Labor and Human Rights

The main programs we use to monitor, control and improve labor conditions in our operations are:

• an internal audit program on labor and human rights, targeting our 11 manufacturing sites
• Responsible Business Alliance (RBA) human rights self-assessments at all major ST sites and third-party RBA audits at all ST manufacturing sites, with an average RBA audit score above the industry average: +47 points in initial audits and +15 points in closure audits (score out of 200)
• multiple initiatives to uphold human rights and mitigate risks in regions where we operate, including the Factory of Choice program (see Advancing labor and human rights) and the Responsible Workplace program (see Focus)

Being recognized as a leader in our industry

As a member of RBA since 2005, we uphold the highest standards and apply a comprehensive due diligence process covering nine core principles:

• freely chosen employment
• prevention of underage labor and protection of young workers
• fair organization of working time
• fair wages and benefits
• fair treatment and antiharassment
• non-discrimination
• freedom of association
• fair working conditions
• employee well-being and privacy of personal information

⁽¹⁾ All manufacturing sites are now recognized either Platinum, Gold or Silver, so we have reinforced our goal, requiring every site to reach Platinum level.

Our approach

We apply a process based on RBA methodology to continually improve our management system:

• commitment to the RBA code of conduct
• risk assessments
  • external risk assessment based on inherent risks of activity and location
  • annual self-assessment questionnaire covering 90% of our employees. Sites scored from 91 to 96/100, which is better than the industry average of 89/100
• audit programs covering our 11 manufacturing sites (82% of our employees)
  • internal audits allocating priorities based on the concept of risk-based auditing, with timely and adequate corrective follow-up actions
  • RBA (VAP 6.0) third-party audits every two years with appropriate audit follow-up, including corrective action plans and closure audits

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Our risks and actions

In 2019, the main risks identified, and preventive and corrective actions implemented are described in the table below.

Our main third-party audit results

In 2019, our Tours and Rousset sites (France) respectively scored 51 and 58 points above the industry average in their first audits, highlighting the low level of risk. In Catania (Italy), another first-time audit, no priority or major non-conformances were identified, and the audit score was 33 points above the industry average.

Regarding closure audits, our Muar site (Malaysia) was the best performer with full compliance, for which it received RBA platinum recognition. Our other sites received RBA silver recognition and improvement plans have been implemented to reinforce existing social management systems. Furthermore, the internal audit program related to labor and human rights has been strengthened and standardized to foster continuous improvement of our sites’ performance. I 103-3 I

Emmanuelle Luce

Sustainability Champion, Crolles (France)

French labor regulations are already demanding, yet our customers expect more from our manufacturing sites in terms of CSR performance. The RBA audit program is very challenging as it requires us to prove the effectiveness of our CSR management system, but it also enables us to better mitigate our risks and continuously improve our social performance. As the Crolles site (France) Sustainability Champion, I’m proud and enthusiastic to be part of this!”

RBA Responsible Workplace program

FOCUS

Continuously improving protection for foreign migrant workers

Building on the Workplace of Choice pilot, the Responsible Workplace program was launched by RBA in 2018 to improve workers’ awareness of their labor rights, develop communication and amplify workers’ voices. Our Muar site (Malaysia) has been engaged in the program from the beginning.

In 2019, 285 workers, both foreign and local, were interviewed anonymously on recruitment and working conditions. The survey results have enabled the site to identify opportunities to enhance employee protection and satisfaction and take action. One of the outcomes was a dialog session with foreign workers to provide more information on their contracts and strengthen the predeparture procedures and documentation.

As well as the surveys, members of the site’s human resources team took part in worker–management communication training and around 150 foreign workers hired in 2019 completed an RBA predeparture orientation program.

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RBA audit results for ST operations in 2019 SDG 8.7

Number of audits			8
Figures from 2015 onwards can be found in the table on People indicators
Labor, Ethics and Management systems		Environment, Health and Safety
Total of major non-conformances	6	Total of major non-conformances	6
Working hours	1	Industrial hygiene	1
Freely chosen employment	2	Occupational injury and illness	1
Non-discrimination	1	Emergency preparedness	2
Supplier responsibility	1	Occupational safety	1
Audits and assessments	1	Energy consumption and GHG emissions	1

Advancing labor and human rights

As a member of the French business human rights initiative ‘Entreprises pour les Droits de l’Homme’ (EDH), ST’s CEO has signed the French version of the World Business Council for Sustainable Development’s (WBCSD) call to action for business leadership on human rights. The call to action was signed by top executives from 40+ WBCSD and EDH member companies. It calls on businesses to embed human rights in corporate culture, set clear expectations for suppliers and business partners, and drive meaningful engagement and collaboration with peers, governments and civil society.

Reflecting our commitment to this issue, ST’s Muar site (Malaysia) was invited to speak at the first National Conference on Human Trafficking in August 2019, jointly organized by the National Council on Anti-Trafficking in Persons and Anti-Smuggling of Migrants and Joining Hands Against Modern Slavery, a coalition of non-governmental organizations working towards ending modern slavery. The findings and recommendations will be presented to the Malaysian government as part of its preparations for its National Action Plan on Anti-Trafficking in Persons.

Our Calamba site (the Philippines), which holds RBA platinum status, received the RBA Factory of Choice award for its 2019 achievements. The award demonstrates the site’s deep commitment to sustainability and the success of its quarterly ‘employee day’, where workers provide feedback to management on relevant topics, as well as its successful implementation of changes to improve the working environment.

Contributing to the Sustainable Development Goals

Our commitments and programs as described above contribute to:

SDG target 8.7 – Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor.

SDG target 8.8 – Protect labor rights and promote safe and secure working environments for all workers.