Following a complaint by Oxfam and the Costa Rican trade union SITRAP concerning labour law violations at a banana supplier, affected rightsholders in Costa Rica have received payments from the producer. The process, initiated in 2023, took place under the framework of Germany's Supply Chain Act.
In mid-2023, Oxfam, together with SITRAP and the Ecuadorian trade union ASTAC, filed complaints against several German retailers, Aldi, Lidl, Edeka, and Rewe, citing low wages, aerial pesticide spraying, and discrimination against union members on banana plantations in Costa Rica and Ecuador. These were reported as violations of rights protected by the Supply Chain Act.
After receiving the complaint, Aldi began direct negotiations with SITRAP, the union representing the workers, and engaged its supplier and local producer to explore solutions. The company also conducted on-site investigations in coordination with SITRAP. Some of the alleged labour issues were confirmed, leading to discussions on corrective measures.
Subsequent negotiations among the supplier, Oxfam, and the trade union focused on payroll irregularities. During these sessions, Costa Rican labour lawyers were present, and affected workers were able to present their experiences in detail.
Two years later, in August 2025, the producer in Costa Rica made payments to a group of complainants. The process was completed with the consent of SITRAP, Oxfam, and the affected rightsholders. All parties agreed that the payments would not constitute an admission of guilt on the part of the supplier or producer. Details regarding the amount, number, and identity of the recipients remain confidential at the request of the involved parties.
The case illustrates the function of the German Supply Chain Act, which requires companies to identify, prevent, and address human rights risks in their supply chains. It also aligns with similar provisions in the European Union's Corporate Sustainability Due Diligence Directive (CSDDD).
According to SITRAP, the outcome underscores the importance of involving affected workers in the resolution process. The case is expected to serve as a reference for future procedures handled by Germany's Federal Office for Economic Affairs and Export Control (BAFA) and other companies operating under the Supply Chain Act.
Source: Business & Human Rights
