Grameenphone Accused of Using Child Labour

A sub-contracted supplier of construction services to Telenor's Bangladeshi subsidiary, Grameenphone has been reported for using child labour by a Norwegian television company.

Earlier this week, Telenor received a request from the Norwegian Broadcasting Corporation (NRK) as to whether or not it had any knowledge of a company called Gazi Engineering. NRK said that it had filmed child labour and hazardous working conditions at this company, and they asked Grameenphone to look into the matter.

Grameenphone immediately started investigations, and this morning identified the company, but noted that it is not a direct subcontractor to Grameenphone, but a subcontractor to another company which is supplying construction services to the mobile operator.

"This clearly shows the dilemmas we face when doing business in developing countries. Telenor is systematically working to evaluate and develop health, safety and environmental issues with our subcontractors, but there will always be challenges in developing countries and we have in the past few months concentrated on those that we are in direct relationship with. When we or others reveal unacceptable conditions further down the value chain, we will of course respond. We are now on to the case," says Hilde Tonne, Executive Vice President of Telenor.

Grameenphone has more than 700 suppliers and has, as a part of their efforts to improve conditions, already conducted audits and courses at more than 160 suppliers.

"It is a fact that our presence and long-term work in countries like Bangladesh yield positive spin-offs for the society as such. Dangerous working conditions, including child labour, are a major problem in Bangladesh. Neither Grameenphone nor Telenor can, however, take responsibility for all social wrongdoings in Bangladesh, but we have taken our share of the responsibility to improve conditions with our suppliers and to work for long-term improvements in all the communities where we operate," says Hilde Tonne.

Telenor owns 53% of Grameenphone.

Telenor is planning a press briefing in mid-September to present the status of the HSE work (Helth, Safety and Environment), in both Bangladesh and in the Telenor Group at large.

Posted to the site on 4th September 2008