Aid and trade projects

In this programme we organise social dialogue with companies, governments and workers in producing countries in different value chains. Both organisations have worked for decades with unions in producer countries to improve work and incomes. The relationships of trust built with them are important for achieving results in countries where there is often no space for social dialogue. 

Trade unions play a vital role in ensuring that trade contributes to development. Thanks to trade unions, living wages are paid in the long term and work is formalised so that it is based on employment contracts.

This is important for European reporting requirements. More fundamentally, the development of fair work contributes to economic development. That's the reason why SDG8 is about promoting fair work and inclusive economic growth.

Indonesia holds one of the world's largest nickel reserves and produces nearly half of this vital metal for energy transition. In an effort to strengthen its own economy, Indonesia banned the export of raw nickel. As a result, a huge nickel-processing industry emerged in Sulawesi at an extreme rate. 

Unfortunately, working and living conditions are abysmal. In a tragic fire at one of Sulawesi's nickel smelters in December 2023, 21 people died and dozens were injured. Local unions came up with a package of demands toward companies to improve safety and working conditions.

With help from CNV Internationaal, concrete proposals were developed for better personal protective equipment and more realistic production targets. The unions are taking these proposals to reduce risks into the collective bargaining process. Laying down agreements in collective agreements contributes to the due diligence of European companies. Improvements are thus concretely recorded and compliance can be better monitored.

Consultation between unions and companies has led to the first improvements. For example, shuttle buses now run, allowing people to get to work safely. Previously, workers - including pregnant women - had to walk 3.5 km along a very dangerous road. Companies see the value of this trade union work, so some are also providing office space and financial support to enable trade union work on their premises.

In Bangladesh, thanks to this aid and trade program, partner unions of Mondiaal FNV were able to negotiate well with the government on livable wages in the leather and textile sector. Through Mondiaal FNV's support in union organization and capacity building, a higher minimum wage for the sector was eventually negotiated. This development offers hope and highlights the importance of union involvement.

Unions also continue to innovate technologically. Improving data tools makes developments more transparent. This data helps with social dialogue between unions and companies. And also important for the Netherlands, is that this data makes it easy to track progress at the end of the trade chain at Dutch companies. Thanks to the program's funds, first steps have been taken toward improving knowledge and resources for technological innovation at union level.

Thanks to the aid and trade budget, CNV Internationaal conducted research on working conditions in the horticultural sector in Senegal. (Also watch the video and webinar) This shows that workers in this labor-intensive sector are in a vulnerable position, caused by too low wages, unsafe working conditions, inequality, lack of legal protection and exploitation.

Most work is done informally, without a labor contract. This makes it extra difficult for workers - and for trade unions - to stand up for their rights, but also for companies to prove that people receive fair wages.

CNV Internationaal then initiated a network aimed at cooperation between trade unions, companies, local organizations and governments to address these risks and work to improve working conditions and formalize work. This also provides new jobs and greater security for the young Senegalese population