debt or threat.
Please see the general principle in theanswer under ‘Legislation on forcedlabor’.
Workers must receive wages directlyfrom the employer. Payments must be
made directly to the employee, except
if they are assigned by Private
Employment Agencies or under the
temporary work assignment regime (inPortuguese, Cedência Ocasional deTrabalhador).28
Employees are entitled to terminate
the employment at any moment with
15 or 30 day prior notice, depending on
the type of employment contract and,in certain cases, on its duration.29

Article 113.3 of the Labor Law.
Article 129.3 of the Labor Law.

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DRAFT-Philip Morris International Work ProductWorkers are not required
to make financial deposits
with farmers, labor
contractors, or any otherthird party at the time ofrecruitment or at any
point during employment

No specific provisions in the law.

Workers are not charged
recruitment fees or otherrelated fees for theiremployment by labor
contractors

Wages or income fromcrops and work done are
not withheld beyond thelegal and agreed payment
conditions.
Farmers do not retain theoriginal identity
documents of any worker

30

No specific provisions in the law.

üA general rule regarding ‘obligations’ is
set under the Civil Law provisions.30

No specific provisions in the law.

Article 406.1 of the Civil Code.

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DRAFT-Philip Morris International Work Product
Where farmers are legallyrequired to retain theoriginal identity
documents of workers,
they provide securestorage protected fromunauthorized access andensure workers haveaccess to their documents
upon end of employment
Where labor contractors
are used, farmers verify
their labor practices andensure they are in linewith the ALP standards
No employment of prisonor compulsory laborNo specific provisions in the law.

No specific provisions in the law.

Prisoners can provide
social work as analternative sanction.

Applicable laws
Constitution of the Republic of Mozambique (22 December 2004);
Civil Code (Decree-Law No. 47344, of 25 November 1966);
Labor Law (Law No. 23/2007, of 1 August 2007);
Criminal Code (Law No.35/2014, of 31 December 2014);
Decree No. 36/2016, of 31 August 2016 (Regulations on Temporary Employment Agencies).

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DRAFT-Philip Morris International Work ProductYour answer
Legislation on forced labor (including any regulation on identity document retention or wage withholding)This is a matter of constitutional law and criminal law. Anyone who forces a person to work against his will shall be subject to criminal
sanctions.
It may be worth mentioning that in 6 June 1977 and in 16 June 2003 Mozambique as ratified the International Labor Organization´sconventions on the abolition of forced labor and on the forced or compulsory labor, respectively.
However, there are not specific local references on the law about identity documents retention. A general legal principle shall apply,
therefore wages cannot be subject to withholding by employers beyond the legal and agreed payment conditions, and except to comply
with legal mandatory withholdings. i.e. social security contributions or taxes.
Legislation relating to limits or prohibitions on recruitment fees and deposits workers may be required to pay

There are not specific references on the law about this matter.
Legislation regulating the operation of labor brokers and other third party recruiters

The recruitment activity is only authorized for private employment agencies in the terms established in specific legislation as per Article 79
et sequitur of the Labor Law and Decree No. 36/2016, of 31 August 2016 (Regulations on Temporary Employment Agencies).
Laws on prison labor

According to the recently approved Criminal Code, Law No 35/2014, of 31 December 2014, prisoners can provide social work as analternative sanction, proposed by the Public Prosecution Service and ratified by a Judge.

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DRAFT-Philip Morris International Work ProductPrinciple 5 – SAFE WORK ENVIRONMENT

Summary
ALP MEASURABLE
STANDARDS
Farmers provide a safe andsanitary working
environment
Farmers take all reasonablemeasures to prevent
accidents, injury andexposure to health risks.
No person is permitted to
top or harvest tobacco, or
to load barns unless they
have been trained on
avoidance of green tobacco
sickness.
No person is permitted touse, handle or apply crop
protection agents (CPA) orother hazardous
substances such as
fertilizers, without having

MATCHES

MARKET LEGAL STANDARDSEXCEEDSOPPOSESCOMMENTS

üEmployers must provide safe andsanitary working conditions.31

üWhenever necessary, employers must
provide protective equipment andappropriate work clothing to prevent
accidents, injuries or other exposure to
health risk.32
No specific provisions in the law.
However, employers are responsible
for creating and developing adequatemeans for protecting the physical andmental integrity of employees andimprove working conditions.33
No specific provisions in the law. As
said, however, employers are
responsible for creating and developing
adequate means for protecting thephysical and mental integrity of
employees and improve working
conditions.34

Article 216 of the Labor Law.
Article 216.4 and 5 of the Labor Law.
33
Article 216.4 and 5 of the Labor Law.
34
Some examples, the Agriculture Department foresees CPA storage facilities within the industrial sector but not at a final consumer level. Also, the CPA
manufacturers provide recommendations regarding the application of each product.
31
32

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DRAFT-Philip Morris International Work Productfirst received adequate
training.
No person is permitted touse, handle or apply crop
protection agents (CPA) orother hazardous
substances such as
fertilizers, without using
the required personal
protection equipment.
Persons under the age of18, pregnant women, andnursing mothers must nothandle or apply CPA.
No person do not enter afield where CPA have been
applied unless and until it issafe to do so.
Every person has access toclean drinking and washingwater close to where theywork and live.

