EXTERNAL ASSESSMENT LIMBE LEAFTOBACCO COMPANY LTD.
Virginia Flue-Cured farmers in
Mzimba South and Kabwafu

Agricultural Labor Practices ProgramFebruary/March, 2019

External Assessment

Table of Content
Executive summary. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3Market and company background .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 61. Implementation of the ALP Program .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 81.1. Commitment to the ALP Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.2. Strategy and objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.3. Internal capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.4. Communication of the ALP Code requirements to farmers. . . . . . . . . . . . . . . . . . . . . . . 13
1.5. Internal monitoring: data collection, accuracy, and addressing issues . . . . . . . . . . . . . . 15
1.6. Address systemic and/or widespread issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2. Farm-level assessment of working conditions regarding the ALP Code Standards .  .  .  .  .  . 19
2.1. ALP Code Principle 1: Child labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
2.2. ALP Code Principle 2: Income and work hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.3. ALP Code Principle 3: Fair treatment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.4. ALP Code Principle 4: Forced labor and human trafficking . . . . . . . . . . . . . . . . . . . . . . . 26
2.5. ALP Code Principle 5: Safe work environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.6. ALP Code Principle 6: Freedom of association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.7. ALP Code Principle 7: Terms of employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3. ALP Program: feedback from farmers, workers, and other stakeholders .  .  .  .  .  .  .  .  .  .  .  .  .  . 32
Appendices .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 34
Appendix I – LLTC’s Action Plan 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Appendix II – Scope and methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Appendix III – Legal information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Appendix IV – Materials provided to the farmers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Appendix V – Templates provided to field technicians. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Appendix VI – Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

EXECUTIVE SUMMARY

EXTERNAL ASSESSMENT
Virginia Flue-Cured farmers in Mzimba South and Kabwafu

External Assessment

Philip Morris International (PMI) requested Control
Union (CU) to conduct an external assessment of
the flue-cured Virginia (FCV) tobacco growing
operations of one of the origins of its supplier
Limbe Leaf Tobacco Company Ltd. (LLTC) in thenorthern region of Malawi. This assessment, which
took place in the areas of Kabwafu and Mzimba
South in February/March 2019, evaluated the labor
practices at contracted farms and whether thesewere meeting the standards of the Agricultural
Labor Practices (ALP) Code. 1 CU also evaluated
LLTC’s internal capacity to implement the ALP
Program, their understanding of farm practices, andhow they identified, recorded and addressed ALPrelated issues.
For this assessment CU interviewed eleven LLTC
management personnel, and eleven field personnel(including nine field technicians). In addition,over a period of one week, CU visited 30 farms,
interviewing a total of 30 farmers, 10 family
members, and 52 external workers.
An
information
triangulation
methodology
was used to evaluate farm practices. The threesources included interviews, documentation, andobservation, together with a “Five Whys Analysis”
problem analysis. The “Plan, Do, Check, Act” cycle
was adopted for analyzing LLTC’s management
approach.
As of 2019 LLTC based its ALP strategy on PMI’s
Step Change goals, focusing on child labor, minimum
wage, availability and usage of personal protective
equipment (PPE), and workers’ accommodation. As
part of this strategy, several initiatives were being
planned and implemented, such as expanding the
support mechanism, organizing various educationaland entrepreneurial programs, providing PPE andworker-contract templates, improving workers’
accommodations, and supporting village saving and1.

loans associations (VSLAs) for women. Root cause
analysis was not part of the reporting procedurerequired from field technicians, but instead wasdone through team meetings as well as individual
focus group discussions with farmers, workers andfamily members at the end of each crop season.
LLTC had set up an ALP team within its agronomy
department, which was responsible for implementing
the ALP Code at farm level, including training offield technicians and farmers, monitoring, andanalysis of collected data. Communication between
the management, ALP Coordinators and field staff
took place on a regular basis. The field technicians,
who served as the main link between LLTC and thefarmers, generally had adequate knowledge of the
ALP Code, particularly for the Principles of Child
Labor, Income and Work Hours, and Safe Work
Environment. Communication of the ALP Codeto farmers took place through individual visits,group meetings, local ALP committees, and writtenmaterials such as posters, flyers and contract
templates. Direct verbal communication proved
to be the most effective. However, as the fieldtechnicians focused on the farmers, awareness of
ALP Principles was found to be low among workers
and non-existent among family members.
As part of their farm visits, field technicians had
to update the Farm Profiles (socio-economic
information) and monitor adherence to the ALP
Code. Eleven of the 30 Farm Profiles checked by CU(37%) did not fully correspond with the situation
at the farm, mostly in terms of number of workers
living or working on the farm. None of the sevenfarms with tenants (23%) were classified as suchin the Farm Profiles. Furthermore, the Mobileaf
system used by the field technicians did not provide
a procedure for systematic monitoring of the ALP
Code. Instead, LLTC had conducted an one-time
survey on payment structures, working and living

The main goal of the ALP Code is to eliminate child labor and other labor abuses progressively where they arefound, and to achieve safe and fair working conditions on all farms from which PMI sources tobacco. For more
information on the background of the ALP Program see https://www.pmi.com/sustainability/good-agriculturalpractices/upholding-labor-rights-on-the-farms.
4External Assessment

conditions in 2018. Only situations not meeting thestandard and Prompt Actions had to be documented
in the Mobileaf system. Of the 1,234 Prompt Action
reports for LLTC farmers across Malawi in crop year
2018/2019, two applied to farms visited by CU.
Both were related to accommodation and had not
yet been closed, because the issues could not be
solved right away.
The main findings of the farm-level assessment wererelated to Child Labor, Income and Work Hours,
and Safe Work Environment. At three farms (10%)
evidence was found of children below 18 yearsof age being involved in tobacco production (ninechildren in total). Mostly they were helping withcarrying and stringing tobacco leaves, which was
generally considered a non-hazardous task suitablefor children. Awareness of the legal minimum
working age was limited. At eight farms (27%) atleast one of the workers did not earn at least the legal
minimum wage (11 workers in total). In addition,
at six farms (20%) workers wives were found tobe helping their employed husbands without pay
and without any contract or arrangement with thefarmer. Furthermore, seven farms (23%) were foundto work with tenants, whose pay entirely depended
on their tobacco yield at the end of the season.
Awareness of the risks of GTS and CPA was highamong farmers and workers, although they did notconsistently act on this in terms of PPE use. On nine
farms (30%) CPA was not stored in a safe and locked
storage, despite the lockable metal storage box and
instructions provided by LLTC. Furthermore, none of
the farmers disposed of their empty CPA containers
in a completely safe way, and none of the farmers
had a warning sign to stop persons from entering
the field after CPA application. At five farms (17%)
CU considered the workers’ accommodation to beunsafe, observing big cracks in the walls, holes in
the roof, and dried tobacco being stored in theworkers’ bedrooms.
In terms of feedback received by CU, the general
feeling among farmers and workers was that the
ALP Code and LLTC’s support had increased thesafety on the farms (especially in terms of PPE use),
had reduced the number of child labor incidents
and had increased the number of children going toschool.
The outcome of this assessment can be used asa tool to facilitate management with continuous
improvement. CU acknowledges LLTC’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
Virginia Flue-Cured farmers in Mzimba South and Kabwafu

External Assessment

Agriculture is the main industry in Malawi, withnearly 65% of the population employed in this
sector. Tobacco is by far the biggest cash crop; witha share of 55% in commodity export it is a major
contributor to the Malawian economy, followedby tea and sugar with a share of less than 10%
each. 2 Given that Malawi is the most tobaccodependent economy in the world, the country andits population (of which about 50% live below thepoverty line) are vulnerable to external shocks
such as extreme weather events and decreased
international demand for tobacco.
Burley is the main tobacco type grown in Malawi:
in 2015 it accounted for 87% of total tobacco
production. Other tobacco types produced aredark fired and flue-cured Virginia (FCV). Before
1989, tobacco production was tightly controlled
by the government; only estate owners were
eligible for obtaining a production license or wereable to achieve the required production scale forselling tobacco leaves at the auctions. Only after
liberalization of the tobacco economy in the early
1990s did it become possible for smallholder
farmers to produce and sell tobacco, which resulted
in a rapid growth in tobacco production. 3

companies usually pay their farmers slightly abovethat level.
Limbe Leaf Tobacco Company Ltd. (LLTC) is one of
the biggest tobacco companies in Malawi and has
been operating in Malawi since the 1960s. LLTC
is owned by Universal Leaf Tobacco Company Inc.
(58%) and Press Corporation Ltd. (42%), which is a
Malawi public company with interests in different
sectors of the Malawi economy. The LLTC head
office is located in Lilongwe and processing facilities
are located in Lilongwe and Limbe. Across Malawi,
LLTC works with three growing areas which arefurther divided in local subdivisions. For the 2019
crop season LLTC had direct growing contracts
with 9,447 farmers, who grew Burley (81%), FCV(16%) and DFC (3%). In 2019, LLTC’s farmers were
supported by a total of 320 permanent employees
in the Agronomy department, among whom were
110 field technicians, 16 modular training program(MTP) trainers, nine Area Coordinators, two Area
Supervisors and three regional ALP Coordinators
who were directly involved with the farmers.

All tobacco produced in Malawi is still sold at
auction floors; however, these days, large tobacco
buying companies and their contracted farmers
commit beforehand to buy/sell a specified amount.
These pre-agreed sales are part of the companies’
integrated production system (IPS) in which
contracted farmers also receive crop inputs andtechnical support. In the Malawi market, the pricepaid for the tobacco is not agreed beforehand.
The Ministry of Agriculture, Irrigation and Water
Development through the national Tobacco
Commission sets a minimum price each year
based on the costs of production, and the tobacco

2.
3.

Data for 2018, see Index Mundi – Malawi (https://www.indexmundi.com/malawi/economy_profile.html)
Food and Agriculture Organization – Tobacco in Malawi (http://www.fao.org/3/y4997e/y4997e0i.htm)
7

Chapter 1

IMPLEMENTATION OF THE ALP PROGRAM

EXTERNAL ASSESSMENT
Virginia Flue-Cured farmers in Mzimba South and Kabwafu

External Assessment

1.1. Commitment to the ALP Program
On their global website, LLTC’s parent company
Universal Leaf committed publicly to the eliminationof child labor and the improvement of working
conditions in tobacco crop production. The website
provided information about the company’s policy
on sustainability and supply chain integrity and theircommitment to the ALP Code. LLTC itself was also
committed to ALP through own internal policies on
Sustainable Tobacco Production (STP) and dedicatedbudget for initiatives on ALP implementation.

1.2. Strategy and objectives

experiences and best practices were shared among
companies. 4 Ongoing initiatives within the scope of
this assessment, such as providing PPE and contract
templates, are discussed in Chapter 1.6.
LLTC’s response:“LLTC is committed to eliminating issues in the focus
areas [including enhanced focus on child labor,
minimum wage and safe work environment (PPEfor GTS and CPA as well as safe accommodation
for workers) on the farms] and will work with third
parties that will support the implementation of someof the initiatives. Having had clearance from theAt the time of the assessment, LLTC had adopted
the four main global goals of PMI’s Step Change
approach as their focus for the current season.
These goals were:

Malawi Competition Commission , LLTC is working• No children performing hazardous tasks inlabor practices on contracted farms. ”

with Alliance One Tobacco Limited (AOTM) on someof the projects under the ALP Step Change approach.
This partnership will lead to sharing of ideas in the
campaign towards the total elimination of unfair

tobacco by 2022
• All workers paid at least the legal minimum wage
by 2022• Personal protective equipment (PPE) for crop
protection agents (CPA) and against the green
tobacco sickness (GTS) availability and usage for
all workers/farmers by 2020
• All workers with safe and clean accommodation
by 2020
LLTC had a number of initiatives planned for
2019, such as expanding the support mechanism,
organizing various educational and entrepreneurial
programs, and improving workers’ accommodations.
However, since these initiatives were not taking
place within the geographical scope of thisassessment and/or had not yet been started,
they are not evaluated in this report. Since ALPtranscends company lines, some of these initiatives
were developed not only in cooperation with PMI,
but also with Alliance One Tobacco Malawi (anothermajor tobacco producing company in Malawi) and4.

A risk assessment was conducted annually by LLTC’s
Sustainability Manager and national and regional
ALP Coordinators, based on results from monitoring
and their own experience. The risk assessment
covered each measurable standard of the ALP Code.
Risk levels were determined by the probability andseverity of the incident, and were classified as
acceptable, adequate, tolerable, or unacceptable.
No unacceptable risks were identified. The highest
risks were identified for child labor, applicationof chemicals without protective equipment, andaccommodation not meeting the workers’ basic
needs. In the past, the annual risk assessment would
provide the main basis for identifying strategy focus
areas, but as from 2019 the goals of PMI’s Step
Change also play a leading role.
Root cause analysis was not part of the Prompt
Action reporting by field technicians. However, root
causes were discussed in meetings between thefield technicians and regional ALP Coordinators.

An analysis was done by the companies to ensure that the collaboration was legal. Further, the companies sought
clearance from the Malawi Competition and Fair Trade Commission on the collaboration.
9External Assessment

Furthermore, LLTC organized focus group
discussions at the end of each crop season to identify
root causes of different issues. The participantsof these groups varied depending on the issue
discussed; each focus group had 5-7 participants tofacilitate contributions from everyone present.
LLTC’s response:“As part of the ALP Step Change approach, LLTC
will be addressing the root causes of ALP issues thatare commonly identified on farms. To address theseissues LLTC is planning to engage a third party for thecoordination and remediation initiative […]. The third
party will be required to establish the root causes [ofidentified issues] and then address the root causes
by linking the affected farms with relevant support
services.”

As of 2019 Universal was required by PMI to adapt
their sourcing strategy from Malawi to allocate
tobacco for PMI only from farmers who do not
employ tenants. Malawi has a long history of
producing tobacco in a land tenancy system, where
tenants grow tobacco on a piece of land of a farmer(the landowner, who himself may have a contract
with a tobacco company) and agree to produce agiven volume of tobacco for a specific price, mostly
at their own risk if the yield turns out low. A 2015
study of the Malawi Centre for Social Concern (CfSC)
found that tenancy labor in its current practice isoften characterized by exploitative arrangementsthat marginalize and degrade the workers. 5 In
2016 the Minister of Labor, Youth, Sports andManpower Development, Henry Mussa, argued thatthe tenancy system is detrimental to the country’s
development and that it keeps a large proportion offarm workers trapped under the poverty line. 6

5.
6.
7.

In order to ensure that no tobacco from tenants
would be allocated from Universal to PMI, LLTC had
created a list of farms working with tenants, andwas using a traceability system in which the bales oftobacco produced by farms with tenants received
a different color tag. As a plausibility check, CU
verified that LLTC was able to supply the amount of
tobacco required by Universal for PMI based on the
production by farmers without tenants. However,the system of segregating and tagging was notworking properly yet: tenants were found at sevenof the 30 farms (23%) visited in this assessment,
while none of these farms were supposed to workwith tenants, according to LLTC’s farm list.

1.3. Internal capacity
1.3.1. Dedicated organizational
structure
LLTC had set up an ALP team as part of its agronomy
department, including a Sustainability Manager andnational ALP Coordinator (see graph below). The
company had divided the country into three regions(North, Central, and South) and had assigned a
Regional Manager and Regional ALP Coordinatorto each region. Furthermore, LLTC employed nine
Area Coordinators, 16 MTP trainers 7 and 110 fieldtechnicians. The field technicians, who served
as the link between the management and thefarmers, were also part of the internal structure
for implementing the ALP Program. The fieldtechnicians interviewed for this assessment had
an average of 89 farmers (both FCV and Burley) tolook after. LLTC worked in close contact with PMI
Regional, receiving regular guidance and financial
support for the implementation of the ALP Programand specific initiatives.

http://tobacco.cleartheair.org.hk/wp-content/uploads/2016/01/CSC-Malawi-tenant-research-study-2015.pdf
https://www.business-humanrights.org/en/malawi-tenancy-system-benefits-investors-but-leaves-tobaccofarmers-trapped-under-poverty-line
LLTC had trained a number of field technicians to serve as MTP trainers. Their job was to support the [regional] ALP
Coordinators in field technicians trainings.
10External Assessment

Internal structure for ALP implementation

Supporting Department

The Managing Director

Director of Legal andCorporate Affairs

Head of Agronomy

Sustainability Manager (1)National ALP
Coordinator (1)Regional Manager (3)Area
Coordinators (9)Field Technician (110)1.3.2. Roles and responsibilities
The Steering Committee, consisting of thesenior management staff, was responsible forcommunicating ALP updates and projects to PMI,
and approving and supporting local projects for ALP
implementation.
Overall responsibilities of the ALP team included:• Rolling out the ALP Code, and coordinating thecollection of farm data;• Training field technicians to ensure proper
implementation of the ALP Code;• Testing the field technicians’ knowledge throughwritten tests and practical evaluations;• Validation of field monitoring;• Creating and updating communication materials
to farmers;• Creating and analyzing documentation forfarm monitoring, including the creation andimplementation of action plans where necessary;

Area
Supervisors (2)Regional ALP
Coordinators (3)MTP Trainers (16)• Training the MTP trainers and local ALP
committees;• Updating the risk assessment at least annually;• Implementing and/or supporting projects andinitiatives approved by the management team.
Field technicians were in charge of farmer trainings(held individually and in group meetings throughout
the season) and were also responsible for visiting
and monitoring the farms. It was their task to support
farmers in all aspects related to growing tobacco,including: (i) recruiting new farmers; (ii) gathering
farm data to complete the Farm Profiles; (iii) visiting
farmers to provide production support throughout
the season and training them on ALP; (iv) delivering
inputs from LLTC to the farms; and (v) monitoring
the practices on the farms, reporting situations notmeeting the standard and raising Prompt Actions.
All interviewees confirmed that their field work
had been supervised by their superior. Additionally,
the MTP Trainers and the Area Coordinators were
paying unannounced visits to the farms to check andvalidate the data collected by the field technicians.
11External Assessment

LLTC’s response:“LLTC is working towards having the ALP KPIs being
included in separate performance evaluations for FTs
outside of Mobileaf by 18th October, 2019.”

1.3.3. Training and knowledge of the
ALP Program
Members of the Management Team and ALP Team
received guidance on ALP from PMI Regional. The
program had been rolled out through a formal
training session in 2011. Management staff had
sufficient understanding of the main purpose andcontent of the ALP Program. Awareness was highest
regarding the Principles of Child Labor, Income andWork Hours, and Safe Work Environment; however,Terms of Employment was mostly not understoodas the requirement to inform workers on their legal
rights.
The field technicians received an annual refresher
training at the beginning of the season from the MTP
Trainers and regional ALP Coordinators. The fieldtechnicians’ knowledge was tested through written
tests. After passing the written test each fieldtechnician was assessed in a practical evaluation by
a superior during their farm visits.
CU’s assessment of field technicians’ knowledge of
ALP Code Principles showed the following results:
1. Child labor: All of the nine field technicians
interviewed by CU were aware of the meaningof this ALP Code Principle. Furthermore, they
were all aware that the minimum age had beenraised to 18. When asked about hazardous tasks,
stringing was generally not mentioned.
2. Income and work hours: In general, the fieldtechnicians had an adequate understanding of
this ALP Code Principle. All field technicians
knew the correct legal minimum wage for
Malawi. All field technicians were aware of theallowed work hours. Knowledge on overtime

regulations and overtime payment was limited;none of the field technicians mentioned thecorrect overtime rate.
3. Fair treatment: All field technicians could provide
a basic explanation of this ALP Code Principle,
but none provided a full explanation. Six fieldtechnicians (67%) mentioned that there should
not be any discrimination or unequal treatment.
Eight field technicians (89%) mentioned that
there should be a respectful treatment ofworkers without verbal or physical harassment
or abuse. However, none mentioned the needfor a support mechanism or that farmers must
make themselves available to workers who want
to discuss potential grievances.
4. Forced labor and human trafficking: Seven fieldtechnicians (78%) could give a basic explanationof this principle, mentioning mostly that workers
should be free to leave their job or that work
should be voluntary (56%), that workers should
not be working under a debt or bond (22%), thatwages should be paid directly to the workers(22%), and that farmers should not retain theirworkers’ identity documents (11%). However,none mentioned that payments should not be
withheld, or that workers should not be required
to pay any financial deposits.
5. Safe work environment: With regard to
this Principle, the field technicians mainly
mentioned that the workers’ accommodations
should meet the minimum standards (78%),and that PPE should be worn when applying
CPA (67%) or during harvesting (33%). Two
field technicians (22%) mentioned that farmers
should provide clean drinking and washing water
to their workers. None of the field technicians
mentioned that empty CPA containers should be
triple-rinsed and punctured before disposal, orthat farmers should observe a re-entry period
after CPA application.
6. Freedom of association: All field technicians had
an adequate understanding of this ALP CodePrinciple.
12External Assessment

7. Terms of employment: This principle was mostly
understood as complying with the local laws
or having a written contract in place. Only one
field technician (11%) mentioned that farmers
should inform workers of their legal rights andemployment conditions.

LLTC’s response:“LLTC has a Modular Training Program (MTP) in
which all field staff are trained on ALP. FTs training
is continuous with formal training happening atleast twice a year. […] LLTC will continue to ensure
FTs are continuously trained on all ALP principles
and systematic farm monitoring with more focus onpractical assessments by the ALP Coordinators on
how information is communicated to farmers on the
ground”

1.3.4. Internal communication
The regional ALP Coordinators called each otherevery week to discuss the latest developmentsin their regions. The national ALP Coordinator
held quarterly meetings with the regional ALP
Coordinators. Additionally, the regional ALP
Coordinators regularly traveled to different area
offices to discuss relevant issues with the fieldtechnicians. Each area office held monthly meetings
with their field technicians, which included
discussion of ALP-related topics. In order to develop
and implement the new Step Change goals, regularmeetings were held between the ALP team andthe senior management. Informal communication
among colleagues in the different local offices took
place on a frequent basis.
The Steering Committee met at least three times per
year. In preparation for these meetings the national
ALP Coordinator produced reports, including a
progress analysis on ALP implementation. These
reports were sent on to Universal Leaf and PMI
Regional after approval by the Steering Committee.

