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South African Fruit Growers Ethical Trading Workbook

South African Fruit Growers Ethical Trading Workbook. 1. SESSION 1: UNDERSTANDING ETHICAL TRADE. 2. Topic 1: What does ethical trade mean?. 3. 4. Ethical trade can have a number of different meanings, but our focus is on Social and labour ethical practices in a business’s supply chain.

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South African Fruit Growers Ethical Trading Workbook

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  1. South African Fruit Growers Ethical Trading Workbook 1

  2. SESSION 1: UNDERSTANDING ETHICAL TRADE 2

  3. Topic 1: What does ethical trade mean? 3

  4. 4 • Ethical trade can have a number of different meanings, but our focus is on • Social and labour ethical practices in a business’s supply chain

  5. 5 Ethical trade provides assurance to consumers that all the members of the supply chain comply with international standards Supplier commitment is shown by adopting a code of labour practice that measures their compliance with minimum labour standards The supplier must demonstrate that he or she is compliant by supplying evidence (for example, a payslip to prove minimum wages are paid and only legal deductions are made)

  6. 6 • The ethical codes address the following types of issues: • Wages • Hours of work • Health and safety • Right to join trade union • The code the fruit industry uses is based on international conventions and South African labour laws

  7. Topic 2: Where does ethical trade come from and who drives it? 7

  8. 8 • Ethical trade Codes are based on: • ILO conventions that prescribe minimum standards • South Africa signed the ILO conventions and included these principles in our law • Therefore ethical codes reflect South African law

  9. Who drives ethical trade in the supply chain? 9

  10. 10 • Ultimately it is the consumer that wants to know that the food they buy is being produced in an ethically sound environment • Pressure to prove ethical compliance comes from consumers and civil society (NGO’s and labour unions) due to concerns over social and environmental conditions in supply chains • The media and research reports tell the stories

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  13. Topic 4: What are the different ethical codes? 13

  14. 14 • ETI Base Code • Ethical Trade Initiative – UK retailers • Has 9 points covering good labour practices • BSCI Code • Business Social Compliance Initiative • Mainland Europe-based retailers • Based on SA8000 • SA 8000 • Developed by Social Accountability International (SAI) • Global social accountability standard for decent working conditions

  15. 15 • WIETA Code • Compiled Wine Industry Ethical Trade Association • Based on the 9 principles of the ETI Base Code • Adapted for the South African context • Fair Working Conditions • Compiled by OLIVE

  16. 16 • Global Social Compliance Programme (GSCP) • An initiative of retailers (eg. Tesco, M&S, Ahold, Migros) to support principles of non-duplication of ethical audits • GSCP reference code combines all the principles of the international ethical codes (ETI, BSCI, SA 8OOO) into a single reference code • The reference code can be adopted by industries such as the fruit industry as a platform for their own ethical standard • Fruit SA is using the GSCP reference code as an internationally recognised platform for its own standard, and will align this to SA law. • Aim? To reduce duplication of audits and to develop a clear, consistent message on best practice for suppliers globally • Why? To continuously improve conditions in the workplace

  17. 17 The South African fruit industry is being proactive (rather than reactive) in its response by initiating its own ethical trade programme, using the GSCP reference tools as a globally accepted platform

  18. Topic 5: Why is it important to have good management systems in place? 18

  19. 19 • Good management systems allow a business to run effectively • They help to demonstrate to an auditor that the business complies with ethical standards • You must be able to show proof of everything you say that you do

  20. 20 • Examples that can be used as proof: • Payslips – can prove how much employees have been paid • Employee contracts – can prove that somebody is employed, for how long and under what conditions • Workplace policies – should be visible in the workplace, explained to all employees and used to demonstrate the business’ position on critical issues such as: • Discrimination • Ethical trade • Child labour • Sexual harassment

  21. Topic 6: What value can ethical trade add to your business? 21

  22. An ethical trade programme focuses on continuous improvement in the workplace and adds value in many ways: Efficiency + productivity Motivation of workforce Retain current markets and access to new markets Supply chain sustainability Use of resources to support capacity building Audit costs Absenteeism Managing Risk for individuals and the industry 22

  23. SESSION 2: WHAT IS THE FRUIT SA ETHICAL TRADE PROGRAMME? 23

  24. Topic 1: Background to the Fruit SA Ethical Trade Programme 24

  25. 25

  26. These organizations come together to represent the industry’s interests around common issues • Example: Ethical Trade • FSA represents • 5,000 producers • 400,000 employees • FPEF represents • 80 export houses 26

  27. FSA developed + implemented an Ethical Trade programme in response to increasing demands on growers by international retailers. • FSA Ethical Trade Programme is: • South Africa based + aligned to local laws • Complies with international standards • Avoids duplication • Allows for mutual exchange of data amongst buyers • Frees up auditing resources to refocus on capacity building • Proactive + inclusive • Aimed at transformation + change on farms 27

