"Reality Uncorked: Calling on Systembolaget to step up sustainability efforts in its supply chain"

A new report by Swedwatch uncovers serious workers’ rights abuses on South African farms, linked to wines sold at Systembolaget, Sweden’s state-owned alcohol retailer. Swedwatch urges Systembolaget to better use its leverage as a large public retailer to drive meaningful change, including by implementing stricter and results-based human rights and environmental due diligence tailored for high-risk locations.

Violations of South African farm workers’ rights resulting from business practices have been well documented in the past. To take stock of current conditions, Swedwatch and its South African project partner International Labour Research and Information Group (ILRIG) conducted research on four Western Cape farms supplying grapes to prominent wineries, whose wines are exported and retailed at Systembolaget and elsewhere.

Interviews with farm workers revealed a range of disturbing working and living condition issues including substandard wages, poor housing and discrimination by employers to counteract unionisation.

In addition, the research found that workers are exposed to hazardous substances, some of which are even banned within the EU market, and concerns regarding the effectiveness of certification standards (the two companies owning the visited farms are certified by the Wine and Agricultural Ethical Trading Association, WIETA). [...]

Moreover, due to worrying reports of severe threats against workers at one of the farms, Swedwatch decided to conceal the names of the farms and related supply chain actors in the report.

“At one of the farms, shop stewards had laid grievances about living and working conditions and in response the owner threatened them and attempted to incite some of the employees to violently attack the shop stewards. Unfortunately, threats of violence, or actual violence, towards farm workers is all too common”, says Shawn Hattingh at ILRIG, leading the on-site research.

The role and responsibility of Systembolaget

The report critically analyses the research findings in relation to Systembolaget. It argues that Systembolaget, as a state-owned and large retailer of South African wine, not driven by profit or sales’ and with high sustainability ambitions, is in a unique position to exercise leverage and enable decent work in its supply chain.

In its response to the report, Systembolaget acknowledges the research findings as issues it is aware of and has continuously been working on. It refers to the company’s human rights and environmental due diligence (HREDD) processes as being in line with international frameworks, as well as to its code of conduct principles that must be approved and followed by all suppliers, and adhered to by their sub-contractors (producers and growers). The requirements in the code of conduct cover eleven areas, including fair renumeration, health and safety and no discrimination.  [...]