Fair Trade USA Farm Workers Standard Guidelines for the Implementation and Interpretation of the Farm Workers Standard April 2014

Transcription

1 Fair Trade USA Farm Workers Standard Guidelines for the Implementation and Interpretation of the Farm Workers Standard April TradeUSA.org 214 Fair Trade USA. All rights reserved.

2 Table of Contents Introduction and Background Information Empowerment (EM) Development and Management of the Fair Trade Implementation Plan (DM) Inclusive Participation, Transparency and Financial Accountability (PTA) Economic Development (ED) Fair Trade Price Requirements (PR) Fair Trade Premium Requirements (FTP) Conditions of Employment (CE) Social Responsibility (SR) Non-Discrimination (ND) Freedom from Forced Labor and Human Trafficking (FL) Protection of Children and Young Persons (PC) Freedom of Association (FA) Occupational Health and Safety (OH) Environmental Stewardship (ES) Monitoring Systems (MS) Integrated Pest Management (IPM) Agrochemicals (AC) Handling Fertilizers (HF) Waste Management (WM) Soil and Water (SW) Genetically Modified Organisms (GM) Biodiversity (BD) Energy and Greenhouse Gas Emissions (GHG) Trade Requirements (TR) Basic Requirements (BR) Product Sourcing (PS) Physical Product Traceability (PT) Traceability Through Documentation (TD) Fair Trade Contracts (CR) Contract Suspension (CS) Decertification (DC) Use of the Fair Trade Trademark (FTT) of 22

3 Introduction and Background Information Purpose The purpose of this document is to provide producers and Market Access Partners (MAP) implementing the Fair Trade USA Farm Workers Standard with additional guidance to assist in understanding and implementing the Farm Workers Standard (FWS). It is recommended that this document be used as a reference tool by producers and the MAP as they undertake self-assessments against the Compliance Criteria and prepare for their Fair Trade audit. The document may also serve as a useful tool for individuals and organizations training farm operations on the Farm Workers Standard. How to Read This Document The Farm Workers Standard is split into 5 sections, each of which contains multiple standards. In the following pages, each standard is followed by tables with its corresponding compliance criteria. In the tables, the year by which the requirement must be met is listed in the Year column. Requirements marked with Year must be fulfilled prior to initial certification. Also within the tables, some criteria are identified as Major requirements. Criteria identified as Major requirements represent the core Fair Trade values and principles, and non-conformities with these requirements are considered to be especially severe. Producers and Market Access Partners are audited against the Compliance Criteria. Additional information provided in this document is not binding. Following each table, the reader will find some or all of the following categories of additional information: ; Examples of Best Practice; and,. : Information found under this heading is intended to provide the reader with more information about the rationale behind the requirements, the goal and intent of the requirements, and to further clarify the requirements. Examples of Best Practice: Information under this heading is intended to provide the reader with ideas for how to implement the requirements and provides specific examples of what best practice implementation of the requirements can look like. : Information under this heading is intended to provide the reader with examples of the types of evidence farms or MAPs could gather and provide to an auditor in order to demonstrate compliance with a requirement. As a part of the audit process, auditors will use a variety of methods, such as on-site observation, worker interviews, and review of internal audit records from assessments completed by the Market Access Partner. For each individual compliance criterion, the examples of evidence included in this document may not be the only information that will be requested by the auditor, and the auditor may not request all of the information listed. Proof of Compliance examples are not listed in a particular order. Information included under these headings is not inclusive or exhaustive. Rather, these sections of the document are intended to improve understanding of the Farm Workers Standard and corresponding Compliance Criteria and provide ideas that the producer and Market Access Partner can use as a starting point in preparation for Fair Trade certification. 3 of 22

4 Version The April 214 version of this document is based on the Farm Workers Standard Version and the associated Compliance Criteria 1.1v3 2. Key Associated Documents In addition to the Farm Workers Standard document, the Compliance Criteria, and these guidelines for implementation, it is recommended that producers and/or Market Access Partners be familiar with the following additional documents, which are available on Fair Trade USA s website: 1. Certification Manual: Additional information on the certification process, e.g. program prerequisites; a step-by-step description of the certification process; certification fees; and a procedure for complaints, appeals and disputes, can be found in the Fair Trade USA Certification Manual on Fair Trade USA s website. 2. Special Price and Premium Requirements: a. Minimum Prices and Premium are set by Fair Trade USA and can be found in the Price and Premium Database. b. In some cases there are additional Price and Premium requirements that relate, for example, to the spending of the Premium. These requirements can be found in the Special Price and Premium Terms document and can be found on Fair Trade USA s website and as an Annex in the Farm Workers Standard. 3. Glossary: The Fair Trade USA Standards Glossary includes definitions of terms used in this and other key Fair Trade Standards and Certification documents. 4. Prohibited Materials List: The Farm Workers Standard and Compliance Criteria prohibit the use of some chemicals in the production of Fair Trade product. These can be found in the Prohibited Materials List (PML). The PML can be found on Fair Trade USA s website and it is also included as an Annex in the Farm Workers Standard. Goal and Objective of the Farm Workers Standard The objective of the Farm Workers Standard is to increase empowerment, including leadership and organization of farm workers, foster economic development, and to ensure fair working conditions and environmentally responsible production methods on larger farms. Fair Trade USA developed the Farm Workers Standard to create benefits for farm workers that do not own land, but work on larger farms. Empowerment: Through the process of electing a Fair Trade Committee, developing a Fair Trade Premium Work Plan and making choices on how to spend the Fair Trade Premium, this Standard aims to enhance the capacity of individuals or groups to make choices and transform those choices into desired actions and outcomes. Through these actions, our vision is that workers are able to build individual and collective assets and improve their effectiveness and participation on the farms for which they work. Specifically, workers are able to represent themselves effectively in negotiations with management for improved working conditions, as well as partner with farm management to increase empowerment of all workers. 1 FTUSA_FWS_Standard_1.1_EN_12513.pdf 2 FTUSA_FWS_CC_1.1v3_EN_4214.pdf 4 of 22

