Hard Labour: Workplace Standards and the Financial Sector

Abstract

A number of issues arise when considering the application of the principles contained within the Equator Principles and the IFC Performance Standards on labour to a range of transactional and advisory work of financial institutions. Many are difficult to assess, for example, freedom of association, non-discrimination and wages and the criticality of issues such as child labour and forced labour, so it is paramount that financial institutions better understand the scope of their potential actions and those of their clients in this area. It is also important to understand the terrain of engaged stakeholders, including trade unions and national government. This chapter will consider the following: standards to be applied; issues that arise, with examples of several; the tensions between the scope of Performance Standard 2 (PS 2) and national rules; practical steps that banks can take and the limits on banks’ activities; and the role of impact assessment studies, social auditing and other forms of assessment reports. The chapter will also place the question firmly in the context of financial sector implementation of the UN Guiding Principles on Business and Human Rights.