Resources —
FAQs
Running a business while, at the same time, working to enhance the lives of those who work for Firestone Liberia is a complicated endeavor. Firestone Natural Rubber Company is often questioned not only about the economics of the business, but also about its community involvement and agreements with the Liberian government. The company's most frequently asked questions are answered here.
Frequently Asked Questions
- What operations does Firestone Natural Rubber Company have in Liberia?
- How was productivity affected by the civil war?
- What kind of compensation packages do Firestone Liberia employees receive?
- Are there any Liberian managers in Firestone's Liberian operations?
- What are the working conditions like at Firestone Liberia?
- Does Firestone Liberia employ children?
- Does Firestone Liberia provide food for its workers?
- What benefits does Firestone Liberia health services provide for the community?
- How does Firestone Natural Rubber Company respond to a recent United Nations Mission in Liberia (UNMIL) report questioning Firestone Liberia's working conditions?
- How is Firestone Natural Rubber Company responding to ILRF's lawsuit?
- Why is electricity scarce in Liberia?
- Does Firestone Natural Rubber Company have an environmental policy for its Liberian operations?
- How long can the Liberian rubber industry survive?
- The production of natural rubber produces a strong smell. Does it pose health risks for local people?
- What are the terms of Firestone Natural Rubber Company's business agreement with the Liberian government?
- Does Liberia's rubber industry benefit from the business agreement?
- Why did Firestone Natural Rubber Company negotiate its previous agreement with the NTGL?
- What is Firestone Liberia's relationship with the new government?
- Does Firestone Natural Rubber Company plan to open a manufacturing facility in Liberia?
- What is the security situation at Firestone Liberia?
- If Firestone Liberia becomes unprofitable, will Firestone stay in Liberia?
- Where does Firestone Natural Rubber Company buy rubber that is not produced at its operation?
- Why is Firestone Liberia allowing squatters and refugees to stay on its property?
Q. What operations does Firestone Natural Rubber Company have in Liberia?
Firestone Liberia operates on approximately 118,000 acres (200 square miles) and employs more than 7,000 Liberians.
- approximately 75,000 acres of land suitable for planting rubber trees. A major long-term replanting program is ongoing to bring the planted acreage to optimum levels.
- a natural latex processing plant and block rubber processing plant
- hydroelectric and diesel power plants
Q. How was productivity affected by the civil war?
Firestone Liberia lost virtually everything during the war, yet it was the only major company that did not walk away from Liberia in its time of crisis. The company has taken a substantial risk to be a part of rebuilding Liberia, and is investing $100 million into the effort to rebuild homes, schools, health care facilities and other infrastructure, as well as to replant rubber trees.
Q. What kind of compensation packages do Firestone Liberia employees receive?
Firestone Liberia's lowest-paid workers are among the highest-paid in the country, earning more than many civil servants. Many of Firestone Liberia's employees are also trained business professionals, engineers, medical professionals and technicians, holding jobs at all levels throughout the company. To attract the best talent, Firestone Liberia provides competitive salaries and benefits.
All told, Firestone Liberia employs over 7,000 people. These workers hold relatively secure, well-paying jobs. Working conditions and wages are the result of a collective bargaining agreement freely entered into by the Firestone workers' union and the company. Firestone Liberia workers also receive a variety of benefits for themselves and their families, including free housing, free medical care, free education for their children, subsidized food, paid vacation and a pension upon retirement.
Q. Are there any Liberian managers in Firestone's Liberian operations?
More than 99 percent of Firestone Liberia's 7,000 workers and managers are Liberian nationals. Firestone Liberia's managers are well trained and educated, and have worked hard to earn higher positions within the company. To attract the best talent, Firestone provides competitive wages and benefits.
Q. What are the working conditions like at Firestone Liberia?
Firestone Liberia employees are represented by a union; working conditions and wages are the result of a collective bargaining process freely entered into by both parties. About half the employees perform typical agricultural work, working eight to ten hours a day. Firestone Liberia works to ensure they have safe working conditions and use proven, safe methods to tap rubber trees. The company provides each tapper with safety goggles at no cost. Tappers perform additional tasks for additional pay, according to the collective bargaining agreement.
Q. Does Firestone Liberia employ children?
Firestone Liberia does not hire nor employ anyone under 18 and has a zero-tolerance policy that even prohibits parents from bringing their children to work or being used as "subcontractors." The Firestone policy of hiring workers who are at least 18 years of age exceeds the Liberian labor law requirements by two years.
The company's zero-tolerance policy is communicated to all employees through their supervisors, at employee meetings, through signs posted around the property, and through their elected union representatives. Employees found violating this policy face the loss of their jobs.
