A Banana Link report on the findings of field research among banana plantation workers in Ecuador’s El Oro region has found that most workers say their salary is inadequate to meet their family’s needs. In addition, workers lack formal contracts of employment or knowledge of their terms of employment, with women experiencing more precarious working conditions and poorer pay than their male colleagues. Obstacles to workers ability to exercise their right to freedom of association and collective bargaining further compound these challenges.
The research was funded by the German Retailer Group on Living Incomes and Living Wages, who has publicly committed to ensuring living wages are paid on plantations that grown 50% of their bananas by 2025, and funded through the German Development Agency (GIZ). The research was designed to provide reliable and up-to-date information on the wages and contractual conditions of banana workers that can serve as a baseline for assessing future developments.
Banana Link coordinated the study in 2024, which was designed and implemented in collaboration with local independent trade unions and workers associations and industry experts. 150 workers were interviewed (46 women and 104 men) employed on 140 banana plantations in the region of El Oro. The region was chosen for its diversity of types of banana export operations (large and medium-sized producers as well as small producers); and for the presence there for over twenty years of independent banana workers’ associations.
The main findings of the research were that:
- Almost a third of the workers interviewed reported earning less than USD 21 per day, 10% of them earning less than USD 16 per day, with 83% of the respondents saying their salary is not enough to cover their family’s needs.
- Around 80% of the lowest paid workers are women, and almost twice as many women (72% of respondents) said that workers are not given contracts than men (38% of respondents).
- A strong indication of gender discrimination against pregnant women, with 94% of the participants stating that pregnant women do not work on plantations.
- Most of the workers interviewed (71%) do not know that there is a minimum wage in Ecuador and 58% do not know what the term “living wage” means. More than half indicated that they do not have a contract or do not know if they have one. More than half of those who do have a contract do not know the terms.
- The prevalence of opaque contractual conditions provides unequal access to contractual benefits for workers. Only 53% of workers interviewed claim to be affiliated to social security, and only 29% indicated that seniority was systematically recognised in the workplace.
- 76% of the workers interviewed stated that the company they work for does not allow workers to attend union activities. Only three of the participants indicated that they have a collective bargaining agreement. Most workers (83%) do not know who their union representatives are.
The report makes the following recommendations:
- Retailers and multinationals must commit to paying fair prices and integrate them into a comprehensive package of responsible purchasing practices, including longer-term contracts and a commitment to engage with suppliers on any labour rights issues that arise.
- Retailers should make public commitments to freedom of association and social dialogue as they work to establish living wages and decent work in their supply chains.
- A national dialogue roundtable should be convened to address the key issues for the industry.
- Workers need to be better informed about their labour rights.
- Employers must ensure that workers understand their contractual terms and conditions and receive a physical copy of their contract.
- Research institutions should complete a full update to the living wage study in rural areas of the Ecuadorian coast.
- The apparent contractual discrimination against women should be further investigated.
Banana Link International Coordinator, Alistair Smith, said:
“This report is not intended as a criticism of the Ecuadorian export industry, but simply as a baseline observation of the complex reality of today’s plantations in Ecuador. There are plantations where the need for adequate wages and labour rights are largely fulfilled, but there are many farms of all sizes, that export to different markets, where there are still many problems.
The important thing is that the only way to resolve problems is through social dialogue between producer and workers organisations, working together and based on real information, with the knowledge that partners from Europe and other continents are ready to support the dialogue processes.”
Download the report: Wage and contractual conditions among banana workers on banana farms and plantations in the province of El Oro, Ecuador
Photo: Banana Link