5 Economic Development: Our aim is to increase the income of workers by establishing wage requirements and Premium funds, and guaranteeing that services such as housing, health services, and products sold at on-site stores are provided either free of charge or at reasonable prices. Social Responsibility: Farms are responsible for ensuring that conditions of employment are in line with or exceeding sector regulations, the regional average, and official minimum wages. Health and safety measures are established in order to avoid work-related injuries. Environmental Stewardship: Farms are responsible for caring for the earth by developing monitoring systems, limiting use of agrochemicals and fertilizers, implementing biological pest management techniques and waste management procedures, and protecting soil, water and biodiversity. Scope & Applicability The Farm Workers Standard is designed to be broad in scope and applicable across a wide range of agricultural products, not including dairy and livestock. As compared to other Fair Trade Standards which focus on benefits for farm owners, this Standard is primarily intended to benefit farm workers. It is therefore applicable to larger farming operations, typically those that employ more than approximately 25 permanent workers or 1 total workers (permanent plus temporary) at any given time. This Standard and the associated Compliance Criteria (CC) can be applied at the level of a single farm, to groups of large farms, or to mixed groups of mid-to-large farms. In the case of groups, the farms may be a group of independent farms or fall under shared ownership. The former is referred to as multi-estate and the latter is referred to as multi-site. When a group of independent farms applies for certification, this is done through a coordinating Market Access Partner (MAP). If a MAP is included in the certification, where the term "workers" is used throughout the Standard and CC, it refers to all workers, permanent and temporary (including sub-contracted workers), employed by the farms and the MAP. Fair Trade Certification requires supply chain traceability. In order to use the Fair Trade logo and claim, all entities involved in the production, processing, manufacturing, handling and selling of the product need to be certified by, or registered with, Fair Trade USA. Supply chain partners that buy and sell Fair Trade Certified agricultural products sourced from producer organizations certified by Fair Trade USA approved certifiers must be certified under FTUSA s Trade Standard. Structure of the Standard The Fair Trade USA Farm Workers Standard takes a development approach in that it differentiates between entry criteria and progress criteria. Entry criteria, or Year requirements, are assessed during the first certification audit and represent core practices in social empowerment, economic development, and environmental responsibility that must be fulfilled to enter into the Fair Trade system. These criteria are met prior to initial certification. Progress criteria are fulfilled after the first year of certification, at the Year 1, 3, or 6 audits as detailed in the Criteria. Progress criteria represent continuous development towards increased social empowerment and economic development as well as best practices in environmental responsibility. Some compliance criteria have a qualifying statement at the beginning of the criterion that clarifies its scope and timing of applicability. For example, some of the Year requirements cannot be fully implemented until the time of the first Fair Trade sale or the time of the first Premium expenditure. In these cases, the requirement must be met as soon as they become applicable, which may be some time between the Year and the Year 1 audits. At the time of the Year audit, the auditors will seek to 5 of 22

6 determine that the company, MAP, or farms will be prepared to meet the requirements when they become applicable and the auditor may ask for preliminary evidence to support that determination. Certification bodies may conduct follow-up audits or request supporting documentation before the next full audit to ensure that the compliance criteria have been met. Certification Process Certification decisions are made by the certifier, based on compliance with these criteria as established in audits conducted by Certification Bodies partnering with Fair Trade USA. Some criteria are identified as Major requirements. Criteria identified as Major represent the fundamental Fair Trade values and principles. Non-conformities with any subset of requirements may result in a decision to suspend the certification contract until compliance has been ensured, or even deny certification in the program, depending on the severity and extent of the non-conformity. Nonconformities with any individual Major requirement are considered to be especially severe. Feedback Fair Trade USA is open to receive comments and feedback on all its Standards at standards@fairtradeusa.org. As recommended by ISEAL, Fair Trade USA will review the Farm Workers Standard regularly, at least every five years. Guidelines to assist with implementation and interpretation of the Standard will be updated as needed. 6 of 22

7 1. Empowerment (EM) 1. Empowerment (EM) Development and Management of the Fair Trade Implementation Plan (DM)... 8 EM-DM EM-DM EM-DM EM-DM EM-DM EM-DM EM-DM EM-DM EM-DM EM-DM EM-DM EM-DM EM-DM Inclusive Participation, Transparency and Financial Accountability (PTA) EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA EM-PTA of 22