Firestone Liberia strongly believes that the best place for children is in the classroom. The company currently operates 23 schools with more than 15,000 students enrolled—all of them children of employees—who receive free education from the Company.
Q. Does Firestone Liberia provide food for its workers?
Firestone Liberia's employees can purchase rice from the company at subsidized prices, which provide a significant savings to the employee. Each employee can purchase a 100-pound bag of rice per month for $10 USD. They can then purchase a second bag of rice for $15 USD. In Monrovia, for example, the same 100-pound bag of rice may sell for as much as $30 USD. Since many Firestone workers support extended families, the opportunity to buy additional rice at subsidized prices is a great benefit of working at Firestone.
Q. What benefits does Firestone Liberia health services provide for the community?
The primary benefit is access to better health care. Firestone Liberia medical facilities are among the best in Liberia. People in need of medical treatment from around the country come to Firestone Liberia when they cannot find the treatment they need elsewhere.
The medical staff receives as many as 9,000 patient visits a month. Mobile clinics enable doctors and nurses to treat patients in outlying neighborhoods and at schools. Firestone Liberia also supports the Government of Liberia/UNICEF vaccination campaign for the eradication of childhood diseases.
Q. How does Firestone Natural Rubber Company respond to a recent United Nations Mission in Liberia (UNMIL) report questioning Firestone Liberia's working conditions?
The report is largely inaccurate. Firestone Natural Rubber Company is committed to its long-standing partnership with the people of Liberia and is doing more than any other private entity to improve the quality of life for Liberians. The company provides jobs, housing, education, medical services and subsidized food to employees. Working conditions and wages, which far exceed Liberian labor law standards, are the result of a collective bargaining process freely entered into by the workers' union and the company. Union members elect their union leaders to represent their interests at the bargaining table.
Q. How is Firestone Natural Rubber Company responding to ILRF's lawsuit?
The ILRF has a long track record of filing lawsuits laced with outrageous allegations against many of the most respected companies in the world, such as Coca-Cola, Wal-Mart, Nestle and others. The claims against Firestone Natural Rubber Company are baseless. The group's allegations of child labor abuses and "forced labor" are absolutely false. In fact, the U.S. federal court has already dismissed 11 of the 12 claims in this particular lawsuit.
Firestone Natural Rubber Company is committed to its long-term partnership with the Liberian people and is a force for progress and hope in Liberia. The company will continue to encourage the children of our teammates to attend school in one of the 23 schools in our school system, as we work to educate, provide jobs and health care services for our 7,000 employees and their families.
Q. Why is electricity scarce in Liberia?
Most of post-war Liberia is without power. Even Liberia's capital city, Monrovia, does not have generally available public electricity. Firestone Liberia's operations are agricultural and are located more than an hour away from the capital. It is able to generate a limited amount of power from hydroelectric generators primarily during the rainy season of the year. These generators, limited by the capacity of the Farmington River, supply power to the processing factory, and for Firestone Liberia's plant and industrial needs. Firestone Liberia also supplies Roberts International Airport with its electric power. Power is basically limited to the Harbel industrial area, some residences of staff, the hospital and some housing areas. Most Firestone Liberia housing units are without power.
As outlined in the 2005 agreement, Firestone Natural Rubber Company will study the power needs of the area and assess possibilities for providing more power in the future. Under the leadership of President Sirleaf, it is anticipated that public power will ultimately be restored to the country.
Q. Does Firestone Natural Rubber Company have an environmental policy for its Liberian operations?
Firestone Liberia is committed to protecting the health and welfare of its employees, neighbors and citizens in Liberia. As part of the 2005 concession agreement, Firestone completed an environmental assessment of its operations. The company developed and submitted a comprehensive Environmental Management Plan (EMP) to the government for continued safe and environmentally sound operations. As part of its EMP, Firestone Liberia continuously communicates with neighbors and with those in surrounding communities. By gathering information and constantly reviewing its operations, Firestone Liberia is able to identify any environmental issues and address them.
Even before established Liberian environmental standards, Firestone Liberia implemented numerous water treatment standards, recently installing the first phase of a state-of-the-art water filtration system that will include sand filters, sump pumps, tanks for solids handling, and level-controlled transfer pumps for automatic operation of the filtering systems.
Farmington River water quality, both north and south of the Firestone Liberia plant, is better than many major waterways in developed countries, including the United States.
Q. How long can the Liberian rubber industry survive?
Unlike finite resources such as diamonds, gold or iron ore, rubber trees are a renewable resource that — with proper care and a committed replanting program — can be sustained indefinitely.
Q. The production of natural rubber produces a strong smell. Does it pose health risks for local people?
This is a natural smell that is a result of the rubber aging process, and occurs anywhere natural rubber is produced. It can be unpleasant, but it poses no health risk to humans or animals.
