See also the broader UNEP FI Environmental and Social Risk Briefing as well as these resources.
"Services" refers to a diverse range of activities including the following sub-sectors:
- Tourism, entertainment and leisure
- Professional services
- Facilities management
- Communications, media and technology
- Employment agencies and call centres
- Financial services
- Transport and distribution
- Wholesaling, retailing and franchising
This briefing focuses on the Services sub-sectors which pose the greatest human rights risk.
Key human rights related risks vary between sub-sectors, but may include:
- Low wages and long hours
- Substantial use of migrant workers
- Potential forced and/or child labour
- Issues in the supply chain
- Threats to livelihoods and life due to monopolisation of land and other natural resources
- Reduced standard of living due to adverse environmental impacts
Relevant voluntary and trade initiatives include:
- ICEM, a federation of global unions: they have released a set of principles to protect the rights of temporary workers by focusing on the impact of temporary employment agencies on employment.
- The International Labour Conference of the ILO: a convention on the rights of domestic workers around the world was adopted in 2010.
There are links to these initiatives in the resources section.
WORKPLACE CONDITIONS
What does this cover?
Workplace conditions include factors such as working hours, wages, health and safety and disciplinary practices.
Many Service industries are labour intensive and, as a result, the risk of poor employment terms and conditions is increased, including low wages, extensive overtime and the potential for forced or child labour. Migrant workers may comprise a significant proportion of the labour force. Particular sub-sectors of concern include:
- Tourism, entertainment and leisure
- Facilities management (including cleaning, catering, security)
- Transport and distribution
What are the main issues for the services sector?
- Low wages, which may not meet minimum wage requirements
- Long hours, including involuntary overtime and lack of rest days
- Children working long hours may be deprived of educational opportunities
- In some parts of the services sector there is evidence of women and children being trafficked and forced to work, including in the sex industry
- Migrant workers may be subject to degrading treatment and/or lack of equal opportunity for promotion, due to discrimination against workers from other cultures/races
- This can also include discrimination with regard to working hours, proper training, housing conditions, access to health care or access to education
- Migrant and immigrant workers can have their travel documents held by the employer as a condition of work. This restricts their freedom of movement and is a version of bonded labour. Trafficked labour is also a concern, where workers are not free to leave their employment and may be living in very poor conditions, working very long hours and receiving low or no wages
- The transport and distribution of hazardous materials can cause potential security and health and safety issues for workers and local communities
CONTROLS AND MITIGANTS
- Adherence to national laws (as a minimum), including paying minimum wages, setting limits to overtime and giving guaranteed time off work
- Written policies and procedures around anti-discrimination and equal opportunities, including the protection and welfare of migrant workers
- Written policies and procedures around employment and protection of children/young workers
- Written policies and procedures around prohibition of the use of forced labour
- Transport and storage risk management plans for handling hazardous materials, eg driver training and awareness of risks; local community awareness and education
SOURCING MATERIALS AND EQUIPMENT
What does this cover?
Companies face human rights issues and risks in their supply chain, as purchasers of goods and services from other companies which may be associated with poor practice or controversy.
What are the main issues for the services sector?
| SUB-SECTOR | ISSUES |
Tourism, entertainment and leisure
Transport and distribution
| The Infrastructure briefing looks at issues which may be relevant to these sub-sectors
Sourcing of services for tourists may cause concern due to exploitation of workers (eg sex workers, security, transport, catering)
|
| Facilities management
| The Chemicals and Pharmaceuticals briefing looks at issues which may be relevant to this sub-sector
|
Communications, media and technology
Call centres
Financial services
| Sourcing of equipment for these sub-sectors may cause concern due to conditions in factories where components are made/assembled eg use of child labour
|
| Wholesaling, retailing and franchising
| The Chemicals and Pharmaceuticals briefing looks at issues relevant to dry cleaning
The Infrastructure briefing looks at issues which may be relevant to wholesaling/retailing
|
CONTROLS AND MITIGANTS
- Application of consistent and effective management practices
- Written ethical and environmental supplier screening policy covering labour relations issues and sustainable/ethical sourcing of materials. Suppliers should be aware of potential hazards and have systems in place to protect workers and communities
- Written transport and storage risk management plans for handling hazardous materials, eg driver training and awareness of risks; local community awareness and education
- Written site security plans ensuring appropriate security measures are in place and specifying remedial measures to be taken in the event of a major incident eg provision of emergency water supply to local community if usual sources are contaminated
LIVELIHOOD AND STANDARD OF LIVING
What does this cover?
This covers the right to work, right to a fair living wage and right to an adequate standard of living. Because human rights are inherently interrelated and inter-dependent, these rights also support the realisation of other rights such as the right to health, housing, participation in the culture of the community, education, the right to found a family and so on.
What are the main issues for the services sector?
Certain service sub-sectors may have an impact on local communities, eg
- Tourism, entertainment and leisure
- Transport and distribution
- Wholesaling, retailing and franchising
- Threats to livelihoods and life due to monopolisation of land and other natural resources previously depended on by local populations, eg the development of tourist complexes may exploit local water supplies (irrigation of golf courses); occupy land previously used for agriculture; or use local fishing grounds for leisure developments
- Reduced standard of living due to environmental impacts eg: pollution and noise associated with transport hubs, visual impact/light pollution from large projects
- Communities may need to be relocated to make way for proposed Services developments/projects. Developers' requirements may include residential land, land used for agriculture, fisheries and/or land used for community activities. Governments may take responsibility for conducting effective consultation with communities on relocation and ensuring that agreed compensation is paid. However, this is a significant risk for companies involved with the project, as they may be publicly associated with any government poor practice (or perceived poor practice) in this respect. A lack of agreement by a relocated community may also result in future conflict, potentially leading to delays and additional costs.
CONTROLS AND MITIGANTS
- Written policies and procedures around conservation and sustainable use of finite resources eg: water, energy, land, which take account of local community need for these resources now and in the future
- Written policies and procedures to ensure the free, prior and informed consultation of local and indigenous communities; ensuring that vulnerable groups are part of the consultation process. There should be a complaints mechanism available to local communities
- Written policy and procedures around the relocation of communities to allow company development, including measures around consultation, compensation and continuation of livelihoods
- Written policies and procedures around conservation of cultural/historical/religious sites which form the basis of the identity of local and/or indigenous groups
