Photo: Merck/Vivek Sharma/Xtreme Pictures
Mica Supply Chain: No Place for Child Labor
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The mineral mica often lends products their alluring sheen, whether it is lipstick, eye shadows, or automotive coatings. The coveted raw material is mined in various locations, including the states of Jharkhand and Bihar in northern India, a region marked by political instability and poverty and where child labor is widespread. Merck also uses mica as the main raw material for its effect pigments. The science and technology company flatly rejects child labor and advocates for safe working conditions of the mine workers. In addition, Merck supports educational and health projects that improve the lives of families in the mining areas.
Mica is the name of a mineral group that refracts and reflects light and is found in many locations. Merck procures mica mainly from India, but also from the United States and Brazil. The company needs the natural mica - in addition to synthetic substrates - to manufacture its high-quality effect pigments, which are used, for example, in automotive and industrial coatings as well as in the cosmetics and food industries.
Zero tolerance for child labor
Merck has been fighting child labor in mica mining in India since 2008. The catalyst was an internal company investigation, which revealed that the inhabitants of the Jharkhand region were gathering mica in abandoned mines or from the ground - in isolated cases, together with their children. This practice was a clear violation of company values and the principles of Merck’s Human Rights Charter.
“Compliance with fundamental labor standards by our suppliers is one of our top priorities. We therefore took measures to fully rule out child labor immediately after we learned of the incidents,” explains Friedhelm Felten, Head of the Pigments & Functional Materials business unit at Merck.
The company completely reorganized its supply chain and now advocates for the improvement of working conditions of mine workers in India. “Since then, we maintain direct business relationships with mica mines and the mica processing companies. Unlike in the informal gatherer environment, in this formal work environment we have considerably more influence,” says Felten. Moreover, Merck has introduced control mechanisms that provide a comprehensive overview of the entire supply chain.
Socioeconomic background
Merck has intentionally decided to maintain its business relationships in northern India. The company has taken on responsibility for the region in an effort to preserve jobs.
The social conditions in Jharkhand and Bihar show just how important this approach is. They offer the ideal breeding ground for child labor, as the two states are among the poorest regions in India. The literacy rates and the number of children who attend school are far below the national average of India, according to a 2016 study by Terre des Hommes and the Centre for Research on Multinational Corporations (SOMO).
Investments in education and healthcare
In order to improve families’ living conditions, Merck has not only reorganized its mica supply chain, but also joined forces with its local partner, IGEP, to initiate social projects for the regional population. The mutual goals are to improve access to healthcare and to provide children with prospects for school and a career:
• In the villages of Tisri, Barkitand, and Saphi, Merck runs schools with affiliated daycare centers attended by more than 500 pupils. The lesson plan also includes education on hygiene and health. In Tisri, adolescents can also receive training to become carpenters or tailors. Furthermore, Merck supports a fourth school in Koderma with scholarships for 150 pupils.
• In Saphi, Merck has established a health center, employing two physicians and a nurse who also provide medical care at the schools. In addition, these staff visit the schools and villages in the vicinity.
Merck’s commitment has received a great deal of recognition from civil society. According to the SOMO study, the company has implemented by far the best measures – compared with other mica importers – to eliminate child labor from the supply chain and to improve the conditions of the people living in the mining regions.
Merck is also participating in multistakeholder dialogues and initiatives to improve living and working conditions in the mica region. Merck is one of the founding members of the Responsible Mica Initiative, through which companies and nongovernmental organizations are combining their expertise and strengths to improve labor conditions in the mica mining industry of India and to prevent child labor.
For more Information about CR at Merck, please visit: www.merckgroup.com.
High Supply Chain Standards
Merck has taken various measures to safeguard the implementation of social standards:
• Merck procures mica exclusively from controlled mines: Only a formal working environment ensures compliance with global standards. If mica is gathered in publicly accessible areas, child labor cannot be ruled out.
• With the help of a tracking system, Merck ensures that the supplied mica comes exclusively from mines and not from uncontrolled sources: The mine owners record the daily extraction volume of a mine in a logbook. The license fees that the mine owners must pay to the government are based on these documented amounts of mica. If mica from uncontrolled sources have also been used, the mine owners would also have to pay license fees for these volumes. This does not make economic sense because the mica would be more expensive for the mine owner than the mica extracted from the mine. Merck examines the volumes reported in the logbook and supplied to the processing companies on a monthly basis.
• By means of audits, Merck monitors the compliant behavior of its partners. For example, the audits include the ages of the workers, working hours, and paid wages, as well as performed health checks and safety drills. In addition, local Merck employees inspect the suppliers at regular intervals. Moreover, Environmental Resource Management (ERM) and IGEP perform their own audits as independent third parties. Whereas IGEP monitors compliance with work standards once a month, ERM examines the working conditions and compliance with environmental, safety, and health standards annually.