8 1.1 Development and Management of the Fair Trade Implementation Plan (DM) EM-DM 1: The company has prepared a written Fair Trade Implementation Plan addressing the social and economic development of workers and compliance with the environmental requirements of this standard. EM-DM 1.1 The company (if a multi-estate, the Market Access Partner (MAP) and/or its member farms) has carried out a needs assessment on the social and economic needs of all workers. The needs assessment is based on surveys or primary data and results are shared with the Fair Trade Committee. For the purposes of this document, "company" refers to the applicant for Fair Trade Certification. Criterion EM-DM 1.1 requires that the company and/or MAP has carried out an assessment of the needs of all workers by the time of the Year 1 audit. The company and/or MAP is responsible for the cost of the needs assessment. For multi-estates, the needs assessment can be centralized at the MAP level or done by individual members or groups of members. If multiple farms are included in a single needs assessment, the needs assessment must be detailed enough to include all types of workers on all farms. Surveys or other primary data sources used as the basis of the needs assessment should be representative of the entire workforce, including migrant and/or seasonal workers. Where a samplebased surveying method is used, the sample should be sufficiently large to ensure that as many viewpoints as possible are captured, and there is a representative number of workers included in the survey or data collection with regards to gender, age, ethnicity, religion, nationality, etc. The general needs assessment required by the Year 1 audit under criterion EM-DM 1.1 is in addition to the assessment of migrant workers community needs in EM-DM 9.1 and the migrant worker needs assessment required in EM-DM 1.1. The results of the needs assessment must be shared with the Fair Trade Committee. For EM-DM 1.1: Survey template used Documentation from the needs assessment, including survey results Evidence that assessment was shared with the Fair Trade Committee such as Committee meeting minutes with signatures of Committee members 1 8 of 22

9 EM-DM 1.2 EM-DM 1.3 EM-DM 1.4 EM-DM 1.5 EM-DM 1.6 The company (if a multi-estate, the MAP and/or its member farms) has prepared a written Fair Trade Implementation Plan addressing the social and economic development of workers (based on the findings of the needs assessment) and compliance with the environmental requirements of this standard. At minimum the plan includes: Management goals How to achieve the goals Identification of requirements at risk of non-compliance within the Conditions of Employment, Social Responsibility, and Environmental Stewardship section of this Standard How to measure achievement Timeframes Budgets Other necessary resources (people, training, investment, infrastructure, etc.) Coherence with the premium work plan if applicable (e.g. in case of joint projects between company and premium funds) The progress of the Fair Trade Implementation Plan is in-line with the target dates of the Fair Trade USA compliance criteria. Reasons for failing to meet target dates are plausible and explained to Fair Trade USA. The Fair Trade Implementation Plan is implemented and measures to reach compliance are reviewed annually by the company (or MAP, if a multi-estate). Annual review includes a progress check against past audit reports. The company and/or MAP has informed Fair Trade USA of all locations where Fair Trade products are handled (i.e. stored, processed and packaged). The written risk assessment is updated by the MAP every three years, at minimum. The intent of requirements EM-DM is that by the Year 1 audit (and Year 3 in case of 1.4) the company has developed a Fair Trade Implementation Plan and has integrated it into their greater work plans. In some instances, this may be a stand-alone document, or it may be included within the internal control or quality management system. For multi-estates, the Fair Trade Implementation Plan can be centralized at the MAP level or done by individual members or groups of members. If farms are grouped, the Fair Trade Implementation Plan must be detailed enough to cover the variety of farms in the group. Within EM-DM 1.2 and EM-DM 1.6, risks refers to the probability that member farms are not able to comply with the requirements of the standard. The MAP should collect information on risks of noncompliance; this could be from within the community, meetings with members and workers, or discussions at trainings of 22

10 How often the risk assessment (EM-DM 1.2, EM-DM 1.6) needs to be updated depends on the specific situation any major changes that the member farms or the MAP experience (e.g. diversification or expansion of production, significant hiring, addition of member farms in a different region, change in the relationship between MAP and registered members, purchasing land) should lead to a renewed risk assessment. For EM-DM 1.2: A copy of the Fair Trade Implementation Plan For EM-DM 1.3: A copy of the Fair Trade Implementation Plan, in which target dates for specific objectives and actions are aligned with the year for each compliance criterion associated with those objectives/actions For EM-DM 1.4: A copy of the Fair Trade Implementation Plan with evidence from annual review Past audit reports that highlight progress (where applicable) EM-DM 1.7 EM-DM 1.8 EM-DM 1.9 EM-DM 1.1 Applicable only to multi-estate organizations: An Internal Control System (ICS) has been designed to monitor the implementation of practices mandated for individual farms and companies in this Standard. Applicable only to multi-estate organizations: The ICS includes, at a minimum, an assessment of the risk of a member or prospective new member not complying with any aspect of this standard. Applicable only to multi-estate organizations: The MAP conducts an internal audit of member farms at least annually as part of the ICS, and all new farms before they can be added to the certificate. Applicable only to multi-estate organizations: The Internal Control System has been implemented, and is effective in ensuring that all member farms/companies comply with the individual farm/company requirements in this Standard. The requirements under criteria EM-DM 1.7 to EM-DM 1.1 are intended to ensure that within multiestate organizations there is an effective and functioning Internal Control System in place to facilitate communication and enable member farms to uniformly comply with the Standard. The MAP is responsible for developing and implementing the Internal Control System to ensure that all member farms/companies are in compliance with the requirements in the Standard. For EM-DM 1.7: Document(s) that describe the Internal Control System (ICS) and outline the measures in place to ensure implementation of the Standard at each member farm and company 1 of 22

