Archived press release

Sainsbury's: making life taste bitter for banana growers

23 July 2003

Cheap bananas on supermarket shelves threaten the livelihood and well-being of banana growers across the developing world, campaigners will tell directors and shareholders today (Wednesday) when they meet for the annual general meeting of supermarket giant Sainsbury [1]. Representatives from Friends of the Earth and Banana Link attending the AGM will highlight the impact cheap food is having on producers, which contrasts sharply with the supermarket's claims of ethical integrity made in its Corporate Social Responsibility report [2].

Banana growers are facing a crisis because of the low prices paid by supermarket chains in the current banana price war. As prices are pushed down suppliers find it hard to pay legal minimum wages. For every ?1 that customers in the UK spend on bananas, a banana plantation worker receives around 1.5 pence [3]. The result is that banana workers cannot adequately feed their families - despite working 11-12 hour days.

Working conditions on banana plantations are often very poor. In Costa Rica, for example, the persecution of workers trying to join trade unions on plantations that supply Sainsbury continues unabated, in violation of international labour standards and the Ethical Trading Initiative's own Base Code of Labour Practice. In common with the rest of the Costa Rican banana industry, wages have fallen significantly over the least 3 years [4]. The workers are also exposed to powerful pesticides, some of which are used to meet the cosmetic appearance requirements set by the supermarkets.

Friends of the Earth and Banana Link welcome Sainsbury's attempt to consider its social and environmental responsibilities, but believe that companies claiming to be responsible should ensure good working conditions for people that supply them all the way along the chain.

Because the company determines what goes into its CSR report, it need not reflect the whole story and may indeed simply be an attempt to greenwash over the situation. Friends of the Earth believes company directors should be required by law to account for the environmental and social impacts of their business - in the same way that they are held to account for their financial impacts.

According to Sainsbury's CSR report its `code of conduct for socially-responsible trading' ensures that "we can offer our customers excellent products but not at the expense of people in developing countries who may be working in unsafe conditions for poor wages".

Yet currently the only way shoppers can be sure the bananas they choose come from plantations where workers have decent working conditions and are paid a fair wage is to pay a premium. Sainsbury's CSR report claims it's the UK's biggest retailer of Fairtrade products and includes Fairtrade bananas as an example of the company's "ethical integrity". But according to Sainsbury's customer care line just 15% of bananas sold in Sainsbury's stores carry the Fairtrade mark, meaning the other 85% are `unfairly traded' .

Friends of the Earth food and farming campaigner Sandra Bell said:

"Sainsbury's claims to be an ethical company appear to be more spin than substance. Shareholders and customers alike should be shocked by the poor conditions and low wages that workers growing bananas for our supermarkets receive. Companies like Sainsbury's need to learn that producing glossy reports about social corporate responsibility is not enough. If they cannot be trusted to follow basic ethical measures on a voluntary basis then the Government must legislate to ensure that company directors have duties beyond the financial bottom line."

Alistair Smith of Banana Link said:

"We are looking to Sainsbury to take the lead in matching its verbal commitment to ethical trading with its practice along the banana supply chain. In following the price war led by Asda and Tesco, Sainsbury has joined the ranks of those who are now driving a 'race to the bottom' in the banana industry. The unsustainably low prices they are paying suppliers get passed on to producers who are squeezing their workers even harder than before."

Friends of the Earth and Banana Link are calling on Sainsbury's and all other major supermarkets to live up to their promises and ensure that banana workers get a living wage and decent working conditions. A failure to do this will indicate that the big supermarkets cannot be trusted to change damaging practices voluntarily and that legislation is needed to ensure that suppliers and workers are treated fairly. Campaigners will also highlight Sainsbury's failure to live up to other claims in the CSR report including support for British farming, and sourcing food locally.

Notes

[1] Photo call and campaigners available to comment outside the AGM from 10.30am. The Sainsbury AGM takes place at the QEII Conference Centre, Westminster, at 11.30am on Wednesday 23^rd July.

[2] www.j-sainsbury.co.uk/csr

[3] Typical `banana split' for every customer £1 spent on bananas (nb not specific to Sainsburys):

Plantation workers: 1.5p

Plantation owners: 18.5p

Intermediaries 43p

Supermarket 37p

Source: Banana Link

[4] COSIBA, the Costa Rican Banana Workers' Union Coordination, 2003.

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust