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Costa Rican banana workers receive compensation under German supply chain case
VU
A recent development involving labour rights advocates, retailers, and plantation workers highlights how cross-border due diligence frameworks can facilitate dialogue and resolution within global supply chains.
A recent labour dispute in Costa Rica has resulted in payments to affected plantation workers, marking one of the first notable outcomes linked to Germany’s Supply Chain Act. The case began in 2023, when Oxfam and the Costa Rican trade union SITRAP filed a formal complaint about working conditions at a banana supplier connected to several major German retailers.
Together with the Ecuadorian union ASTAC, the organisations reported low wages, aerial pesticide spraying during working hours, and discrimination against union members on plantations in Costa Rica and Ecuador. These issues were raised as breaches of the protections required under Germany’s Supply Chain Act, which obliges companies to monitor and respond to human rights risks in their overseas supply chains.
After being notified, Aldi entered talks with SITRAP and the local producer. The company also conducted investigations on the ground. Some of the reported labour concerns were confirmed, prompting discussions on corrective steps. Later negotiations, involving Oxfam, SITRAP, the supplier, and Costa Rican labour lawyers, focused on wage and payroll inconsistencies. Workers were able to testify directly about their experiences.
In August 2025, the producer agreed to make payments to a group of affected workers. SITRAP, Oxfam, and the recipients approved the resolution. The payments were made without the supplier acknowledging legal wrongdoing, and the amount and identities of recipients are confidential.
The case shows how the German Supply Chain Act can work in practice — encouraging dialogue, worker participation, and concrete remedies. It also relates closely to the European Union’s Corporate Sustainability Due Diligence Directive, which aims to introduce similar obligations across EU member states. For SITRAP, the outcome highlights the importance of ensuring that workers are directly involved in resolving labour disputes.
source: oxfam.de, business-humanrights.org
photo: findmycostarica.com
