IFC accepts BWI labour’s complaint vs. Karot Hydropower Project

The International Finance Corporation (IFC), an international financial institution affiliated with the World Bank Group, accepted BWI’s complaint against the IFC-funded Karot Hydropower Project in Pakistan over gross violations of workers’ rights. The complaint was received by IFC’s Compliance Advisor/Ombudsman (CAO) on 4 August.

The complaint, which was co-signed by BWI’s affiliate, the Pakistan Federation of Building and Wood Workers (PFBWW), was filed on 6 July. It cited gross violations of workers’ rights at the IFC-funded Karot Hydropower Project, including the undermining of ILO Core Labour Standards. The complaint outlined violations of the workers’ right to freedom of association and collective bargaining, as well as violation of IFC’s own performance standards (2 and 4) on workers’ organisations, health and safety, working conditions and terms of employment, grievance mechanisms, retrenchment, and concerns related to the use of security forces. 

BWI said that its complaint met all of IFC’s criteria of eligibility. As a next step, the CAO shall initiate an assessment of the complaint which is expected to be completed within a maximum time period of 120 working days. Within this time frame, the CAO shall hold dialogues with BWI and other relevant stakeholders to seek clarification, further information and perspectives on the issues raised by the complaint and determine from the complainants what CAO function they would like to pursue.  

BWI Asia-Pacific Regional Representative Apolinar Tolentino said that this is the second complaint they have filed before the IFC-CAO which was favourably received and accepted by the financial institution. He said that in 2015, BWI and its Malaysian affiliate, STIEU filed a similar complaint against the IFC-supported Sabah Forest Industries (SFI) for violating IFC standards on workers’ rights. The CAO conducted a thorough investigation and corroborated BWI’s charges. 

“These complaints are significant not only in resolving labour issues in projects financed by IFC, but also in serving as strong reminders to all that workers’ rights cannot and should not be taken for granted. We look forward to IFC’s CAO to take stock of the complaint we filed against Karot Hydropower Project and come up with effective strategies to resolve these labour issues and ensure that workers’ rights are honoured and protected,” Tolentino said.