1.4. Communication of the ALP Coderequirements to farmers
1.4.1. Communication strategy andtactics
LLTC started to communicate the ALP Codeto farmers in 2011/2012. At the time of theassessment, communication efforts were focused
mainly on topics related to the four prioritized Step
Change goals, and in general on the Principles ofChild Labor and Safe Work Environment, as thesewere considered the most important areas for
improvement.
To communicate the ALP Program to farmers, family
members and workers, LLTC was using several
different methods: direct communication andtraining, written information materials, and local
ALP committees.
• Direct communication and training throughfarm visits: On average, field technicians visited
each farm at least five times per season for ALPrelated training and monitoring, in addition tovisits for technical and agronomic support.
• Farmer group meetings: LLTC organized aminimum of five farmer group meetings per
season, one for every crop stage, including grouptrainings and group visits to different farms.
• Written communication materials: LLTC had
developed three posters which explained
various topics in comic form: one on childlabor, one on GTS, and one on CPA storage
and application. CU observed that the pictures
were self-explanatory and made the topics
understandable to people of all literacy levels.
However, the posters lacked important legal
information such as the minimum working age.

LLTC’s response:“[LLTC will] amend its child labour comic with theminimum legal working age of 18 years old [and]distribute to all farmers.”

13External Assessment

In addition to the posters, LLTC had created aleaflet presenting all seven ALP Principles, thefour Step Change goals and various initiatives
started by LLTC. This leaflet had already been
updated to the revised version (2018) of the
ALP Code and included legal information suchas the legal minimum wage and the minimum
working age; however, information on overtime
regulations was lacking. Finally, LLTC provided
contract templates to farmers with hired labor,
which included basic legal information. Thiswas part of LLTC’s policy to promote the use of
written contracts (even though Malawi law only
required a written statement, as opposed to aformal contract).
• Local ALP committees: To communicate with
farmers, LLTC also made use of local ALP
committees. These were local groups that gave
training and advice to farmers and also wereintended to act as mediators in case of disputes.

The members of these committees were selectedby the local farmers; these committees aim toinclude one village development representative
and two workers’ representatives, in addition to
six other members (mostly farmers).
The following table shows the level of awarenessamong the interviewed farmers, family members
and external workers with regard to the ALP CodePrinciples. In line with LLTC’s communication
focus areas, the highest levels of awareness were
found for the topics of Child Labor and Safe Work
Environment, followed by Income and Work Hours.
However, awareness among workers was lower
than among farmers, and non-existent among family
members. This indicates that the field technicians
mostly focused on the farmers and generally did notinclude workers or family members in their trainings
or discussions at the farm.

Level of awareness of ALP Code Principles*
Farmers (30)

Family members (10)External workers (52)Child labor27 (90%)-29 (56%)

Income and work hours

24 (80%)-12 (22%)

Fair treatment

11 (37%)-3 (7%)

Forced labor and human trafficking

4 (13%)-

2 (4%)

Safe work environment

25 (83%)-17 (33%)

Freedom of association

9 (30%)-

2 (4%)

Terms of employment

7 (23%)-

6 (11%)-

10 (100%)

17 (33%)

None of the above* Note that these data only show whether the interviewees remembered the principles, and not whether they fully
understood their meaning.

14External Assessment

Interviewees who were aware of (at least some aspects of) the ALP code were also asked how they learned
about it. As the table below shows, verbal communication efforts were generally more effective thanwritten materials.

Means of communication through which the ALP Code was received
Farmers (30)External workers (35 out of 52)*

Directly from the field technician

23 (77%)

11 (31%)

Farmer group meeting

24 (80%)-

Poster/Brochure

3 (10%)

2 (6%)n.a.

33 (94%)

Verbally from the farmer* Family members are not included in this table because they were not aware of any of the ALP Principles, see previous
table

1.4.2. Farmers’ responsibilities
At the beginning of each crop season, farmers
signed a new growing contract with LLTC. This
contract stated the requirement to comply with
the ALP Code and that failure to meet the contract
requirements could lead to contract termination. At
the time of the assessment no contracts had been
terminated for ALP reasons.

Farmers will be required to disclose any risk areas or
areas for potential breach to enable FTs to provide
the required support beforehand. Farmers will be
required to assess workload requirements based onfarm size to ensure they employ the appropriate
number of employees. For the number of children
found on the farm, the FTs will review the farmer’s
adherence and commitment to sending those thatare of school going age to school.

LLTC’s response:“During the farmer registration period, LLTC will
be assessing farmer’s ability to meet standards
expected under the ALP Step Change approach. The

From CY 2020 LLTC will terminate farmer contracts
for recurrence of ALP breaches. This will be basedon the implementation of a “Discipline Matrix” (SeeAppendix I, 2.6.3)”

FT will sensitise the farmer on the said 4 key priority
areas and review the number of children on the farm,
the farmer’s financial status as regards engagementof labour, status of accommodation for workers andrequired PPE for a safe working environment. Whengaps are identified, the FT will make appropriate
recommendations to enable the farmer to meet therequired standards. If the assessment reveals thateven with appropriate measures, the farmer will notmeet the standards, the farmer will not be contracted
for the season.

1.5. Internal monitoring: data collection,accuracy, and addressing issues
At the time of the assessment, LLTC was collecting
three types of ALP-related data from the farms:
socio-economic
information(Farm
Profiles),situations not meeting the standard, and Prompt
Actions. All information was collected digitallyin the Mobileaf system. Field technicians had tovisit each farm at least five times per season for15

External Assessment

monitoring, but usually they would visit the farms
more frequently (e.g. for technical support unrelated
to ALP).

1.5.1. Socio-economic data: FarmProfilesThe socio-economic information for Farm Profiles
was collected at the beginning of each season during
the contracting period and was updated after every
visit by the field technicians. For all farms visited by
CU, updated Farm Profiles were available.
When comparing the data reported in these profiles
to actual farm situations, CU found that elevenprofiles (37%) did not fully correspond with thesituation observed at the farm. In general, temporary
workers (who were hired for a short period, i.e. notseasonal) were not recorded in the profiles, as their
numbers could differ from day to day. 8 However, thismeant that some farms were incorrectly classified
as family farms while in reality they hired temporary
workers during harvesting and curing. Furthermore,
at four farms (13%) the number of seasonal workers
living on the farm did not match, and none of theseven farms with tenants (23%) were classified as
tenant farms in the Farm Profiles. Finally, at one
farm (3%), one of the farmer’s wives was missing
from the profile.
LLTC’s response:“LLTC will, through the MTP trainers and ALP
Coordinators, conduct farm profile data verificationfrom November to February 2020 on 5% of thefarms.”

1.5.2. Systematic monitoring: situations
not meeting the ALP Code standards
Situations not meeting the standard were notmonitored or documented in a systematic way(there was no procedure for this in the Mobileaf

8.
9.

system). After each farm visit, the field technicians
only had to enter into the Mobileaf system which
Principles they had discussed with the farmer. Here,the system differentiated between family farms(where technicians had to discuss Child Labor and
Safe Work Environment) and farms with workers(where they had to discuss all Principles). 9 The fieldtechnicians only had to file a report when theyobserved a Prompt Action.

LLTC’s response:“LLTC has developed a booklet to be used by FTs torecord systematic farm assessment findings. […] The
booklet will contain […] information [on] […] whether
the farmer is meeting the standards, if yes, why and
if not why (5 whys analysis). […] ALP Booklets havebeen developed and distributed to all FTs. These will
enable FTs record findings of issues on the farm andleave copy with the farmer as a record. Farmers will
acknowledge the findings by signing and agreeing on
action plans with the FTs.”

From February to April 2018 LLTC had conducteda survey among all farmers with hired labor to gain
insight into payment schemes and working andliving conditions. This baseline study was used by
LLTC as an additional tool for understanding thefarm situation. And while this gives a good insight
into the situation in the field, it does not replace adocumented farm-by-farm monitoring throughout
the entire season which is expected of all Suppliers.

1.5.3. Prompt Actions
The reporting procedure for Prompt Actions
consisted of several steps. After identification of a
Prompt Action, the field technician had to stop theactivity, inform the farmer, agree on an action plan,
and write a report in Mobileaf. Within six weeks thefield technician had to pay an unannounced followup visit and—if the issue was addressed—close the

For farms where workers were hired on a daily basis, it was challenging to keep the Farm Profile up to date in termsof the exact number of workers.
CU notes that this system relies on an accurate classification of farms. However, a few farms in this assessment
were found to be incorrectly classified (see Chapter 1.4.1).
16

External Assessment

Prompt Action. As of 2019, severe breaches such as
forced labor and child labor also had to be reported
to the District Labor Office (DLO) or the village
chief.
All of the nine field technicians interviewed by
CU were aware of the procedure for follow-up
and the required timeframe. The majority (67%)
had a correct understanding of the meaning ofPrompt Actions, but three (33%) described it as any
situation not meeting the standard. At the time of
the assessment a total of 1,234 Prompt Actions had
been reported by the field technicians for all LLTC
contracted farmers in Malawi; these were related
to child labor (10%), income and work hours (<1%),and safe work environment (<90%). This number
shows that LLTC’s field technicians were actively
monitoring and reporting on the ALP Code, eventhough there was no procedure for documented
monitoring in Mobileaf (see 1.4.2).
Two of the farms visited by CU had a reported
Prompt Action. Both Prompt Actions were related
to workers’ accommodation and had not yet beenclosed, because the issues were not easy to fix. Oneof the two farmers was unaware of the raised Prompt
Action. The field technician in question said that hehad not told the farmer since there was no easy
way to solve this problem and therefore he did not
see the need to inform the farmer. This indicates alimited follow-up on open Prompt Actions by LLTC.

LLTC’s response:“All FT’s have been re-trained on Prompt Actions
and its guidelines. A written assessment was also
conducted to assess FTs understanding of theguidelines. FTs were further advised to ensure that
farmers are [aware] of situations identified on theirfarms, even in their absence.”

1.5.4. Data management and analysis
Field technicians were responsible for updating
the Farm Profiles and inserting any findings on
the ALP Code after every visit, using the Mobileaf

system on their tablet or smartphone. The inserted
information was downloaded every week foranalysis by the regional ALP Coordinators, who also
compiled the data into monthly regional reports thatcovered topics such as training, Prompt Actions andstakeholder engagement. The head office was alsoable to generate overview graphs and tables of all
farm data captured, including Prompt Actions, using
Business Intelligence software.
CU observed that Mobileaf did not allow fieldtechnicians to see the Prompt Actions reported
in previous seasons. This may limit their ability tomake an in-depth analysis of the issues observed,
especially when they have not worked with thefarmer in question before and are therefore notaware of past incidents.

1.5.5. Improvement plans for individual
farms
In case of an identified incident or Prompt Action,
the field technicians had to fill out a report in
Mobileaf and agree on an action plan with thefarmer. In most cases these plans focused onreminding and educating the farmer about thecorrect practices, rather than analyzing root causes
and developing corrective actions to address thesecauses. Nonetheless, the field technicians had
some influencing options in the form of a “toolbox”
of measures, including incentives (e.g. higher
tobacco quota), discouragement (e.g. contract
termination), provision of training material, andadditional support through Village Savings and Loan
Associations (VSLAs), Community Based Child Care
Centers (CBCC) or other projects in the region.

1.6. Address systemic and/or widespread
issuesBased on the risks and issues identified (see Chapter
1.2), PMI’s leaf tobacco suppliers are expectedto address systemic and/or widespread issues intheir supply origins through operational initiatives,
community programs (which may be supported bya financial contribution from PMI) and engagementwith key stakeholders.

17External Assessment

At the time of the assessment, LLTC was
implementing the following operational initiatives
within the geographical scope of this assessment:

contributions, a distrust in saving associations
based on bad experiences or stories, or because
they felt they did not need it.

• Worker contract templates
In order to help formalize employment andsupport farmers and workers in their agreements,
LLTC provided contract templates to farmers withhired labor. All farmers visited by CU had received
the contract template, and it was used by 13
farmers (43%) used it. The main reason for thislow usage, according to the farmers interviewed,
was that they had already hired their workers
when the contract templates finally arrived. The
majority of farmers (83%) reported to find it
useful to have contracts, as these provided clarity
for both sides. However, some farmers mentionedthat it was difficult to agree on a wage with theworkers before they knew what price they would
receive for their tobacco at the end of the season.
The contract template included a table forrecording worker attendance (hours worked) andcash advances and in-kind payments such as foodand soap. Although the time-attendance table
was not widely used, the table for cash advances
and in-kind payments was filled in at most farms.

Three other ongoing initiatives, which will be
discussed in more detail in Chapter 2 (FarmFindings), were:• Provision of improved PPE for CPA application,with new gloves, dust masks and aprons (seeChapter 2.5 and pictures in Appendix IV);
• Provision of gloves specifically for handlinggreen tobacco leaves. These special gloves
were a new initiative; the recommendation was
four pairs of gloves per contracted hectare (seeChapter 2.5);• Setting up and training local ALP committees toprovide a support mechanism in all operation
areas (at least one committee per field technician)(see Chapter 2.3).
LLTC’s response:“During the farmer registration period, LLTC will
be assessing farmer’s ability to meet standards
expected under the ALP Step Change approach. The
FT will sensitise the farmer on the said 4 key priority• Village Savings and Loan Associations (VSLAs)
The VSLAs, locally known as “village banks”, werelocal women groups formed with the purposeof saving money and providing small loans. The
women received trainings from LLTC on the VSLA
concept, business planning and financial literacy
and were encouraged to start their own small
businesses (e.g. growing and selling peanuts) withareas and review the number of children on the farm,

the help of microloans. At 15 farms visited by CU(50%) the woman of the house (farmer or farmer’swife) participated in a VSLA. All considered thisinitiative useful, mostly because it provided easy
access to loans or a good way to save money. Two
women had successfully set up their own businesswith money from the VSLA; the other womenreported to use the loans to buy corn fertilizer, topay daily labor, or as a backup for difficult times.
The women who did not participate gave various
reasons, including a lack of funds for the weekly

meet the standards, the farmer will not be contracted

the farmer’s financial status as regards engagementof labour, status of accommodation for workers andrequired PPE for a safe working environment. Whengaps are identified, the FT will make appropriate
recommendations to enable the farmer to meet therequired standards. If the assessment reveals thateven with appropriate measures, the farmer will not
for the season.
Farmers will be required to disclose any risk areas or
areas for potential breach to enable FTs to provide
the required support beforehand. Farmers will be
required to assess workload requirements based onfarm size to ensure they employ the appropriate
number of employees. For the number of children
found on the farm, the FTs will review the farmer’s
adherence and commitment to sending those thatare of school going age to school.”

18

Chapter 2

FARM-LEVEL ASSESSMENT OF
WORKING CONDITIONS REGARDING
THE ALP CODE STANDARDSEXTERNAL ASSESSMENT
Virginia Flue-Cured farmers in Mzimba South and Kabwafu

External Assessment

This chapter describes CU’s assessment of theworking conditions on 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 safeand fair working 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. 10

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 three farms (10%) evidence was found of children
below 18 years of age being involved in tobacco
production. 11 At one farm, five family children aged
11 to 16 were helping with carrying and stringing
tobacco leaves; two of them were also involved
in harvesting. At the second farm, three children
aged 10, 11 and 13 were helping with stringing
and carrying tobacco. These were the children of atenant, and they said that it was normal for them tohelp. Finally, at the third farm the 17-year old wifeof a worker was helping her husband with his work.
She was not paid for this work.

Underlying factors that increase risk
CU identified four underlying factors that increased
the risk of child labor:

1. Awareness of the legal minimum working age
was limited. Six farmers (20%) and workers ateleven farms (37%) said they did not know what
the correct legal minimum age was. Furthermore,carrying tobacco or helping with stringing was
generally not considered to be hazardous work,and therefore viewed as a good task for children.
2. Involving children in farm work is still common
practice in Malawi. Children are expected tosupport the family income and share in theworkload. CU observed children helping in
tobacco at several neighboring farms (notnecessarily contracted by LLTC).
3. In Malawi, child marriage is widespread: 42% ofgirls are married before the age of 18, and one
in ten are married before their 15th birthday. 12
It is common for wives to help their employedhusbands, also in tobacco (see Chapter 2.3).
4. Farmers want to teach their children how tofarm, because school education may not ensurea job.

Analysis and priorities
Elimination of child labor was one of LLTC’s main
focus areas. At the time of CU’s assessment, the legal
framework had just been re-interpreted to define
child labor in a stricter way and the topic was alsoemphasized in the LLTC’s communication materials
and trainings. However, in Malawi many families
are living below the poverty line (see Market andCompany Background) and children are expected tocontribute to the family income. Additional efforts
from LLTC are needed in order to reach their goal ofeliminating child labor.

10. The scope and methodology of the assessment are described in Appendix II.
11. Based on a reinterpretation of Malawi law, LLTC had communicated to their farmers that no person under 18 yearsof age would be allowed to work in any tobacco-related activity, as of the 2018-2019 crop year. Therefore, thisreport considers all tobacco-related work under 18 as child labor (including non-hazardous, light work allowed by
the ALP Code for children between 15 and 18).
12. https://www.girlsnotbrides.org/child-marriage/malawi/
20External Assessment

LLTC’s response:“Establishment and support of 3 Community BasedChild Care Centers (CBCCs) in Dowa, Lilongwe andNtcheu [prior to the assessment]. Care givers at the
CBCCs are provided with training. The Centre isprovided stationery for use and food for the pupils.
[…] LLTC has budgeted for construction of another

Implementation of a pilot after school activities at
Chulu Primary School in Dowa
• LLTC will provide the selected school withsports materials for Football and Netball games
and other play materials. Trainings will also beorganized for teachers on coordination of physicaleducation and other activities.”

CBCC in CY 2020.
In addition to the ongoing initiatives (see Annex I,
3.1.3) […] LLTC will be implementing a number of
initiatives under the ALP Step Change approach

2.2. ALP Code Principle 2: Income andwork hours

targeting root causes of child labour in tobacco
farms:

Income earned during a pay period or

Engagement with District Labour Office (DLO)

growing season shall always be enoughthrough the Ministry of Labour to follow up onreported issues on child labour (to start by October

to meet workers’ basic needs and shall2019).

be of a sufficient level to enable the• The DLOs will conduct unannounced farm

generation of discretionary income.

inspections in order to enforce compliance.
• DLO engagement will also include conducting
community awareness sessions so that workers

Workers shall not work excessive orillegal work hours.

and other people in the community benefit fromtheir presentations.
A pilot School feeding program at Chulu Primary
School in Dowa (Central Region)• Children will be provided with a meal when theyreport for school.
• LLTC will require the community to provide land
where the school will grow corn and groundnuts
for the meal to be provided.
• LLTC will engage a third party to assist in
implementing the initiative. An assessment will bemade after the pilot period on whether the model
is self-sustaining for the community.

Main findings and challenges
2.2.1. Payment of workers
All farms visited by CU worked with hired labor.
Many of these farms employed more than one typeof worker, including tenants, seasonal workers
and temporary (daily or weekly) workers. At eight
farms (27%) at least one of the workers did notearn at least the legal minimum wage 13. On mostfarms, workers were provided with food (prepared
meals or maize and salt) and accommodation where
needed. Four farmers (13%) deducted these in-kindpayments from the final cash payment 14. It was notpossible for workers to refuse the in-kind payment
in order to receive the full amount in cash.

13. The legal minimum wage in Malawi is 962 MWK per eight-hour-working-day
14. LLTC communicated to farmers that in-kind payment was allowed up to 50% of the total wage. For legal details,
see Appendix III
21

External Assessment

For the purpose of this assessment, workers’
incomes were calculated as wage per month. If
workers were employed on a daily basis theirincome was extrapolated to a monthly wage basedon a full working week (eight hours per day, six daysa week). 15 The table below shows the calculated pay
rates in three categories (below the minimum wage,
at the minimum wage, and above the minimumwage) and the number of workers receiving this pay
rate. Note that tenants are not included in thesenumbers; their situation is discussed further down
this section. In addition, workers at two farms are
not included in this table, because the farmers
in question had not yet agreed on a wage for theseason, stating that it was difficult to do this if they
did not know yet how much they would receive for
their tobacco.

Furthermore, the table differentiates between
workers receiving the full payment in cash as
specified in their contract (without deductions forthe food and soap provided) and workers for whom
the cost of food and soap was deducted from thetotal wage specified in their contract. Note that
accommodation was provided free of charge and nofees were being deducted for this. The table shows
the range of salaries paid per contract and therange of deductions as documented by the farmer.
This data shows that 11 (31%) of the 35 workers
for whom the salaries could be calculated were paid
below the minimum wage. As mentioned above,
they were working at eight different farms (27%).

