ILO Convention 95 states that wages “shall be paid in legal tender at regular intervals'' and that workers “shall be free to dispose of their wages as they choose.” While most DFIs provide safeguards protecting employee wages, these guidelines are often violated. Workers report that many hotel employers have either failed to pay wages for weeks at a time or failed to pay overtime wages to their employees. Given the DFIs’ development goal of alleviating poverty in developing economies, the non-payment or untimely payment of wages is both egregious and inconsistent with the core mission of development finance.  

Case Study: Marriott Port-au-Prince, Haiti

In 2013, the IFC provided 13.25 million USD to finance the construction of the Marriott Port-au-Prince in Haiti. Following an exhaustive 2019 investigation into labor practices at the hotel, the IFC was informed that some so-called “apprentices” at the hotel worked for up to one year without pay in order to earn a position on staff. Employer deception and the withholding of wages  satisfy two of the ILO’s indicators of forced labor. The IFC’s ability to accurately assess Performance Standard compliance regarding the payment of wages is a test and an opportunity. Protecting these rights is even more critical given limited access to decent work in Haiti amid recent political instability.