Improving Labor Practices + Supply Improving Labor Practices + Supply Additional Key Issues to Cover in a Code

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POCKET GUIDE www.sustaincoffee.org IMPROVING LABOR PRACTICES + SUPPLY IMPROVING LABOR PRACTICES + SUPPLY ADDITIONAL KEY ISSUES TO COVER IN A CODE

Introduction Good labor practices should be the norm OF CONDUCT for each of these categories of workers Coffee depends on workers to maintain In addition to labor conditions, a code of conduct should cover business ethics and throughout the coffee supply chain, coffee fields, pick the ripe cherries, expectations and explain how the policy will be implemented. We recommend that it also but we continue to confront forced labor, process them into green coffee and roast cover environmental expectations. Draft text for each of these sections can be found at human trafficking and child labor in coffee. and package them. https://www.sustaincoffee.org/improved-labor-practices-and-supply-group/. Within the coffee production system we Do we really understand what these terms have a number of worker types: Full-Time, mean? We need to in order to begin Part-Time, Temporary, Multi-Party, and discussions and to better detect these Business Ethics Environmental Policy issues in coffee production. Implementation Ambiguous or Disguised Employment. Legal Compliance Sustainability Each of these is further defined below. This short guidance document provides Management Systems Bribery / Corruption Resource Consumption and overview of key terms, sets forth Coffee also has a number of different Pollution Prevention Grievance principles for good labor practices in Gifts / Hospitality labor supply systems. These can vary Mechanisms Waste Minimization from informal family labor and farmer coffee and guides users through a process Conflict of Interest Audits + Corrective or community labor exchange systems of considering and addressing risks. The Environmental Impact Intellectual Property Actions to more formal employment of full-time, updated annex includes a code of conduct Management part time, and temporary workers. These checklist that companies can use to set Traceability Continuous clear expectations on labor practices Hazardous Materials workers might be employed directly or via Materials + Facility Improvement within their supply chains. + Product Safety labor brokers. The majority of labor is hired Disclosure for the harvest period when the coffee is picked from the trees.

1 | Labor Practices + Supply 2.3 Accommodation (housing) • Safe, clean housing PEOPLE NEED COFFEE TO THRIVE, • Freedom to enter and leave AND COFFEE NEEDS PEOPLE AND NATURE TO THRIVE

Accommodation: Accommodation, where meet or exceed the basic levels afforded provided, is clean, safe, meets the basic in the local community. Workers shall have needs of workers, and conforms to the freedom to enter and leave at will. TYPES OF LABOR country’s laws. Accommodation should

2.4 Emergency Preparedness • Emergency plans • Exits unlocked and unblocked TEMPORARY EMPLOYMENT MULTI-PARTY EMPLOYMENT Workers are engaged for a specific period Workers are not directly employed by Potential by implementing emergency plans and Emergency Preparedness: of time, includes fixed-term, project or the company to which they provide their emergency situations and events (such response procedures. In buildings, as fires, earthquakes, and chemical emergency exits must be unlocked and task-based contracts, as well as seasonal services. exposures) are to be identified and unblocked at all times. or casual work. assessed, and their impact minimized

DISGUISED EMPLOYMENT/ PART-TIME + ON-CALL WORK DEPENDENT An employed person whose normal SELF-EMPLOYMENT hours of work are fewer than those of Employment instance where respective comparable full-time workers (fewer than rights and obligations of the parties 35 hours, or 30 hours, per week). concerned are not clear, or when inadequacies or gaps exist in the legislation.