35
36

ü

ü

Whenever employees handle withhazardous substances, such as toxic,
corrosive and irritants substances,
employers are required to provide
appropriate personal protective
clothing and equipment toemployees.35
Persons under the age of 18, pregnant
women, and nursing mothers areprevented from performing any activity
that may be harmful to their health.
No specific provisions in the law.
However, employers are responsible
for creating and developing adequatemeans for protecting the physical andmental integrity of employees andimprove working conditions.36
No specific provision in the law.
However, employers are responsible
for creating and developing adequatemeans for protecting the physical andmental integrity of employees andimprove working conditions.

Decree Law No. 48/73, of 5 July 1973.
Article 216.4 and 5 of the Labor Law.

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DRAFT-Philip Morris International Work ProductAccommodation, where
provided, is clean, safe,
meets the basic needs ofworkers, and conforms to
the country’s laws.

No specific provision in the law.
However, employers are responsible
for creating and developing adequatemeans for protecting the physical andmental integrity of employees andimprove working conditions.

Applicable laws
Constitution of the Republic of Mozambique (22 December 2004)
Civil Code (Decree-Law No. 47344, of 25 November 1966)
Labor Law (Law No. 23/2007, of 1 August 2007)
Decree No. 62/2013, of 4 December 2013 (Regulations on Accidents at Work and Occupational Diseases)
Decree Law No. 48/73, of 5 July 1973(Regulations on Hygiene and Safety at Work regarding Industrial Establishments)
Decree No. 11/2013, of 10 April 2013 (Regulations on Fertilizer Management)
Decree No. 6/2009, of 31 of March 2009 (Regulations on the Management of Pesticides)
Decree No. 83/2014, of 31 of December 2014 (Regulations on the Management of Hazardous Wastes and their Annexes)
Decree Law No. 22/2014, of 16 May 2014 (Regulations on Licensing of Industrial Activities), as amended by Decree No. 39/2017, of 28 July
2017

Your answer
Requirements for provision of medical protection (availability of first aid kit, health & safety training etc.)

According to the Labor Law, companies with more than 100 employees at their service must offer, either directly or through a third party
contracted for this purpose, a service for the provision of first aid in cases of accidents, sudden illness, poising and indisposition. This rule

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DRAFT-Philip Morris International Work Productalso applies to companies that employ fewer staff, but whose activities are hard, unhealthy or involve a high degree of risk to which
employees are permanently exposed. Taking into consideration that the tobacco farm activities are somewhat hard and involve dealing with
toxic and hazardous products, it is our understanding that the above applies to tobacco.
In addition, the Labor Law also establishes that employers must provide to their employees good physical, environmental and moral working
conditions, inform them of the risks of their job, and instruct them on appropriate compliance with the rules on hygiene and safety at work.
Furthermore, the Labor Law sets forth that at companies equipped with a private health unit the doctors in charge, or their substitutes,
must carry out regular examinations of the employees, in order to check:(a) Whether the employees meet the conditions of health and physical fitness necessary for the work stipulated in their contract;(b) Whether any employee is carrying an infectious-contagious disease that may endanger the health of other employees;(c) Whether any employee is suffering from mental disease that makes his or her employment in the assigned job inadvisable.
Thus, it is recommendable to provide medical protection, first aid kits and health & safety training along with other adequate supporting
material to the performance of functions under a healthy and safe work environment. Now, depending on the specific worker’s activities, if
they are “hard, unhealthy or involve a high degree of risk”, the employer must offer, either directly or through a third party contracted forthis purpose, a service for the provision of first aid in cases of accidents, sudden illness, poising and indisposition. In addition, taking into
consideration that employers must provide to their employees good physical, environmental and moral working conditions, inform them of
the risks of their job, and instruct them on appropriate compliance with the rules on hygiene and safety at work, we take the view that
employers must provide employees with health and safety training, along with other adequate supporting material to the performance offunctions under a healthy and safe work environment.
Requirements to report accidents and injuries

Under Decree No. 62/2013, of 4 December 2013 (Regulations on Accidents at Work and Occupational Diseases), employees are bound toreport work-related accidents and occupational diseases to their employers or their legal representatives, within the 48 hours counting asof the date of the accidents’ occurrence or when the occupational disease was diagnosed.
In turn, employers must inform the Labor Authorities within the 48 hours counting as of the date in which they became aware of the accident
or when the occupational disease was diagnosed. Employers are also required to inform the insurance company within the deadline
established in the insurance policy.

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DRAFT-Philip Morris International Work ProductIn case the employer has not transfer its liability on work-related accidents to an insurance company, it must inform the Public Prosecutor
Office of the Labor Court, within the 8-day period following the date in which it became aware of the accident or when the occupational
disease was diagnosed.
The law does not set forth any exception to these rules. Therefore the above mentioned procedure also applies to tobacco farmers.
Requirements for green tobacco sickness training or awarenessNo provisions in the law.
Requirements for PPE needed for using, handling, storing, or disposing of crop protection agents (CPA). This may vary depending on the
CPA in question.