Q. What are the key terms of Firestone Natural Rubber Company's 2008 business agreement with the Liberian government?
The most important aspect of the agreement is that it benefits all parties. It serves the interests of the government, the Liberian people, Firestone Liberia, its employees and their families.
Another key element is a focus on jobs. Firestone directly employs nearly 7,000 Liberians, and those jobs help create thousands of additional jobs in the country. The agreement provides Firestone the stability to continue investments in retaining those jobs. The agreement also provides the stability Firestone needs to develop and launch its new rubberwood business, a value-added operation that will create a minimum of 500 new jobs. Job creation is crucial for Liberia, where more than 80 percent of the population is unemployed.
Fiscal constancy is a third key element of the agreement. The agreement moderately increases and stabilizes the income tax rate payable by Firestone, which has been the country’s largest taxpayer for 82 years, as well as establishes new transfer pricing provisions for dry rubber and latex based on international indices. These changes allow the government more flexibility in applying its revenue laws and allow Firestone the stability to justify continuing major investment in rebuilding.
Additionally, under the agreement, Firestone will expand its ongoing support for small Liberian rubber farmers, educational programs and social projects.
Q. Does Liberia's rubber industry benefit from the business agreement?
Yes. Firestone will expand its commitment to saving the Liberian rubber industry. Firestone will continue its intensive replanting program, replanting 5,000 acres of rubber trees in its production area each year through the end of 2015. Firestone will also provide farm advisory support, supplies and 700,000 rubber tree saplings per year to qualified Liberian rubber farmers. Additionally, Firestone will provide financial support to the University of Liberia’s College of Agriculture and to a government study of ways to support and enhance the rehabilitation of the natural rubber industry in Liberia.
Q. Why was Firestone’s 2005 concession agreement renegotiated?
President Ellen Johnson Sirleaf requested that the 2005 agreement, signed with the transitional government, be renegotiated and Firestone agreed.
Q. How is it that Firestone didn’t pay taxes until now?
Firestone Liberia has been among the country's largest taxpayers for 82 years. Each year it is responsible for millions of dollars in tax revenue to the government of Liberia.
Q. What is Firestone Liberia's relationship with the new government?
In 2005, Liberia held peaceful and democratic elections that brought new and inspiring leadership to the country. Firestone Natural Rubber Company is working with this new government, and has hosted President Ellen Johnson Sirleaf and other members of her administration at the Firestone Liberia operations, so they can see first-hand the progress being made on rebuilding. Together with President Sirleaf, Firestone Natural Rubber Company is dedicated to improving conditions for Liberians.
Q. Does Firestone Natural Rubber Company plan to open a manufacturing facility in Liberia?
A manufacturing facility of some type is a possibility, though not a tire manufacturing facility. Given the lack of critical infrastructure — such as electric power — and the lack of a significant retail tire market in Liberia, there is no economic argument and little chance of commercial success of a tire manufacturing facility.
Q. What is the security situation at Firestone Liberia?
The company continues to strengthen its security in order to protect people, property and products.
In 2005, the company agreed to establish and manage a plant protection force. This highly trained unit protects and serves all of the people of the Firestone operation. In 2007, a canine security unit was added to supplement the plant protection force. At the request of the Liberian government, the canine unit also searches for narcotics and dangerous goods at the international airport.
Unfortunately, Firestone Liberia is often the victim of illicit rubber tapping and other crimes, which pose danger to employees and risks to its operation. Firestone Liberia will continue to enhance security as necessary, and work with the national and local officials to uphold the law.
Q. If Firestone Liberia becomes unprofitable, will Firestone stay in Liberia?
Firestone Natural Rubber Company has been in Liberia for more than 80 years. Through periods of stability and in times of civil war, the company has maintained its commitment to this unique and proud nation. It signed an agreement that goes through 2042 and fully expects to be there for that period and beyond.
Q. Where does Firestone Liberia buy rubber that is not produced at its operation?
Firestone Liberia purchases rubber from numerous sources throughout the country. A primary agricultural product in Liberia, rubber is traded and sold on a daily basis. Rubber from independent farms is often passed and sold until a responsible seller is able to sell a commercial quantity of rubber to Firestone Liberia.
Q. Why is Firestone Liberia allowing squatters and refugees to stay on its property?
Firestone Liberia still has tens of thousands of internally displaced persons on its property. Some live with extended family members who are Firestone Liberia employees in company-provided housing. These internally displaced persons fled to the company's property during the war. Firestone Liberia has not asked them to leave because they have nowhere else to go.
Firestone Liberia will continue to work with the Liberian government, international agencies, and NGOs to reach a humane and fair resettlement program. If stability in Liberia continues, internally displaced persons will be able to return to their own homes and resume productive and peaceful lives.
