Sustainability in Troubled Times

MICA SUPPLY CHAIN:
NO PLACE FOR CHILD LABOR
The mineral mica often lends products their alluring sheen, whether it is lipstick, eye shadows,
or automotive coatings. The coveted raw material is mined in various locations, including the
states of Jharkhand and Bihar in northern India, a region marked by political instability and
poverty and where child labor is widespread. Merck also uses mica as the main raw material
for its effect pigments. The science and technology company flatly rejects child labor and
advocates for safe working conditions of the mine workers. In addition, Merck supports educational
and health projects that improve the lives of families in the mining areas.
By Gregor Hilkert, Merck
Mica is the name of a mineral group that
refracts and reflects light and is found
in many locations. Merck procures mica
mainly from India, but also from the
United States and Brazil. The company
needs the natural mica − in addition to
synthetic substrates − to manufacture
its high-quality effect pigments, which
are used, for example, in automotive
and industrial coatings as well as in the
cosmetics and food industries.
Zero tolerance for child labor
Merck has been fighting child labor in
mica mining in India since 2008. The
catalyst was an internal company investigation,
which revealed that the inhabitants
of the Jharkhand region were
gathering mica in abandoned mines or
from the ground − in isolated cases, together
with their children. This practice
was a clear violation of company values
and the principles of Merck’s Human
Rights Charter.
“Compliance with fundamental labor
standards by our suppliers is one of
our top priorities. We therefore took
measures to fully rule out child labor
immediately after we learned of the incidents,”
explains Friedhelm Felten, Head
of the Pigments & Functional Materials
business unit at Merck.
The company completely reorganized its
supply chain and now advocates for the
improvement of working conditions of
mine workers in India. “Since then, we
maintain direct business relationships
with mica mines and the mica processing
companies. Unlike in the informal gatherer
environment, in this formal work
environment we have considerably more
influence,” says Felten. Moreover, Merck
has introduced control mechanisms that
provide a comprehensive overview of
the entire supply chain.
Socioeconomic background
Merck has intentionally decided to
maintain its business relationships in
northern India. The company has taken
on responsibility for the region in an
effort to preserve jobs.
The social conditions in Jharkhand and
Bihar show just how important this approach
is. They offer the ideal breeding
ground for child labor, as the two states
are among the poorest regions in India.
The literacy rates and the number of
children who attend school are far below
the national average of India, according
to a 2016 study by Terre des Hommes and
the Centre for Research on Multinational
Corporations (SOMO).
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Global Compact International Yearbook 2017