Breakdown of calculatedsalaries (MWK/month)Without deductions(N=28)
With deductions(N=7)

Salary range (MWK/month)< 25,000=25,000>25,000

Min. salary

Max. salary

Average

11 (39%)2 (7%)

15 (54%)13,00040,00025,3400

1 (14%)

6 (86%)

25,00037,50031,305

8,421

12,00010,807

Deductions

The tenant workers (who were found at seven of
the 30 farms visited) did not have a fixed income. In
most cases they had one hectare of land for growing
tobacco and expected to produce between 17 and20 bales (about 100 kg each) for which they hoped
to receive between 22,000 and 25,000 Malawi
Kwacha (MWK) per bale, amounting to 418,000
to 500,000 MWK per season (about ten months)
as payment for the (usually) two persons working
the crop. The Agriculture Research and Extension
Trust (ARET) has estimated that the production of
FCV tobacco costs 367 man-days per hectare of

tobacco per season. Based on the legal minimum
daily wage of 962 MWK, this would amount to aminimum required income of 353,054 MWK per
hectare per season. According to this estimation, alltenants at the farms visited by CU would receive
the minimum wage this season, but only if theyrealize the expected yield and tobacco price. These
expectations are based on previous seasons andresults may differ substantially in the current crop
season; in which, for example, due to rain and highhumidity more days for curing were required. In
addition to this income, tenants usually received

15. Based on the legal minimum wage, the monthly pay should be at least 25,000 MWK
22

External Assessment

crop inputs, food (maize and salt, not necessarily
enough for the season) and a small piece of land
for growing their own vegetables, usually free ofcharge. Only one of the seven farmers with tenants(14%) charged his tenants for food and soap (around
15,000 MWK per month).
At six farms (20%) women were found to be helping
their employed husbands (seasonal or temporal
workers), mostly with stringing, without pay andwithout any contract or arrangement with thefarmer. The husband also did not receive any extra
pay for bringing in helping hands.

labour law breaches, DLO will ensure that all
workers are paid at least the minimum wage andall agreements and negotiations are according to
the laws of the country.
Enhancement of VSLAs• Enhance VSLAs to enable farmers to pay minimum
wage regularly to replace end of season payments.
[…] An opportunity was identified to support
the VSLAs to become more entrepreneurial by
supporting them with access to capital througha partnership with microfinance institutions
and linking them with meaningful business
opportunities.”

LLTC’s response:“In order to address the gaps identified by
the assessment, the following actions will be
implemented by LLTC:
Training on Financial Literacy and Overtime andMinimum Wage calculations• LLTC has planned for the FTs and farmers toattend a training course on Financial Literacy andBusiness Planning which will equip them with skills
and knowledge on business planning and savings.
The FTs will be able to deliver relevant financial
information to the other farmers. Knowledge offinances will assist farmers to deal with issues on
Income and Working Hours in general terms.
• Training farmers on calculation of minimum wage
and overtime to be emphasized at the beginningof the growing season.
• Inclusion of workers or worker representatives

2.2.2. Payment schedule
End-of-season payment was practiced at mostfarms. 16 According to the farmers and workers
interviewed, the main reasons for this practice were,firstly, that farmers lacked the money to pay theirworkers throughout the season, having sufficient
cash funds only after selling the tobacco harvest;
and secondly, that many of the workers wanted tobe paid the full sum at the end of the season to beable to go home with a sufficient amount of moneyand not spend their wages before that. Although
Malawi law allows for end-of-season payment if
agreed between employer and employee, the ALP
Code advises to pay the salary regularly and at
least once a month, to reduce the risk of forced orindebted labor (see also Chapter 2.4).

during farmer meetings to ensure awareness ofthe minimum wage by the workers. This will be
for the period September to December 2019 andscheduled on a need be basis thereafter.

LLTC’s response:“LLTC will enhance the bridging finance payments[through cash advances] to farmers from December

District Labour Office Engagement

to April and ensure that the money paid is sufficient• Engagement with DLO will ensure enforcement

for the farmer to afford paid labour for the farmers’of standards on Income and Work Hours. Being

land size holding.”a government institution mandated to deal with

16. Malawi law requires weekly or monthly payment, unless otherwise agreed between employer and employee.
23External Assessment

2.2.3. Work hours and overtime
payment
No evidence was found of farmers disrespecting
the legal work hours on a regular basis outside of
the harvesting and curing peak. At 26 farms (84%)
workers were also involved in curing, in addition totheir usual shift. This meant that they had to monitor
the curing barns and the fire every two hours (onaverage) for around seven days in a row, per barn.
Only at three farms (10%) curing was paid at apremium, 17 with payments ranging from 1,600 to
2,000 MWK per night of curing. None of the farmers
provided overtime pay for overtime unrelated tocuring. Often, they considered that overtime work
was compensated by the low workdays at the
beginning of the season; however, this practice is
not in line with Malawi law. At eight farms (27%)
overtime was not considered voluntary, as workers
upon starting their employment had agreed to be
involved in curing; here, the overtime was alreadyincluded in the working agreement (without
additional pay) and workers could not decide to not
do the overtime that day. No evidence was found ofworkers not receiving at least one resting day per
week outside of the curing period.

2.2.4. Legal benefits
On 20 farms (67%) workers did not get a day off
on public holidays, although they were legally
entitled to this benefit. According to Malawi law,workers employed less than a year are not entitledto any further benefits. Since all farms visited by
CU worked with temporary and seasonal workers(employed for a maximum of 9 months per year), nofurther benefits were verified in this assessment.

LLTC’s response:“LLTC will continue to sensitize farmers on the need
for workers to have a day off on a public holiday anda day off once a week as a resting day.”

Underlying factors that increase risk
Five farmers (17%) and workers at eleven farms(37%) did not know the legal minimum wage of 962
MWK per day. In addition, knowledge on overtime
regulations was very limited.

Analysis and priorities
The ALP Code Principle of Income and Work Hours
was a focus area for LLTC and part of the Step
Change Goals. However, CU’s findings demonstratethat there are still widespread issues related to this
topic, especially in terms of pay rates, overtime
arrangements, and unpaid labor by workers’ wives.

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 farms. 18
However, at one farm (3%) a case of verbal abuse
was identified. A worker reported that the farmer
would shout badly at him and threaten to fire him
when he made mistakes.

2.3.2. Discriminatory practices
Two types of discriminatory practices wereidentified. First, in Malawi it is not common practice
to employ women in tobacco, particularly for curing.
Most women were hired (for activities other than

17. Under Malawi law overtime should be paid at 1.5 times the normal pay during the work week
18. See Appendix III for legal details on fair treatment.
24External Assessment

curing) only if they were the wife of a worker, andmostly on a daily basis and on a verbal agreement.
Secondly, especially in the case of tenants, it iscommon practice in Malawi to only employ theman, as head of the family, and not his wife, eventhough she usually helps her husband in tobacco
production. These women are left empty-handed
when something happens to their husband (seeChapter 2.4.1).

2.3.3. Support mechanism
Support mechanisms facilitate workers’ access to
information, assist workers in difficult situations,and mediate disputes between farmers and workers.
Suppliers in origins from which tobacco is sourcedfor PMI are expected to ensure that farmers andworkers have access to such a mechanism.
During the last years LLTC had implemented alarge number of local ALP committees to provide
a support and grievance mechanism in all regions.
In total, the company had set up 318 committees
including 1,380 committee members across Malawi.
Committee members were selected by local farmers,
and the aim for each committee was to include atleast one worker representative and one memberof the village development center to make thecommittee more approachable for workers. It was
their task to mediate disputes between farmers andworkers and to follow-up on the solutions agreed.
In this role they were also to act like social workers,
actively approaching persons on the farms to findabout any ongoing issues. In addition, their task was
to support farm monitoring and to inform the fieldtechnician in case of any identified Prompt Actions.
At the time of the assessment LLTC was planningto hire a social consultancy firm to give social
worker trainings later in 2019, in order to provide
committee members with the necessary soft skills
and knowledge on how to handle sensitive topics.
Among the farmers visited by CU, eleven (37%)
were aware of the support and grievance functionof the local ALP committees. The other farmers

only knew about the committee’s training andmonitoring function, if they had heard about thecommittee at all. Among the workers interviewed,
only one worker (at one farm (3%)) knew about the
ALP committee; in this case the farmer was the
local committee’s secretary. None of the workers
had used the support mechanism so far. All farmers
who knew about the support mechanism were asked
about their opinion, and all stated they felt thatthe committee members were very accessible andactive in their approach. When asked about how toaddress grievances, most farmers (including those
who did not know about the support mechanism)
mentioned that they would most likely talk to thefield technician or approach the local chief.
To complement the work of the local ALP
committees, LLTC was planning to set up a tollfree support line in collaboration with AOTM. The
idea is that farmers and workers can call this line
to ask for support and discuss grievances, and thatthe counsellors will mediate and solve these issues
together with the local ALP committees.
The ALP Code requires access to a fair, transparent
and anonymous grievance mechanism. At the timeof the assessment this requirement was not yet
fulfilled, as the local ALP committees could notensure anonymity and also were not independent,
given that they mainly consisted of farmers.
Nevertheless, LLTC’s current plan to expand andintegrate the two approaches (toll-free line andlocal committees) is a potentially effective option,
considering that the ALP committees know the local
people and rely on culturally accepted structures(which makes it easier to mediate and solve
grievances), while the toll-free line can provide
anonymity and fair and independent counsel.
In addition to a formal support mechanism, the ALP
Code requires that farmers should make themselves
available to their workers to discuss potential
grievances. No cases were identified where farmers
were unavailable to their workers.

25

External Assessment

Analysis and priorities
This principle was not a focus area for LLTC.
Nevertheless, the company was taking important
steps towards setting up a locally accepted support
mechanism. Together with raising further awarenessamong farmers, workers and family members, these
efforts will increase the possibilities for offering
support in case of conflicts and promoting respectfulcooperation between farmers and workers.

2.4. ALP Code Principle 4: Forced laborand human trafficking
All farm labor must be voluntary. There
shall be no forced labor.

Main findings and challenges

2.4.1. Involuntary labor
LLTC’s response:No evidence was found of forced or indebted labor.

“In order to cover the gaps identified by the

Furthermore, no evidence was found of contracted

assessment under fair treatment, the following

prison labor, of workers being obliged to hand overactions will be implemented by LLTC.

their original identity documents or having to pay a

DLO inspections to include checking of fair treatment

financial deposit.

related measurable standards• The DLOs will conduct unannounced farminspections in order to enforce compliance (5% of
farmers allocated to each FT to be covered in theinspection)• DLO engagement will also include conducting
community awareness sessions so that workers
and other people in the community can benefit
from their presentations.
ALP Committee Engagement• Farmers and workers to be informed of the roles
and responsibilities of ALP Committees at the

However, CU observed that the tenancy system
carries an inherent risk of forced labor. Due tothe nature of their contract, tenants cannot leave
the farm before the crop is sold at the end of theseason, otherwise they will not receive any money.
Furthermore, the tenant system usually only
employs the man, as head of the family, and not his
wife, even though she usually helps her husband in
tobacco production. These women are left emptyhanded when something happens to their husband,
which increases the risk of forced labor.

beginning of the season. ALP Committees to be
more empowered through provision of resources
and more training• LLTC will empower ALP Committees through moretrainings and with resources such as hardcovers,
pens and rulers to ensure they are able to provide
grievance mechanism support (to be complete by
November 2019)”

LLTC’s response:“LLTC has now changed its policy towards the useof tenant labour by contracted farmers. LLTC will nolonger contract with farmers using tenant labor andwill therefore not enforce the TMS [Tenant MinimumStandards]. It will be easier to monitor regular
payment of wages than to monitor tenant labor.”26

External Assessment

2.4.2. Indirect payment
In addition to the already mentioned indirect
payment of tenant wives at seven farms (23%),
indirect payment was also identified at two otherfarms, where couples were hired but the wages werealways paid to the husband as head of the family.
The persons in question all declared to CU that theywould share their income. Indirect payment is seen
as a risk of forced labor and farmers should ensure
direct payment to all workers individually.
LLTC’s response:“Going forward […] LLTC will advise farmers toengage spouses independently and to pay them
directly as any other farm worker.”Analysis and priorities
This principle was not a focus area for LLTC.
Although widespread issues were not identified byof GTS; however, at six farms (20%) at least one
person handling green tobacco was not trained on
avoidance of GTS. GTS training was provided by
the farmers to the persons on the farm. Generally,
farmers had a better knowledge of GTS than family
members and workers. The workers wives whohelped their husbands without a formal employment
arrangement usually had not received any training
on GTS.
Despite the existing awareness, PPE use was limited.
At none of the farms visited, complete sets of PPE
were worn at all times by all persons handling green
tobacco. During harvesting, the majority of persons
involved (86%) were wearing at least long sleeves(see Table below). However, stringing and carrying
tobacco was not considered a hazardous activity
in relation to GTS, and usage of PPE (or simply
wearing long sleeves) was therefore very limited
for these tasks, indicating a lack of understandingof the causes of GTS. CU observed two pregnant
women and one nursing woman handling green
tobacco while wearing incomplete PPE.

CU, the vulnerable situation of tenants and women,in particular, requires continued

and in depth

monitoring by the field technicians.

2.5. ALP Code Principle 5: Safe work
environment
Farmers shall provide a safe work
environment to prevent accidents andinjury and to minimize health risks.
Accommodation, where provided, shallbe clean, safe and meet the basic needsof the workers.
Main findings and challenges

2.5.1. Training and awareness of GTS
Awareness of GTS was high among farmers. All
farmers were aware of the existence and avoidance

Use of protective clothing
during harvesting(n=28)

Complete protective clothing(Long sleeves, long pants, gloves,
shoes, and rain gear in case of wet
tobacco)2 (7%)Long sleeves, long pants, shoes,
rain gear

1 (4%)Long pants, gloves, rain gear, shoes

4 (14%)Long sleeves, long pants, gloves

6 (21%)Long sleeves, shoes, rain gear

1 (4%)Long sleeves, gloves, rain gear

1 (4%)Long sleeves, gloves

7 (25%)Long sleeves

4 (14%)

None of the above

2 (7%)

27

External Assessment

As can be derived from the table above, gloves were
not being worn at nearly one third of the farms. The
main reasons given by the interviewees were that
it was new for workers to wear gloves for handlinggreen tobacco, and that it was uncomfortable andimpractical to do harvesting and stringing while
wearing gloves.

2.5.2. Training and handling of CPA
Like for GTS, safety awareness with regard tohandling CPA was high among both farmers andworkers, although they did not consistently act on
this. 19 All persons handling or applying chemicals
reported to have received a training. No evidence
was found of persons applying CPA without any
protective equipment. 20 LLTC provided rubber
gloves, plastic aprons, goggles and dust masks to
the farmers 21. Boots were not provided; however,at most farms (22, or 73%) boots or shoes werebeing worn by the person applying the CPA. In
terms of wearing the equipment provided by LLTC,
farmers or workers at 20 farms (67%) mentioned towear the complete set of PPE. At ten farms (33%)
the complete set of PPE was worn except for theapron. No evidence was found of CPA applicationequipment not being in good condition. At ten farms(33%) evidence was found of persons applying
fertilizers without gloves. 22
LLTC had provided all farmers with a metal box for
CPA storage that could be locked with cable ties,
and had advised farmers to keep the chemicals outof reach of children, away from residential rooms
and livestock housing. However, at nine of the 29
farms where this could be verified 23 (31%) CPA wasnot stored in a safe and locked storage. At three ofthese farms the CPA containers were stored in the

farmyard, outside the storage box; at three otherfarms the storage boxes were unlocked and locatedin a sleeping area or next to food supplies; and at
the three remaining farms the boxes were unlocked
and located in an unlocked storage area.
LLTC had set up a system for the collection and safe
disposal of empty CPA containers. In their written
communication materials LLTC advised farmers to
triple-rinse and puncture empty CPA containers andstore them out of reach of children until the fieldtechnician came to collect them. However, noneof the farmers visited by CU correctly followed
these instructions. At 19 farms (63%) the empty
containers were returned to the field technician
without proper rinsing and puncturing, at four farms(13%) the empty containers were thrown into thetoilet pit, at three farms (10%) the empty containers
were stored unsafely inside the living area, at two
farms (7%) empty containers were thrown away
outside and lying around openly in the field, and at
one farm (3%) the empty containers were burned.
Finally, at one farm an empty CPA container was
being used to get drinking water, which poses a
serious health risk.
Ten farmers (33%) did not know the correct reentry period after CPA application; three of them(30%) mentioned that there was no risk in enteringright away, three others (30%) mentioned a periodof four hours, and the remaining four (40%) were
not aware of the required re-entry period. Noneof the farmers used a warning sign to ensure that
nobody would enter the field after application; eight
farmers (27%) considered it unnecessary to observeor impose a re-entry period, and 22 farmers (73%)
reported to inform others verbally and to watch outthat nobody would enter the field. 24

19. It should be noted that the main method to apply CPA at the farms visited was targeted application rather thanspraying. Hence, people were less inclined to protect themselves
20. CPA application was not observed during CU’s farm visits; hence this evidence is based on what farmers andworkers answered to the question “What do you wear when applying CPA?”, and on CU’s inspection of the state of
the PPE present at the farm.
21. For photos of the PPE provided by LLTC, see Appendix IV
22. Fertilizer application could not be observed during the visits and underlies the same limitations as CPA application.
23. At one farm this could not be verified, as the farmer claimed he had never received any chemicals from LLTC
24. It could not be observed whether someone actually stayed around the field to warn trespassers.
28

External Assessment

LLTC’s response:“In addition to the efforts [prior to the assessment]
LLTC will be implementing a number of initiatives
under the ALP Step Change approach targeting root
causes.
• Enhanced training and monitoring to emphasize
GTS symptoms, prevention, CPA handling and use
of full PPE.
• Further distribution of comics on GTS, CPA
storage and PPE usage to all farms.
• Farmers to be trained and encouraged to keep
tools and equipment safely• Training on rinsing and puncture of CPA containers
by FTs, MTP trainers and GAP Coordinators.
• Training and monitoring to be done by June 2020
• Safe storage of equipment by 2020.”

prevent theft. Kitchen and sanitary facilities were
mostly provided in additional buildings outside theworkers’ accommodation. Housing was provided toall seasonal workers free of charge.
At five farms (17%) CU considered the housing to
be unsafe and not meeting the basic needs of theworkers. This evaluation was based on observing
clearly unsafe situations such as big cracks in thewalls, holes in the roof, and dried tobacco being
stored in the workers’ bedrooms.
No accommodation was provided to local workers
doing the curing; they would sleep next to the curingbarn during monitoring breaks. Seasonal workers
would do the same if the curing barns were locatedtoo far away from the workers’ accommodation
provided.

LLTC’s response:

2.5.3. Clean drinking and washing waterNo evidence was found of drinking and washingwater not being available to family members andworkers; however, occasionally workers had to fetch
the water themselves or their wives would have tobring it to them. Not all farmers had access to a wellor borehole close by; in those cases, the persons on
the farm had to use the water from a local stream.
None of the farmers had (portable) sanitary facilities
at the field. Most of the work, especially stringing
and curing, was done at the farmer’s house or curingbarn. Basic sanitary facilities were available in theliving areas in all cases.

2.5.4. Workers’ accommodation
Among the farms visited by CU, workers’
accommodation ranged from single-room huts
made of branches and mud, to brick houses withseveral rooms. In most cases, the rooms wereshared (two workers, or one couple). Windows were
mostly either fully covered with paper or plastic,
or non-existent. Although this made ventilationdifficult it was sometimes requested by workers to“A root cause analysis revealed that farmers wereunable to provide standard accommodation to theirworkers because they cannot afford to buy building
materials. […] LLTC will support the farmers notmeeting the standard with cement, Iron sheets andother materials in order to improve the workers’
accommodation.
The plan is for construction of 700 houses in CY
2019 and 692 houses in CY 2020.”

2.5.5. Safety at the farm
At four farms (13%) sharp farming tools were notstored properly but lying around in areas wherechildren were playing. One farmer stored the cups
for applying CPA next to the toothbrushes, which
presented a risk of persons ingesting chemical
residues. None of the farmers had access to a firstaid kit, but all farmers mentioned to be able toprovide transport to a medical facility in case of an
accident. Furthermore, 19 farmers (63%) mentioned
to have resources in case of fire. Mostly this related
to having buckets of water.

29

External Assessment

Analysis and priorities
Safe work environment, especially PPE use andworkers’ accommodation, was one of LLTC’s focus
areas. This was evident in the field, as awarenesson this Principle was found to be relatively highamong both farmers and workers. Nevertheless,understanding of the causes of GTS was limited
to harvesting; many farmers and workers were notaware of the risks involved in stringing or handlinggreen tobacco. Furthermore, even though thenumber of clearly unsafe accommodations was low,
the living conditions observed by CU were mostly
very basic; hence, the ongoing efforts of LLTC to
improve workers’ accommodation deserve to becontinued. 25

found of farmers not allowing their workers to
discuss common work goals and interests.

Analysis and priorities
This ALP Code Principle was not a focus area
for LLTC as there were no unions or associations
active in the region.

LLTC’s response:“Irrespective of the lack of unions in the communities,
LLTC ensured that farmers and workers are trainedon Freedom of Association and this was done
through the distribution of leaflets to all farmers
and also airing of skits on Freedom of Association
on ZBS.“

LLTC’s response:“ALP Coordinators and MTP trainers [will] validate[5% of each] FTs monitoring data on PPE usage,storage of chemicals and tools by March 2020.“

2.6. ALP Code Principle 6: Freedom of
association
Farmers shall recognize and respect
workers’ rights to freedom of association bargain collectively.

Main findings and challenges

2.6.1. Workers’ right to freedom of
association
No evidence was found of farmers disrespecting
their workers’ right to freedom of association.
There were no active labor unions in the regionof the assessment. Nevertheless, no evidence was

2.7. ALP Code Principle 7: Terms of
employment
Farmers shall comply with all laws of
their country relating to employment.

Main findings and challenges

2.7.1. Information on legal rights
Typically, farmers informed their workers about
the basic employment conditions at their farm,
such as the wage they would receive, the hours
they needed to work, their tasks, and payment
conditions. However, none of the farmers fully
informed their workers about their rights interms of legal benefits, the legal or recommended
minimum wage, or the legal minimum rate forovertime hours. This was found to be due tothe farmers’ lack of awareness that it was their
responsibility to provide this information to their

25. Initiatives outside of the regional scope of this assessment, as mentioned in Chapter 1.2; and the accommodation
minimum standards set by LLTC
30

External Assessment

workers. In the cases where the contract template
provided by LLTC was used (13 farmers, i.e. 43%),
basic legal rights were stated in the copy given to
the worker (see Chapter 1.6).

