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Royal Ahold executives sidestep the call for Fair Food —again!May 3rd, 2014

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At annual shareholder meeting in Amsterdam, Ahold executivesinsist CIW representative “speak English” when asking questionon behalf of farmworkers, continue to reject “the best workplacemonitoring Program in the U.S…”Farmworkers from Immokalee have beenknocking on the door of Amsterdam-basedRoyal Ahold — the internationalsupermarket corporation that owns GiantSupermarkets and Stop & Shop in the U.S.— for years now, asking for the chance towork together to protect the human rightsof the workers who pick Ahold’s tomatoes. While the global supermarket giant hasdragged its heels, its grocery sectorcompetitors Whole Foods, Trader Joe’s, andWalmart have all joined the growingpartnership for Fair Food, and the CIW’sprogram has gained universal praise forhaving helped re-shapethe Florida tomato industry from “beingthe worst to the best” employer forfarmworkers in the U.S.

Never ones to shrink in the face of rejection, the CIW crossed the sea once again last month to present theircase to Ahold executives and shareholders at the company’s annual meeting and, once again, they were metwith a mix of arrogance and indifference.

Company executives rolled out the same list of tired myths of corporate social responsibility they reciteevery year — the supposed fairness of the market price, the claim that corporations are equipped to monitortheir own supply chains, the argument that standards alone can enforce workers’ basic rights — a list thatgrows ever more insipid with every new retailer that joins the Fair Food Program and every new observerthat recognizes its unique success in eliminating generations-old abuses.

But there were a couple of new twists to Ahold’s position this year (including an uncomfortable momentduring which the Ahold board acted out a gratuitous display of what can only be called xenophobia), so wewanted to share with you a report from the delegation that traveled to the charming city of Amsterdam,including our thoughts on Ahold’s mysterious new language in its otherwise stock response to the Campaignfor Fair Food.

As shareholders arrived at the luxurious Muziekgebouw for the day’s activities they were met by a group ofDutch Fair Food activists that joined forces with the CIW delegation, bringing homemade signs andinformational packets — including copies of an editorial in support of the Fair Food Program that ran thatvery morning in Holland’s leading financial journal, the Financieele Dagblad. In addition to longtime allies,such as members of Fair Food International, the Dutch group included professors and students that traveledto Amsterdam all the way from The Hague’s International Institute for Social Studies.

Inside, the meeting began with the CEO Dick Boer’s opening statement – which included some strangelyfamiliar language, complete with a rolling slideshow of photos of tomatoes in the aisles of Aholdsupermarkets:

A photo of a tomato from CEO Dick Boer’sopening presentation

And it’s not just food safety that’s important to us. AtAhold, we are fully committed to offering our customersproducts that are produced fairly and under safeconditions. We carefully select and monitor our suppliers,and require them to adhere to Ahold’s Standards ofEngagement. These standards require suppliers to treattheir employees fairly, with dignity and respect and inaccordance with all laws and regulations. To ensure thatour suppliers are compliant with our Standards ofEngagement, we meet with them on a regular basis toreview their activities.

“

Yet, when it came time for questions, Ahold treated CIW representatives there on behalf of the thousands ofworkers who harvest their products with anything but respect. Shortly after beginning his statement, theCIW’s Lucas Benitez and his interpreter were abruptly interrupted by the Chairman with a demand that Lucashimself speak English in making his statement.

In response to the interruption — which raised more than a few eyebrows in the multi-lingual meeting —Lucas reminded the Chairman of why he was there in the first place: “The thing is the farmworkers who pick thetomatoes you sell in the United States speak Spanish. The profits that you all make are thanks in part to those of uswho speak Spanish.” Unmoved, the Chairman insisted that the statement be made in English or not at all.

