Coffee and tea producers in southern Lao PDR gain taste of better working conditions

The Bolaven Plateau is unique in the Lao People’s Democratic Republic for its cool, moist climate, ideal for the production of high-quality tea and coffee. However, most of the men and women working in this sector lack proper employment contracts or decent working conditions.

“The workers, who are mostly engaged in informal employment as household units, are often working long hours in poor and difficult working conditions and facing accidents from old, unsafe and improperly-used machinery,” explained Mr Sengthong Manisab, head of the Paksong Tea Cooperative.

To address these challenges, the “Reducing vulnerability in Lao PDR: Advancing social protection and labour rights and entitlements in the coffee and tea sectors (SOLAR)” project is improving access to social protection, particularly for informal workers and women, and supporting workers to organize to protect their labour rights. The SOLAR project is funded by the European Union and implemented by ILO and Oxfam.

Few coffee and tea workers are enrolled in Lao PDR’s National Social Security Fund, and most lack awareness of the fund’s benefits. Service providers, civil society groups, companies and village authorities also have limited understanding of the fund, and are thus unable to extend its benefits to workers. The SOLAR project is engaging with stakeholders at all levels to build the awareness necessary for workers to gain access to the social security fund. ILO is also transferring IT equipment to the newly established Social Security Office in Paksong District to promote better service delivery to tea and coffee farmers.

To strengthen their collective bargaining capacity, the SOLAR project is supporting tea and coffee workers to organize into groups, associations and cooperatives. ILO has partnered with the Paksong Tea Promotion Association, formed in 2020 with support of the Government of Lao PDR, Asian Development Bank, FAO and AFD. On International Tea Day 2023, ILO organised a visit of the Minister of Labour and Social Welfare, the EU Ambassador and delegates from MOLSW and the EU to the Association to meet its members. Through their interactions, the visitors learned the importance of supporting farmers to export their tea products directly, rather than through middlemen or agents. After the visit, the farmers upgraded their association into a cooperative, strengthening their capacity to advocate for labour rights, safe working conditions, and access to social security.

To address the issue of old, unsafe machinery, the SOLAR project and the ILO/Japan project entitled “Reduced vulnerability of returnee migrant workers through linkages to employment opportunities and integration into local economic development in response to COVID-19” have provided new equipment to the farmers, including solar lights, high-pressure washers, moisture metres, drying and withering machines, tea leaf rolling machines, storage equipment, and personal protective equipment.

“Through these initiatives, tea and coffee producers in Paksong District have received the equipment and support they need to boost production and incomes while simultaneously gaining awareness about labour rights and access to social security. This will help reduce the vulnerabilities faced by farmers,” said Loveleen De, Programme Manager, ILO.