11 For EM-DM 1.8: Documents that describe the Internal Control System, including the assessment of the risk of a member not complying as required in this criterion For EM-DM 1.9: Internal audit reports for both member farms and new farms Document that describes the Internal Control System (ICS) which includes clear instructions for annual internal audits of the member farms and audits of any new farms before they are added onto the certificate For EM-DM 1.1: Documents that demonstrated the implementation of the ICS, such as internal audit reports for the farms Communication between the Market Access Partner (MAP) and the farms that provide evidence that observed non-compliances have been communicated to the producers Documents, photos or observation of corrective action measures taken on each farm (if applicable) Producers can confirm that they have received internal audits and explain the corrective actions implemented on their farm (if applicable) 11 of 22

12 EM-DM 2: Corporate social responsibility is an integral part of the company s written mission or policy statement(s). The company can demonstrate its implementation with concrete evidence. EM-DM 2.1 Corporate social responsibility is an integral part of the company's (or the MAP's, if a multi-estate) written mission or policy statement. The term CSR or corporate social responsibility does not need to be explicitly referenced in the mission statement, but it should be clear that CSR is an objective of the company/map and that socially responsible practices are in place. Some examples of objectives or values associated with this standard are fair pay and treatment to workers, worker empowerment, and social and environmental responsibility. For multi-sites, management applies and implements the core Fair Trade principles for social and environmental development at all sites. For EM-DM 2.1: Documents, such as a mission statement or company policies, that demonstrate that social responsibility is a fundamental value of the company 12 of 22

13 EM-DM 3: Senior management holds overall accountability for the implementation of these standards. Management appoints a person responsible for Fair Trade matters (FT Officer) who reports to the Executive Manager. He/she is responsible for the overall co-ordination of the Fair Trade Implementation Plan in the company and for ensuring all necessary communications. EM-DM 3.1 EM-DM 3.2 EM-DM 3.3 Senior management (for the MAP and each certified site, if a multiestate) makes the decisions necessary to successfully implement the Standards, and is accountable for them. The Fair Trade responsible person (FT Officer) is appointed at the head office (of the MAP if a multi-estate) and is responsible for all farms under Fair Trade certification. The FT Officer controls the implementation of the core Fair Trade principles at all farms affiliated to the multi-site organization, or oversees implementation if a multi-estate. The FT Officer responsibilities are clear, appropriate and documented. Duties include reporting to the Executive Manager and being a management representative in the Fair Trade Committee. M Under EM-DM 3.2, in the case of a multi-estate organization, the Fair Trade Officer must be an employee of the MAP, but may have other responsibilities besides those outlined here. Each MAP member may also have its own Fair Trade Officer, but this is not required. For EM-DM 3.1: Evidence of actions taken by management to implement the Farm Workers Standard, such as: o Copies of implemented work plans o Minutes from meetings where Senior Management made decisions related to the implementation of the Standard o Naming of parties responsible for implementing the Fair Trade Standard For EM-DM 3.2: Formal and written assignment of one or more persons responsible for the implementation of the Fair Trade Standard For EM-DM 3.3: Documentation outlining the responsibilities of the Fair Trade Officer 13 of 22

14 EM-DM 4: The employer must demonstrate that any Fair Trade revenues will promote the social and economic development of the workers. EM-DM 4.1 Applicable from time of first Fair Trade sale: If there are additional Fair Trade revenues (e.g. difference between minimum price and market price in the case the market price is substantially lower than the Fair Trade minimum price) the employer demonstrates that the revenues are being used to the social and economic development of workers. The intent of EM-DM 4.1 is that additional revenue earned when Fair Trade prices exceed the market price is invested in compliance with the Farm Workers Standard or invested in other ways that benefit workers in addition to the company. In the case that the market price is greater than the Fair Trade price or where there is no Fair Trade Minimum Price, this criterion does not apply. For EM-DM 4.1: Evidence of expenses and investments which clearly benefit the social and economic development of the workers 14 of 22