21 | Labor Practices + Supply Labor Practices + Supply | 2 PRINCIPLES, CODE OF CONDUCT + TOOLS FOR 2. Health + Safety GOOD LABOR PRACTICES IN COFFEE 2.1 Working Conditions • Accident prevention Introduction Organization conventions and standards • Training A key factor of success in any transaction of good practice included in most is knowing what you want and how to ask certification and verification programs. • Personal protective equipment for it. The same applies when it comes to These should inform codes of conduct • Right to refuse unsafe work labor conditions you want to see within used by businesses throughout the coffee your coffee supply chain. You have to supply chain. • Access to basic social services first know what you want to see and then Most companies already have codes develop a clear way of asking for it. of conduct…but it is always good to Working conditions: Suppliers shall • Workers shall receive regular health and In the coffee sector we know we want take a fresh look to see how your code provide a safe and hygienic work safety training. environment, as appropriate for the good labor conditions to all working to compares and whether it covers the key • Where needed, workers are to industry, geography and workforce. produce and process coffee. But what are principles identified. The checklist enables be provided free of charge with good labor conditions? How will we know benchmarking of your existing code of • Adequate steps shall be taken to appropriate, well-maintained, personal them when we see them? conduct against the principles. prevent accidents and injuries to protective equipment and educational health arising out of, associated with, materials about risks to them associated To answer this question, the Sustainable These words are only effective if they are or occurring in the course of work, with these hazards. by minimizing, so far as is reasonable Coffee Challenge has developed a actively implemented and monitored. To • Suppliers shall respect workers’ right practicable, the causes of hazards set of principles to guide the sector in help get you started or take the next step to refuse unsafe work and to report inherent in the work environment. promoting good labor conditions. These in your ongoing process, please unhealthy working conditions. principles are based on International Labor

2.2 Basic Services (sanitation) • Potable water + toilet facilities at all times Principles • Sanitary food areas for preparing and eating food

Basic services: Workers shall have access provided housing, as well as sanitary food to potable drinking water and clean toilet preparation, storage and consumption Code of Conduct + facilities at all times at the workplace areas. and at any company- or third party- Checklist

Implementation Guidance

3 | Labor Practices + Supply Labor Practices + Supply | 20 1.7 Regular Employment Status PRINCIPLES FOR GOOD LABOR PRACTICES IN • Recognized employment status COFFEE • Meet legal obligations re: benefits for fixed-term employment In addition to complying with national labor laws, we believe good labor practices recognize and support the rights and freedoms of all workers and enable all workers Regular Employment Status: Work sub-contracting, excessive use of fixed- in the coffee sector to prosper. performed must be on the basis of a term employment contracts, or through 1. Every worker should have freedom of 8. No worker should be denied the right recognized employment relationship. apprenticeship schemes with no real movement to establish and join organizations of Obligations to employees under labor or intent to impart skills or provide regular their own choosing social security laws and regulations arising employment. 2. No worker should be indebted or from a regular employment relationship coerced to work 9. No worker should be denied the right shall not be avoided, such as through and voluntarily 3. No worker should pay for a job to freely organize negotiate their working conditions in a 4. No worker should surrender their collective manner identity papers or other original 10. All workers should have access 1.8 Working Hours personal documents as a condition of employment to potable water and appropriate • Adhere to legal limits or 48 hours per week sanitary facilities during work hours. 5. No child* should be required to do work • Rest days that competes with attending school. 11. No authorized minors or pregnant should handle or apply • Voluntary overtime women 6. No worker should earn below the agrochemicals, operate heavy minimum wage machinery or do heavy lifting. Working Hours: Regular and overtime requirements or, in the absence such a 7. No worker should be discriminated working hours must comply with the law requirement, workers shall be provided against based on their gender, national, and not be excessive. one day off in seven. This may be ethnic or racial identity. *Under 15 years of age amended in unusual or emergency • Regular working hours shall not exceed circumstances. the legal limit or 48 hours per week, whichever is lower. • All overtime shall be voluntary. • Rest days shall comply with legal

1.8 Community Rights to Land • Rights and titles to property • Free, prior and informed consent • Contract transparency + disclosure

