Questions and grievances remain after Total announces exit from Myanmar

By CAM
27 January 2022
Questions and grievances remain after Total announces exit from Myanmar
A signboard for TotalEnergies EP Myanmar past a closed gate in Yangon, Myanmar. Photo: AFP

For workers and communities in TotalEnergies’ local supply chain, the French oil giant’s decision to withdraw from Myanmar nearly a year after the 1 February 2021 coup does not mark the end of the saga. Shortly after the coup, Corporate Accountability Myanmar (CAM) an anonymous group of local researchers, began a covert investigation on the ground in TotalEnergies’ supply chain. What we found, and did not find, bares unanswered questions, unresolved grievances, and critical work that remains.

During our extended investigation around the Yadana gas project site, we were surprised to find no signs of human rights due diligence despite a surge of new business-related risks following the coup. CAM found no indication of attempts to engage local stakeholders or respond to concerning developments on the ground. The international norms are clear that in high-risk contexts, such as a post-coup circumstances, enterprises are to carry out heightened human rights due diligence with an emphasis on engagement with affected stakeholders, human rights defenders, and grassroots organizations. CAM found no such efforts. This reality contrasts with claims by TotalEnergies CEO Patrick Pouyanné from April 2021:

...to act to the detriment of our employees on the spot and of the Burmese population which is already suffering so much, I refuse to do so. Also, since I cannot make the decision to stop production, in line with our ethics, our strong convictions in terms of human rights and our ambition to be a responsible company, I am making the decision today to pay to associations which work for human rights in Burma the equivalent of the taxes that we will have to pay effectively to the Burmese State.

The Lasting Local Impact of Irresponsible Business

Local respondents from seven villages in the northwest of Yebyu Township, Daewi District, Tanintharyi Region where the Yadana Gas pipeline passes through - Kanbauk, Phaungtaw, Daminseik, Ohnbinkwin, Michaunglaung, Zardi and Kalaingaung – spoke of a range of grievances related to TotalEnergies. Much of this business-related harm played out long before the coup, but it continues to cause suffering. Informants spoke at length about land grabs that the Tatmadaw or Myanmar military carried out to secure TotalEnergies’ business interests in the 1990s.

One villager explained, “In villages where the pipeline passes through, the military grabbed farm land and orchards. Total gave some compensation to those villages. But in Ohnbinkwin and Michaunglaung, villagers did not receive compensation, even the Navy took their land to provide a security presence for the pipeline.”

Land grab issues related to the TotalEnergies’ Yadana gas project set the precedent for other gas pipelines.

The other two pipelines, the Zawtika pipeline operated by PTTEP and the Yetagun pipeline operated by Petronas pass through the area alongside the Yadana gas pipeline. Villagers’ land located between the three pipelines are narrow and no longer suitable for agricultural purposes. In response, the villagers asked for compensation. However, no operator took responsibility. Fishing villages in the area have seen their livelihood threatened by pipeline-related damage and restrictions relating to pipeline maintenance. Similarly, no operator took responsibility for their grievances. In all of the seven villages that CAM investigated, the pipelines have proved to be livelihood threats rather than boons of local development and none of the operators have taken steps to address this reality.

Today, even those villages that received compensation for the land grabs are in a dire position. Those funds did not last, and they too find themselves without land, jobs, and struggling to survive. We did interview informants who spoke about the benefits of CSR-related health and education programs headed by TotalEnergies and Chevron. However, on the whole, communities in the area feel preyed upon and they point the finger at TotalEnergies. TotalEnergies came with promises that local people and the planet would be taken care of. Now they are starving and disillusioned by one-time payoffs and CSR projects that proved to be a temporary veil for harm done. The question is whether and how TotalEnergies will try to remedy their lasting local impact.

Suppression of Freedom of Expression in TotalEnergies’ Supply Chain

Days after the coup, at least 30 TotalEnergies security workers in Kanbauk started to organize and partake in the Civil Disobedience Movement (CDM). They decried the coup and called upon TotalEnergies to immediately halt payments to Myanmar Oil and Gas Enterprise (MOGE) – once again under military control and a major source of revenue for the junta – even if that meant power outages.