Under the Labor Law, employees have the right to perform their work in hygienic and safe conditions, and employers are responsible forcreating and developing adequate means for protecting the physical and mental integrity of employees and improve working conditions(Article 216 of Labor Law).
Furthermore, the Labor Law also establishes that employers should provide protective equipment and appropriate work clothing in orderto prevent the risk of accidents or detrimental effects on the health of employees.
In addition, Decree Law No. 48/73, of 5 July 1973, establishes that, whenever employees handle with hazardous substances, such as toxic,
corrosive and irritants substances, employers are required to provide appropriate personal protective clothing and equipment to employees.
Clothing and equipment must protect the eyes (such as safety glasses and safety face shields), protect the respiratory tract (such as masks),
and whenever other body parts are exposed to hazardous substances, employees may have to use adequate clothing, such as aprons andprotective gloves.
Restrictions on CPA use, handling, storing, or disposing (e.g. restrictions on vulnerable population such as under 18s, pregnant women,
nursing mothers interacting with CPA)

Under the Labor Law, employees have the right to perform their work in hygienic and safe conditions, and employers are responsible forcreating and developing adequate means for protecting the physical and mental integrity of employees and improve working conditions(Article 216 of Labor Law).
Furthermore, the Labor Law also establishes that employers should provide protective equipment and appropriate work clothing in orderto prevent the risk of accidents or detrimental effects on the health of employees.

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DRAFT-Philip Morris International Work ProductIn addition, Decree Law No. 48/73, of 5 July 1973, establishes that, whenever employees handle with hazardous substances, such as toxic,
corrosive and irritants substances, employers are required to provide appropriate personal protective clothing and equipment to employees.
Clothing and equipment must protect the eyes (such as safety glasses and safety face shields), protect the respiratory tract (such as masks),
and whenever other body parts are exposed to hazardous substances, employees may have to use adequate clothing, such as aprons andprotective gloves.
During the period of pregnancy and after child birth, female employees are prevented to perform work that is clinically unadvisable to theircondition, or to perform any activity that may be harmful to their health or their reproductive functions.37
Persons under 18 years-old, as mentioned under Principle 1, are also prevented from perform functions that may jeopardize their physicaland mental well-being.
Other legislation related to CPA, (e.g. where they may be stored or transported, explicit restrictions on specific CPAs, weather conditions
under which CPA application may or may not occur, other restrictions limiting contact or exposure with CPA)

There are no labor laws covering CPA related matters.
However, there are technical rules aiming to ensure the quality of fertilizers circulating in Mozambique.38 In addition, there are rules
related to all processes that involve working and dealing with pesticides, which shall be carried out without prejudice to the public, animaland environmental health.39
There are specific rules regarding the management of hazardous wastes in Mozambique. For instance, it governs the mandatory
information that labels should be used when transporting hazardous wastes.40

Article 11.2 of the Labor Law.
Decree No. 11/2013, of 10 April 2013, Regulations on Fertilizer Management, which aims to ensure the quality of fertilizers circulating in the country
observing the principles of protection of public health, animal and the environment, and applies to the registration, production, export, import, transportation,use, donation, marketing, distribution, handling and management of fertilizers, by natural or legal persons, and regulating the institutional competences
39
Decree No. 6/2009, of 31 of March 2009, Regulations on the Management of Pesticides, with the aim of guaranteeing public health and the quality of theenvironment, in accordance with the provisions of the Environmental Law, approved by Law No. 20/97, of 1 October 1997, which defines institutional
competences and governs the registration, authorizations, handling, composition and classification, inspection and inspection of pesticides and sets therespective administrative fees.
40
Decree No. 83/2014, of 31 December 2014, Regulations on the Management of Hazardous Wastes and their Annexes, the purpose of which is to establish
rules for the production and management of hazardous waste in the national territory, being applicable to all natural and legal persons, public and private
involved in the management of hazardous waste or in the import, distribution and sale of used tires and new tires after the deadline, establishing the general
37
38

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DRAFT-Philip Morris International Work ProductRequirements related to providing drinking water and safe housing

According to the Labor Law, employers are bound to provide proper and adequate working conditions to employees, and although not
expressly provided by law, drinking water and proper accommodation are considered as measures aimed at ensuring better protection ofworkers' health and safety, for these are factors essential to the quality of life in the work place.
Requirements for worker accommodation if provided

No provisions in the law.
Restrictions on farm equipment (e.g. maintenance and licensing for operators)

There are no restrictions on farm equipment maintenance in force, according to the information provided by the authority -Ministry ofAgriculture.

principles of management, competence and classification, prohibitions and obligations, licensing and certification and definition of the respective sanctions
framework.
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DRAFT-Philip Morris International Work ProductPrinciple 6 – FREEDOM OF ASSOCIATION
Summary
ALP MEASURABLE
STANDARDS
Farmers do not interferewith workers’ right tofreedom of association.

Workers are free to join orform organizations andunions of their own
choosing.

MATCHES

MARKET LEGAL STANDARDSEXCEEDSOPPOSESCOMMENTS

üEmployers are prohibited to interferewith workers’ right to freedom of
association.

üWorkers are granted right to freedom of
association, in labor unions or
professional organizations for protectionof their rights.

üEmployers and employees, through theirrespective organizations or associations,
may legally negotiate and enter intocollective labor agreements.

Workers are free to bargain
collectively.

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DRAFT-Philip Morris International Work ProductWorker representatives are
not discriminated against.

ü

It is prohibited to discriminate against
worker representatives.

ü

Workers representatives, unioncommittees and unions may holdmeetings regarding union matters at thework place, in principle, outside thenormal working period of its members.
Holders of union positions shall beentitled to a set of hours to be
mandatorily foreseen in an instrument ofcollective labor regulation.
Meetings of the workers assembly may
take place outside the normal working
hours through the union’scommunication or of at least one third of
the employees of the company or
establishment. Either workers
representative, union committees,
unions or workers assemblies may meetin the workplace and within normal hours
of work, subject to the employee’s prioragreement.
The meetings referred to above shall be
communicated to the employer and toWorker representatives
have access to carry out
their representative
functions in the workplace.

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DRAFT-Philip Morris International Work Productthe workers at least twenty-four hours inadvance.41

Applicable laws
Constitution of the Republic of Mozambique (22 December 2004)
Labor Law (Law No. 23/2007, of 1 August 2007)
Law on Associations (Law No. 8/91, of 18 July 1991)
Convention on Freedom of Association and Protection of the Right to Organize, 1948 (N. 87), from the International Labor Organization
Your answer
Laws on organizing unions and their operation (e.g. protections in place for freedom of association, protection against employer
interference)

A specific provision in the Labor Law addresses the worker’s right to freedom of association, in labor unions or professional organizations
for protection of their rights. This provision is treated further in the Mozambican Constitution (Article 86), thus granting it Constitutional
force and making it a fundamental principle in Labor Law.
On this topic, please note as well that, in 23 December 1996, Mozambique ratified the International Labor Organization´s convention on
freedom of association and protection of the right to organize.
Laws or requirements for collective bargaining

Under the Labor Law, collective labor regulation instruments may be contractual or non-contractual. Contractual collective labor regulation
instruments include:
(a)
(b)
41

Collective bargaining agreements (Convenções Colectivas);
Adhesion agreements (Acordos de Adesão); andArticle 159 of the Labor Code.

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DRAFT-Philip Morris International Work Product(c)

Voluntary arbitral awards (Decisão Arbitral Voluntária).

In turn, collective bargaining agreements may take the form of:
(a)
(b)
(c)

Company-level agreements (Acordo de Empresa): when signed by a trade union or association and by a single employer for a single
company;
Multi-employer agreements (Acordo Colectivo): when entered into by a trade union or association and several employers for several
companies;
Association agreements (Contrato Colectivo): when entered into by trade union associations and employer associations.

Non-contractual collective labor regulation instruments consist of mandatory arbitral awards.
Bargaining procedure
As a rule, only employers and employees, through their respective organizations or associations, may legally negotiate and enter intocollective labor regulation instruments.

The Parties are subject to the general principles of good faith during the negotiation of labor regulation instruments. In particular, eachparty shall provide the other party with all the information necessary, which shall be credible and adequate for the progress of thenegotiations.
The Parties are further subject to confidentiality obligations. Without prejudice, Trade Unions are allowed to disclose information on the
progress of negotiations to their members and to higher-level union organizations.
This being said, the main steps of the collective bargaining procedure are as follows:(a) Proposals for collective regulation
The collective bargaining procedure begins with the submission of a proposal in writing for the adoption (or revision) of a collective labor
regulation instrument prepared by either of the relevant parties.
The proposal must expressly indicate which matters are to be negotiated and shall always consider the economic and financial situation of
the company and the reference indicators of the sector of activity of the same.
A copy of the relevant proposal must be submitted to the Ministry of Labor alongside with any supporting information.
(b) Response
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DRAFT-Philip Morris International Work Product

The relevant party which has received a proposal for the adoption or revision of a collective labor regulation instrument has 30 days torespond in writing. Said period may however be extended by agreement between the parties.
The relevant response shall expressly mention the relevant matters which have been accepted and further include a counterproposal inrespect those not accepted. As a rule, said counterproposal must be based on the economic and financial situation of the company and thereference indicators of the sector of activity of the same. A copy of the proposal and reasoning must be submitted to the Ministry of Labor.
Upon failure to respond within the aforementioned 30 days, either of the parties may render to mediation, under the terms established in
the Labor law.
(c) Direct negotiations
Direct negotiations shall commence 10 days of receipt of the response, unless a different period has been agreed in writing between theParties. A schedule of the negotiation process and the rules governing same must be defined and approved. At every negotiation meeting,the parties must agree upon and faithfully record of the conclusions on the matters agreed between the parties.
(d) Deposit
An executed version of the relevant collective labor regulation instrument must be submitted to the Ministry of Labor within 20 days
following its execution, for deposit and verification of legal compliance. The relevant instrument is deemed accepted and becomes effective
provided that the Ministry of Labor makes no written statement on the contrary within 15 days of the deposit.