Respect for Community Rights to regarding property and land shall adhere Land: Suppliers shall respect the to principles of free, prior and informed rights and titles to property and land consent, as well as contract transparency of individuals, indigenous peoples and disclosure. © STARBUCKS and local communities. Negotiations

19 | Labor Practices + Supply Labor Practices + Supply | 4 CHILD LABOR IN COFFEE 1.4 Freedom of Association + Collective Bargaining • Right to form and join trade unions Introduction • obliging them to leave school • Right to bargain collectively + peaceful assembly Reports and photos of children carrying prematurely; or heavy sacks of coffee during the • requiring them to attempt to combine harvest season persist in the sector. No school attendance with excessively long government or company wants to find and heavy work. Freedom of Association and Collective collectively and to engage in peaceful these conditions. To prevent these, we Bargaining: Suppliers shall respect assembly as well as respect the right of The ILO conventions also protect children workers’ legal rights to freedom of workers to refrain from such activities. need to first understand what constitutes from work that is “mentally, physically, association and collective bargaining. Suppliers shall permit workers to carry ‘child labor’. And to understand under what out such activities without fear of socially or morally dangerous and harmful” • Suppliers shall respect the right of all conditions it is acceptable to have children discrimination, intimidation, or reprisal. The ILO convention says that the minimum workers to form and join trade unions working on coffee farms. of their own choosing, to bargain age for work should not be below the The International Labor Organization (ILO) age for finishing compulsory schooling, is the global authority on labor conditions. and in most cases the worker should It establishes global norms via a number not be younger than 15 years of age. For of conventions that governments ratify developing countries, which include most and coffee certification and verification coffee producing countries, the minimum 1.5 No Discrimination standards reference. In addition to the age can be as low as 14 years of age. • Based on race, gender, ethnicity or on pregnancy or medical test results ILO conventions, governments often have additional protections that take the form The conventions do allow for children of prohibited tasks that may be specific to between the ages of 12 and 14 in sectors. developing countries to do “light work” as Discrimination: Suppliers shall commit to sexual orientation, gender identity, long as it does not threaten their health a workforce free of discrimination. marital status, political affiliation, This section provides an overview of pregnancy status, or past or present and safety, or hinder their education or • All employment decisions (including union affiliation. some of the common terms used to vocational orientation and training. hiring, termination, compensation, describe child work and child labor and promotion and discipline) must be • Supplier shall not require pregnancy or the conditions to look for when discussing based exclusively on ability and medical tests, except where required labor practices within coffee production. willingness to do the job. by applicable laws or regulations or In coffee, many programs refer to the prudent for workplace safety, and shall • There shall be no discrimination on ‘worst forms of child labor’. When this not improperly discriminate based on What is Child Labor? the basis of race, color, sex, national phrase is used it refers to the following test results. According to the International Labor or social origin, religion, age, disability, conditions as defined by Article 3 of ILO Organization (ILO), child labor is any work Convention No. 182: that “deprives children of their childhood, their potential and their dignity, and that (a) all forms of slavery or practices similar to slavery, such as the sale and trafficking is harmful to their physical and mental 1.6 Humane Treatment development.” One of the key concerns of children, debt bondage and serfdom with regard to child labor is that it can and forced or compulsory labor, including • Respect + dignity interfere with their ability to attend and forced or compulsory recruitment of perform well at school. More specifically it children for use in armed conflict; states that work should not interferes with (b) the use, procuring or offering of a Humane Treatment: All workers are to be or physical coercion or verbal abuse of children’s schooling by: child for prostitution, for the production treated with respect and dignity. workers; nor is there to be the threat of any such treatment. • depriving them of the opportunity to of pornography or for pornographic There is to be no harsh and inhumane attend school; performances; treatment including any sexual harassment, sexual abuse, corporal punishment, mental