2.7.2. Written contracts
Malawi law did not require a formal written
contract between farmers and workers, but only awritten statement containing the main employment
conditions. However, LLTC promoted the use of
written contracts and provided a template which
included the basic legal rights as well as a timesheet
and space for documenting cash advances and inkind payments. At 21 farms (70%) workers were
provided with a written statement or contract. The
template of LLTC was used at 13 farms (43%). CU
identified four farms (13%) where workers had notreceived a copy of their contract.
Some farmers mentioned that the contract
templates from LLTC had not arrived in time forthe hiring season, which explains the relatively low
usage of the contract template.

LLTC’s response:“Going forward, LLTC will [ensure] early distributionof contract templates at the onset of the season,
this will ensure that farmers sign contracts at the
beginning of their agreement.“

CU noticed that on some farms the contracts did
not match with the actual agreement between
farmer and worker (especially in the case oftenants) and had only been filled in to meet
LLTC’s requirements as communicated by thefield technician. According to some workers at
one farm, their contract had only been filled in
the previous week, even though the signed dateshowed the beginning of the season, several
months earlier. Furthermore, at one farm CU
observed that the worker’s contract had not yet
been signed; the reason given was that a witness
should be present and that the farmer wanted theworker’s parents, who were living further away, towitness the signing. In terms of positive feedback,interviewees at several farms mentioned that thecontract decreased discussions about payment
at the end of the season and provided clarity
regarding the agreed terms for both sides.
In addition, CU observed that generally only
seasonal workers received a written contract;
temporary workers usually did not have written
contract in place. Furthermore, at six farms (20%)
women were found to be helping their employedhusbands unpaid and without any contract orarrangement with the farmer (see Chapter 2.2.1).
Lastly, several farmers reported that it was very
difficult to agree on a wage with the worker if they
did not yet know what price they would get for
their tobacco at the end of the season.

Analysis and priorities
LLTC was actively promoting the use of written
contracts and provided farmers with contract
templates. Although farmers did not yet fully
understand that it was their responsibility to informworkers on their legal rights, increased usage ofthe contract templates is a first step toward better
informing the workers. Furthermore, more effort
should be put into improving the rights, direct pay
and employment structures for women.

LLTC’s response:“LLTC will […] [continue to] train farmers and workers
on terms of employment measurable standards
ALP Coordinators and MTP trainers [will] validate[5% of each] FTs monitoring data on […] employment
conditions [and] usage of the templates.“

31

Chapter 3

ALP PROGRAM: FEEDBACK FROMFARMERS, WORKERS, AND OTHERSTAKEHOLDERS

EXTERNAL ASSESSMENT
Virginia Flue-Cured farmers in Mzimba South and Kabwafu

External Assessment

CU asked farmers, family members and workers
what had changed on their farms since the startof the ALP Program. The general feeling among
farmers was that the ALP Code and LLTC’s support
had increased the safety on the farm (especiallywith regard to PPE use), had reduced the incidenceof child labor, and had increased the number ofchildren going to school. Most of the feedback
was positive and a good relationship with the fieldtechnicians was reported in all cases; however, some
farmers complained that the contract templates
had arrived too late (after the workers had alreadybeen hired). One farmer claimed that he had been
charged double for his firewood and that he had
informed the field technician, but that nothing had
been done about it so far.
Workers mostly mentioned that PPE use had
increased since the implementation of ALP and thatpeople were more aware that children needed tohave a school education. Furthermore, some workers
mentioned that they were being treated with more
respect and that the relationship between farmer
and workers has improved.
Field technicians received feedback from farmers
as well as workers and family members during
their farm visits. They would discuss their findings,
if considered relevant, during meetings with theirsupervisors. However, there was no structured
process for reporting these findings to the ALP
team. The focus groups organized by LLTC to
discuss root causes provided an additional means
for the company to receive feedback.

33

Chapter 4

APPENDICESEXTERNAL ASSESSMENT
Virginia Flue-Cured farmers in Mzimba South and Kabwafu

External Assessment

Appendix I – LLTC’s Action Plan 2019
1. INTRODUCTION
Limbe Leaf Tobacco Company Limited (LLTC) recognises the Agricultural Labour Practices challenges as
identified by Control Union (CU) and is committed to implementing initiatives aimed at progressively
eliminating child labour and other forms of labour abuses and risks. Through Universal Leaf Tobacco Inc.
(LLTC’s parent company in the USA), LLTC is a member of the Elimination of Child Labour in Tobacco
Growing (ECLT) Foundation which is dedicated to improving the lives of children in tobacco growing
communities. At national level, LLTC is a member of the National Steering Committee on child labour.
For all LLTC contracted farmers, there is a clear prohibition of use of child and/or forced labour and arequirement for strict adherence to fair labour practices as defined by the ALP code requirements.
ALP was initiated in 2012 with the primary purpose of promoting sustainable agronomy and best practices
related to progressively eliminating child labour and other labour abuses where they are found and toachieve safe and fair working conditions on all farms from which LLTC sources tobacco. The first phasefocused on training farmers and field staff, identifying issues that were contrary to ALP requirements
and the collection of farm profile information. In 2013 LLTC piloted Phase 2 of the ALP program. This
phase aimed to systematically assess farms and develop individual farm action plans for improvement.
Phase 2 pilot was implemented in Dowa and Ntchisi Districts where focus areas were on child labour, safe
work environment and the tenancy system. The first two being identified as priorities through reported
practices not fully meeting the standards required by the ALP program.
In the crop year (CY) 2019 LLTC contracted 9,359 farmers. The farmers were allocated amongst thecompany’s 110 Field Technicians (FTs) representing a ratio of 85:1. An average of 6 visits were madeper farmer by FTs. The FT’s are required to follow up on the ALP Program, oversee crop management,
agronomy practices and farmer forestry activities, facilitate recovery of loans for inputs and delivery of
tobacco to markets.
PMI introduced an ALP Step Change Approach in 2018 26. The new approach aims at focusing on themost recurring and serious issues and developing action plans that address their root causes. Following
the introduction of the ALP Step Change Approach, LLTC conducted a baseline survey in all operational
areas involving farmers and workers. The objective of the survey was to further understand the payment
structure on farms that hire labour, and to verify the living and working conditions for farm workers. Under
the survey, it was mandatory for FTs and Regional ALP Coordinators to triangulate information and verify
existing conditions of the workers. The survey therefore enabled LLTC to identify recurring issues fromwhich to develop key priority areas alongside concrete action plans for the ALP Step Change targets. The
priority areas identified are Child Labour, Income and Working hours and Safe Work Environment (seetable below). With the selected focus areas and targeted action plans, this Step Change approach will take
ALP adherence to the next level. The table below shows the focus areas and set targets:

26. Before the 2019 Control Union Assessment
Appendix I - LLTC’s Action Plan _ page 1 of 23

35

External Assessment

ALP Principle

Focus Area

TargetChild Labour

No hazardous work for children
under the age of 18

Zero children performing hazardous
tasks in tobacco by 2022

Income and Work
hours

Minimum wage for labour

100% adherence by farmers in paying
workers at least minimum wage by 2022

Safe Work
Environment

Use of Personal Protective
Equipment (PPE) for Green
Tobacco Sickness (GTS)
prevention and Crop Protection
Agents (CPA) application

100% of PPE for GTS & CPA availability
and usage for workers/farmers by 2020

Accommodation for farmworkers

100% of workers with safe clean
accommodation by 2020

2. IMPLEMENTATION OF THE AGRICULTURAL LABOUR PRACTICES PROGRAM (ALP)
2.1 Commitment to the ALP Program
LLTC is committed to continuously improving the implementation of the ALP program. As mentioned earlier,
LLTC conducted a baseline study last year to identify key priority areas for a Step Change. In August 2018,
LLTC also conducted a root cause analysis to identify key initiatives that would most effectively further
achieve compliance with the principles of the ALP program, especially elimination of child labour andimproving work conditions for farm labour. The results of this analysis combined with the farm-by-farmmonitoring and past experience in implementing the ALP program in the field, enabled LLTC to identify
root causes of the persistent ALP noncompliance. Having identified the priority areas and knowing theroot causes of the recurring challenges, LLTC will be able to focus on targeted initiatives that are problem
specific and sustainably address these root causes.
2.2 Strategy and Objectives
During the previous crop years, focus was on two principles: child labour and safe work environment.
These were identified from issues that were reported through the FTs monitoring. Initiatives were
therefore targeting these two principles. However, despite the implementation of the initiatives, LLTC
continued to receive reports on related ALP issues through FTs hence the LLTC adoption of the ALP
Step Change approach. As stated above, this will include enhanced focus on child labour, minimum wage
and safe work environment (PPE for GTS and CPA as well as safe accommodation for workers) on thefarms. LLTC is committed to eliminating issues in the focus areas and will work with third parties that will
support the implementation of some of the initiatives. Having had clearance from the Malawi Competition
Commission 27, LLTC is working with Alliance One Tobacco Limited (AOTM) on some of the projects underthe ALP Step Change approach. This partnership will lead to sharing of ideas in the campaign towards thetotal elimination of unfair labour practices on contracted farms.

27. Clearance was sought from the Competition and Fair Trading Commission of Malawi prior to engagement with
AOTM on the ALP Step Change approach. This was to get the approval of the Commission that ALP issues areindustry issues and are non-competitive in nature. AOTM is one of the main tobacco buying Companies in Malawi
and sharing of common goals under the ALP Step Change approach entails more in achieving fair labour practices
in the tobacco industry in Malawi.
Appendix I - LLTC’s Action Plan _ page 2 of 23

36

External Assessment

2.3 Internal Capacity
2.3.1 Roles and Responsibilities
As verified during the assessment several people are involved in the implementation of the ALP program
both at managerial and junior levels, at head office and in the field. LLTC has an Agronomy Sustainability
Manager, an ALP National Coordinator and ALP Regional Coordinators, who are directly involved in theimplementation of the program. They are supported in the field by Area Coordinators, Area Supervisors,
FTs and ALP Committee members, who all ensure that the ALP Code is being communicated to the farmers,
its adherence is monitored and progress of the overall program is reported.
The ALP National Coordinator, ALP Regional Coordinators, Regional Managers and Area Coordinators,
have the general responsibility of ensuring that the ALP program is implemented according to the set goals
at farm level and providing leadership and guidance as required. All the fore mentioned personnel have
ALP Key Performance Indicators (KPIs) included in their performance assessments. For FTs, the ALP KPIs
are included in the performance assessments incorporated under the MobiLeaf data collection system.
LLTC is working towards having the ALP KPIs being included in separate performance evaluations for FTs
outside of Mobileaf by 18th October, 2019.
2.3.2 FTs training and knowledge of ALP
LLTC has a Modular Training Program (MTP) in which all field staff are trained on ALP. FTs training iscontinuous with formal training happening at least twice a year. This is to ensure they are equipped withthe right knowledge and skills to enable them discharge their duties effectively. After training, assessments
are conducted on knowledge as well as practical application. For the ALP Step Change approach, training
will concentrate on the key priority areas mentioned above.
LLTC will continue to ensure FTs are continuously trained on all ALP principles and systematic farm
monitoring with more focus on practical assessments by the ALP Coordinators on how information iscommunicated to farmers on the ground.
During the CY 2018 LLTC engaged Centre for Youth and Development (CYD) to train 48 FTs as trainerof trainers on systematic farm monitoring and probing and triangulation skills. The 48 FTs then trained theremaining 62 FTs. This was in October, 2018.
In July 2019, during the MTP training, FTs were trained on the ALP principles, farm monitoring, ALP Step
Change approach which included the four key priority areas, a due diligence process and the discipline matrix.

2.4 Communication of the ALP code requirements to farmers
2.4.1 Training Methods
There are several methods that LLTC uses to train and engage farmers and the community. These include:• Radio: radio messages target communities and the nation as a whole as the audience is wider than just
LLTC contracted farmers. LLTC uses Zodiak Radio Station (ZBS), which has broad urban as well as rural
listenership. 28
28. The results of a survey conducted in 2016 by Malawi Communications Regulatory Authority indicated that ZBS is
at 81.1% in terms of the proportion of individuals listening to a national radio station by geographical and regional
location.
Appendix I - LLTC’s Action Plan _ page 3 of 23

37

External Assessment• Group meetings with FTs, farmers, farmer spouses and workers.
• Through local ALP Committees: these are community based and target contracted farmers, farmer
wives, workers, tenants and children.
• Leaflets and Cartoons: these are distributed directly to contracted farmers.
2.4.2 Farmers Responsibilities
As part of ensuring farmer adherence to the ALP code requirements and participation in relevant
communication initiatives and trainings, LLTC has included ALP related contractual obligations in the
supply contract. Farmers’ Obligations under ALP include without limitation attending training organized by
FTs, training workers and family members on ALP principles and implementing labour practices as required
under the Code. From CY 2020 LLTC will terminate farmer contracts for recurrence of ALP breaches. This
will be based on the implementation of a “Discipline Matrix” (See 2.6.3).

2.5 Internal Monitoring: Data collection
Internal monitoring is done in many ways but mostly through farm visits by FTs, data collection andsurveys as and when necessary. LLTC’s data collection is through Mobileaf and targeted surveys. Mobileaf
is a digital farm/farmer data collection tool. LLTC fully implemented Mobileaf in the CY 2016. Since then,
Mobileaf has been the primary data collection tool for LLTC’s farmer base.
Data collected in Mobileaf for farm profiles includes farmer general information, farmer living conditions,
number of adults on the farm (workers and family members), children on the farm (their relationship to thefarmer, school enrollment, age and tasks performed by children), workers living and working conditions,
categories of workers, assets on the farm, type of land ownership, farm size, other economic activities on
the farm, food crops grown, ALP incidences, and field operations (crop stages).
LLTC also conducts surveys when initiating new projects to ensure actions target issues on the ground.
Information collected depend on the project to be initiated. As mentioned above, in 2018 a survey was
conducted on accommodation and minimum wage for the ALP Step Change Approach. Farmers andworkers were involved.
2.5.1 Farm Profile Data Collection
On an annual basis, LLTC collects farm profile data to enable a clear understanding of the situation on
the farm, which then helps the FTs to identify red flags (warning signals for potential ALP breaches) anddiscuss and advise the farmer on any required changes. Refer to 2.5 above for the type of data collected
for farm profiles.
LLTC will through the MTP trainers and ALP Coordinators conduct farm profile data verification from
November to February 2020 on 5% of the farms.
2.5.2 Prompt Actions
During the assessment the majority (67%) had a correct understanding of the meaning of Prompt Actions,but three (33%) described it as any situation not meeting the standard. Two of the farms visited by CU hada reported Prompt Action. Both Prompt Actions were related to workers’ accommodation and had not yet
been closed, because the issues were not easy to fix. One of the two farmers was unaware of the raised
Prompt Action.
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External Assessment

In addition, the assessment found that situations not meeting the standard were not monitored or
documented in a systematic way (there was no procedure for this in the Mobileaf system). The FT only
had to file a report when they observed a Prompt Action.
All FT’s have been re-trained on Prompt Actions and its guidelines. A written assessment was also
conducted to assess FTs understanding of the guidelines. FTs were further advised to ensure that farmers
are of situations identified on their farms even in their absence.
LLTC has development a booklet to be used by FTs to record systematic farm assessment findings. The FTs
will be required to leave a copy of the booklet with findings on the farm as proof of issues identified. The
booklet will contain the following information: name of person conducting the visit, documents reviewed
on the farm, tool box used and whether the farmer is meeting the standards, if yes, why and if not why (5whys analysis). If a Prompt Action is identified, the FT will be required to record in Mobileaf as well for thePrompt Action processes to follow.
ALP Booklets have been developed and distributed to all FTs. These will enable FTs record findings ofissues on the farm and leave copy with the farmer as a record. Farmers will acknowledge the findings bysigning and agree on action plans with the FTs.

2.6 Addressing Systemic Issues
2.6.1 Coordination and Remediation
As part of the ALP Step Change approach, LLTC will be addressing the root causes of ALP issues that arecommonly identified on farms. To address these issues LLTC is planning to engage a third party for thecoordination and remediation initiative under the ALP Step Change approach. Under this initiative, thethird party identified will be specialized and will provide social support where required.
FTs will conduct farm visits and report on issues as is required of them and when issues on child labourand no payment of minimum wage are identified, these will be forwarded to the third party. The third party
will be required to establish the root cause and then address the root causes by linking the affected farms
with relevant support services.
2.6.2 Due Diligence
During the farmer registration period, LLTC will be assessing farmer’s ability to meet standards expectedunder the ALP Step Change approach. The FT will sensitise the farmer on the said 4 key priority areas andreview the number of children on the farm, the farmer’s financial status as regards engagement of labour,
status of accommodation for workers and required PPE for a safe working environment. When gaps are
identified, the FT will make appropriate recommendations to enable the farmer to meet the required
standards. If the assessment reveals that even with appropriate measures, the farmer will not meet thestandards, the farmer will not be contracted for the season.
When satisfied that the farmer can meet the expected standards, LLTC will ensure that farmers are remindedof their contractual obligations regarding the ALP code and specifically: not to use child labour, to pay atleast minimum wage to their workers, to ensure that PPE is being used and to provide accommodation of
the required standard to their workers. Farmers will also be sensitized on the discipline matrix mentioned
above and warned of the consequences of noncompliance. Farmers will be required to disclose any risk
areas or areas for potential breach to enable FTs to provide the required support beforehand. Farmers will

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External Assessment

be required to assess workload requirements based on farm size to ensure they employ the appropriate
number of employees. For the number of children found on the farm, the FTs will review the farmer’s
adherence and commitment to sending those that are of school going age to school.
2.6.3 Implementation of the Discipline Matrix
LLTC will implement the discipline matrix for non-compliant farmers. LLTC has informed all farmers
regarding implementation of the discipline matrix at registration stage. This has also been included in the
Farmers contracts. The following is a discipline matrix.
Priority

1st Prompt Action

2nd Prompt Action

Child Labour:• Labour Officer
Farm Inspection• Contract
Termination• Incident Reportto Tobacco
Commission• Non-renewal ofContract• Labour Officer
Farm Inspection• Written Warning

No under 18 performing
hazardous tobacco work

Income & Work Hours:
Workers receiving theminimum wage

• Incident Reportto Tobacco
Commission

Safe Working Environment:• ALP Coordinator

PPE for CPA & GTS• Follow Up & ActionPlan

3rd Prompt Action• Contract
Termination• Non-renewal ofContract• Written Warning• Non-renewal ofContract

3. FARM-LEVEL ASSESSMENT OF WORKING CONDITIONS REGARDING THE ALP CODE
STANDARDS
3.1 PRINCIPLE 1: CHILD LABOUR
3.1.1 Main challenges identified during the 2019 CU Assessment
CU reported that at 3 (10%) of the farms visited, children below 18 were involved in tobacco production.
Details being:
1. 5 Children (3 boys, 2 girls) aged 11-16 were helping with carrying and stringing tobacco.
2. 3 children of tenants aged 10, 11 and 13 were helping in stringing and carrying tobacco
3. A 17-year-old wife of a worker was helping her husband with stringing and carrying tobacco and she
was unpaid for the work. (Note that LLTCs ALP training provides for no work for under 18s in tobacco).

