Labor Standards

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
Principle 4: Businesses should support the elimination of all forms of forced and compulsory labor
Principle 5: Businesses should support the effective abolition of child labor
Principle 6: Businesses should support the elimination of discrimination in respect of employment and occupation

We fully support the Global Compact’s Principles related to Labor Standards.

Legal Compliance
We operate under applicable labor laws in states where we have operations. These laws prohibit a company from terminating an individual as a result of choosing to enter into a union or collective bargaining. We have not developed a written policy independent of these laws, which are regulated by state and government agencies.

We maintain a specific policy prohibiting discrimination on the basis of race, color, ancestry, religion, gender, age, marital/civil union status, national origin, sexual orientation, place of birth, veteran status, disability or any other legally protected classification.

Vendor Expectations

In fiscal 2007, we began developing a Set of Vendor Expectations. The scope of these guidelines included overall legal compliance, forced labor, child labor, wages and benefits, hours of work, freedom of association, discrimination and abuse, health and safety, and environmental responsibility.

In fiscal 2008, we began sharing, and measuring compliance with these guidelines. For measuring compliance, we created a set of tools, including self-assessments, surveys, on-site assessments by GMCR staff, and commissioned audits of vendor facilities.

We tested these tools by auditing our own Waterbury, VT, facility. We performed our first supplier audit in September 2008. For the first audit, we chose the firm that manufactures all our Keurig® Brewers –the Simatelex organization. They operate three factories in Shenzhen, in the Guangdong province of China. We audited one factory – the Xin Fan facility. We will receive the final audit report in fiscal 2009 and will work with Simatelex to understand and act on the findings in that report.

Working together with our supply chain, we can all become better citizens and more sustainable businesses by setting clear expectations, and identifying and correcting issues when they arise.

For more information see Vendor Expectations.

Fair Trade Certified™ Coffees

We support the Global Compact’s Labor Standards Principles in coffee-growing communities through our support for and investment in Fair Trade Certified™ coffees. The Fair Trade certification process sets requirements for labor standards, including:

• Compliance with ILO Convention 111, which prohibits discrimination on the basis of race, color, sex, religion, political opinion, national extraction, or social origin;
• No forced and compulsory labor;
• Child labor on a farm producing Fair Trade Certified™ coffee is restricted to children aged 15 years or older, provided that their work is safe and appropriate and does not jeopardize their schooling or moral or physical development; and
• Compliance with ILO Conventions 87 and 88, which provide for the right to organize, to self-govern such organizations, and to protection from anti-union discrimination.

For more information see Building Demand for Sustainable Products.