15 EM-DM 5: The employer has taken all possible measures to inform all levels of the company about the Fair Trade concept. EM-DM 5.1 EM-DM 5.2 Measures have been implemented to introduce all levels of the company to the Fair Trade concept and system including the different functions, duties and positions of the Fair Trade Committee and the worker's committee or union. An ongoing training program for awareness raising on Fair Trade is in place and followed up. Standard EM-DM 5 intends to encourage communication about Fair Trade within the entire company. When all parties understand the mission and concept of Fair Trade and the intended outcome of the implementation of the Standard, the benefits of Fair Trade to the company and workers tend to be greater. For EM-DM 5.1: Evidence that written materials about Fair Trade have been shared with workers, such as postings on bulletin boards, memos, etc. Records from trainings conducted and copies of training materials For EM-DM 5.2: Documentation of the training program, recurring actions that demonstrate the continuity of the training program Lists of participants from trainings, with signatures or other valid forms of identification Copy of materials used in trainings Photographs and other visual evidence Employees can confirm that they have participated in Fair Trade training programs 3 15 of 22

16 EM-DM 6: Management allocates time during regular working hours and provides other resources that are necessary for, or conducive to, the successful implementation of the Fair Trade Implementation Plan. EM-DM 6.1 Management allocates time during regular working hours and provides other resources that are necessary for, or conducive to, the successful implementation of the Fair Trade Implementation Plan. The intent of EM-DM 6 is that the company allocates time and hours for key members of the Management team to support the successful creation and implementation of the Fair Trade Implementation Plan. The purpose of the Implementation Plan is to help ensure that the company and/or MAP has a system in place to achieve and/or maintain Fair Trade certification. See EM-DM 1.2 for required elements of the Fair Trade Implementation Plan. For EM-DM 6.1: Evidence, such as meeting minutes that include the time, date, and meeting participants, demonstrating that staff from management collaborated on the Fair Trade Implementation Plan during business hours. Descriptions of key roles or planning documents which show that the tasks necessary for the implementation of the Fair Trade Implementation Plan are assigned and prioritized 16 of 22

17 EM-DM 7: A written grievance procedure is established which ensures that workers have the right to be heard and the right to appeal. Management does not discipline, dismiss or discriminate against workers for using any grievance procedure. EM-DM 7.1 EM-DM 7.2 EM-DM 7.3 EM-DM 7.4 A written grievance procedure is in place and communicated to workers verbally and in writing. Workers are not disciplined, dismissed or discriminated against for using any grievance procedure. Special procedures are integrated into the company's written grievance procedure for cases of discrimination against the free right of collective bargaining and freedom of association. An internal employee suggestion system is in place. The company can demonstrate that: a) efforts have been made to make employees aware of this outlet, and b) that processes are in place to address employee suggestions. The objective of EM-DM 7 and the associated compliance criteria is to ensure that employees voices are heard, that issues are processed and treated in an orderly and timely manner, and that all grievances are taken seriously. Workers should be aware of the grievance procedure, understand how to use it and have a means of reporting a grievance against their supervisor to someone who is not that supervisor. It should be designed to encourage worker participation (appropriate to the skill level or literacy of the workers), have clearly defined follow up and review mechanisms, and safeguard the worker against retaliation and/or breach of privacy. Workers may file grievances on a range of issues, including but not limited to the following: An objection to the way the company delivers services, content, or how it organizes and manages internal processes Outcomes and results of decisions made by the leaders of the organization and administrative team Violation of the labor rights included in this Standard, national law and international conventions Examples of Best Practices As a best practice, a grievance procedure should include: 1. Clear instructions on what information to include in a grievance report, such as: the subject of the complaint; the name of the person or company accused; the date(s) occurred; the date the grievance was submitted; and, the name of the person reporting the unfair practice or that the complainant has chosen to remain anonymous 2. A flowchart describing the grievance procedure that is explained to workers and posted in visible areas within the company 3. Clear internal processes for dealing with grievances, including: a. Initiation: How the unfair labor practice can be reported and to whom b. Registration and documentation: The procedure should establish the responsible person designated to handle the grievance and within how many business days the complainant will receive a response of 22

18 c. Corrective actions: The person responsible for handling the reported grievance should organize a review and decide whether corrective action will be taken and the timeline d. Follow up: i. The person(s) responsible for handling the grievance report should clearly communicate the outcome of the review of the grievance to the complainant verbally and in writing, giving the worker an opportunity to have a discussion or meeting regarding the complaint ii. This should include informing the complainant about his or her options for further action if s/he is dissatisfied with the outcome of the grievance report. These should include the option to appeal to a higher authority (either higher-level management, local authorities, labor representatives, or Fair Trade USA) iii. Workers should attempt to resolve issues through internal grievance channels before bringing the issue to parties outside the farm. If a grievance cannot be handled internally, and requires intervention by an outside agent, it then becomes an allegation iv. Any alleged violation of a Fair Trade Standard or actions outside the spirit of Fair Trade may be filed as an allegation with FT USA by contacting allegations@fairtradeusa.org. For particularly grievous or sensitive allegations, workers need not go through the internal grievance procedure. This information should be posted with the internal grievance procedure. For FT USA s policy on allegations see: For EM-DM 7.1: Copy of the grievance procedure Evidence that the procedure has been communicated to workers, such as: a copy of a memorandum received by workers, photograph of chalkboards with the procedure, and minutes from meetings where the procedure was communicated to workers For EM-DM 7.2: Evidence that the company offers confidentiality to workers who use the grievance procedure and does not discriminate against them. There are not policies or practices in place that contradict this Contracts and workers' files (incl. termination records) support that workers using the grievance procedure are not discriminated against Workers can confirm that they have not faced such repercussions after submitting a grievance For EM-DM 7.3: A copy of the grievance policy which documents special procedures for cases of discrimination against the free right of collective bargaining and freedom of association For EM-DM 7.4: Written or visual evidence that an internal employee suggestion system is in place, for example: a suggestion box and evidence that workers were instructed on how to use the box (e.g. memoranda, bulletin board messages, or meeting minutes with instructions to workers on how to communicate their suggestions via the box) Documents that show how farms process and deal with employee suggestions 18 of 22