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External Assessment

3.1.2 Root Causes
From the analysis, below are root causes identified by LLTC giving rise to occurrences of child labour:
1. Farmers want to train their children in tobacco production.
2. Lack of enforcement by Government of laws and standards at community and farm level.
3. Lack of cash during the season to employ adults.
4. Idleness that occurs when the children knock off from school and have nothing to do
5. Children abscond from school as they do not have money for meals when they attend school.
6. Lack of resources for secondary and college tuition fees.
7. Proximity/distances walking to school. Some areas do not have schools nearby and children at times
walk up to 5 - 7 km to get to the nearest school.
8. Children (6 to 17 yrs. old) help with taking care of their siblings (2 to 5 yrs. old) since there is no formal
government provision for pre schooling. In the area where the assessment was done there are 25 zones
and only 4 zones have child care centers representing 16%.
9. Student/Teacher ratio is very high in some of the zones. Within the assessment area the Student/
Teacher ratio is as high as 1:109.
3.1.3 Action Plan going Forward
Prior to the assessment, LLTC undertook the below initiatives to address child labour in tobacco fields:
1. LLTC set 18 yrs. as the minimum age for any work in tobacco as it easier to enforce and monitor.
2. 100% of contracted farmers were trained through one on one sessions with an FT, group meetings, useof comics and leaflets and radio skits.
Target Audience - CY 2019

TargetTrained

Farmers

9,332

9265

Farmer wives

4000

4368

Children

6000

8401

Workers

25983

16554

3. A minimum of 5 farm visits conducted by FTs per season where all visits required child labour incident
identification and reporting. In CY 2019, LLTC through the FTs visited 9,332 farmers representing
100% of targeted visits. It is mandatory that during each visit the FT monitors ALP issues. This provides
FTs an opportunity to train the farmers and other people on the farm when gaps are identified or
breaches observed.
4. Establishment and support of 3 Community Based Child Care Centers (CBCCs) in Dowa, Lilongwe andNtcheu. Care givers at the CBCCs are provided with training. The Centre is provided stationery for use
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41

External Assessmentand food for the pupils. There are over 330 children at the 3 CBCCs. For the Dowa CCBC, LLTC hasconstructed a structure that will accommodate 150 children going forward. There are also plans of
expanding the Centre to cater for after school youth activities. LLTC has budgeted for construction ofanother CBCC in CY 2020.
5. School awareness training program for pupils. In the past two years, LLTC has trained 11,501 children
on child labour. Specific topics include tobacco hazardous tasks (all work in tobacco is hazardous) andthe importance of education.
6. For the past 3 years, LLTC has implemented Corporate Social Responsibility Projects that have continued
to complement and support ALP initiatives. Below are details of some of the projects:• LLTC has for the past 3 decades been supporting a sports tournament for primary schools in
Lilongwe district of the central region. The tournament involves football and netball games forunder 12s and under 15s. Currently, LLTC is purchasing sports equipment (football, netball, tennis,
hockey, basketball and volleyball balls) for after school activities at Mbalame and Majiga Primary
Schools. This will be distributed to the school before end of October 2019.
• Provision of teaching and learning materials to 3 schools: Majiga, Bolero and Kabwafu primaryschools.
• Provision of toys, reading books, crayons, coloring books and pencils, balls, white boards, chairs to
a CBCC in Dowa.
• To ensure that girls are not absent from school LLTC has supplied re-usable sanitary pads to 6
schools namely Santhe, Chigumba, Mbalame, Mwakhundi and Majiga Primary Schools for pupils inupper grades. LLTC will be distributing more sanitary pads before the end of the financial year to 3other Primary schools.
• Renovated and constructed staff toilets at Mwakhundi Primary School. LLTC had previously
constructed 4 classrooms at the same school.
• Donated 180 previously used tablets to Namitete Secondary School.
• Constructed libraries at Kanjoka and Mwakhundi Primary schools. Currently working on collecting
books and installing solar lighting for both libraries.
• Constructed 2 classrooms and a staffroom at Chikazima Primary School. A playground for pupils will
be added before December this year at the school.
• LLTC is sponsoring 10 students at various Universities in Malawi. The students were selected from
communities where LLTC contracts with farmers. These students were selected to go to university
but were struggling to get tuition fees. LLTC believes that educating farmer children up to University
level will motivate other pupils to go to school and to aim high. Once the beneficiaries graduate, it
is hoped that they will also make a difference in their communities and bring in more awareness on
the importance of education• Renovated water system at Chatata Primary School in Kanengo• Donated desks for all classrooms that have been constructed.
7. Establishment and support of 218 Village Savings and Loan Associations (VSLA) with a membershipof 4,468 women. Established over 5 years ago, LLTC provides the VSLAs with training and materials
to support VSLA operations. VSLA members are requested to make a “no child labor pledge’ as part ofAppendix I - LLTC’s Action Plan _ page 8 of 2342

External Assessment

Limbe Leafs initiatives to directly involve the community in the implementation of the ALP Program.
LLTC conducted an assessment involving members of 5% of the VSLAs to assess the social economic
impact of the VSLAs. The following were listed as some of the benefits of being a member of a VSLA:• 13% were able to improve their accommodation by building and roofing houses with iron sheets• 18% were able to buy livestock for an alternative source of income• 21% said they were financially independent• 30% were able to employ temporary labour during tobacco peak periods• 38% had benefited from the financial literacy training and were now able to plan and budget theirfinances• 59% were able to purchase farm inputs for food crops• 59% were able to adopt a savings culture which is not common in their communities• 79% were able to pay school fees and provide school materials for their children.
This positive feedback confirms that VSLAs go a long way in providing a complementary source of income
for tobacco farming families and enabling families to afford paid labour rather than relying on children toassist on farms.
In addition to the initiatives highlighted, LLTC will be implementing a number of initiatives under the
ALP Step Change approach targeting root causes of child labour in tobacco farms. The following are theactions:
1. Engagement with District Labour Office (DLO) through the Ministry of Labour to follow up on reported
issues on child labour.
• Findings Addressed• 5 Children (3 boys, 2 girls) aged 11-16 were helping with carrying and stringing tobacco• 3 children (10,11 and 13) of tenants were helping in stringing and carrying tobacco• A 17-year-old wife of a worker was helping her husband with stringing and carrying tobacco andshe was unpaid for the work.
• Actions:• The DLOs will conduct unannounced farm inspections in order to enforce compliance.
• DLO engagement will also include conducting community awareness sessions so that workers
and other people in the community benefit from their presentations.
• Expected Outcomes: 100% farmers complying with the Child Labour measurable standards by 2022
• Timelines: Implementation to start by October 2019
• Targets: All farmers with Prompt Actions

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External Assessment

2. Implementation of the Discipline Matrix• Findings Addressed• 5 Children (3 boys, 2 girls) aged 11-16 were helping with carrying and stringing tobacco• 3 children (10,11 and 13) of tenants were helping in stringing and carrying tobacco• Action: Termination of contracts for recurrences of child labour incidents on farms through theimplementation of the Discipline Matrix.
• Expected Outcomes: Termination of contracts for farmers not complying with the Child Labour
measurable standards.
• Timelines: Implementation to start in CY 2020
• Targets: Targeting all farmers with reoccurring incidences.
3. A pilot School feeding program at Chulu Primary School in Dowa (Central Region)• Findings Addressed• 5 Children (3 boys, 2 girls) aged 11-16 were helping with carrying and stringing tobacco• 3 children (10,11 and 13) of tenants were helping in stringing and carrying tobacco• Action•Children will be provided with a meal when they report for school.

• LLTC will require the community to provide land where the school will grow corn and groundnuts
for the meal to be provided.
• LLTC will engage a third party to assist in implementing the initiative. An assessment will bemade after the pilot period on whether the model is self-sustaining for the community.
• Expected Outcomes• Reduced Child Labour Prompt Actions• Increased school attendance from 94% to 97% in the zone where initiatives will be implemented.
This will cover 1 school.
• Evaluation of effectiveness to help decide on extension of the project.
• Timelines: Implementation to start in October 2019
• Target: 1 school
4. Implementation of a pilot after school activities at Chulu Primary School in Dowa
• Findings Addressed• 5 Children (3 boys, 2 girls) aged 11-16 were helping with carrying and stringing tobacco• 3 children (10,11 and 13) of tenants were helping in stringing and carrying tobacco

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44

External Assessment• Action: LLTC will provide the selected school with sports materials for Football and Netball games
and other play materials. Trainings will also be organized for teachers on coordination of physicaleducation and other activities.
• Expected Outcome• Reduced idle time of children on farms around the area thereby protecting the children fromchild labour• Reduced Child Labour Prompt Actions• Increased school attendance from 94% to 97% in the zones where initiatives will be implemented.
• Evaluation of effectiveness to help decide on the extension of projects• Timelines: Implementation will start in September 2019
• Targets: 1 school
5. Child Labour Comic Amendment• Finding Addressed• Comic does not show mandated minimum working age• Action• Amend Child Labour comic with the minimum legal working age of 18 years old.
• Child labour comic distributed to all farmers.
• Expected Outcome• Minimum age of 18 working in tobacco included in the child labour comic.
• 100% Farmers and workers aware of the legal minimum working age.
• Timelines: LLTC amended the comic in July 2019.
• Targets: Amend the Child Labour comic

3.2 PRINCIPLE 2: INCOME AND WORK HOURS
3.2.1 Main findings and challenges identified during the 2019 CU Assessment
There were some positive findings identified on income and working hours during the assessment. For
instance, it was noted that at 3 farms curing was paid at a premium and that there was no evidence thatworkers were not receiving a day of rest per week. There were also challenges identified. Some of whichare:
1. On 5 farms (17%) workers were not paid the minimum wage
2. Five farmers (17%) and workers at eleven farms (37%) did not know the legal minimum wage of MK962
per day. In addition, knowledge on overtime regulations was limited.
3. At 26 farms, workers were also involved in curing

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External Assessment

4. At 8 farms, overtime hours were not voluntary
5. At only 10 farms (33%) workers would get a day off on public holidays
6. At all farms workers were paid at the end of the season.
3.2.2 Root causes
Below are root causes identified as giving rise to non-adherence to standards on Income and Working
Hours on some farms:
1. Lack of financial resources as farmer’s lack a savings culture.
2. Farmers lack business planning skills.
3. Farmers do not account for days worked and how much a worker will get.
4. Lack of government enforcement on payment of minimum wage.
5. Workers preference to receive end of season lump sum.
3.2.3 Action Plan going forward
Prior to the CU assessment, LLTC had embarked on a number of initiatives to ensure that farmers arepaying at least the minimum wage. The VSLAs highlighted under 3.3 (vii) above is one of the initiatives.
Others Include:
1. All FTs were trained in basic Financial literacy and in turn trained 4035 farmers in the same.
2. Provision of bridging finance during the peak period (January to April) to enable farmers pay for
temporary labour.
3. Distributed sample contracts for farmers and workers with details of minimum wage per day andcalculations for monthly rates.
In order to address the gaps identified by the assessment, the following actions will be implemented by
LLTC:
1. Training on Financial Literacy and Overtime and Minimum Wage calculations.
• Findings Addressed• Workers at 11 farms (37%) were not aware of the correct legal minimum wage.
• At 8 farms, overtime hours were not voluntary• At only 10 farms (33%) workers would get a day off on public holidays• Actions• LLTC has planned for the FTs and farmers to attend a training course on Financial Literacy
and Business Planning which will equip them with skills and knowledge on business planning
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46

External Assessment

and savings. The FTs will be able to deliver relevant financial information to the other farmers.
Knowledge of finances will assist farmers to deal with issues on Income and Working Hours ingeneral terms.
• Training farmers on calculation of minimum wage and overtime to be emphasized at the beginningof the growing season.
• Expected Outcomes• 100% FTs and farmers trained on Financial Literacy and Business Planning• 100% farms with labour able to calculate overtime and minimum wage
• 100% farms with labour able to pay for overtime and minimum wage
• Time Lines• Training on financial literacy, minimum wage and overtime calculation to be finalized by
November 2019• 110 FTs and 1,219 farmers to be trained by November 2019
• Targets• 110 FTs
• 1,219 farmers
2. District Labour Office Engagement• Findings Addressed:• Workers at 11 farms (37%) were not aware of the correct legal minimum wage.
• At 8 farms, overtime hours were not voluntary• Action: Engagement with DLO will ensure enforcement of standards on Income and Work Hours.
Being a government institution mandated to deal with labour law breaches, DLO will ensure that all
workers are paid at least the minimum wage and all agreements and negotiations are according to
the laws of the country.
• Expected Outcomes: 100% farmers comply to the Income and Work Hours measurable• Timelines: Implementation to start by October 2019
• Targets: 100% Prompt Actions to be followed up and 5% of contracted farms to be inspected per FT
3. Enhancement of VSLAs• Finding Addressed: On 5 farms (17%) workers were not paid the minimum wage
• Action: Enhance VSLAs to enable farmers to pay minimum wage regularly to replace end of season
payments. From field assessments and focus group discussions conducted with the VSLAs, it was
identified that VSLA members are only able to borrow small loans and manage small scale businesses
i.e. selling tomatoes, fish, fat cakes and vegetables. Such businesses are small and do not makesignificant impact in their livelihoods. From this an opportunity was identified to support the VSLAs
to become more entrepreneurial by supporting them with access to capital through a partnershipwith a microfinance institutions and linking them with meaningful business opportunities. ThroughAppendix I - LLTC’s Action Plan _ page 13 of 2347

External Assessment

this initiative, the VSLAs will be able to scale up their businesses and use their returns to improve
livelihoods of their households and address the identified root causes• Expected Outcomes: 100% farmers linked to VSLAs able and paying the minimum wage
• Timelines• Members of VSLAs to be trained by November 2019.
• Loan disbursements to enhance working capital to be processed by December 2019 with a third
party.
• Targets: 100% VSLAs trained and accessed loans.
4. Cash Advances• Findings Addressed• On 5 farms (17%) workers did not earn at least the legal minimum wage (before deductions)• At all farms workers were paid at the end of the season• Action: LLTC will enhance the bridging finance payments to farmers from December to April andensure that the money paid is sufficient for the farmer to afford paid labour for the farmers’ landsize holding.
• Expected Outcomes: 100% farms employing labour able to pay minimum wage
• Timelines: Advances to be done by April 2020
• Targets: 100% farmers employing labour.
5. Farmers and workers’ sensitization on minimum wage and Public holidays• Findings Addressed:• On 5 farms (17%) workers were not paid the minimum wage
• Workers at 11 farms (37%) were not aware of the correct legal minimum wage
• At 10 farms (33%) workers would get a day off on public holidays• Actions:• Continue to sensitize farmers on the need for workers to have a day off on a public holiday anda day off once a week as a resting day.
• Inclusion of workers or worker representatives during farmer meetings to ensure awareness ofthe minimum wage by the workers. This will be for the period September to December 2019 andscheduled on a need be basis thereafter.
• Expected Outcomes:• 100% Workers aware of the minimum wage and calculation to empower them to negotiate with
farmers.
• All farmers aware and able to provide the required day off on a public holiday to their workers.

Appendix I - LLTC’s Action Plan _ page 14 of 2348

External Assessment• Timelines:• Awareness training to be complete by November 2019
• Targets: 100% farmers and workers

3.3 PRINCIPLE 3: FAIR TREATMENT
3.3.1. Main findings and challenges identified during the 2019 Control Union Assessment
The CU assessment found that there was no evidence of sexual or physical abuse, of discriminatory
practices or of farmers not being available to workers. The assessment however, noted the following
challenges.
1. At 1 farm (3%), a worker reported verbal abuse by the farmer after mistakes and the threat to lose his
job for bad performance.
2. Lack of awareness by the farmers of the ALP Committee support mechanism. At 20 of the farms (67%)
farmers mentioned that they were not aware of the grievance function of the ALP committee. The
farmers were of the view that the Committee is only there for training and monitoring. Often also
confused with Zone Committees. 29
3. Only one of the farmers (3%) had used the Committee as a grievance mechanism support function.
3.3.2. Root causes
From the analysis, below are the root causes identified giving rise to non-adherence to standards on Fair
Treatment on some of the farms:
1. Farmers are not aware that threatening workers that they will lose their job and verbal abuse is a poor
labour practice.
2. Lack of awareness on the available grievance mechanism at community level for some farmers andworkers i.e. ALP Committees
3. Lack of awareness of the roles and responsibilities of the ALP Committees
3.3.3 Action Plan going forward
Prior to the CU assessment, LLTC implemented the following initiatives to ensure fair labour practices on
farms.
1. Established the ALP Committees at community level in all areas where LLTC operates.
2. Supported and trained 208 ALP Committees
3. Trained farmers on fair treatment
4. Aired 40 radio skits on fair treatment
29. A Zone Committee is a structure put in place by LLTC to assist farmers on agronomic issues in the absence of a
FT. These will normally have cellphones and are able to communicate farmer needs to FTs and arrange farmers fortraining when FTs schedule training.
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External Assessment

In order to cover the gaps identified by the assessment under fair treatment, the following actions will be
implemented by LLTC.
1. DLO inspections to include checking of fair treatment related measurable standards• Finding Addressed:• At 1 farm (3%), a worker reported verbal abuse after mistakes and the threat to lose his job forbad performance• Actions:• The DLOs will conduct unannounced farm inspections in order to enforce compliance.
• DLO engagement will also include conducting community awareness sessions so that workers
and other people in the community can benefit from their presentations.
• Expected Outcomes: 100% of farmers complying with the ‘no verbal abuse’ measurable.
• Timelines: Implementation to start by October 2019
• Targets: 5% of farmers allocated to each FT to be covered in the inspection
2. ALP Committee Engagement• Findings Addressed• Lack of awareness on the ALP Committee Support mechanism• At 20 farms (67%) farmers were not aware of the grievance function of the ALP Committee, justtraining and monitoring (often also confused with Zone Committees)• Action:• Farmers and workers to be informed of the roles and responsibilities of ALP Committees atthe beginning of the season. ALP Committees to be more empowered through provision of
resources and more training• LLTC will empower ALP Committees through more trainings and with resources such as
hardcovers, pens and rulers to ensure they are able to provide grievance mechanism support• Expected Outcomes:• 100% of farmers and workers aware of the roles and responsibilities of the ALP Committees• 100% of ALP Committees empowered.
• Timelines:• Awareness training to be complete by November 2019
• 100% of committees to be provided with materials by November 2019
• Targets: 100% of farmers and workers informed.

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External Assessment

3.4 PRINCIPLE 4: FORCED LABOUR AND HUMAN TRAFFICKING
3.4.1 Main findings and challenges identified during the 2019 CU Assessment
There were no direct cases of forced labour or human trafficking found during the assessment however,
one challenge was identified that could pose a risk of forced labour.
• At 6 farms (20%) women were helping their employed husbands without separate pay and without
contracts.
3.4.2 Root causes
The root cause identified was that migrant and local workers migrate with their families and some of thefamily members end up assisting on the farms. It was also noted that farmers did not advise their workers
that only those employed on the farm were supposed to work.
3.4.3 Action plans going forward
Prior to the CU assessment, LLTC implemented the following initiatives to deal with risks arising frompractices that could lead to forced labour or human trafficking.
1. Tenant Minimum Standards (TMS) developed by the Tobacco Processors Association in 2015 for farmers
who engage tenants. These were approved by the Ministry of Labour, Skills and Innovation. A total of
3,597 farmers were trained and provided with copies of the TMS.
2. Since CY 2018 farmers were encouraged to migrate from using tenant labour to waged labour using a
cost based analysis.
3. Distributed contract templates to farmers to formalize engagement conditions between the farmer andthe tenants.
4. Inclusion of adherence to TMS as a requirement for farmers under the Supply Contracts with LLTC.
5. FTs identified farmers who use tenants in April 2019 for ease of monitoring and traceability. This wasto aid LLTC monitor implementation of the TMS.
LLTC has now changed its policy towards the use of tenant labour by contracted farmers. LLTC will nolonger contract with farmers using tenant labour and will therefore not enforce the TMS. It will be easier
to monitor regular payment of wages than to monitor tenant labour.
Going forwards, LLTC will implement the following:
1. LLTC will advise farmers to engage spouses independently and to pay them directly as any other farmworker• Finding Addressed: At 6 farms (20%) women were helping their employed husbands without
separate pay and without contracts.
• Action: LLTC will advise farmers that only direct employees should be responsible for work on the
farm.
• Expected Outcomes: Only direct employees of the farmer work on the farm

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51

External Assessment• Timelines: Awareness by November 2019
• Targets: 100% farmers hiring labour

3.5 PRINCIPLE 5: SAFE WORKING ENVIRONMENT
3.5.1 Main findings and challenges identified during the 2019 CU Assessment
CU reported that all persons found applying chemicals mentioned that they had been trained in CPA
handling. However, there were a number of challenges identified on safe work environment. These are:
1. At 9 farms (30%) CPA was not stored in a safe and locked storage
2. None of the farmers visited, correctly followed LLTC’s instructions on disposal of empty CPA containers
3. None of the farmers had sanitary facilities at their fields. Most of the work, especially stringing andcuring, was done at the farmer’s house or curing barn. Basic sanitary facilities were available in theliving areas in all cases.
4. 5 farmers did not store equipment and tools safely
5. At 6 farms (20%) at least one person handling green tobacco was not trained on avoidance of GTS
6. No one at any of the farms visited that were handling green tobacco were wearing the full set of PPE
for all tasks
7. On 27 farms (90%) there was evidence of farmers not using all PPE for chemical application
8. At 10 farms (33%) evidence found persons applying fertilizers without gloves
9. 10 farmers (33%) did not know the correct re-entry period after CPA application
10. None of the farmers had a warning sign to put up after application of chemicals
11. At 5 farms (17%) housing was considered unsafe and not meeting the basic needs of the workers
3.5.2 Root Causes
From the analysis, below are root causes identified for non-adherence to standards on Safe Work
Environment:
1. Inadequate monitoring on CPA storage by FTs
2. Lack of awareness and verification that farmers are implementing the best practice on puncturing
empty CPA containers
3. Farmers assume they will not spend much time in the field therefore they do not find it reasonable tocarry portable water to their field
4. Negligence of farmers in separating chemicals and utensils
5. Farmers do not share information with temporary labour and some family members
6. Some FTs training does not emphasize use of foot wear and long pants when reaping tobacco
7. Most farmers consider what is provided to them as the only required PPEAppendix I - LLTC’s Action Plan _ page 18 of 2352

External Assessment

8. Some farmers do not consider fertilizer application and stringing as hazardous even after several
training sessions.
9. Some FTs did not clearly communicate the reentry period to farmers and hence farmers to workers
10. Farmers are unable to construct required standard accommodation due to high cost of building materials.
3.5.3 Action Plan going forward
Prior to the CU assessment, LLTC implemented measures to promote Safe Work Environment on farms:
1. Distributed 3000 comics on CPA handling
2. Distributed the following to all farms: GTS gloves (193,256), PPE for CPA application that included
gloves, googles, face masks, and aprons (73,736 sets) and containers for storage of CPAs
3. Provided training and systematic monitoring on safe working environment on all farms through FTs
4. Aired 40 radio skits through ZBS.
In addition to the efforts above, LLTC will be implementing a number of initiatives under the ALP Step
Change approach targeting root causes.
1. Worker accommodation improvements on farms with labour that do not meet the required standard.
• Findings Addressed:• At 5 farms (17%) housing was considered unsafe and not meeting the basic needs of the workers.
• None of the farmers had sanitary facilities at the field.
• Action: LLTC will support the farmers not meeting the standard with cement, Iron sheets and othermaterials in order to improve the workers’ accommodation.
As mentioned above, LLTC conducted a baseline survey to understand the situation on farms that
employ labour. One of the areas that was assessed was workers’ accommodation.
The Tobacco Processors Association (TPA) minimum standard for accommodation includes a 2
roomed house, a kitchen, a bathroom and toilet. Under the survey, 47% of farms where the farmer
was providing accommodation had accommodation that was not meeting the minimum standards assome of the houses were not well ventilated had one room, were made of poor building materials,
had leaking roofs and had no proper doors. A root cause analysis revealed that farmers were unable
to provide standard accommodation to their workers because they cannot afford to buy building
materials. A random sample survey was conducted to determine what the farmers would be able
to contribute and what they would need in order to construct accommodation that meets thestandard. Results revealed that most farmers will be able to provide unskilled labour in order toimprove the worker’s accommodation.
• Expected Outcomes: 100% farms with labour living on the farm provide safe and clean worker
accommodation• Timelines: Improve worker’s accommodation by CY 2020
• Targets: The plan is for construction of 700 houses in CY 2019 and 692 houses in CY 2020
Appendix I - LLTC’s Action Plan _ page 19 of 2353