Approximately two weeks later, workers who took part in the CDM were summoned by management at Atalian Global Service Myanmar, who TotalEnergies uses for contracting services. After being reprimanded for their participation in the CDM, they were made to sign a pledge. The security workers who we interviewed were not able to produce the actual documentation, as it was retained by the Atalian Global Services Myanmar. But they similarly described a pledge including an apology for missing work, a warning not to do “similar things again”, and a statement of understanding that contractual action would be taken if “similar things” happen in the future.

The workers knew that they were being forced to sign an oath of silence, but they had no choice. Their fears went beyond unemployment. They spoke about fear that, if they did not cooperate, they would be reported to the authorities who would target them and their families for being part of the CDM. To date, the CDM pledge has been effective in suppressing the freedom of expression of TotalEnergies’ workers.

The CDM pledge was prepared and delivered by management at Atalian Global Services Myanmar. Atalian Global Services Myanmar is the Myanmar branch of the Atalian Group, headquartered in France. From the vantage point of the security workers, the pledge was being delivered by management at Atalian Global Services Myanmar on behalf of TotalEnergies. They saw the pledge as an attempt by TotalEnergies to suppress the voices of their workers. To them, this had nothing to do with the contractor. It had everything to do with TotalEnergies wanting to secure their business interests in Myanmar.

There is no way of knowing who proposed and arranged the pledge. A local manager may have acted unilaterally. But what is clear is that the security workers did not know what to do or where to go. From their perspective, they had no choice and nowhere to turn. If there was a person or policy or mechanism in place to address such human rights abuses, they were unaware.

Workers and other respondents spoke about a history of systematic repression in TotalEnergies supply chain. Workers who raised grievances or called on TotalEnergies to increase salaries and benefits were forced to sign pledges, similar to the CDM pledges, and rejected an extension at the end of their contract. These schemes were well known before the coup. Now, they are being used against workers who speak out against TotalEnergies business relationship with the junta, and in addition to being fired, workers are also facing the threat of arrest or worse. AP news recently covered the story of a young woman who, along with her parents, worked for TotalEnergies before the coup. After the coup, she demonstrated in front of TotalEnergies’ offices and took part in protests. Her contractor company warned her against participating in the CDM. She was undeterred. In September, the young woman was arrested and imprisoned for three weeks under Section 505(A) of the Penal Code, which, in part, criminalizes comments that “cause fear” or spread “false news.” The AP story recounts the context surrounding her case:

A few months later, she posted on social media about what she felt was Total’s poor treatment of a colleague who died of COVID-19. Days later, she said, the contractor company fired her for allegedly defaming Total. In a statement, Total said that no Total E&P employees have been fired since the military’s takeover, and none have been prevented from participating in the Civil Disobedience Movement.

Her story, like the accounts of those security workers who were forced to sign CDM pledges, highlights the disconnect between TotalEnergies' rhetoric and the realities on the ground.

Following through on TotalEnergies’ responsibilities and commitments

TotalEnergies’ Human Rights Guide and Code of Conduct underscore a commitment to workers’ rights and freedom of expression. They call upon all suppliers of goods and services to “take special care to comply with standards and procedures in the field of human rights, notably with regard to working conditions for their employees and those of their suppliers.” With the announced exit, TotalEnergies may try to walk away from unanswered questions and unresolved grievances relating to their business in Myanmar. But to do so would go against their corporate responsibility and their own policies and values. It would also set a precedent for the other oil companies still operating in Myanmar.

Even if they are gone, TotalEnergies has work to do in Myanmar. In addition to questions around their alleged complicity in human rights atrocities committed by the military, TotalEnergies has to answer for their lasting impact on the lives and livelihoods of people on the ground. The local communities that CAM spoke with know that TotalEnergies cannot fix everything. That is not what they expect. They only want TotalEnergies to make an effort to right wrongs that will have consequences for decades to come.

Courtesy of Corporate Accountability Myanmar (CAM)