  28. FSA Ethical Trade Programme includes: • SA standard (based on GSCP reference code; aligned to SA law) • Audit methodology (based on GSCP reference tool) • How the audit will take place • How often audits will take place • How non-compliances will be verified, etc • Auditor recognition (based on GSCP reference tool) • Ethical Programme Guidelines • Management structure • Dealing with complaints (eg from audits) • Capturing data • Support for continuous improvement, etc 28

  29. Topic 2: Goals of the FSA ethical programme 29

  30. Goals of the Ethical Trade Programme are: • To ensure the industry drives its own ethical trade programme in a professional manner • To support ongoing improvement of labour conditions on fruit farms and pack houses • To help manage commercial risks allied to ethical trade matters • To give retailers + other stakeholders confidence in South African supply base • Reduce the number, duplication + costs of audits by converging with other ethical programmes • To support ethical practices along the supply chain 30

  31. Topic 3: The Fruit SA Ethical Trade Programme Framework 31

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  33. SESSION 3: THE ETHICAL AUDIT 33

  34. Topic 1: What is an Ethical Audit? 34

  35. Ethical audit: • Aims to measure current performance • Identifies areas where improvements can be made • Involves interviews with employees • Conducted by professionally trained auditors • More time-consuming and costly then other audits, therefore takes place less frequently (every 5 years) 35

  36. An ethical audit is: • A way of jointly agreeing on how to fix a problem • A constructive way to advise people of problems • Focussed on continuous improvement • Aimed at supporting producers + pack house owners • Aimed at an ongoing process An ethical audit is not: • A pass/fail exercise • Aimed at catching people out • A tick box exercise (like GLOBALG.A.P) • Able to be overlapped with other audits 36

  37. How is an ethical audit different to a GLOBALG.A.P audit? • Aims to ensure food safety for export products • Assures consumers that a product was produced with minimal negative impact to the environment + decreased use of chemicals • Focuses on good agricultural practices (G.A.P) • Does not focus on fair labour practices (like an ethical audit) 37

  38. Topic 2: How does an Ethical Audit work? 38

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  40. What is the purpose of the feedback session? • Conducted after the site assessment • Between the auditors and management • To discuss any non-compliances found • How these can be addressed • What actions will be taken + by whom • Agreed by both parties • Uploaded onto SEDEX once corrective measures have been completed 40

  41. SESSION 4: HOW TO USE THE ETHICAL TRADE HANDBOOK 41

  42. Topic 1: Introducing the scope and content of the Ethical Handbook 42

  43. 43

  44. Each chapter in the handbook which deals with the Code has the following sub-sections: • What does the Code say? • What does South African law say? • Guidelines to the law and best practice • Common questions and answers • This will add to the ease of use and you should quickly become familiar with how to use the handbook 44

  45. Topic 2: Finding information in the Handbook 45

  46. Identify the issue that you have and need assistance with • Go to the index at the back of the Handbook and search for that topic (in alphabetical order) • Now go to the relevant page number in the Handbook • Don’t forget there is also more information available on the website: www.FSA-ethical.org.za 46

  47. Case Study 1: Sexual Harassment / Discrimination Questions: • What is/are the issue(s)? • What does the law say? • What is recommended (Best Practice)? • Where did you find the information? 47 Sara lodged a complaint of sexual harassment with the manager of the farm. She said the supervisor in her section often came physically close to her, sometimes touching her and then making comments of a sexual nature. She stated she had complained to management before but her complaints were ignored. She also said that she believed she had been overlooked for promotion because she was a woman and that jobs which she was qualified to do had been given to men with less skills than her.

  48. Case Study 2: Child Labour Questions: • What is/are the issue(s)? • What does the law say? • What is recommended (Best Practice)? • Where did you find the information? 48 John is a producer and he employs young people over the age of 15 years to work during holidays. Fanie is one of the young boys he employs. Fanie is 16 years old and asks John for fulltime employment on the farm. He says he has left school because his parents can’t afford to send him and they need him to earn some money for the family. John wants to know whether it is legal to employ the young people during the school holidays and also whether he can employ Fanie seeing as he has left school and he urgently needs to earn an income.

  49. Case Study 3: Loans / Deductions Questions: • What is/are the issue(s)? • What does the law say? • What is recommended (Best Practice)? • Where did you find the information? 49 Basie is a small-scale grower with 15 permanent workers. Basie regularly loans money to his employees for them to buy food at the farm shop. He deducts this amount off their wages every week. He writes down the purchases in a small book at the shop but doesn’t get the workers to sign for this. However his workers are now complaining that he is deducting too much from their wages. Basie wants to stop making the loans. He comes to you for advice because he wants to do what is right in terms of the law.

  50. SESSION 5: USING THE CHECKLIST IN THE ETHICAL TRADE HANDBOOK 50

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