2 April 2024

Since Indorama Agro, one of Uzbekistan’s largest cotton producers, began its operations in Syrdarya and Kashkadarya regions in 2018, Uzbek Forum has documented dozens of serious labor rights violations, including mass redundancies, abuse of employment contracts, anti-union activities, and the illegal reclassification of almost 400 employees as “service providers.” In addition, there have been some 50 incidents of retaliation carried out by management and government officials against workers and farmers contracted to deliver cotton to the company who have spoken out against rights abuses.

In January 2024, in the most recent and serious case, an independent rights monitor working on the Indorama Agro project was threatened by government security officials. The monitor was told that their work was “dangerous” and that they would face criminal charges if they did not immediately stop speaking to Indorama workers...

Rights organizations Uzbek Forum and Bankwatch have monitored the Indorama Agro project since 2020 and have repeatedly raised concerns of rights violations and retaliations with lenders and Indorama management directly. Despite their assurances, the situation for workers and farmers has deteriorated and, in August 2023, Uzbek Forum and Bankwatch filed a request for compliance review with the EBRD.

Over the last two years, independent monitoring and reporting on rights abuses at Indorama Agro has become practically impossible as retaliations against workers speaking to rights monitors, and now even against monitors themselves, have escalated. In August 2023, five Indorama workers were invited to participate in a workshop on labor rights in Almaty, Kazakhstan. All were prevented from attending. The passport of one was confiscated before he was due to travel, while two others expressed fear of reprisals as their reason for not traveling. However, the situation turned dramatic when two workers were physically prevented from boarding a plane to Almaty by plainclothes security agents and escorted by car to their homes, a two-hour drive away.

These are not random, isolated events but part of a pattern of retaliation and intimidation to suppress worker organizing and prevent the reporting of rights violations reaching the public domain. They are also clear violations of freedom of association, freedom of movement, and freedom of speech, which also violate the performance requirements and standards of the EBRD and IFC.

Retaliation by Indorama Agro management was first documented in 2020 by Uzbek Forum and Bankwatch when a whistleblower who had reported on corruption at the company was fired. She was subsequently reinstated after appealing her unfair dismissal in court and went on to become one of the leaders of Uzbekistan’s only known democratically elected trade union. She was then subject to harassment and threatening phone calls from government officials and told monitors she feared for her safety.

The union also came under pressure and in May 2022, Indorama Agro attempted to stage an illegitimate election to install a former company manager as chairman. After workers signed a letter of protest to the Federation of Trade Unions of Uzbekistan (FTUU) and the case was amplified by international organizations, workers were able to hold fair elections and elect a new leader in a fair and transparent vote...

Gross negligence of health and safety standards has also been documented, resulting in a horrific, fatal accident in April 2022. The victim’s family reached an agreement for compensation with Indorama Agro, which the company then reneged upon. When Uzbek Forum intervened with lenders and company management on behalf of the family, a company representative warned the family not to speak to international organizations.

After giving interviews to Uzbek Forum monitors, workers have often been interrogated for up to four hours by the police and security officials. Workers have reported the police as telling them, “International organizations cannot help you. Do not speak to them.” The warnings are menacing...