It is however worth noting that the Ministry of Labor may refuse the deposit due to the breach of public policy rules for the protection of
employees´ rights or failure in observing mandatory rules.
(e) Disclosure and publication
The Parties are required to disclose the collective labor regulation instruments approved to the employees. For said purpose, the relevant
instrument shall be displayed at an accessible place.
Laws related to worker representatives (e.g. requirements for representatives to be in place, protection from discrimination, access tocarry out functions in workplace)

The law provides for six types of union bodies / organizations, as follows:(a) Trade Union Delegate – an employees’ representative body in companies with less than 10 employees;(b) Trade Union Committee – base representative body of a trade union in a particular establishment or company;

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DRAFT-Philip Morris International Work Product(c) Trade Union – an association of employees for the promotion and protection of their social and professional rights and interests;(d) Regional Union – a regional association of trade unions;(e) Federation – an association of trade unions covering the same occupation or field of activity;(f) General Confederation – a national association of trade unions.
The Labor Law sets forth that employers, acting individually or through intermediaries, are forbidden to promote, using any means
whatsoever, the formation, maintenance or funding of the operation of structures for the collective representation of employees, orotherwise to interfere with their organization or management, or to obstruct or hinder the exercise of their rights.
It is not mandatory to have worker representatives in place. However, employers may not forbid or create obstacles to the workers rightto freedom of association, in labor unions or professional organizations and to the exercise and protection of their rights. Workers
representatives, union committees and unions may hold meetings regarding union matters at the work place, in principle, outside thenormal working period of its members. Holders of union positions shall be entitled to a set of hours to be mandatorily foreseen in an
instrument of collective labor regulation.
Meetings of the workers assembly may take place outside the normal working hours through the union’s communication or of at least one
third of the employees of the company or establishment. Either workers representative, union committees, unions or workers assemblies
may meet in the workplace and within normal hours of work, subject to the employee’s prior agreement. The meetings referred to above
shall be communicated to the employer and to the workers at least twenty-four hours in advance.

Other prohibitions on union discrimination and employer interference

Under the Labor Law, the following actions are expressly prohibited:(a) To condition the hiring of an employee to the membership, non-membership or withdrawal of a trade union association;(b) To apply disciplinary sanctions due to the fact that an employee has participated in or promoted the exercise of a collective right, within
the legal limits;(c) To transfer or otherwise cause detriment to an employee, due to the exercise of his/her rights to participate in collective representation
structures, his/her trade union membership or non-membership or the development of trade union related activities.

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DRAFT-Philip Morris International Work Product(d) To transfer members of union bodies from their workplace without prior consulting the relevant union organizations, committees, anddelegations;(e) To affect or prejudice union representatives due to the performance of union-related functions/activities;(f)

To dismiss union representatives without cause for reasons connected with the performance of union duties. Furthermore, officeholders in trade union bodies shall be given time-off rights, which must be fixed in the relevant collective labor regulation instrument.

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DRAFT-Philip Morris International Work ProductPrinciple 7 – TERMS OF EMPLOYMENTSummary
ALP MEASURABLE
STANDARDS
At the time of hire, farmers
inform workers of theirlegal rights

At the time of hire, farmers
inform workers of theessential aspects of thework relationship and work
place safety such as work to
be performed, working
hours, wages paid, periodof hire, and all legally
mandated benefits
Farmers and workers haveentered into written
employment contracts
when required by acountry’s laws and workers
receive a copy of thecontract.

42

Article 38 of the Labor Law.

43

Article 38 of the Labor Law.

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MATCHES

MARKET LEGAL STANDARDSEXCEEDSOPPOSESCOMMENTS
No specific provisions in the law.
However, employers are responsible
for creating and developing adequatemeans for protecting the physical andmental integrity of employees andimprove working conditions.42
No specific provisions in the law.
However, employers are responsible
for creating and developing adequatemeans for protecting the physical andmental integrity of employees andimprove working conditions.43

The Labor Law indicates that, ingeneral, written form is mandatory for
employment contracts. See further
explanations in the answer to ‘Laws
and regulations on employment
contracts’ below.

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DRAFT-Philip Morris International Work ProductTerms and conditions of
employment contracts do
not contravene thecountry’s laws.

See the description of requirements
under section ‘Required content for
written employment contracts’ below

Applicable laws
Labor Law (Law No. 23/2007, of 1 August 2007)
Ministerial Diploma No. 176/2001, of 28 November 2001 - Regulations on the Tobacco Growing, Production and MarketingYour answer
Legal requirements to constitute labor/employment relation

To form employment relation, the employer and the employee should enter into an ‘employment contract’.
An employment contract is understood to be an agreement whereby one person, the employee, (i) undertakes to perform his / her work
for another person, the employer; (ii) under the authority and direction of the employer, the so called subordination; and (iii) in return for
remuneration.44 These 3 elements are necessary -all together- to consider the existence of a labor relationship.
Therefore, the scope of an employment contract is the performance of an activity, and its typical and distinctive element is theemployee’s legal subordination, i.e. the employee’s submission to the employer's orders and instructions as regards the manner theactivity should be performed.
In addition, under the Labor Law, an employment relationship will be deemed to exist whenever an employee carries out a paid activity, tothe knowledge of, and without opposition from, the employer, or otherwise whenever the employee is in a situation of economic
44

Article 18 of the Labor Law.

