One of the world’s largest dairy companies has committed itself to abide by international labour standards for its 20,000 employees.
Fonterra has signed an agreement with two unions in the dairy sector which pledges the company to comply with standards set out by the International Labour Organization, including freedom of association and collective bargaining for all its staff.
It also commits Fonterra to consult with unions when it contemplates ‘major changes in business activities likely to result in job losses.’ The deal, which applies to all of Fonterra’s subsidiaries in 120 countries, will be overseen by a review committee of up to ten people, half appointed by Fonterra and half by unions.
The agreement does not apply to suppliers and contractors.
Fonterra is a co-operative owned by nearly 14,000 New Zealand dairy farmers and is responsible for one-fifth of New Zealand’s overseas earnings. Among its consumer brands is Anchor butter.