19 EM-DM 8: A written grievance procedure is in place for cases of sexual harassment. If there has been a report of sexual harassment, an investigative committee is appointed to resolve any cases of sexual harassment. EM-DM 8.1 A written grievance procedure is in place for cases of sexual harassment. EM-DM 8.2 If there has been a report of sexual harassment, an investigative 1 committee is appointed to resolve any cases of sexual harassment The intent of standard EM-DM 8 and associated compliance criteria is to ensure that sexual harassment is considered and addressed separately from other grievances because of its sensitive nature. Victims of sexual harassment are even less likely to come forward than victims with other types of grievances. This is true for all types of sexual harassment, not just that pertaining to women. Due to these issues, the grievance procedure for sexual harassment should follow the guidelines set forth in EM-DM 7.1, and include additional considerations. Management should pay special attention to the accessibility of the grievance procedure for female workers, especially in cases where there are no high-ranking women in management. This could include proactively checking in with female workers, convening a women's issues committee, and having multiple people in management that are designated point people for workers to contact in case of complaints. If there has been a report of sexual harassment, the investigative committee created under EM-DM 8.2 should have representatives of the same gender and sexual orientation as the complainant(s) wherever possible, and management should ensure that they are able to carry out their function without intimidation or fear of retaliation. For EM-DM 8.1: A copy of the written grievance procedure for sexual harassment complaints For EM-DM 8.2: Written proof of the appointment of the investigative committee (if applicable) Records of sexual harassment reports Meeting minutes from the investigative committee for resolving cases (if applicable) 19 of 22

20 EM-DM 9: The company has carried out a needs assessment of the home community from which most migrant workers come from. This has been shared with the Fair Trade Committee. EM-DM 9.1 The company (if a multi-estate, the MAP and/or its member farms) has carried out a needs assessment of the home community from which most migrant workers come. This has been shared with the Fair Trade Committee. The needs assessment should be based on surveys and primary data. The needs assessment required under criterion EM-DM 9.1 is in addition to the needs assessment of the social and economic needs of all workers required in EM-DM 1.1 and the migrant worker needs assessment required in EM-DM 1.1. The objective of EM-DM 9.1 is to deepen the understanding of the communities of migrant workers and the potential for the Fair Trade program to make a positive impact on those communities, perhaps through Fair Trade Premium projects. The information gathered is intended for use by the Fair Trade Committee in their development of the Fair Trade Premium Work Plan. This criterion is applicable as follows: If there are no migrant workers, this compliance criterion does not apply. If migrant workers are part of the workforce, the company and/or MAP will need to determine whether there is a sufficient number and concentration of migrant workers to conduct a home community needs assessment. If a significant percentage of the workforce in any given season are migrant workers (i.e. 25% of the total workforce), then a home community needs assessment is required. This means that migrant workers are surveyed about the needs in their home communities (the needs assessment does not have to be conducted in the home community itself). A separate needs assessment related to the personal and professional development of migrant workers is required under EM-PTA 1.1, regardless of whether there is a sufficient enough number and concentration of migrant workers to merit a home community needs assessment. The company and/or MAP may choose to combine surveys related to EM-DM 9.1 and EM-DM 1.1 into one single survey of migrant workers, or they may choose to conduct them separately. The company and/or MAP may also choose to conduct all three needs assessments in a single process that clearly examines needs of the general worker population (EM-DM 1.1) as well as migrant workers and their home communities (EM- DM 9.1 and EM-DM 1.1). As in EM-DM 1.1, the needs assessment for migrant workers in EM-DM 9.1 can be centralized at the MAP level or done by individual members or groups of members. 1 2 of 22

21 Examples of Best Practice If a significant number of workers come from the same home communities, it is recommended to conduct a more detailed needs assessment of those home communities. This might include visiting those communities. Where a sample-based surveying method is used, the sample should be sufficiently large to ensure that as many viewpoints as possible are captured there should be a representative number of workers included in the survey or data collection process with regards to gender, age, ethnicity, religion etc. For EM-DM 9.1: A copy of the needs assessment of the home community of migrant workers Other documents that support the results of the needs assessment and demonstrate the data collection process, for example: completed surveys with information provided by workers Written proof that the evaluation has been shared with the Fair Trade Committee such as meeting minutes or memoranda 21 of 22