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DRAFT-Philip Morris International Work Productsubordination. It means, the employee depends on the employer to obtain income to support himself/herself and/or his/her family. To
this purpose, the Labor Law clarifies that an “employment relationship” results from the set of conducts, rights and duties establishedbetween an employer and an employee with respect to the work or the services performed (or that should be performed), as well as themanner such performance should be rendered.
On the other hand, there are other type of legal relations governed entirely by Civil Code, which are defined as ‘services contract’. A
service contract is an agreement whereby one of the parties (services provider/contractor) undertakes to provide to the other party(beneficiary) a certain result of an intellectual or manual activity, whether or not in exchange of remuneration. The scope of a services
contract is the production of a result, which is obtained by rendering the relevant services in an autonomous manner, i.e. without
submission to the beneficiary’s orders and instructions. Services contract which do not place the services providers in a situation of
economic subordination before the beneficiary of the activity, and as said it is entirely governed by the Civil Code.
Therefore, to understand a given situation as an ‘employment contract’ or as a ‘services contract’ depends mainly on the manner theactivity is effectively performed. Hence, even where the parties say that a given situation is a ‘services contract’, the local authorities may
take the view that such agreement entails in fact an employment relationship subject to the provisions of the Labor Law. Primarily, and as
explained further below, in a situation in which tenants of the land depend on farmers to obtain income to support themselves, and/or
their family, and therefore there is an economic subordination with the farmer, that situation shall be considered as an ‘employment
contract’ rather than a ‘service contract’, even if the parties referred to it as a ‘service contract’ and called themselves as ‘service
providers’. In short, the reality of the situation shall prevail over the name giving to it by the parties. We will explain below some factor tohelp a better understanding of this matter.
Please be aware that the Mozambican framework does not provide a comprehensive list of factors as to determine whether an‘employee’ or a ‘service provider’ relationship exists. However, for your reference, when determining whether an employment
relationship exists, local authorities usually will determine if there are orders and instructions, which they tend to do considering thefollowing factors:(a) Who owns the resources required to perform the work;(b) Method of remuneration (either fixed or variable);(c) Who determined the place of work;(d) Who determines the work schedule;(e) Whether the worker has to perform an ongoing activity or produce a particular piece of work/result;Appendix III - Legal Information _ page 41 of 48

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DRAFT-Philip Morris International Work Product(f) Existence of economic subordination;(g) Exclusivity (i.e. whether the worker is allowed to work for other parties);(h) Whether the worker is entitled to vacation time; and(i) Whether the worker is (or has been) subject to disciplinary action.
Consequently, the Labor Law sets forth that an allegedly ‘services contract’, which places the ‘services provider’ in a situation of economic
subordination before the beneficiary of the activity, shall be deemed as equivalent to an ‘employment contract’, even if the services are
performed with autonomy.
Therefore, the relationship between ‘farmers and the tenants of the land’ in Mozambique, will be most probably viewed as an
employment relationship whenever all or some of the factors mentioned above exist. In that regards, it is key to emphasize that the mostimport factors that a labor authority will consider are: (i) the payment of remuneration in exchange for the performance of an activity (tothe knowledge of, and without opposition from, the employer); and (ii) the economic subordination, as the Labor Law establishes apresumption of the existence of an employment relationship whenever one of these two factors exist.
Finally and as regards to the family members of the tenants of the land, the Labor Law will only apply to them if they have an employment
relationship directly with the farmer, and same qualifies as (a) an employment contract as per the abovementioned factors, or (b) as aservice agreement that places them in a situation of economic subordination before the farmer.
Laws and regulations on employment contracts (incl. necessity for written employment contracts, and if is not what are the grounds toconsider the existence of a verbal employment agreement)

The Labor Law indicates that, in general, written form is mandatory for employment contracts.45 Therefore, this shall also include tobacco
workers that work for more than 90 days.
A fixed-term contract is not subject to written form when its object comprises mere execution tasks and its duration does not extend
beyond a period of 90 (ninety) days.
Lack of written form does not affect the validity of the contract or exonerate the employer of its obligations with the employee underlabor regulations.

45

Article 38 of the Labor Law.

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DRAFT-Philip Morris International Work ProductRequired content for written employment contracts

The written employment contracts shall be signed by both parties and include the following provisions: (i) clear identification of employee
and employer, (ii) job classification, duties or activities agreed upon, (iii) workplace, (iv) contract duration and conditions for renewal(when entered with a fixed-term), (v) remuneration amount, form and payment scheme, (vi) date of entry into force, (vii) if the contract inquestion is entered with a fixed-term, clear indication of the motives and term (viii) date of execution, (ix) date of termination (whenentered with a fixed-term).46
Deadline for contract conclusion (e.g. on date of hire or within 30 days of hire etc.)

