Fair working conditions

We safeguard fairness in employment conditions and encourage companies within our value chain to do the same.

The right thing to do

Equitable conditions of employment are crucial for the peace and well-being of society, and are central to a sustainable and prosperous future for all. On matters of employment, poor representation of the views of employees could impair pay and living conditions.

The business case

For PMI, achieving our vision of a sustainable smoke-free future starts with our people. Our business model relies on employee engagement, satisfaction, loyalty, skills, and manufacturing quality. We view our current transformation as an opportunity to bolster productivity and promote the motivation and engagement of our employees. Management engages regularly and at all levels with employees, helping to promote the inclusive culture that’s critical to our success. In the absence of fair working conditions, productivity and efficient operations can be at risk, especially within the context of rapid change. Upstream, fair labor practices are also fundamental to securing supplies of tobacco leaf and other materials in a responsible and sustainable way.

Achieving our aims

Our ambition is to be an employer of choice wherever we operate in the world, ensuring that our employees are offered fair working conditions. We are committed to respecting all internationally recognized human rights in accordance with the United Nations (U.N.) Guiding Principles on Business and Human Rights. Treating people with respect and dignity is central to the fundamental principles that guide our business conduct and unite us at PMI.

We are determined to uphold high diligence in recognizing employee rights and fostering stable and collaborative labor relations practices. We are committed to respecting the rights of employees to form or join trade unions and other employee representative organizations of their choice. We promote cooperation on matters of mutual concern and observe high standards of employment and labor relations.

In line with our Human Rights Commitment and the International Labour Organization’s standards on effective labor relations, our Workplace Integrity policy guides the work led by our People & Culture teams (our human resources function) globally.

We ensure our employees are informed of their rights by our local People & Culture teams, our Guidebook for Success, and related principles and practices, namely “workplace integrity” and collective labor agreements. Our Senior Vice President, People & Culture is accountable for fair working conditions, supported by his team.

Constructive engagement with employee representatives serves as a bedrock of effective labor relations. In addition to employees, stakeholders involved daily in such engagements include trade unions and works councils, at the local, regional (e.g., European Works Council), and global (for example, IUF) levels. 

We also promote fair working conditions throughout our supply chain. Our Responsible Sourcing Principles set the requirements we expect suppliers to follow in relation to fair conditions for their employees. In our tobacco supply chain, our Agricultural Labor Practices code includes clear principles and measurable standards that recognize the right of farmworkers to fair treatment, clear terms of employment, and freedom of association (read more here).