5 | Labor Practices + Supply Labor Practices + Supply | 18 1.2 Child Labor + Young Workers (c) the use, procuring or offering of a Hazardous child labor is any work that is • Comply with local laws on minimum age + schooling child for illicit activities, in particular for likely to jeopardize children’s physical, the production and trafficking of drugs mental or moral heath, safety or morals • Young worker protections as defined in the relevant international should not be done by anyone under the • Light work on family farms treaties; age of 18. This usually entails prohibitions (d) work which, by its nature or the on the application of pesticides, use of circumstances in which it is carried out, is sharp tools and lifting heavy loads. Child Labor and Young Workers: Child Convention No. 138, or light work likely to harm the health, safety or morals Sources: https://www.fairtrade.net/fileadmin/user_ labor shall not be used. The term “child” consistent with Article 7 of ILO Minimum upload/content/2009/programmes/2015-fairtrade-child- of children (Hazardous Child Labor). refers to any person under the age of 15, Age Convention No. 138. forced-labor-guidelines.pdf or under the minimum age for employment http://www.ilo.org/ipec/facts/lang--en/index.htm • Young worker protections are in place, in the country, whichever is greatest. where applicable (including for the • All employment of young workers, children of farmers), so that young including apprentices or vocational workers under the age of 18 do not students, must comply with laws and experience conditions in relation to regulations on the minimum working their work that are mentally, physically, age and the compulsory age for socially or morally dangerous or harmful, schooling. In any case, apprenticeship or that interfere with their schooling. or vocation arrangements must be of • A child may help at their family’s educational benefit and be consistent business only if they perform light work with Article 6 of ILO Minimum Age and meet the requirements above.

1.3 Wages + Benefits • Meet or exceed minimum wage • Paid overtime at legal rate or premium wage • Equal pay for equal work • No disciplinary pay reductions • Wage statements

Wages and Benefits:Suppliers shall • Equal work shall be compensated with ensure workers receive wages and equal pay. benefits that meet, at a minimum, national • Disciplinary pay deductions are legal standards. prohibited. • We encourage our suppliers to go • For each pay period, workers shall beyond legal minimum standards and be provided with a timely and to ensure wages are sufficient to meet understandable wage statement basic needs and provide discretionary that includes sufficient information to income. © CRISTINA MITTERMEIER verify accurate compensation for work • All overtime work must be paid at the performed. legally mandated overtime rate, or in the absence of this, a premium wage.

17 | Labor Practices + Supply Labor Practices + Supply | 6 FORCED LABOR IN COFFEE ANNEX A: CODE OF CONDUCT CHECKLIST