Following that lovely new twist on the company’s nearly decade-old disdain for the workers who pick itstomatoes, the CIW gave its statement in English, and Ahold gave the same, tired answers it has given yearafter year. Here is an excerpt from the Chairman’s response:

But the grilling of Ahold executives did not end with the CIW’s question. Peter Sabonis of the NationalEconomic and Social Rights Initiative followed, demanding true transparency from Ahold and challenging itsunilateral, uncorroborated claim to be buying only from growers in good standing with the Fair FoodProgram. And Dr. Karin Astrid Siegmann of the International Institute for Social Studies in The Haguefollowed with a powerful critique of Ahold’s refusal to partner with workers in its social responsibilityefforts (Dr. Siegmann is second from right in the picture below of the CIW delegation taken just ahead of themeeting). Here’s an excerpt:

… Each of the tomato suppliers we work with in the Immokalee region of Florida has adopted theCoalition of Immokalee Workers’ (CIW) Fair Food Code of Conduct (through their membership in theFlorida Tomato Growers Exchange) as well as the Ahold USA Standards of Engagement. We arecommitted to investigating any reports thoroughly and taking any appropriate action promptly.

The CIW has an open line to Ahold USA’s companies to immediately share any information they receiveabout the mistreatment of workers by any of our suppliers. Since our suppliers in the region adopted theFair Food Code of Conduct in 2010, the CIW has not informed us of any instances of mistreatment.

Ahold USA is committed to paying a fair market price for tomatoes from Florida suppliers, but AholdUSA does not directly negotiate wages with our suppliers‘ employees. However, we have taken note ofrecent developments in the way that CIW is reaching agreements. We will review and discuss this withthe relevant food industry trade associations as well as our suppliers.

Ahold USA will continue to be a responsible retailer and engaged member of the communities we serve.

“

Ahold’s response? Our Standards of Engagement are “not a paper exercise.“

Yet as Ahold’s rejection of the Fair Food Program grows more inexcusable with every passing year, it

For the past 15 years, I have undertaken research about corporate social responsibility (or CSR) initiativesand their effects on workers’ labour conditions. On that basis, I have bad news and some good news foryou. The bad news is that a large number of studies have questioned the effectiveness of business-driven CSRinitiatives. Impacts of CSR initiatives on core labour rights such as freedom of association, freedom fromdiscrimination and the payment of a living wage have been considered weak or absent. This has recentlybeen confirmed by a study commissioned by the World Bank, an international financial institution thatdoes not have the reputation of being a labour rights advocate. Here is the good news: I have been involved in research myself that shows that CSR initiatives can besuccessful if they put workers’ agency at the centre. The Fair Food Programme of the Coalition of Immokalee Workers is a prime example of such an initiativein which workers have had a key role in the design and implementation. It has been evaluatedindependently, showing improvements in farmworkers’ wages, health and safety and successes ineradicating sexual harassment, among other advances. This must be contrasted with Ahold’s own efforts. In the past you spoke about your participation in theSAFE program, a business driven initiative that was exposed as empty and ineffective and you spokeabout the protection of US laws, which, however, do not allow farmworkes to unionize. Now you talk speak about your “own Standards of Engagement.” What will you speak about next year?

When will Ahold decide to put its commitment to responsible business conduct into practice by joiningthe FFP?

“

Copyright © 2012 Coalition of Immokalee Workers. All rights reserved

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Second helpings from the Tribeca table…

becomes increasingly clear that the company’s commitment to true social responsibility is, in fact, paper thin.

But that may — may — be changing. The final new twist on Ahold’s response to the CIW’s intervention thisyear at the annual shareholder meeting is the bit of new language contained in their official statement. Ifyou take a close look at the company’s April 15, 2014, “Statement on the Coalition of Immokalee Workers”(quoted above), there is a new “however” clause that, while inscrutable, may, as the Dutch financialjournal Financieele Dagblad suggested, open the door to talks in the months ahead. Here’s that passageagain:

Do these new words represent a ray of hope, a crack, however small, in the uniform callousness exhibited bythe company to date? Might Ahold be rethinking its position, now that Walmart’s participation has put a lieto industry claims of effective self-regulation? Will Ahold finally make that call to the CIW, signaling that itis ready to join the ranks of responsible 21 century companies?

Only time, time that is now passing Ahold by, will tell. We’ll keep you posted.

, Ahold USA, Amsterdam, Lucas Benitez, walmart

Ahold USA is committed to paying a fair market price for tomatoes from Florida suppliers, but AholdUSA does not directly negotiate wages with our suppliers‘ employees. However, we have taken note ofrecent developments in the way that CIW is reaching agreements. We will review and discuss this withthe relevant food industry trade associations as well as our suppliers.“

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