External Assessment

2. Ensure 100% Awareness, PPE availability and usage.
• Findings Addressed:• At 9 farms (30%) CPA was not stored in a safe and locked storage• 10 farmers (33%) did not know the correct reentry period after CPA application• On 27 farms (90%) evidence of farmers not using all PPE for chemical application.
• At 10 farms (33%) evidence found persons applying fertilizers without gloves• None of the farmer had a warning sign to put up after application of chemicals• At 6 farms (20%) at least one person handling green tobacco was not trained on avoidance of
GTS.
• No one at any of the farms visited handling green tobacco wore the full set of PPE for all related
tasks.
• Actions:• Enhanced training and monitoring to emphasize GTS symptoms, prevention, CPA handling anduse of full PPE.
• Further distribution of comics on GTS, CPA storage and PPE usage to all farms.
• Farmers to be trained and encouraged to keep tools and equipment safely• Training on rinsing and puncture of CPA containers by FTs, MTP trainers and GAP Coordinators.
• Expected Outcomes:• 100% of farmers trained and monitored on CPA handling, storage and the use of PPEs.
• 100% of farmers and workers know about GTS symptoms, prevention and the use of GTS gloves
and other PPEs
• 100% of farmers receive comics on GTS, CPA storage and PPE usage• 100% of permanent workers to be trained by April 2020.
• Timelines:• Training and monitoring to be done by June 2020
• Safe storage of equipment by 2020.
• Targets• PPE availability and usage targeting 100% farmers and workers• Training targeting 100% of farmers and workers• Safe storage of equipment by 50%
3. Data validation by ALP Coordinators and MTP Trainers• Findings Addressed• At 9 farms (30%) CPA was not stored in a safe and locked storage• 10 farmers (33%) did not know the correct reentry period after CPA application• On 27 farms (90%) evidence of farmers not using all PPE for chemical application.
• At 10 farms (33%) evidence found persons applying fertilizers without gloves
Appendix I - LLTC’s Action Plan _ page 20 of 23

54

External Assessment• None of the farmer had a warning sign to put up after application of chemicals• At 6 farms (20%) at least one person handling green tobacco was not trained on avoidance of
GTS.
• No one at any of the farms visited handling green tobacco wore the full set of PPE for all related
tasks.
• Action: ALP Coordinators and MTP trainers to validate FTs monitoring data on PPE usage, storageof chemicals and tools by March 2020.
• Expected Outcomes: 5% farms validated.
• Timelines: Validation to be done by March 2020.
• Target: 5% farmers assessed

3.6 PRINCIPLE 6: FREEDOM OF ASSOCIATION
3.6.1 Main findings and challenges identified during the 2019 Control Union Assessment
CU stated that there was no evidence found of farmers disrespecting workers’ rights to Freedom of
Association. However, they observed that there was low awareness among farmers and workers on
Freedom of Association.
3.6.2 Root causes
LLTC noted that the main cause for low awareness among farmers and workers on Freedom of Association
was the lack of labour unions in the communities. Even though the FTs trained farmers on the principle, thereality on the ground did not afford the workers the opportunity to understand the principle of Freedomof Association.
3.6.3 Action Plan going forward
Irrespective of the lack of unions in the communities, LLTC ensured that farmers and workers are trainedon Freedom of Association and this was done through the distribution of leaflets to all farmers and also
airing of skits on Freedom of Association on ZBS. Going forward LLTC will implement the following actions:
1. Awareness• Finding Addressed: Low awareness among farmers and workers on Freedom of Association• Actions• Continued training and monitoring by FTs to emphasize the standards on Freedom of Association.
• LLTC will distribute leaflets to all farms in CY 2019 where Freedom Association measurable
standards are stipulated.
• FTS will ensure inclusion of worker or worker representatives during training sessions or
sensitization meetings with farmers. This will ensure that workers are equally sensitized to themessages on Freedom of Association.
• Expected Outcomes: 100% of farmers and workers aware of the Freedom of Association

Appendix I - LLTC’s Action Plan _ page 21 of 2355

External Assessment• Timelines:• Training of farmers employing labour by March 2020
• Distribution of leaflets to be done by September, 2019
• Skits to be aired on ZBS in November 2019
• Targets: 100% farmers trained and have leaflets

3.7 PRINCIPLE 7: TERMS OF EMPLOYMENT
3.7.1 Main findings and challenges identified during the 2019 CU Assessment
During the assessment, it was observed that 13 farmers (21%) used the labour contract template provided
by LLTC which included basic legal information on employment terms. However, the following gaps werealso noted:
1. None of the farmers interviewed fully informed their workers about their legal rights
2. Lack of awareness on the legal rights and employment conditions relating to legal benefits, minimum
wage and legal minimum rate of pay for overtime.
3. Farmers reported not to have received a contract template on time
4. At 8 farms (27%) workers did not have a written statement
5. At 4 farms (13%) workers did not receive a copy of their contract
3.7.2 Root causes
Below are the root causes identified for non-adherence to standards of Terms of Employment on some of
the farms
1. Farmers reported not to have received the contract templates on time
2. Farmers mentioned that it was difficult to agree on a wage with workers if they do not know how muchthey will get from the tobacco sales.
3.7.3 Action Plans going forward
Prior to the CU assessment, LLTC implemented the following:
1. Distributed 46,000 contract templates to all farms with labour
2. Conducted farm monitoring visits to verify labour conditions
3. Aired radio skits on Terms of Employment
Going forward, LLTC will be implementing the following:
1. Early distribution of contract templates at the onset of the season• Finding addressed• Farmers reported not to have received a contract template in time
• At 8 farms (27%) workers did not have a written statement
Appendix I - LLTC’s Action Plan _ page 22 of 2356

External Assessment• Actions: Early distribution of contract templates at the onset of the season, this will ensure that
farmers sign contracts at the beginning of their agreement.
• Expected Outcomes: 100% of farmers with labour receive the worker contract templates• Timelines: Contract templates distributed by September 2019
• Targets: 100% of farmers hiring labour
2. ALP Coordinators and MTP trainers to validate FTs information• Findings Addressed• At 8 farms (27%) workers did not have a written statement• At 4 farms (13%) workers did not receive a copy of their contract• Actions• FTs and ALP Coordinators monitor employment conditions• FTs to check during visits the usage of the templates.
• Expected Outcomes: 5% validation done by ALP Coordinators and MTP Trainers• Timelines: By March, 2020
• Targets: 5% of farmers
3. Farmer and workers training• Findings Addressed• At 8 farms (27%) workers did not have a written statement• At 4 farms (13%) workers did not receive a copy of their contract• Actions: Training farmers and workers on terms of employment measurable standards• Expected Outcomes: 100% farmers and workers trained on their legal rights• Timelines: By March, 2020
• Targets: 100% farmers and workers

4 CONCLUSIONLLTC has been committed to the ALP program since its introduction in 2011, initially focusing on training
and identification of key issues and in the second phase focusing on identification of individual farmaction plans. Going forward, LLTC is focusing more on behavior change and enforcement of the labourlaws through implementation of the discipline matrix, the recognition and empowerment of community
structures like the ALP committee and continuous monitoring.
The farmer’s full commitment is key to the fulfilment of this process and Limbe Leaf will continue to
implement programs that provide the farmers the necessary support to enable them meet the ALP
requirements.
Appendix I - LLTC’s Action Plan _ page 23 of 2357

External Assessment

Appendix II – Scope and methodology
Assessment teamOpening meeting

The team responsible for conducting thisassessment consisted of three auditors (one from
Kenya, two from Mozambique), three translators
to the local languages Chichewa and Tumbuka,
and two CU coordinators (one from Germany, one
from the Netherlands). 30 The auditors, with help of
the translators, conducted farm assessments andinterviewed field technicians. The two coordinatorsinterviewed the LLTC management. The auditors
as well as the coordinators were trained by Verité
and Control Union.31 This qualification process
consisted of the following stages:

On 14 February 2019, CU started the assessmentwith a meeting at LLTC’s head office in Lilongwe,
Malawi. This meeting was attended by LLTC’s local
and Universal’s regional management team, as well
as PMI Regional. CU presented the objectives andapproach of the assessment, while LLTC provided an
overview of the market and company background,as well as milestones in ALP implementation.

• 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;• Two-day refresher training by the CU coordinator
prior to starting the field visits; and• Shadowing during farm visits by CU coordinators.
Desk review
Prior to this assessment LLTC 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. Philip
Morris provided the legal information that was
relevant to the ALP Code (See Appendix III for moredetailed legal information). This was important toensure a thorough preparation of the assessment.

Methodology for ALP implementation
review

system

The methodology used for evaluating LLTC’s
implementation of the ALP Program was based on the
widely used PDCA 32 cycle, which is a management
method for the continuous improvement ofprocesses and products. As part of this evaluation,
CU spent two days (14 and 15 February 2019) at
LLTC’s head office. CU interviewed management
staff, analyzed documentation and evaluated
LLTC’s systems, to better understand how the
implementation of the ALP Program was organized.
In total, CU interviewed eleven management
personnel and eleven field personnel (including
two MTP trainers). All interviews were conductedindividually, so that interviewees felt comfortableto speak freely and raise any issues.

30. The coordinator from the Netherlands did not stay for the entire assessment, but only for the management
assessment.
31. All three auditors had been trained by Verité in November 201732. Plan, Do, Check, Act
Appendix II - Scope and Methodology _ page 1 of 558

External Assessment

Scope and farm sampling

Tobacco production in Malawi is concentrated
mainly in the central and northern region. To ensurea manageable sample size, the present assessment
focused on LLTC contracted farmers growing FCV
tobacco in Kabwafu and Mzimba South in thenorthern region.
The majority of the farmers in the scope of thisassessment (60%) grew tobacco on an area of lessthan two hectares. The majority of the farmers(93%) owned the land they farmed.
In 2019, LLTC had contracts with 9,446 farmers
across Malawi. These farmers were supported by atotal of 320 employees in the agronomy department,
including one national ALP Coordinator, three
regional ALP Coordinators, nine Area Coordinatorsand 110 field technicians.
To constitute a meaningful sample, CU needed tovisit at least 30 farms, the square root of the total
number of contracted FCV farmers within the scope(Kabwafu and Mzimba South) as reported by LLTC
Appendix II - Scope and Methodology _ page 2 of 5prior to the assessment. In total, CU visited 30
farmers, which were sampled randomly or selectedbased on geographical spread. Over a period of one
week CU visited 9-12 farms per day, where eachfield day was followed by a reporting day. The
graphs below provide demographic information
about the farms visited per assessed region.

Farm size (ha contracted by LLTC)(N=30)

33%

40%

0-1
27%

1<=2
>2

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External Assessment

Stage of tobacco production(n=30)
30
30

Previously contracted by LLTC
(n=30)
3%

28

25
20
15
10
5

Yes

1

0
Topping

Harvesting

97%

Curing

No

Type of farm (n=30)

13%
Farm with family members and migrant workers
17%

Farm with family members and local and migrant workers
53%

Farm with family members and local workers
Farm with only migrant workers (no family members)

17%

All farmers were hiring workers at some point during
the tobacco season, hence none of the farms were
only family farms (even though LLTC had classified
some as such, see Chapter 1.4.1).
Thanks to the openness and collaboration of LLTC,
CU managed to conduct 29 (97%) of the farm visitsunannounced. This meant that the farmers had notbeen informed about the visit and its objectivesprior to CU’s arrival. LLTC did inform farmers in
the weeks before the assessment that a visit could
take place within a certain period but said nothing
in the days prior to the visits. For logistical reasons
CU informed LLTC about the names of the selected
field technicians the day before they were to join
the visits. The field technicians were informed of
the names of the farmers to be visited on the dayof the visit itself, while in the car, and only for the
next farmer to be visited that day. The reason forAppendix II - Scope and Methodology _ page 3 of 5

this is that CU wanted to obtain a realistic pictureof the farm practices, which was most likely to be
seen when arriving unannounced.
Methodology for ALP farm practices review
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 theirfindings to draw conclusions about whether farm
practices were meeting the standard of the ALP
Code. These sources could be interviews with
farmers, family members, or workers. Sources
could also include documentation and visualobservation 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
60

External Assessment

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 LLTC management systems and the
ALP Program, to see how this was perceived by fieldtechnicians, farmers, family members, and workers.
People interviewed

Gender (N=62)

100
87%
75

50

25

Whenever possible, interviews with workers andfamily members were conducted individually andwithout the farmer, to avoid undue bias. For thesame reason, all interviews with farmers wereconducted without the field technicians. In total,
92 persons were interviewed by CU (30 farmers, 10family members and 52 external workers).
Demographic information on the 62 family members
and external workers interviewed:

13%

0

Male
FemaleAge (N=62)

100
87%

Type of interviewee (N=62)
75
100
16%
75

84%

92%

50

25
3%

50

0

2%
3%

Adults (>=18)

25

15-17
13-14

0

<13
Family members
External workers

Appendix II - Scope and Methodology _ page 4 of 561

External Assessment

The number of interviewees below 18 only shows
how many children were interviewed; this does notnecessarily mean that they were working.
Closing meeting
On 11 April 2019 a closing meeting was held at
AOTM’s head office in Lilongwe, Malawi. Similar tothe opening meeting, this meeting was attended by
AOTM’s management team and PMI Regional. After
CU presented their initial findings, AOTM requested
clarification of some items, which was followed bya constructive discussion on several topics. Overall,CU’s findings were considered a useful base fortaking action to improve AOTM’s implementationof the ALP Program.
Reporting procedure
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, AOTM reviewed
the report to verify that all the information wascorrect, and to finalize their action plan based on
this report. 33

33. Leaf tobacco suppliers can start drafting their action plans after the closing meeting, as initial findings usually do
not differ much from the final report.
Appendix II - Scope and Methodology _ page 5 of 562

External Assessment

Appendix III – Legal information
Author: PFI Partnerships – Local Suppliers Legal Team – PMI OC
Date of Original Analysis: Q1 2017
Date of Updated Analysis: December 24th, 2018

Principle 1 – Child Labor
Summary

ALP MEASURABLE
STANDARDS

MARKET LEGAL STANDARDS

Minimum age foradmission to work is
not less than age forcompletion of mandatory
schooling

Malawi matches with theminimum age of 14 34,
excepted for developing
countries under the ILO
Convention 138.

In any case, minimum age
for admission to work is
not less than 15 years OR
the minimum age provided
by law, whichever offers
greater protection

Malawi matches with theminimum age of 14 35,
accepted for developing
countries under the ILO
Convention 138.

MATCHESNo person under 18
involved in hazardous
work

EXCEEDSOPPOSESCOMMENTS
Except in the conduct ofdomestic work, Employment
Act prohibits engagement ofchildren aged below 14 in childlabor. ILO Convention 138 refers
to a minimum age of 15 for
employment, Malawi is, pursuant
to the derogation available to thedeveloping countries, allowed
to adopt the age of 14. Malawi
ratified Convention 138 in 1999,
making use of this derogation.

Employment Act 36 prohibits
for any child aged below 18 inhazardous work. Paragraph 6(1) of
the Ministerial Order 37 prohibits aperson under the age of 18 fromcarrying out hazardous work set
out in the Schedule to the Order.
Paragraph 6(2) of the Orderstates that such work shall not be
prohibited where: (a) the person
is aged between 16 and 18; (b)health and safety of that person is
fully protected; and (c) the person
has received adequate training in
performing the activities.

34. Section 21 of the Employment Act.
35. Section 21 of the Employment Act.
36. Section 22 of the Employment Act.
37. Employment (Prohibition of Hazardous Work for Children) Order, 2012 [Gazette No. 1 of 2012] (“2012 Order”).
Appendix III - Legal Information _ page 1 of 24

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External Assessment

A child may only help on
the family farm if it is lightwork AND if the child is
between 13-15 years OR
between 12 and 14 forlight work in terms of the
ALP, which ever affords
greater protection

The farmers’ own ordependent children
may help on house holdchores within their home.

Applicable laws
• Constitution of Malawi.
• Employment Act [Cap. 55:01 of the Laws of Malawi].
Minimum age for employment (in tobacco)• There is not a specific rule in tobacco.
• It is prohibited to engage any child aged below 14 in any child labour, including work in public or
private agricultural undertaking, unless it is work done at home or at a vocational school or technicaltraining. 38
Age (or ages) limits for compulsory schooling• The Constitution encompasses the right to education, but it does not prescribe age limit for citizens
to start attending school.
• Other than the Constitution, there are not specific references on the laws about this matter.
• Under s.13 of the Education Act of 2013, provision of primary education in government schools is
compulsory for every child below eighteen (18) years of age.
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• It is prohibited the engagement of any person aged between 14 years and 18 years in any occupationor activity that is likely to be harmful to the health, safety, education, morals or development ofsuch person or likely to be prejudicial to his/her attendance at school or any other vocational ortraining program i.e. hazardous work. 39 The Employment Act does not specify the type of activities
prohibited under the Act. However, the Schedule to the 2012 Order includes the following on the listof hazardous work in the tobacco sector: topping and suckering activities or handling tobacco leaves
in the harvesting process; handling or grading tobacco leaves in damp conditions or conditions ofpoor lightning or ventilation; and any other work involving tobacco in commercial tobacco estates orcommercial tobacco farms. 40
38. Section 21 of the Employment Act.
39. Section 22 of the Employment Act.
40. Schedule 1 (c) (iii) of the 2012 Order. According to local leaf supplier and following its further consultations with
the Ministry of Labor, the hazardous list of the Order needs to be reviewed, as the Ministry of Labor agrees that thelisting of hazardous work in the schedule ending with an overall clause that makes all work hazardous is confusing
and needs to be corrected. Local supplier and regional PMI team is following up this matter.
Appendix III - Legal Information _ page 2 of 24

64

External Assessment• The Labor Minister is empowered, in consultation with relevant organizations of employers andemployees, to specify, by notice published in the Gazette, occupations or activities which, in his
opinion, are likely to be a hazardous task/activity. 41• The Labour Minister promulgated the 2012 Order pursuant to section 22 (2) of the Employment Act.
This 2012 Order 42 prohibits all children aged below 18 from being engaged in hazardous work. 43
However, a person aged 16 to 18 may be engaged in hazardous work in all sectors, including the
agricultural sector, provided that 44:
i. The health and safety of such a person is fully protected from the hazardous work, andii. Such person has received adequate training to perform such hazardous work.
• As already provided above, the Schedule to the 2012 Order includes the following on the list ofhazardous work in the tobacco sector: topping and suckering activities or handling tobacco leaves
in the harvesting process; handling or grading tobacco leaves in damp conditions or conditions ofpoor lightning or ventilation; and any other work involving tobacco in commercial tobacco estates orcommercial tobacco farms. 45• In addition, the 2012 Order also includes the following on the list of hazardous work for the entire
agriculture sector (including the tobacco sector): handling or applying agricultural chemicals, veterinary
drugs, pesticides/insecticides in an agricultural undertaking; handling plants or soil immediately after
the application of agricultural chemicals or during any other period specified in chemical labels; curing
or processing agricultural products where there is exposure to temperatures or working at heights
hazardous to safety, health and well-being of persons; and any other activity involving dangerous
machinery, dangerous equipment or dangerous tools.
• It is an offence and subject to a fine and/or imprisonment on conviction with a maximum sentence of
three years for any employer who fails to comply with any of the requirements of the 2012 Order. 46
Requirements applying to farmers’ own children or other family members such as nieces and nephews
helping on the farmers• There are not specific references on the laws about this matter. By implication, Section 21 of the
Employment allows labor by the farmers’ own or dependent children if the children are helping on
agricultural activities within their home.

41. Subsection 22(2) of the Employment Act.
42. The Labor Minister published the Employment (Prohibition of Hazardous Work for Children) Order, 2012 [GazetteNo. 1 of 2012] (The 2012 Order).
43. Pursuant to section 22 of the Employment Act.
44. Paragraph 6 and Schedule of the 2012 Order.
45. Schedule 1 (c) (iii) of the 2012 Order. According to local leaf supplier and following its further consultations with
the Ministry of Labor, the hazardous list of the Order needs to be reviewed, as the Ministry of Labor agrees that thelisting of hazardous work in the schedule ending with an overall clause that makes all work hazardous is confusing
and needs to be corrected. Local supplier and regional PMI team is following up this matter.
46. Paragraph 9 of the 2012 Order.
Appendix III - Legal Information _ page 3 of 24

65

External Assessment

Other restrictions or requirements on the employment of workers under 18 years (e.g. limit on work
hours, work permits, etc.)• It is prohibited that a person aged between 14 and 18 work for more than 40 hours a week. 47• These are the maximum working hours for a person under the age of 18, who is enrolled inschool: (a) 20 hours in a week during the school term; (b) 40 hours in any week that falls entirely
within the school holidays; (c) three hours on any school day which is followed by another school
day; or (d) four hours on any school day followed by a non-school day, such as a Friday or thelast day of a school term. 48• It is prohibited that a person aged below 18 from working in an environment involving extreme
temperatures below 6º C or above 30º C due to their potential to jeopardize the safety, health,welfare and comfort of persons below the age of 18: (a) unless the cold or hot temperatures
are a result of natural climate conditions and adequate measure are taken to protect the person
including – (i) adequate protective clothing is provided to maintain optimum body temperature;(ii) presence in such environment shall not exceed one hour of continuous work; (iii) adequate
water breaks are taken at reasonable intervals taking into account individual susceptibility; (iv)adequate potable water or any beverage is made available and is conveniently accessible to all
persons; and (v) the persons are acclimatized to such working environment; and that work does
not exceed four hours every day. 49• It is permitted for a person under the age of 18 to only lift weight which is substantially lessthan lifted by adult workers of the same sex and, in any case, must be reasonable so as not tojeopardize the safety, health and well-being of that person. 50• Finally, it is required that the distance and weights which a person under the age of 18 may
travel and carry respectively to be practically reasonable so as not jeopardize the safety, healthand well-being of that person. 51

47. Paragraph 3(1) of the 2012 Order.
48. Paragraph 3(2) of the 2012 Order.
49. Paragraph 5 of the 2012 Order.
50. Paragraph 7 of the 2012 Order.
51. Paragraph 8 of the 2012 Order.
Appendix III - Legal Information _ page 4 of 24

66

External Assessment

Principle 2 – INCOME AND WORK HOURS
Summary
ALP MEASURABLE
STANDARDS

MARKET LEGAL STANDARDSMATCHES

Wages of all workers meet, Minimum wage forat minimum, national legal all workers is at
K962.00 per day.
standards or agricultural
benchmark standards.