Introduction worker has given his or her free and The following checklist provides a list of topics that should be included in a code of Forced labor often conjures images of informed consent to accept a job and has conduct for the coffee sector, followed by text that can be incorporated into existing slavery and human trafficking. Yet it can the ability to end the employment at any codes of conduct. For a complete model code of conduct please visit also include other means that employers time. https://www.sustaincoffee.org/improved-labor-practices-and-supply-group/. use to force people into work. It can How is Forced Labor Detected in 1. Labor + Human Rights appear in various forms that range from Coffee? human trafficking to retaining personal 1.1 Freely Chosen, At-Will Employment documentation or implementing practices Forced labor is very difficult to detect, • No recruitment fees / paying for a job that cause workers to become indebted but there are certain practices in coffee • No debt bondage to corporate-owned stores. Each of that are known to be good indicators these restricts the ability of the workers of its potential. When these indicators • No retention of identification papers are detected, efforts should be made to to move freely and/or to discontinue their • No coercion / deception of employment terms employment. investigate them by engaging directly with suppliers. • Freedom of movement (freedom from isolation) Unfortunately there continue to be reports of forced labor in coffee. This is Specific indicators that can serve as red unacceptable and presents tremendous flags for forced labor include the following: risks to stakeholders throughout the coffee Labor brokers + recruitment fees: Freely Chosen Employment: All forms language understood by the worker, of involuntary labor – including forced, and be concluded before work has value chain. Some farms use labor brokers to source coerced, bonded (including debt commenced. If employment contracts This brief provides an overview of global temporary workers during the harvest bondage), involuntary or exploitative are not legally required, workers shall at definitions of forced labor based on ILO season. Some labor brokers may charge prison, slavery, trafficked or indentured or the very least be informed of the terms conventions to help raise awareness of workers recruitment fees that result in other forms – are prohibited. and conditions of employment, in a language understood by them, prior to high indebtedness and bondage. The • All work must be voluntary and workers the issue and how to better detect and starting work. address it by pointing out some practices use of labor brokers also results in less shall be free to leave work at any time or terminate their employment. • Employers and agents may not hold or that are known to present risks. transparency of labor practices on the otherwise deny access by employees to farm. • There shall be no unreasonable their identity or immigration documents restrictions on workers’ freedom of What is Forced Labor? unless such holdings are required by Document Retention: Farm managers movement at the workplace or at law. In its most legal form, forced, or may hold identification papers (e.g. company- or agent-provided housing. • Workers shall not pay recruitment fees compulsory labor refers to “all work or government issued ID) on behalf of the • To minimize isolation, workers will not or other related expenses for their service which is exacted from any person workers and refuse to give them back to have mobile phones confiscated. under the threat of a penalty and for which the workers upon request. employment. If it is discovered that • Employment agreements shall meet workers have paid fees, the supplier the person has not offered himself or Indebtedness to the farm or to a local law, inform workers of their legal shall ensure that the workers are repaid herself voluntarily”. company store: Workers may be forced rights and employment conditions in a in full. This definition is concerned about forced to purchase goods at a company store labor in all types of employment, both that extends credit, which can result in formal and informal and the penalties indebtedness that renders their work employers use to compel the person to involuntary. work. Source: http://www.ilo.org/global/topics/forced-labour/ lang--en/index.htm Forced labor is in direct contrast to work that is offered voluntarily in which the

7 | Labor Practices + Supply Labor Practices + Supply | 16 A CODE OF CONDUCT FOR GOOD LABOR PRACTICES

A code of conduct helps align business partners around expectations for ethical business practices. Whether you are just establishing your first code of conduct or reviewing an existing one, it’s important to leverage these documents to set clear expectations and establish clear processes for communicating and monitoring for key issues. The following code of conduct serves as a reference for any coffee company wishing to make sure theirs covers the principles of good labor practices in coffee. It also includes additional sections on environmental performance and implementation that are also recommended. If you have an existing code of conduct, review the checklist first and then look at language in the model to see how it compares with your own. If you are developing a new code of conduct, you can model yours off of the complete one available here.

15 | Labor Practices + Supply Labor Practices + Supply | 8 Quick Reference to producing countries that have not ratified key ILO LABOR: MAKING SENSE OF THE EXISTING WORK labor conventions The following table identifies those coffee have not been ratified by the country. Scale/ Name Purpose producing countries and territories that This list also includes countries that Geography have not ratified one or more of the key have reported incidents of child and/or Improving supply chain transparency, Guatemala ILO labor conventions that protect workers. forced labor in coffee based on the US Grievance monitoring and accountability in Orange represents the conventions that Department of Labor analysis. Mechanism Guatemala’s coffee sector Responsible sourcing tool Risk Assessment Global Tools Best Practice Global Fair hiring toolkit Guide Forced labor priority principles Principles Global Commodity mapping tool Risk Assessment Global

Scale/ Name Purpose Geography Farmworker Protections and Labor Country Brazil Conditions in Brazil’s Coffee Sector Assessment Rwanda, Tanzania, Fairtrade coffee farmer income Income Uganda, Kenya, assessment Benchmark India, Indonesia, Reports/ & Vietnam Understanding the situation of Colombia, Studies Country workers in corporate and family Nicaragua Assessment coffee farms A Blueprint for farmworker Guidance on Key Global inclusion Issues Income Global living wage coalition Global (?) Benchmark

