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Guidance Document To FAIRTRADE INTERNATIONAL EXPLANATORY DOCUMENT FOR THE FAIRTRADE STANDARD For Hired Labour Processing bananas at Finca El Antojo. Photo by Marvel Koppen Purpose of this document The Hired Labour (HL) explanatory document provides answers to questions concerning Fairtrade Standards faced by hired labour organizations that are already, or want to become, Fairtrade certified. This document can be used as a practical guide for management, staff, board members, workers, workers’ organisations and sub-committees of hired labour organizations for implementing Fairtrade Standards. It is meant to be a reference document to help break down difficult areas of the Standard to make it easier to understand. The explanatory document provides a summary of the Standard requirements according to the applicable timelines - what has to be done in Year 0, 1, 3, 6, and an overview of the most important features of the Standard. This is supported by practical tips, definitions, case studies, examples and resources, all designed to clarify the requirements in the HL Standard for use by the producer. Every organization is different, and representatives of hired labour organizations can also request practical and specific regional advice from the Fairtrade contact person in charge of producer support affairs in the respective country or region. The HL explanatory document is a reference document and a complement to the Fairtrade HL Standard. For compliance purposes, the Fairtrade Standard for Hired Labour is the official document against which producers are audited. All Fairtrade Standards are available free for download on the Fairtrade International website at: http://www.fairtrade.net/our_standards.html Explanatory Document for the Fairtrade Hired Labour Standard, March 2014 Page 2 of 93 Table of Contents Introduction .................................................................................................................................. 4 What is Fairtrade? ................................................................................................................ 4 How does Hired labour fit in with Fairtrade? .................................................................... 4 What is a hired labour organization? ................................................................................. 4 How are producers certified and audited? ........................................................................ 5 Monitoring of changes ......................................................................................................... 6 How to use this document .................................................................................................. 7 1. General requirements and Commitment to Fairtrade .......................................................... 8 1.1 Certification .................................................................................................................... 8 1.1 Comittment to Fairtrade ................................................................................................ 8 2. Social Development .............................................................................................................. 10 2.1 Management of Fairtrade Premium ............................................................................... 10 2.2 Capacity Building ............................................................................................................ 17 3. Labour Conditions ................................................................................................................ 20 3.1 Freedom from Discrimination......................................................................................... 20 3.2 Freedom of Labour .......................................................................................................... 22 3.3 Child labour and Child Protection ................................................................................. 24 3.4 Freedom of Association and Collective Bargaining .................................................... 26 3.5 Conditions of Employment ............................................................................................. 31 3.6 Occupational Health and Safety ..................................................................................... 39 4. Environmental Development ................................................................................................ 47 4.1 Environmental Management ........................................................................................... 47 4.2 Pest Management ............................................................................................................ 47 4.3 Soil and Water .................................................................................................................. 58 4.4 Waste ................................................................................................................................ 62 4.5 Genetically Modified Organisms (GMO) ........................................................................ 64 4.6 Biodiversity ...................................................................................................................... 66 4.7 Energy and greenhouse Gas Emissions ....................................................................... 70 5. Trade ....................................................................................................................................... 73 5.1 Traceability ....................................................................................................................... 73 5.2 Sourcing ........................................................................................................................... 75 5.3 Contracts .......................................................................................................................... 76 5.4 Use of Fairtrade Trademarks .......................................................................................... 77 Annex 1 Abbreviated HL Requirements by Timeline ............................................................. 79 Annex 2 What is Risk? .............................................................................................................. 89 Explanatory Document for the Fairtrade Hired Labour Standard, March 2014 Page 3 of 93 List of Acronyms HL Hired Labour FMP Fairtrade Minimum Price FP Fairtrade Premium FPC Fairtrade Premium Committee (formerly called JB) FoA Freedom of Association GA General Assembly of workers IPM Integrated pest management JB Joint Body PN Producer Network PPP Personal Protective Equipment NFO National Fairtrade Organization S&P Standards & Pricing Introduction What is Fairtrade? Fairtrade is a strategy that aims to promote sustainable development and to reduce poverty through fairer trade. It is also a trading partnership, based on dialogue, transparency and respect that seeks greater equity in international trade. Its contribution to sustainable development is through offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South. In order to be part of the Fairtrade system, traders and producers have to meet certain criteria which are defined in the Fairtrade Standards set by Fairtrade International. FI -CERT (Fairtrade’s independent certification company) manages the process of auditing and certification to guarantee compliance with the Fairtrade principles. How does Hired labour fit in with Fairtrade? Workers, through their company, can participate in Fairtrade if they are organized, normally in unions. The company must be willing to support the workers’ development; empowering them to combat poverty, strengthen their position and to take more control of their lives. The requirements of Fairtrade ensure that employers pay decent wages, guarantee the right to join trade unions, make certain that health, safety and environmental principles are adhered to, and share with the workers the extra money that Fairtrade should bring. The Fairtrade Standards also cover terms of trade. Most products have a Fairtrade Minimum Price, which is the minimum that must be paid to the producers. In addition producers get an additional sum, the Fairtrade Premium, to invest in their workers and communities. What is a hired labour organization? A Hired labour organization is a company that relies on hired workers; this can be a farms, plantation, factory, manufacturing industry, etc.). Workers are defined as all workers including migrant, temporary, seasonal, sub-contracted and permanent workers. ‘Workers’ are not limited to field workers but includes all hired labour personnel, such as employees working in the company’s administration. However, the term is restricted to personnel that can be unionised and therefore normally excludes middle and senior management. Explanatory Document for the Fairtrade Hired Labour Standard, March 2014 Page 4 of 93 A migrant worker is a person who moves from one area within her or his own country (in- migration) or across the borders to another country (out-migration) for employment. A seasonal worker refers to a worker whose work by its character is dependent on seasonal conditions and is performed only during part of the year. A temporary worker is a person who works at the certified company on a non-regular, short term basis. A temporary worker may be a seasonal worker. There are three classifications of Hired labour organizations: Single Plantations are
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