EXCEEDSOPPOSESCOMMENTS
Effective 1st July 2017, the minimum
wage, including agricultural workers, isK962 per day (equivalent to US$1.20).
The minimum daily wage relates to thenormal 8 hour working day. If a worker
is required to work outside the normal
8 working hours, overtime is payable.
Overtime is payable at the rate of 1½
outside the working hours on eachbusiness day and at the twice a rate fornon-business day.
Please note that there is no sectorial
minimum wage in Malawi by the dateof this update.

Wages of all workers
are paid regularly, at aminimum, in accordancewith the country’s laws.

Yes, but workers
can also be paid
at the end of theseason provided
it is agreed by theworker.

Work hours are incompliance with thecountry’s laws.

Law does not control the periods forpaying wages, provided that the wages
are not paid less often than oncea week in the case of an employee
whose wages are fixed by the hour,
day or week, and not less than a monthin the case of a permanent employee
whose wages are fixed on a monthly
or yearly basis. Seasonal workers and/or tenants can be paid on a monthly
or weekly basis if it is agreed between
the employer and the seasonal worker
or tenant. The law does not provide alegal minimum payment frequency for
tenants.
The regular maximum working hours
are 8 hours in a day for 6-day week 52.
Where an employee is asked to work
more than eight hours a day, he/shewould be entitled to overtime.
If a worker is employed for part-time,
but would be staying at the farm forthe whole season, such as a tenant,this would be deemed to be full-time
employment, depending on the termsof the respective employment contract.

Excluding overtime, work
hours do not exceed, on aregular basis, 48 hours per
week.

Employment Act 53
sets the maximum
working hours
for an employee
at 48 hours aweek, excluding
overtime.

52. Section 36 of the Employment Act.
53. Section 36 of the Employment Act.
Appendix III - Legal Information _ page 5 of 24

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External Assessment

Overtime work hours arevoluntary.

Yes 54, overtime
work hours arevoluntary.

The regular maximum working hours
are 8 hours in a day for 6-day week 55.
Where an employee is asked to work
more than eight hours a day, he/shewould be entitled to overtime.

Overtime wages are paid
at a premium as requiredby the country’s laws or by
any applicable collective
agreement.

Yes, overtime paid
at a premium asprescribed under
Employment Act 56.

See below the answer on the section‘Requirements that employers mustmeet to request overtime fromworkers…’.

All workers are provided
with the benefits,holidays, and leave towhich they are entitled by
the country’s laws.

Yes, these areprovided under
Employment Act 57.

See below the answer on the section‘Laws on basic entitlements or
benefits…’.

Applicable laws
• Employment Act [Cap. 55:01].
• Workers Compensation Act [Cap. 55:03].
• Pension Act [No. 6 of 2011].
• Immigration Act [Cap. 15:03].
• Employment (Prohibition of Hazardous Work for Children) Order.

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 isreferenced, please indicate how many hours this wage represents• The Minister of Labor has the authority, in consultation with responsible bodies of workers andemployers, to fix scales of minimum wages. 58 Pursuant to this statutory provision, the Minister has
effective 1st July 2017 set the minimum wage of workers, including in the agriculture sector, at
K962.00 per day (equivalent to US$1.20) [Gazette of 2017].
• Section 50 (4) of the Employment Act provides for payment in-kind where it is customary to do so.
The Act does not prescribe a maximum amount of the salary being paid in kind, but the expectations
are that payment in kind would comprise partial payment of the salary and not payment of the wholesalary in kind. In the agriculture sector, it is customary to sell to the workers food rations, particularly
maize, value of which is deducted from the salary payable to the workers. The law does not provide
guidance on how to determine the value of the in-kind payment. Generally, the value would be an
accepted market price for commodities that are sold (i.e. paid in kind) by farmers to workers e.g. maize.

54. Section 39 of the Employment Act.
55. Section 36 of the Employment Act.
56. Section 39 of the Employment Act.
57. Section 44 of the Employment Act.
58. Section 54 of the Employment Act.
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External Assessment

Wage and hours laws specific to piece rate workers, seasonal workers, and migrant workers• The same as the previous answer K962.00 per day (equivalent to US$1.20).
• Workers can be paid at the end of the season provided it is agreed by the worker.

Other specific rules applicable to migrant workers including any legal requirements to ensure they arelegally permitted to work
• Laws require every migrant worker to apply and obtain an appropriate permit in order to stay andwork legally in Malawi. Permit applications are required to include proof that the employer has not
succeeded to find a duly qualified person within Malawi to fill up the required position to be taken bya migrant worker. 59• In addition, migrant workers are prohibited from changing employers within Malawi without thewritten approval of the Director General of the Department of Immigration and Citizenship Services. 60• Be also aware that migrants may also be internal migrants, i.e. cross districts/cross regions. In thesecases permits are not required.

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• The Employment Act does not control the periods for paying wages (provided that the wages are notpaid less often than once a week in the case of an employee whose wages are fixed by the hour, dayor week and not less than a month in the case of an employee whose wages are fixed on a monthly or
yearly basis).
• Law requires employers to inform employees at the time of their appointment the intervals at which
remuneration would be paid. 61

Laws on regular and overtime hours (e.g. maximum work hours, requirements for overtime hours to be
voluntary)• It is allowed that parties agree in the employment contract the employee’s working hours, and the law
sets the maximum working hours for an employee at 48 hours a week, excluding overtime. 62• The regular maximum working hours are 8 hours in a day for 6-day week. Where an employee is asked
to work more than eight hours a day, he/she would be entitled to overtime. 63• The Employment Act requires employers to ensure that employees do not work for more than 6consecutive days without a period of rest, comprising at least 24 consecutive hours. There is no legal
option for farmers/workers to waive the right of the 24-hour break after six consecutive working days.

59. Sections 21 and 25 of the Immigration Act.
60. Section 25 of the Immigration Act.
61. Subsection 27(3) (d) of the Employment Act.
62. Section 36 of the Employment Act.
63. Section 36 of the Employment Act.
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External Assessment

Employers are also required to ensure that shift workers working six days a week do not work for morethan 8 hours a day and shift workers working five days a week do not work for more than 12 hours aday. 64• If a worker is employed for part-time, but would be staying at the farm for the whole season, thiswould be deemed to be full-time employment, again depending on the specific terms of the respective
employment contract.

Requirements that employers must meet to request overtime from workers• The Employment Act provides for three classes of overtime wages: (i) Ordinary overtime i.e. time
worked on a working day in excess of the hours normally worked by the employee. Ordinary overtime
is paid at an hourly rate of not less than one and half (1½) wage for one hour; (ii) Day off overtime i.e.
time worked by an employee on a day on which he would otherwise be off duty. Day off overtime ispaid at a rate of not less than twice the normal hourly rate; and, (iii) Holiday overtime i.e. time worked
on a public holiday. Holiday overtime is paid at a rate of not less than twice the normal hourly rate. 65• The Minister of Labor has the authority, in consultation with responsible bodies of workers andemployers, to fix scales of minimum wages. 66

Laws on basic entitlements or benefits to be paid to workers (e.g. social security, health care, holidays,
other leave entitlements etc.)• Employees are entitled to a period of annual leave with pay (i.e. commensurate to their usual monthlypay) of not less than: (a) 18 working days if the employee works six days a week; and (b) 15 working
days if the employee works five days a week. 67• Employees are also entitled, upon completing 12 months of continuous service, to at least four weeks
sick leave on full pay and eight weeks sick leave on half pay during each year payable at the normal
rate of wages. 68• Every female employee is entitled to at least eight weeks maternity leave on full pay every three
years. 69• Law provides for mandatory compensation to workers injured in the course of employment. 70• Law requires every employer employing more than five employees to provide for pension. 71• Law sets the minimum statutory contributory rates at 10% and 5% for the employer and the employee
respectively. 72• The Pension Act exempts the following categories of employees/employers from Pension contributions:seasonal employees; tenants, holders of work permits, members of Parliament and domestic workers.

64. Section 36 of the Employment Act.
65. Section 39 of the Employment Act.
66. Section 54 of the Employment Act.
67. Section 44 of the Employment Act.
68. Section 46 of the Employment Act.
69. Section 47 of the Employment Act.
70. The Workers Compensation Act [Cap. 55:03 of the laws of Malawi].
71. Section 9 of the Pension Act [No. 6 of 2011 of the laws of Malawi].
72. Section 12 of the Pension Act.
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Principle 3 – FAIR TREATMENT
Summary
ALP MEASURABLE
STANDARDS

MARKET LEGAL STANDARDSNo physical abuse, threatof physical abuse, or
physical contact with
the intent to injure or
intimidate

Gender Equality Act 73
protects any person fromany form of physicalabuse.

No sexual abuse or
harassment

Gender Equality Act 74
protects any person fromany form of sexual abuse.

No verbal abuse or
harassment

Gender Equality Act 75
protects any person fromany form of verbal abuse.

No discrimination on
the basis of race, color,caste, gender, religion,
political affiliation, union
membership, status as aworker representative,
ethnicity, pregnancy, social
origin, disability, sexual
orientation, citizenship, or
nationality

Gender Equality Act 76
protects any personfrom any form of
discrimination.

Worker access tofair, transparent andanonymous grievancemechanism

Both the Constitution& Employment Act 77
provides these rights.

MATCHES

EXCEEDSOPPOSESCOMMENTS

Applicable laws••••

Constitution of Malawi.
Gender Equality Act [No. 3 of 2013].
Disability Act [No. 8 of 2012].
Employment Act [Cap. 55:01].

Laws defining and prohibiting physical, sexual, or verbal threats, abuse, contact, or harassment• Constitution grants every person: (i) the right to fair and safe labor practices and to fair remuneration;(ii) the right to form and join trade unions or not to form or join trade unions; and (iii) the right to fairwages and equal remuneration for work of equal value without distinction or discrimination of any
73. Section 5 of the Gender Equality Act.
74. Section 5 of the Gender Equality Act.
75. Section 5 of the Gender Equality Act.
76. Section 20 of the Constitution, section 5 of the Employment and section 13 of the Gender Equality Act.
77. Section 31 of the Constitution and section 4 of the Constitution.
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External Assessment

kind, in particular on basis of gender, disability or race. Local courts have given examples of conductthat may be termed as unfair labor practices. Examples include: physical punishment or verbal abuseof the workers. 78• Law prohibits any person from committing, engaging in, subjecting a person to, or encouraging thecommission of any harmful practice. 79• Harmful practice is defined by the Law as meaning a social, cultural or religious practice which, on
account of sex, gender or marital status, does or is likely to undermine the dignity, health or liberty ofany person or result in physical, sexual, emotional or psychological harm of any person. 80 Any person
who contravenes section 5 is liable to a fine of K1,000,000.00 and/or imprisonment with a maximum
period of five (5) years.
• Section 13 of the Disability Act [No. 8 of 2012] prohibits discrimination in any form of employment.
Any person who contravenes this section is liable to a fine of K1,000,000.00 and/or imprisonment for
12 (twelve) month maximum period.

Laws defining and prohibiting discrimination• Section 20 of the Constitution and section 5 of the Employment Act prohibit the discrimination of
persons in any form; and all persons are, under any law, guaranteed equal and effective protection
against discrimination on grounds of race, color, sex, language, religion, political or other opinion,
nationality, ethnic or social origin, disability, property, birth or other status.

Protection of workers from discrimination (workers’ rights and employers’ obligations)• Subsection 31(3) of the Constitution entitles every person to fair wages and equal remuneration forwork of equal value without distinction or discrimination of any kind, in particular on basis of gender,
disability or race.
• Section 5 of the Employment Act prohibits any discrimination on the grounds of race, color, sex,
language, religion, political or other opinion, nationality, ethnic or social origin, disability, property,
birth, marital or other status or family responsibilities in respect of recruitment, training, promotion,
terms and conditions of employment or other related matters. Any person who contravenes thissection is liable to a fine of K10,000.00 and/or imprisonment for two years.
• Section 6 of the Employment Act requires every employer to pay employees equal remuneration forwork of equal value without distinction or discrimination of any kind, in particular, on basis of race,color, sex, language, religion, political or other opinion, nationality, ethnic or social origin, disability,
property, birth, marital or other status or family responsibilities.
Laws on resources for victimized workers including any access to grievance mechanisms• There are not specific references on the laws about this matter, but there are general rules regarding
disputes and complaints procedures under the Employment Law. 81

78. Subsection 31(1) of the Constitution.
79. Section 5 of the Gender Equality Act [No. 3 of 2013].
80. Section 3 of the Gender Equality Act.
81. See s64 of the Employment Act about Disputes and Complaints Procedures.
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Principle 4 – FORCED LABOR AND HUMAN TRAFFICKING
Summary
ALP MEASURABLE
STANDARDS

MARKET LEGAL STANDARDS

No work under bond, debt
or threat

The Constitution 82
prohibits any
forced labor.

MATCHES

Workers must receive
wages directly from theemployer.

EXCEEDSOPPOSESThe
Employment
Act entitles
an employee
to directly
receive wages
or to nominate
another person
as a recipient of
their wages 83.

Workers are free to leave
their employment at any
time with reasonable
notice, without threat or
penaltyWorkers are free toleave employment
at any timewith reasonable
notice 84.

Workers 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

Workers are notrequired to makefinancial deposits
with farmers, labor
contractors or any
other third party.

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

Workers are
not charged
recruitment feesor other related
fees for theiremployment bylabor contractors.

Wages or income fromcrops and work done are
not withheld beyond thelegal and agreed payment
conditions.

Subject to rights
under the law,wages or income
from crops andwork done are notwithheld.

Farmers do not retain
the original identity
documents of any worker

Farmers are notallowed to retain
the worker’s
original identity
documents.

COMMENTSThis is a loophole in the law
which gives a worker an option
to nominate another person, suchas a spouse. Spouses can compel
each other to surrender wages
by nomination of payment. This
statutory requirement provides
the minimum which must becomplied with by the employer.

In practice, this may be abusedas farmers tend to retain the
documents as security.

82. Section 31 of the Constitution.
83. Section 50(3) of the Employment Act.
84. Section 29 of the Employment Act.
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External Assessment

Where farmers arelegally required to retain
the original identity
documents of workers,
they provide securestorage protected fromunauthorized access andensure workers haveaccess to their documents
upon end of employment

The law does not
require a farmer toretain the original
documents.

Where labor contractors
are used, farmers verify
their labor practices andensure they are in linewith the ALP standards

Malawi labour laws
are silent.

No employment of prisonor compulsory laborThis isprohibited by theConstitution 85.

Applicable laws
• Constitution of Malawi.
• Employment Act.
Legislation on forced labor (including any regulation on identity document retention or wage withholding)• Section 27 of the Constitution prohibits any form of Slavery, servitude and forced labor.
• Section 51(1) and (2) of the Employment Act entitles every employee in the public or private agricultural
sector to receive with each payment of wages an accurate itemized statement from the employer inwriting in a form which sets out: the employee’s gross wages due at the end of the pay period; theamount of every deduction from his wages during the pay period and the purpose for which eachdeduction was made; and the employee’s net wages payable at the end of the pay period.
Legislation relating to limits or prohibitions on recruitment fees and deposits workers may be required topay• There is not express legislation on this. However, this would be caught up by common law under the
principles of illegality. 86
Legislation regulating the operation of labor brokers and other third-party recruiters• There is not express legislation on this.
Laws on prison labor• Section 27 of the Constitution prohibits any form of Slavery, servitude and forced labor.

85. Section 27 of the Constitution
86. See s52 (1) (c) of the Employment Act.
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Principle 5 – SAFE WORK ENVIRONMENT
Summary
ALP MEASURABLE
STANDARDS

MARKET LEGAL STANDARDS

Farmers provide a safe
and sanitary working
environment

The Occupational Safety,
Health and Welfare Act 87
requires Employers toprovide safe & sanitary
working environment.

Farmers take allreasonable measures toprevent accidents, injury
and exposure to healthrisks.

The Occupational Safety,
Health and Welfare Act 88
requires Employers toprevent accidents, injury& exposure to healthrisks.

MATCHES

EXCEEDSOPPOSESCOMMENTS

The Hazardous List prevents
harvesting of tobacco leaves indamp conditions. 89 In addition,and by construction, this may becovered under the Occupational
Safety, Health and Welfare Act. 90

No person is permitted to
top or harvest tobacco,or to load barns unlessthey have been trainedon avoidance of green
tobacco sickness.
No person is permitted
to use, handle or apply
crop protection agents(CPA) or other hazardous
substances such as
fertilizers, without having
first received adequate
training.

The law does notdirectly address theissue on fertilizers.
By construction, thisis covered under the
Occupational Safety,
Health and Welfare Act 91.

No person is permitted
to use, handle or apply
crop protection agents(CPA) or other hazardous
substances such as
fertilizers, without using
the required personal
protection equipment.

The law does not directly
address the issue on
CPAs. By construction,
this is covered under
the Occupational Safety,
Health and Welfare Act 92.

87. Section 13 of the Occupational Safety, Health & Welfare Act.
88. Section 13 of the Occupational Safety, Health & Welfare Act.
89. 2012 Order, s1 (c) (ii).
90. Part VI of the Occupational Safety, Health & Welfare Act.
91. Part VI of the Occupational Safety, Health & Welfare Act.
92. Part VI of the Occupational Safety, Health & Welfare Act.
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External Assessment

Employment Act 93 prohibits
for any child aged below 18 inhazardous work. Paragraph 6(1) of
the Ministerial Order 94 prohibits aperson under the age of 18 fromcarrying out hazardous work set
out in the Schedule to the Order.
Paragraph 6(2) of the Orderstates that such work shall not be
prohibited where: (a) the person
is aged between 16 and 18; (b)health and safety of that person is
fully protected; and (c) the person
has received adequate training in
performing the activities. 95

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
is safe to do so.

The law does not directly
address the issue on
CPAs. By construction,
this is covered under
the Occupational Safety,
Health and Welfare Act 96.

Every person has access to This is provided 97 underclean drinking and washing the Occupational Safety,
water close to where they Health & Welfare Act.
work and live.

Accommodation, where
provided, is clean, safe,
meets the basic needs ofworkers, and conforms to
the country’s laws.

This is provided 98 under
the Occupational Safety,
Health & Welfare Act.

Applicable laws
• The Occupational Safety, Health and Welfare Act.

Requirements for provision of medical protection (availability of first aid kit, health & safety training etc.)• Section 13 of The Occupational Safety, Health and Welfare Act requires –in general- Employers toprovide safe & sanitary working environment.
• Section 33 of the Occupational Safety, Health and Welfare Act requires every occupier of a workplace toprovide and maintain a first aid box or cupboard of the prescribed standard which is readily accessible.
• Section 65 of The Occupational Safety, Health and Welfare Act provides for training and informationof potential hazards to which one may be exposed to in the work place.

93. Section 22 of the Employment Act.
94. Employment (Prohibition of Hazardous Work for Children) Order, 2012 [Gazette No. 1 of 2012] (“2012 Order”).
95. 2012 Order.
96. Part VI of the Occupational Safety, Health & Welfare Act.
97. Sections 28 and 29 of the Occupational Safety, Health & Welfare Act
98. Part VI of the Occupational Safety, Health & Welfare Act
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External Assessment

Requirements to report accidents and injuries• Section 66 of the Occupational Safety, Health & Welfare Act requires written notice of accident,
in prescribed form and accompanied by prescribed particulars, to be reported to the Director of
Occupational Health, Safety and Welfare where any accident occurs in a workplace that: (a) causes
loss of life to a person employed in that workplace; or (b) disables or is capable of disabling any personfrom carrying out normal duties at which he is employed. Provided that in the case of death or serious
injury, the written notice shall, where practicable, be preceded by phone notification or any fastestmeans of communication available to facilitate immediate investigation.

Requirements for green tobacco sickness training or awareness• The law does not directly address the issue about green tobacco sickness. By construction, this iscovered under Part VI of the Occupational Safety, Health and Welfare Act.

Requirements for PPE needed for using, handling, storing, or disposing of crop protection agents (CPA).
This may vary depending on the CPA in question.
• The Hazardous List prevents harvesting of tobacco leaves in damp conditions. 99 By construction, thisis covered under Part VI of the Occupational Safety, Health and Welfare Act.
• Section 59 of the Occupational Safety, Health and Welfare Act provides for general requirements foruse, handling, storing or disposing of dust, fumes and other impurity of such a character and to suchextent as to be likely to be injurious or offensive to the persons employed or any substantial quantityof dust of any kind.
• Section 65 of the Occupational Safety, Health and Welfare Act requires employers to provide employees
sufficient information and training on hazardous substances used at workplaces.

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)
• The Hazardous List prevents those aged between 16 -18 to handle tobacco activities unless trained
and their safety is covered. 100 In addition and by construction, this is covered under Part VI of the
Occupational Safety, Health and Welfare Act.
• Section 59 further provides that all practicable measures, including the supply of breathing masks,
shall be taken to protect the persons employed against inhalation of the dust or fume or other impurity
and to prevent its accumulating in any workroom, and where the nature of the process makes itpracticable, exhaust appliances shall be provided and maintained, as near as possible to the point oforigin of the dust or fume or other impurity, so as to prevent it entering the air of any workroom.