22 EM-DM 1: Within one year of certification, the company has adopted a development plan for the social improvement of migrant workers. This development plan has been explained and discussed with the Fair Trade Committee and the General Assembly of workers. EM-DM 1.1 EM-DM 1.2 EM-DM 1.3 EM-DM 1.4 The company has carried out a needs assessment of migrant workers to determine how it can improve their working conditions. The needs assessment should be based on surveys or primary data. The company has created and implemented a written development plan for migrant workers, based on the needs assessment. The Fair Trade Committee and the migrant workers have been consulted during the drafting of the development plan. The development plan for migrant workers has been explained and discussed with the Fair Trade Committee and the General Assembly of workers. The migrant worker needs assessment required by the Year 1 audit under criterion EM-DM 1.1 is in addition to the general needs assessment required in EM-DM 1.1 and the assessment of migrant workers community needs in EM-DM 9.1. The migrant worker needs assessment should identify and prioritize the needs of the migrant workers related to their working conditions on the farm in areas including but not limited to occupational health and safety and conditions of employments (e.g. wages, working hours, contracts). Surveys or other primary data sources used in the needs assessment related to working conditions under EM-DM 1.1 should be representative of the entire migrant worker population, including those coming from different home communities. Where a sample-based surveying method is used, the sample should be sufficiently large to ensure that as many viewpoints as possible are captured there should be a representative number of workers included in the survey or data collection process with regards to gender, age, ethnicity, religion, nationality, etc. The purpose of requirements EM-DM 1.2 to EM-DM 1.4 is to ensure that the company used the results of the needs assessment to create a plan specifically targeting the personal and professional development of migrant workers and the improvement of the working conditions on the farm. In some instances, the development plan may be a standalone document, where in other cases the plan may be included within the Fair Trade Implementation Plan or the internal control or quality management system. Examples of programs that may be a part of this personal and professional improvement development plan for migrant workers include: Specific trainings or tools to address issues faced by migrant and seasonal workers and to better inform migrant workers of resources available to them in the area (e.g. government programs, medical access points, etc.) A plan for increasing participation of the migrant and seasonal workers in the Fair Trade Committee Supporting migrant and seasonal workers in obtaining the necessary legal documents (e.g. identity cards) to benefit from social security provisions of 22

23 For EM-DM 1.1: Needs assessment report on migrant workers needs as they relate to working conditions Other documents that support the results of the needs assessment and demonstrate the data collection process, for example surveys completed by the workers For EM-DM 1.2: Development plan for migrant workers that has been created based on the needs assessment Evidence that the plan has been implemented, according to the content of the plan, for example: if a proposed action is to increase wages, the company must show the payment records that show the increase For EM-DM 1.3: Documentation of consultation with the Fair Trade Committee and migrant workers, for example: meeting minutes or materials and photographs from a consultation workshop Members of the Fair Trade Committee and the migrant workers can confirm that a consultation took place For EM-DM 1.4: Evidence that the development plan for migrant workers was explained and discussed with the Fair Trade Committee and the General Assembly of workers, for example: meeting minutes where the plan was explained and discussed, materials used to explain the plan, and photographs or video of the activity 23 of 22

24 EM-DM 11: Within one year of certification, management ensures access to primary education for the children of all workers living on the farm. Management should also pay special attention to the education of workers children in general. EM-DM 11.1 EM-DM 11.2 Access to primary education is ensured for all children of workers living on the farm property. Measures are in place and monitored within the Fair Trade Implementation Plan to improve education for all workers' children. Such measures may include the provision of scholarships, in-kind donations of educational materials and supplies, clothing, food or transport. Access in EM-DM 11.1 may mean ensuring that the workers children have affordable (or free), reliable transportation to/from school, or, if there are no schools nearby, that may mean constructing and staffing a primary school on/near the farm. Where the children of workers live on farm property, access to primary education is required under EM- DM 11.1, audited beginning at Year 1. Because it is a requirement it may not be funded with the Fair Trade Premium. In subsequent years, however, improvements to the schools could be made with Premium funds if this is what the General Assembly decides. For EM-DM 11.1: Written or verbal explanation of access to education, complemented by showing the auditor the facilities, personnel and other resources by which access to primary education is offered Workers & their children that live on farm property can confirm that they have access to primary school For EM-DM 11.2: Copy of the Fair Trade Implementation Plan that includes measures taken to improve the level of education of the children of all workers Evidence of the measures taken. For example, if one measure is a scholarship plan, evidence can include documents that show the procedure for assigning scholarships and a list of the beneficiaries of 22

25 EM-DM 12: Within one year of certification, all levels of the company are aware of Fair Trade matters. To this purpose, the management ensures that adequate training has been provided to all levels. The management also encourages and supports training for all workers and their representatives in order to increase their capacity to participate in and take responsibility for the implementation of Fair Trade. EM-DM 12.1 Training on Fair Trade is provided at least annually for all levels, including workers and their representatives. The intent of standard EM-DM 12 and its associated criterion is that all levels of the company are made aware of the basic tenets of Fair Trade. The scope of these trainings should be appropriate to the size of the farm. These trainings should start with the basics, and become more detailed as company awareness and experience with Fair Trade grows. This training should include topics such as: The objective and vision of Fair Trade including a basic explanation of how Fair Trade certification and Premium payment works The principles of Fair Trade (empowerment, economic development, social responsibility and environmental stewardship) The different Fair Trade Standards with special highlights on their individual components, such as working conditions, worker health and safety, Premium management, etc. For EM-DM 12.1: Training materials used, for example photographs or other visual materials List of participants with signatures or other forms of valid identification Workers and their representatives can confirm they were trained on Fair Trade 1 25 of 23