Sweat and Toil app Risk Assessment Global

Comply Chain app Risk Assessment Global

Scale/ Name Purpose Geography Aquadas Farmworkers Pilot Project Intervention Colombia Projects La Revancha Project Intervention Nicaragua

9 | Labor Practices + Supply Labor Practices + Supply | 14 IDENTIFYING + ADDRESSING POTENTIAL LABOR Practices to eliminate Practices to promote SUPPLY CHAIN RISKS • Forced Labor (C29 and C105) • Freedom of Association (C87) • Worst form of Child Labor (C182) • Right to Organize & Collective 1. a CSR policy that 4. (supply country, direct Review/Create Assess risks Bargaining (C98) includes labor principles and post on suppliers, farm) • Discrimination (C111) your website • Equal Remuneration (C100) 5. Identify and implement corrective 2. Develop or enhance your code of actions • Minimum age (C138)v conduct to cover labor conditions 6. Publicly report on progress throughout the supply chain (including @ farm level) 7. Seek opportunities to address root causes via partnerships and collective 3. Map your supply chain action

Which countries present the Are the farms in my supply risk of labor issues in my chain associated with child coffee supply chain? YES and/or forced labor or other Risk assessment tools critical labor issues? (Sourcing Risk Tool, Commodity Audits, certification/verification Risk Assessment Tool, etc.)

YES

Is the issue pervasive in the region? Will the producers develop and implement a corrective action Collective approach with others YES plan? in the region (GRID) Corrective Action Plan Support National Action Plans

Understand why + engage and address or discontinue sourcing

13 | Labor Practices + Supply Labor Practices + Supply | 10 NATIONAL ACTION PLANS ON FORCED a country fits within. This table takes an inclusive approach and counts policies AND CHILD LABOR and strategies as action plans as long Some coffee producing countries have the effectiveness of these policies and as they made reference to forced labor/ developed and are implementing national their level of implementation. If they are human trafficking and/or child labor. These action plans to address forced and not effectively implemented, there may be plans are not specific to coffee, but we child labor concerns. It is important to opportunities to work with local stakeholders believe this information can help start the understand where these exist as there may to strengthen existing programs. dialogue with local actors to ask questions, learn more and find opportunities to work be opportunities to leverage them and The following table categorizes coffee form partnerships with the government to together to eradicate these practices from producing countries according to whether the coffee sector. enhance their enforcement in the coffee they have national action plans in place sector. for forced and/or child labor. In many While these policies are important they cases the policies and strategies in place do not signify that there are no forced or to address the issues are not referred to child labor risks in coffee production within as ‘National Action Plans’ which makes it that country. It is important to understand difficult to clearly demarcate which category

Countries with NAP for Child Countries with NAP for Child Countries with NAP for Countries without and Forced Labor Labor Only Forced Labor Only National Action Plans Brazil Madagascar Angola Kenya Bolivia Central African Republic Burundi Nepal Belize Malawi Fiji Dominica China Nigeria Benin Mozambique Guinea Equatorial Guinea Colombia Panama Cambodia Nicaragua Guyana Laos Comoros Papua New Guinea Cameroon Thailand Haiti Mayanmar Costa Rica Paraguay Congo Timor-Leste Jamaica Samoa Democratic Côte d’Ivoire Peru Republic of the Togo Malaysia Sao Tome and Principe Congo Dominican Trinidad and Cuba Philippines Mexico Suriname Republic Tobago United Republic of Ecuador Rwanda El Salvador Saint Vincent and the Grenadines Tonga Tanzania Ethiopia Uganda Gabon Sierra Leone Venezuela Honduras Vanuatu Ghana Sri Lanka Yemen Indonesia Vietnam Guatemala Zambia Liberia Zimbabwe India

11 | Labor Practices + Supply Labor Practices + Supply | 12