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Czech NGO & Czech company operating in the textile industry in Myanmar
Lead NCPCzech Republic
Supporting NCP(s)
DescriptionSpecific instance notified by a Czech NGO concerning a Czech company operating in the textile industry in Myanmar.
Theme(s)Employment and industrial relations, General policies, Human rights
Date24 May 2018
Host country(ies)Myanmar
SourceNGO
Industry sectorManufacturing, Wholesale and retail trade
StatusConcluded
Summary

Read the Final Statement published by the NCP 20 May 2022: Czech | English


On 24 May 2018, the Czech NCP received a specific instance from a Czech NGO alleging that a Czech company sourced textile products from a factory located in Myanmar suspected of breaching labour rights.

The Czech NGO states that the company did not conduct due diligence to prevent the adverse impacts caused by its sourcing from the Myanmar based factory. The company objected to the allegations, stating that it had performed sufficient due diligence corresponding to the volume of the order, size of the company, and its international business operations.

The NCP completed an initial assessment on 8 August 2018 deciding to accept the case for further consideration and moved to offer both parties its good offices in September 2018, which they both accepted.

In November 2018, the parties signed the Terms and Conditions for the Provision of Good Offices by the NCP. The NCP Secretariat and Complainant negotiated the Joint Conclusions from April to July 2019. The NCP then visited the company in person to discuss the Joint Conclusions. Several rounds of comments from the Parties ensued. The finalisation of the document suffered delays due to the Covid pandemic.

The good offices were conducted by the NCP Secretariat and were concluded in April 2022 when the parties reached agreement and signed the ‘Joint Conclusions,’ which included language on the importance of RBC and due diligence, and recommendations for the company to enhance its internal due diligence process. While the report noted ‘recommendations,’ it was also noted the expectation that the company would enact the recommendations in accordance with the agreement. The Joint Conclusion is largely confidential.

The NCP will follow up on the implementation of the recommendations in the Joint Conclusions one year following its signing. The NCP did not make recommendations beyond those contained in the agreement.


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