The Labor Law is silent on this topic. However, as said above and bearing in mind that the general rule is that employment contracts
should be made in writing it is recommendable to have the contract concluded and signed on the hiring date.
Requirements for various types of contract (indefinite term, definite term, temporary workers, and probationary workers)

There are two main types of employment contracts that may be used to hire local employees:§

Employment contracts for a limited period of time (which may be for a fixed term or for an uncertain term) 47; and§Employment contracts for an unlimited period of time.48

The Labor Law, employment contracts shall be dated, signed by both parties and must contain the following minimum information49:§

Identification of the employer and the employee;§

Job qualification, tasks or functions agreed;§

Place of work;

Article 38.1 of the Labor Law.
Article 40 and 44 of the Labor Law.
48
Article 41 of the Labor Law. On one hand, if the parties intend to enter into an employment contract for an unlimited period of time, the respective contract
shall be prepared and signed by both parties. On the other hand, if employment contracts for a limited period of time are converted into an employment
contract for an unlimited period of time, there is no express legal rule that obliges to the preparation of a new contract, as the main conditions of the otheragreements remain applicable, except regarding its duration.
49
Article 38.1 of the Labor Law.
46
47

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DRAFT-Philip Morris International Work Product§Duration of the contract and conditions for renewal;§

Amount, form and periodicity of payment of the remuneration;§

Contract´s effective (commencement) and signature (execution) dates;

And, specifically for fixed-term employment contracts:(i) Stipulated term;(ii) Grounds for hiring an employee on a fixed-term basis;(iii) Termination date.
Parties may agree to include additional details in the employment contract as long as such details are not contrary to Mozambican law.
The maximum legally allowed duration of the probation period varies in view of the type of employment contract and its term, as follows:§

Employment contracts for fixed term:-

15 days à term up to 6 months;-

30 days à term greater than 6 months and lesser than 1 year;-

90 days à term greater than 1 year and employment contracts for an unlimited period of time;§

Employment contracts for an unlimited duration:-

90 days à default probation period;-

180 days à employees who hold leadership or management job positions or for intermediate or highly skilled technicians.

The parties may agree to reduce the probation period. Additionally, Article 48.2 of the Labor Law establishes a presumption of law
according to which the probation period is deemed to have been excluded in the event same is not stipulated in writing.
A final note to emphasize that should the probation period elapses and none of the parties has terminated the employment contract, thenthe same becomes firm and the time of service is counted as from the date in which the work started.
Requirements for termination of employment (termination with or without cause, wrongful dismissal, notice periods required to end
employment etc.)
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DRAFT-Philip Morris International Work Product

The Labor Law an employment contract may cease by (a) expiry, (b) mutual consent (c) termination by the employee without cause(resignation) and (d) termination with just cause by either of the parties.50(a) Expiry
The employment contract terminates, by expiry, on the following cases51:(i) At the end of the fixed term or completion of the relevant work, whenever the employment contract was entered into for a fixed or an
uncertain term, respectively;(ii) Total or partial irreversible incapacity of the employee that makes it impossible for him/her to continue rendering his/her services;(iii) Retirement of the employee (women retire at 55 years while men do so at 60 years);(iv) Death of the employee or of the employer, whenever the latter is a natural person except if his/her successors continue his/her businessactivity.
(b) Mutual consent (employment contract revocation agreement)52
As to the termination by mutual agreement, it is an option that may be exercised by employer and employee at any time, since the parties
to an employment contract have the right to terminate it by mutual consent when they so wish.

The contract termination has to be recorded in a written instrument which must contain certain details, such as the identity of both parties,
effective date of termination, date of execution and must be produced in duplicate and duly signed.
(c) Termination by the employee53
Employees are entitled to terminate the employment contract without cause whenever they so wish. This means that employees´ right toresign is an unyielding right, i.e., may be exercised unilaterally, irrespective of employer´s concurrence. In this case the existence or the
allegation of just cause for said termination is not required though employee is required to give prior notice, the duration of which varying
in view of the type of employment contract and employee´s length of service, as follows:§

Employment contract for an unlimited period of time:

Article 124.1 of the Labor Law.
Article 125 of the Labor Law.
52
Article 126 of the Labor Law.
53
Article 129 of the Labor Law.
50
51

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DRAFT-Philip Morris International Work Product§-15 days’ prior notice in case the employee´s length of service is higher than 6 months and lower than 3 years; or-

30 days’ prior notice in case the employee´s length of service is higher than 3 years.

Fixed Term Contract à prior notice of 30 days.

The employee´s failure to comply with the prior notice entitles employer to a compensation equivalent to the employee´s remuneration
during the prior notice not given.54(d) Termination with just cause by either of the parties55
Pursuant to the Labor Law, material facts or circumstances that render the existence of established contractual relationships morally or
materially impossible are considered as cause for the termination of the relevant employment contract.

§

Employee’s cause for the termination

Employees may terminate their employment contracts with cause if same need to perform legal obligations that are incompatible with therendering of their services or if there is a culpable conduct of the employer which breaches their legal and contractual rights and guarantees(constructive dismissal).
In such cases the employee is required to serve a letter to the employer at the least 7 days prior to the date in which he/she intends toterminate the employment contract. Failure to do so entitles employer to deduct from employee´s compensation a fine corresponding to
20 days’ salary. It is mandatory that the employee expressly states in the termination letter the facts that supposedly constitute just cause
for the termination of his/her employment contract.
§

Employer’s cause for the termination

In turn, employers may terminate employment contracts with just cause in the following cases:
i.

