Following a supply chain law complaint, workers on a banana plantation in Costa Rica have received compensation payments.

The payments were made in August 2025 after approximately two years of negotiations, the emergency aid and development organization Oxfam reported on Thursday.

It was agreed to keep the amount and number of payments confidential, Oxfam said.

Involved in the negotiations, alongside Oxfam, were a local union, a supplier, a banana producer and the discount retailer Aldi, where the complaint under the supply chain law was among those filed.

The complaint highlighted violations of labour rights on the plantations, including low wages, lack of protection during pesticide use and discrimination against union members.

Oxfam stated that Aldi “constructively worked towards a solution” and sought solutions together with the union, supplier, and producer. Subsequent investigations confirmed several grievances.

Through cooperation, it was possible to address irregularities in payroll and eventually pay compensation to a group of affected workers. However, Oxfam noted, “For the producer and the supplier, it is crucial that the payments do not constitute an admission of guilt.”

Significant progress was reportedly made in other areas such as occupational safety. However, not all allegations could be resolved.

“Aldi, the supplier, and the local producer confirm that they will continue to work together to sustainably address all outstanding issues,” Oxfam stated.

Oxfam sees precedent

“We are very pleased that for the first time payments have been made to those affected. This means a lot to us,” Didier Leiton, the general secretary of the union Sitrap, said in the statement.

Oxfam sees this as an important precedent. “The result shows that the supply chain law is effective,” said Tim Zahn, Oxfam’s human rights officer for global supply chains.

“The process in the complaint case has revealed that it is essential to bring unions and companies to the table,” Zahn said.

The discount retailer also expressed satisfaction with the outcome: “Our goal is a noticeable improvement in the human rights situation in the supply chains,” said Maximilian Vogt, Aldi Süd’s director of sustainability. Therefore, the company explicitly supports human rights due diligence legislation, he said.

“Because cases like this clearly show that such regulations contribute concretely to the protection of those affected,” said Vogt.

Law aims to strengthen human rights

The German supply chain law is a legal framework designed to ensure that companies comply with certain labour and environmental standards in their global supply chains. It came into force in 2023.

The aim is to strengthen human rights worldwide and hold companies accountable if they benefit from human rights violations such as child or forced labour.

Recently, there have been discussions about weakening the law to avoid competitive disadvantages for German companies.