26 EM-DM 13: The company has an appropriate human resources management system that is charged with implementing good industrial relations, training programs and the development of its employees. EM-DM 13.1 EM-DM 13.2 EM-DM 13.3 The company has defined and documented a human resources policy, plan and objectives that are consistent with the Fair Trade implementation plan. Personnel, resources, measures and procedures are implemented to improve worker-management relations, training (including new hires), and the development of employees, according to the plans and objectives defined. Processes are in place to monitor and improve the implementation of HR policies and plans. The intent of criterion EM-DM 13.1 is that by the time of the Year 3 audit the company's plan for the following Human Resource (HR) issues are documented and coherent: Staffing plan and needs mapping as required by ED-CE 7.2 Hiring/firing and disciplinary policies Job descriptions and wages for specific functions Practicing and encouraging open communication throughout the company, including creating an employee suggestion system by year 3 (see EM-DM 7.4) Ensuring that a transparent and effective grievance procedure is in place (see guideline for EM- DM 7.1) Ensuring compliance with labor laws and standards Establishing and continuously updating individual personnel files Capacity-building training plans and objectives The plan should identify the person(s) responsible for implementing the HR policy. Depending on the size of the company, this may be a Personnel Manager or a Human Resources Department staffed with trained/experienced professionals. In small companies the Chief Executive may perform the tasks of a personnel manager. In this case it is highly recommended that the person is trained in human resources management. The intent of the standard is that all workers, whether they work at a large or small farm, have a clear understanding of their job and have opportunities for learning. Capacity building is a critical aspect of empowerment, a key principle of the Fair Trade standards. The appropriate HR policy will depend greatly on the size of the organization, as will opportunities for advancement. The intent of criterion EM-DM 13.2 is that the company should be able to demonstrate that the policies required by EM-DM 13.1 are implemented and functioning. For EM-DM 13.1: Copies of the HR policy or HR plan and objectives For EM-DM 13.2: Documentation of the procedures relating to personnel management Proof of training provided to workers Documents and physical evidence of projects that promote the development of workers (if applicable) of 22

27 For EM-DM 13.3: Documentation of the procedures for monitoring Human resources records that demonstrate the improvements in the application of policies and plans 27 of 22

28 1.2 Inclusive Participation, Transparency and Financial Accountability (PTA) EM-PTA 1: A Fair Trade Committee, with representatives of the management and representatives of the workers, has been created, with the purpose of managing the use of the Fair Trade Premium. EM-PTA 1.1 EM-PTA 1.2 EM-PTA 1.3 EM-PTA 1.4 EM-PTA 1.5 EM-PTA 1.6 EM-PTA 1.7 EM-PTA 1.8 EM-PTA 1.9 A Fair Trade Committee (or Fair Trade Committees), with representatives of the workers, has been created with equal representation of the work force. Applicable to multi-estates and multi-site organizations only, from time of first Fair Trade sale: If the Fair Trade Committee is created at the local level (each farm), the central structure (head office or MAP) is responsible for the receipt of the Fair Trade Premium and channels the respective Fair Trade Premium amounts without delay to the local Fair Trade Committee accounts. A written constitution defining the objectives, functioning, composition, means and procedures of the Fair Trade Committee is in place. The constitution has been duly approved by the general assembly of workers. Only applies to multi-estates or multi-site organizations that have established one central Fair Trade Committee: The local Fair Trade Committees or General Assemblies have elected delegates to represent the farm on the central Fair Trade Committee. Only applies to multi-estates or multi-site organizations that have established several local Fair Trade Committees. Applicable from time of first Fair Trade sale: The central structure (head office or MAP) provides the certification body with an overview of the overall Fair Trade Premium income of the company, the distribution keys to the local Fair Trade Committees, an aggregated version of the individual Premium Work Plans and Fair Trade Premium. Farm management keeps an updated official worker list that clearly identifies active workforce. If multi-estate, the list is made available to the MAP. The Fair Trade Committee constitution clearly defines representation/delegate schemes when necessary. Only applies to multi-estates or multi-site organizations that have established one central Fair Trade Committee: The central Fair Trade Committee has internal regulations defining the specific roles, responsibilities and communication lines of any local Fair Trade Committees or local workforce/general Assemblies. M The intent of EM-PTA 1 is that a functional Fair Trade Committee (FTC) has been formed and that the Fair Trade Premium and the role of the FTC are explained before the workers nominate their worker representatives for election. The FTC is a joint organization of workers and management and it is important that both workers and management understand this. To create the FTC, workers elect their representatives and management formally appoints their representatives to work together. See EM-PTA 3 for requirements related to the election of the FTC of 22