54
55

Manifest inaptitude of the employee to perform the job for which he/she was hired (may only take place in the event the employee
has received professional training prior to his/her dismissal and the probation period has already elapsed). No compensation shall bedue.

Article 129.5 of the Labor Law.
Article 127 of the Labor Law.

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DRAFT-Philip Morris International Work Productii.

Employee´s serious and culpable breach of his/her labor duties (requires that employer initiates disciplinary proceedings against theemployee);iii.

Arrest or imprisonment of the employee, provided that in view of the employee´s functions these are detrimental to the normal
functioning of the employer’s operations/services. Requires the filing of criminal proceedings and that the employee is declared guilty
under same;iv.

Termination of the employment contract due to economic reasons related to the employer (redundancy).

In all aforementioned cases the employer is ought to inform, in writing, the relevant union body (or, in the lack thereof, the employees´committee or the representative union association) and the Ministry of Labor of the employment termination. Furthermore, save for thetermination of the employment contract for economic reasons related to the employer (redundancy), all the other forms of termination
with just cause by employer´s initiative do not entitle employee to compensation.56
It shall also be noted that in case of a disciplinary offense (item ii, above), a special procedure applies (disciplinary proceedings) withadditional requirements and deadlines.

Options for farmers to obtain legal assistance about their obligations (e.g. government departments, local labor offices, farmer
associations etc.)

They can obtain legal assistance from: (i) Ministry of Labor, Employment and Social Security; (ii) General Labor Inspectorate; and (iii) CTA Confederation of Economic Associations.
Specific requirements for leaf growing contracts (e.g. government imposed templates, government approval of contracts, freedom tochoose terms of contract)

The law does not strictly impose the exact contractual terms that must be included in the contracts with farmers. However, minimum
content of the cultivation contracts should be taken into consideration in the contracts with farmers, as for example: the subject matter ofthe contract, rights and parties’ obligations and indicate inputs to be provided to the producer and its costs.57

56
57

Article 127.6 of the Labor Law.
Ministerial Diploma No. 176/2001, of 28 November 2001 (Regulations on the Tobacco Growing, Production and Marketing).-

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DRAFT-Philip Morris International Work Product

The law does not provide for a contract template and to the best of our knowledge, there is no template imposed by the government.
The registration of the cultivation contract with the Provincial Directorate of Agriculture and Food Safety is required.

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External Assessment

Appendix IV – Communication materials

Tenant leaflet

Appendix IV – Communication materials_ page 1 of 2123

External Assessment

ALP Principles (Portuguese)

Appendix IV – Communication materials_ page 2 of 2124

External Assessment

Appendix V – Reporting form (Folha de Registro de Incidências)

Appendix V – Reporting form – page 1 of 1

125

External Assessment

Appendix VI – Glossary
ALP

Agricultural Labor Practices

ALP Code

PMI’s Agricultural Labor Practices Code

ALP Code Principles

Short statements that set expectations of how the farmer should manage
labor on his/her farm in seven focus areas

ALP Program
Correction
Corrective action
CPA
Crew leader
Family farm
Farm Profiles

Agricultural Labor Practices Program
Any action that is taken to eliminate a situation not meeting the standard
Steps taken to remove the causes of a situation not meeting the standard
Crop Protection Agents
Person responsible for managing a group of workers
Farm that depends mainly on family members for the production of tobacco

GAP

A data collecting tool developed by PMI with Verité to track the socioeconomic profile of the farms

GTS

Good Agricultural Practices

Leaf tobacco supplie

Green Tobacco Sickness

Measurable Standard

Company that has a contract with PMI to supply tobacco but is not a farmer

Migrant labor

A Measurable Standard defines a good labor practice on a tobacco farm andhelps determining to what extent the labor conditions and practices on a
tobacco farm are in line with the ALP Code Principles

NGO
Piece work
PMI
PPE
Preventive action
Prompt Action

Labor coming from outside the farm’s immediate geographic area
Non-Governmental Organization
Payment at a fixed rate per unit of production/work
Philip Morris International, Inc. or any of its direct or indirect subsidiaries
Personal Protection Equipment
Steps taken to remove the causes of potential situations not meeting thestandard

Root cause

A situation in which workers’ physical or mental well-being might be at risk,children or a vulnerable group – pregnant women, the elderly - are in danger,
or workers might not be free to leave their job

Root cause analysis

The underlying reason that caused a situation not meeting the standard

Appendix VI – Glossary_ page 1 of 2126

External Assessment

Sharecropping

A set of analyzing and problem solving techniquestargeted at identifying the underlying reason thatcaused a situation not meeting the standard.
A system of agriculture in which the farmer has apartner (“socio”) who either works together withthe farmer or manages a plot of land. Costs of inputs
and/or revenue are shared.

STP

Sustainable Tobacco Production

SRTP

Social Responsibility inindustry-wide program

Support Mechanism

Appendix VI – Glossary_ page 2 of 2

TobaccoProduction;

A way for workers to access information and get
support in difficult situations and for workers
and farmers to get support in mediating disputes.
Farmers have access to additional services toimprove labor and business practices.

127