99. 2012 Order.
100. 2012 Order.
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External Assessment

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)
• The law does not directly address the issue about green tobacco sickness. By construction, this iscovered under Part VI of the Occupational Safety, Health and Welfare Act.
• Section 51 of the Occupational Safety, Health and Welfare Act provides for general requirementsfor personal protective equipment needed for using, handling, storing or disposing of hazardous
substances. This Act defines hazardous substances to include agricultural or crop protection agents(CPA).

Requirements related to providing drinking water and safe housing• Section 29 of the Occupational Safety, Health and Welfare Act requires every occupier shall provide
at a workplace an adequate supply of clean and potable drinking water, maintained at suitable points
conveniently accessible to all persons employed.
• In effect, employers are required in terms of the Occupational Safety, Health and Welfare Act toprovide adequate supply of clean and potable drinking water to employees at a workplace maintainedat suitable points conveniently accessible to all employees.
• Also, every supply of drinking water which is not laid on shall be contained in suitable vessels, and shallbe renewed at least daily, and all practicable steps shall be taken to preserve the water and vessels fromcontamination; and a drinking water supply whether laid on or not, shall be clearly marked “DRINKINGWATER” in English and in such vernacular languages as the Director of Occupational Health, Safety
and Welfare may specify.

Requirements for worker accommodation if provided• Section 27 of the Occupational Safety, Health and Welfare Act requires every occupier to provide
sufficient and suitable sanitary conveniences for persons employed in the workplace, which must be
maintained and kept clean, and effective provision must be made for lighting the conveniences and,
where persons of both sexes are or are intended to be employed (except in the case of workplaces
where the only persons employed are members of the same family dwelling there), such conveniences
shall afford proper separate accommodation with a distinct approach for persons of each sex.
• Section 30 of the Occupational Safety, Health and Welfare Act requires every occupier to provide, for
the use of employees at a workplace, adequate and suitable accommodation for hanging or stowing
personal clothing not worn during working hours.
• Besides the above there are not further legal references to workers accommodation and in practiceleaf suppliers may apply their own internal guidance, i.e. houses with at least 2 rooms.

Restrictions on farm equipment (e.g. maintenance and licensing for operators)• Section 40 of the Occupational Safety, Health and Welfare Act restricts the operation of liftingmachines except by a person trained and competent to operate that machine.

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78

External Assessment• Also, it is permissible for such machine to be operated by a person who is under the direct supervisionof a qualified person for the purpose of training.
• Additionally, section 40 prohibits a person under eighteen (18) years of age shall be employed tooperate any lifting machine driven by mechanical power or to give signals to the operator of any suchmachine. 101 For purposes of section 40, the term ‘lifting machine’ includes crane, crab, winch, toggle,
pulley block, gin wheel, transporter or runway.

101. See also S.2 (g) of the 2012 Order.
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Principle 6 – FREEDOM OF ASSOCIATION
Summary
ALP MEASURABLE
STANDARDS

MARKET LEGAL STANDARDS

Farmers do not interferewith workers’ right tofreedom of association.

The Constitution 102 andthe Labor Relations Act 103
guarantee the workers’
right to freedom of
association.

Workers are free to join
or form organizations
and unions of their own
choosing.

The Constitution 104 andthe Labor Relations Act 105
guarantee the workers’
right to freedom of
association.

Workers are free tobargain collectively.

The Constitution 106 andthe Labor. Relations
Act 107 provides rights
for workers to bargain
collectively.

Worker representatives
are not discriminatedagainst.

The Constitution 108 andthe Labor Relations
Act 109 protects workers’
representatives against
discrimination

MATCHES

EXCEEDSOPPOSESCOMMENTS

Worker representatives
have access to carryout their representative
functions in theworkplace.

Applicable laws
• The Constitution of Malawi.
• Labour Relations Act [Cap. 54:01 of the Laws of Malawi].
Laws on organizing unions and their operation (e.g. protections in place for freedom of association,
protection against employer interference)• Subsection 31 (2) of the Constitution provides every person with the right to form or join trade unions.
Subsection 32 (1) of the Constitution provides every person with the right to freedom of association,
which shall include the freedom to form associations.
102.
103.
104.
105.
106.
107.
108.
109.

Section 32(1) of the Constitution.
Part II of the Labor Relations Act.
Sections 31 (2) and 32(1) of the Constitution.
Part II of the Labor Relations Act.
Section 31 (2) of the Constitution.
Part II of the Labor Relations Act.
Section 31(1) of the Constitution.
Part II of the Labor Relations Act.

Appendix III - Legal Information _ page 18 of 24

80

External Assessment• Section 4 of the Labour Relations Act gives every person the right to freedom of association, which
includes the freedom to establish and join organizations of his or her own choice.
• Section 6 of the Labour Relations Act protects employees (or any person seeking employment) frombeing prevented from joining associations or from being dismissed or prejudiced because of tradeunion membership or participation in the formation or the lawful activities of a trade union.
• Subsection 7(1) of the Labour Relations Act protects membership of an employee in a trade union aslong as the employee complies with the rules of the union.
• Subsection 7(2) of the Labour Relations Act (2) prohibits any trade union or similar organization fromdiscriminating in its constitution, rules or through its actions against any person on the grounds ofrace, color, nationality, ethnic or social origin, national extraction, religion, political opinion, language,sex, marital status, family responsibilities, age, disability, property or birth.

Laws or requirements for collective bargaining• Section 25 of the Labour Relations Act contains requirements for enterprise-level bargaining.
• Section 26 of the Labour Relations Act contains requirements for sectorial-level bargaining.

Laws related to worker representatives (e.g. requirements for representatives to be in place, protection
from discrimination, access to carry out functions in workplace)• Subsection 11(1) of the Labor Relations Act requires every worker representative organization to beregistered in terms of the provisions of this Act. The rights and benefits conferred by this Act uponorganizations may be exercised only if those organizations are registered in accordance with the Labor
Relations Act.
• Subsection 11(2) of the Labor Relations Act provides that any seven or more members of an
unregistered trade union, or two or more members of an unregistered employers’ organization, any ofwhom may be officers of the organization, may apply to the Registrar for registration in the prescribed
form. The application for registration is required to be accompanied by: (a) two certified copies of theorganization’s rules; and (b) the prescribed fee.

Other prohibitions on union discrimination and employer interference• In addition to the above statutory rights and prohibitions, the employee would be entitled to common
law remedies.

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External Assessment

Principle 7 – TERMS OF EMPLOYMENTSummary
ALP MEASURABLE
STANDARDS

MARKET LEGAL STANDARDSAt the time of hire,
farmers inform workers of
their legal rights

It’s difficult toensure that
farmers arecomplying with
this.

To ensure that farmers arecomplying, it may be necessary
to incorporate the terms in the
Employment Contract.

At the time of hire,
farmers inform workers of
the essential aspects of
the work relationship andwork place safety suchas work to be performed,
working hours, wages
paid, period of hire, and alllegally mandated benefits

These areincluded in the
Employment
Contract.

The Employment Act defines typeof contracts and provides whatnature of information should be
included in those contracts. 110

Farmers and workers
have entered into
written employment
contracts when requiredby a country’s laws andworkers receive a copy ofthe contract.

There is need toensure that thisdone.

Random interview of the workers
should reveal if this is done ornot.

MATCHES

EXCEEDSOPPOSESTerms and conditions of
employment contracts
do not contravene thecountry’s laws.

COMMENTS

It is also part of the Buyer/
Grower Integrated Production
System (IPS) contracts forthe farmer to adhere to andcommunicate ALP principles totheir workers.

The terms of the employment
contracts comply with theapplicable laws.

Applicable laws
• The Employment Act.
Legal requirements to constitute labor/employment relation• There is need of contract of employment. The contract can be written or oral.
• What is required is that there is a request/offer by the employer for the workers’ services for pay/consideration and the worker agrees/accepts to provide those services. Either offer or acceptance canbe express or implied from the dealings between the employer and the worker.
• In practice, leaf suppliers encourage the written labor agreements, which will normally include: (i)worker names (ii) working hours; and (iii) wages.

110. Sections 25 (2) and 27 (3) of the Employment Act.
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External Assessment

Laws and regulations on employment contracts (incl. necessity for written employment contracts, and if
is not what are the grounds to consider the existence of a verbal employment agreement)• There is no written employment contract for workers as such. However, section 27 of the Employment
Act requires every employer to give to each employee a written statement of particulars of employment.
In Chasowa v Ibrahim Cash ‘n Carry [2008] MLLR 385 (IRC), the Industrial Relations Court held that
it was a duty of an employer in terms of section 27 of the Employment Act to draw up terms of theemployment, even where the parties did not draw up a written contract, and give them to an employee.
• In general, there is not a legal limitation to agree on a ‘part-time work contract’ 111 for a specific periodof time –i.e. from Oct. to Feb.-, and for non-exclusive obligations, thus this would fall under thecontract for a specified period of time as envisaged in the Employment Act. The labor laws set for thefollowing type of labor contracts: (a) a contract for an unspecified period of time; (b) a contract fora specified period of time; and (c) a contract for a specific task 112. In addition, the Employment Act
recognizes ‘share croppers tenant’ as employees 113. However, the Employment Act does not develop
any further the characteristics of the ‘sharecropping tenant’ agreement.
• All share cropper tenant agreements are subject to Malawi labour laws, particularly the Employment
Act. In the circumstances, it is always prudent for the farmers to ensure that the share cropper tenant
are provided with the minim requirements as set out under the Employment Act. Conceptually it may
be possible commercial tenants’ agreements. However, it is very rarely and or difficult to really findcommercial tenants in Malawi in the tobacco fields. In addition, it will be a challenge on the groundto identify when you will face a ‘sharecropping tenant’ agreement versus a landing and/or commercial
tenant agreement, which is not subject to the labor rules. In particular, because the basis of both
agreements may be similar, so both types of tenants will receive a piece of land and will agree toproduce an X volume of tobacco to be delivered a Y price at the end of a season. Now, in the case of
facing this situation, a basic answer/approach to help you to differentiate among these tenants will be
the independency and autonomy characteristics present on a commercial tenant versus the lack of itby the tenant worker. That said, the commercial tenant should have his/her own financial capabilities,
although the landowner would provide him/her the land and some inputs. To the contrary, a tenant
worker does not have the financial capability and will depend fully of the landowner. So, the landownerwill provide -in addition to the land and crop inputs- food, housing, medicines/personal cleaning stuff(i.e. soap). These additional inputs may be deducted from the payments to tenant worker.
• As said before, the tenant worker agreement is a not exclusive agreement if not made to be exclusiveby the contracting parties (the employer and the worker). A tenant worker, including a tenant share
cropper, could do other activities as far as comply on-time with the activities agreed with the landownerin terms of their employment contract. 114
111. We refer here a “part time work contract” as an agreement with the following characteristics: (i) a specificduration, i.e. 10 months; and (ii) an agreement on the total amount to be paid to the worker, agreed before
starting the work, and calculated, for example, using the potential number of days to be worked by the worker.
112. Section 25 of the Employment Act.
113. Section 3 of the Employment Act.
114. Three additional comments on the tenant workers situations: (i) their payment is a price of the tobacco agreed
beforehand with the landowner. This price is influenced by the guidance provided, in some crop seasons, by the
Tobacco Control Commission (TCC) in coordination with Farmer Associations (FA), and, this price guidance takes
into account cost of production. Cost of Production takes into account the per day minimum legal wage (Further
references, see ARET - http://www.aret.org.mw/ - as the key stakeholder involved in coming up with government
minimum prices for tobacco in Malawi). (ii) It is possible to add during the “Z” duration of the contract some
additional days of work or additional activities to do, and the additional tobacco delivered shall be paid at theprice effective in the market or indicated by the guidance set by the TCC/FA.
Appendix III - Legal Information _ page 21 of 2483

External Assessment• According to the information provided by the leaf supplier, in practice the landowner is the ‘farmer’ forthe purpose of the production agreement, and the one executing this agreement with the company.

Required content for written employment contracts• Written employment contract is required to include the following particulars:a. the names of the employee and of the employer;b. the date of commencement of the contract;c. the rate of remuneration and the method of calculating remuneration;d. the intervals at which remuneration is paid;e. the nature of the work to be performed;
f. normal hours of work;g. any provision for termination of the contract other than those provided by this Act;h. any disciplinary rule applicable to the employee.

Deadline for contract conclusion (e.g. on date of hire or within 30 days of hire etc.)• The labor agreements can be verbal/oral or written. In case of written agreements, the employer has
up to 1 month –counted from the date of hiring and reporting to work- to provide the worker with awritten statement with the terms of employment. 115

Requirements for various types of contract (indefinite term, definite term, temporary workers, andprobationary workers)• Section 25 of the Employment Act provides that an employment contract can be in any one of thefollowing forms: (a) a contract for an unspecified period of time; (b) a contract for a specified period oftime; and (c) a contract for a specific task. Therefore, this would be constructed as a way to differentiate
permanent and temporary contracts and piece-rate agreements.
• Where the purpose or effect of a contract is for the filling of a lasting basis of a post connected with
the normal and permanent activity of an undertaking, the contract shall be deemed to be a contract of
employment for an unspecified period of time.
• In a contract of employment in respect of a skilled worker, section 26 of the Employment Act provides
that parties may agree on the duration of the probationary period provided that the period cannot,
in any event, exceed twelve months. During a probationary period, a contract of employment may beterminated at any time by either party without notice.

115. Section 27 of the Employment Act.
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Requirements for termination of employment (termination with or without cause, wrongful dismissal,
notice periods required to end employment etc.)• Section 57 of the Employment Act prohibits termination of contract employment by an employer
without cause or justification. Section 57 requires that there must be a valid reason for termination
connected with the capacity or conduct of the employee or based on the operational requirements of
the undertaking. Where the reasons of termination relate to the capacity or conduct of the employee,
the employment shall not be terminated before the employee is provided an opportunity to defend
himself against the allegations made (unless the employer cannot reasonably be expected to provide
such an opportunity).
• It is clear from the preceding paragraph that a combination of substantive and procedural justicewould always amount to fair dismissal. If one of them is missing or if both of them are missing, theresult leads to unfair dismissal.
• It is also clear that the law identifies the causes of termination as emanating from issues of conduct,
capacity or operational requirements.
• Courts have found the following to be some of the causes for termination: dishonesty, fraud, habitualabsenteeism, late reporting for duties, refusal to take lawful orders, refusal to go on transfer, offering
unauthorised credit facility, undermining authority, driving without authority, careless driving, refusal
to write a disciplinary report, failure to follow regulations, carrying unauthorised passengers on an
official motor vehicle, abuse of company facilities, damaging company property, assault, sleeping on
duty, breaking national laws, violent threats against superiors, failure to meet deadlines, unlawful
divulging of information, failure to account for stock, lack of commitment to duty and negligence.
• The Employment Act sets out the minimum notice period for termination of employment.
Notwithstanding this, an employer and an employee may agree on a longer notice period.
• A contract of employment for a specified period of time shall automatically terminate on the datespecified for its termination and, unless it is expressly or impliedly renewed or prolonged, no notice
shall be required for its termination.
• A contract of employment for an unspecified period of time may be terminated by either party upongiving the other the following minimum period of written notice:a. where the contract is to pay wages at a monthly rate, one month’s notice;b. where the contract is to pay wages at a fortnightly rate (i) one fortnight’s notice where the employee has been employed for less than five years; and(ii) one month’s notice where the employee has been continuously employed for at least five years;c. where the contract is to pay wages at a weekly rate (i) one week’s notice where the employee has been employed for less than two years;(ii) one fortnight’s notice where the employee has been continuously employed for a period of notless than two years but not exceeding five years; and(iii) one month’s notice where the employee has been continuously employed for at least five years;
d. where the contract is to pay wages at a daily or hourly rate (i) one day’s notice where the employee has been employed for less than six months;(ii) one week’s notice where the employee has been continuously employed for a period of not lessthan six months but not exceeding two years;
Appendix III - Legal Information _ page 23 of 2485

External Assessment(iii) one fortnight’s notice where the employee has been continuously employed for a period of notless than two years but less than five years; and(iv) one month’s notice where the employee has been continuously employed for a period of at least
five years.
• Although the Employment Act provides that both the employer and the employee can terminate thecontract of employment by giving notice under sections 28 and 29, in reality, the right to terminate
a contract by mere notice is only available to the employee. The employer, must, in addition to thenotice, also comply with provisions of section 57(1) and 57(2) of the Employment Act, which requirethat before any unilateral termination of a contract by an employer, the employee must be furnishedwith valid reasons, and in cases of misconduct or incapacity, the employee must be afforded an
opportunity to be heard.
• Finally, it is worthy to mention that it is possible to terminate the labor agreement based on a breachof the ALP/GAP program, as far as in the labor agreement is set that worker shall comply with it. Keepin mind that the labor agreements may be verbal, therefore it would be challenging if the agreement isverbal to evidence the potential transgression.
Options for farmers to obtain legal assistance about their obligations (e.g. government departments, local
labor offices, farmer associations etc.)• Depending on the relevance of the legal issue to the respective institution, farmers may obtain legal
assistance from different institutions, including the following:a. Tobacco Association of Malawi (TAMA);
b. National Smallholders Farmers Association of Malawi (NASFAM);
c. Ministry of Agriculture (advice obtained from the Ministry of Justice);d. Ministry of Labour;e. District Labour Offices;
f. Local legal counsel of choice; org. Directorate of Legal Aid (Ministry of Justice and Constitutional Affairs).
Specific requirements for leaf growing contracts (e.g. government-imposed templates, government
approval of contracts, freedom to choose terms of contract)• The integrated production system (IPS), which was introduced in Malawi in October 2011 and adopted
fully by May 2012, is gaining more ground in the country. There is a template for IPS in Malawi, andalso the Tobacco Control Commission (TCC) IPS template, and also the possibility that leaf buyers have
set up tailor-made contract documents to enter into contract farming under the IPS scheme.
• The Tobacco Association of Malawi (TAMA) acts as a link between leaf buyers and tobacco growers. 116
It therefore ensures that the signed contracts are discharged by all parties in a fairest manner. The
Tobacco Control Commission approves contracts under the IPS.
• Some leaf buyers say that evidence shows that the IPS has proven to be the best system of producing
and marketing tobacco in Malawi as IPS is believed to offer sustainability for Malawi’s tobacco industry.

116. In addition to TAMA, there are several Grower Associations in Malawi, for example: NASFAM, PHINDU etc.
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Appendix IV – Materials provided to the farmers
Communication materialChild labor - English

Child labor - Chechiwa

Appendix IV – Materials provided to the farmers _ page 1 of 587

External Assessment

GTS - English

GTS - Chechiwa

Appendix IV – Materials provided to the farmers _ page 2 of 588External Assessment

Hazardous Chemicals - Chechiwa

Appendix IV – Materials provided to the farmers _ page 3 of 589

External Assessment

AGRICULTURAL LABOUR PRACTICESALP Leaflet Chichewa(

NDONDOMEKO ZINAYI ZOTSOGOLERA(4 Key priority areas)

1. Kuthetsa mchitidwe ogwiritsa
ntchito ana poonetsetsa kuti ana
ochepera zaka 18 sakulembedwa
ndi kugwiritsidwa ntchito kumunda
wa fodya.
2. Kuonetsetsa kuti antchito aku minda ya fodya akulipiridwa malipiro
oyenera malingana ndi malamulo adziko.
3. Kuonetsetsa kuti onse ogwira ntchito ku minda ya fodya ndi ophunzitsidwa za mankhwala komanso
chikonga (GTS) ndipo akuvala zoNSANAMILA ZISANU NDI ZIWIRI ZA ALP
dzitetezera.
4. Kuonetsetsa kuti antchito apatsidwe malo ogona oyenera, abwino 1. Osagwiritsa ntchito ana
2. Malipiro ndi Maola oyenerandi otetezeka.
3. Chilungamo kwa anthu antchito
Nyumba yogona antchito ikhale yosachepera
4. Osagwiritsa ntchito mokakamiza
Magawo awiri, pakhale chimbudzi, bafa
5. Chitetezo pa malo ogwira ntchito
komanso madzi akumwa pafupi.
6. Ufulu okhala m’magulu
7. Kutsatila malamulo

AGRICULTURALLABOUR PRACTICESCODE OF CONDUCT.

Limbe Leaf Tobacco Company Limited
P.O. Box 40044,
KanengoLilongwe 4
MALAWI.

EDITION 3– November, 2018

Appendix IV – Materials provided to the farmers _ page 4 of 590

External Assessment

Gloves for handling green tobacco

PPE for CPA application

CPA storage box

Appendix IV – Materials provided to the farmers _ page 5 of 591

External Assessment

Appendix V – Templates provided to field technicians
Mobileaf digital system (example page)

Checklist for practical exams of field technicians

Appendix V – Templates provided to field technicians _ page 1 of 1

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Appendix VI – Glossary
ALP

Agricultural Labor Practices

ALP Code Principle

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

ALP Code

PMI’s Agricultural Labor Practices Code

ALP Program

Agricultural Labor Practices Program

AOTM

Alliance One Tobacco Malawi Ltd

CPA

Crop Protection Agents

CU

Control Union

GAP

Good Agricultural Practices

GTS

Green Tobacco Sickness

KPI

Key Performance Indicator

Leaf tobacco supplierCompany that has a contract with PMI to supply tobacco but is nota farmer

LLTC

Limbe Leaf Tobacco Company

Measurable Standard

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

MTP

Modular Training Program (LLTC had trained selected fieldtechnicians as MTP trainers to support regional ALP Coordinators intraining other field technicians)

MWK

Malawi Kwacha (Malawian currency)NGO

Non-Governmental Organization

PMI

Philip Morris International, Inc. or any of its direct or indirect
subsidiaries

PPE

Personal Protection Equipment

Prompt Action

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

STP

Sustainable Tobacco Production

Appendix VI - Glossary _ page 1 of 193