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Policy on Zero Tolerance Issues Under the Factory Standard and the Agricultural Production Standard Fair Trade USA® Version 1.0.0

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Policy on Zero Tolerance Issues Under the Factory Standard and the Agricultural Production Standard Fair Trade USA® Version 1.0.0 Version 1.0.0 Policy on Zero Tolerance Issues Under the Factory Standard and the Agricultural Production Standard Fair Trade USA® Version 1.0.0 Purpose This document outlines the areas of standards compliance which Fair Trade USA considers to be the most critical issues that when breached represent the greatest threat to producers, workers, and the mission we seek to achieve. It provides a list of criteria alongside situations that meet the severity level to issue a Zero Tolerance finding. Identification of one or more Zero Tolerance issues triggers additional diligence in the auditing and certification processes, to ensure the issue is fully understood and appropriate remediation measures are taken. Certificate Holders must take immediate corrective action to address all verified Zero Tolerance issues, as appropriate to the severity of the non-compliance. Procedures around the response and remediation to Zero Tolerance issues are outlined in separate documents. Zero Tolerance issues include Forced or Prison Labor, Child Labor, Freedom of Association, Harassment or Abuse, Safety, Premium Misuse, Traceability, Unauthorized Production, Access to Sites, and Integrity. Scope This policy applies to all approved Conformity Assessment Bodies (CABs) and to Fair Trade USA personnel working with supply chains under the Factory Standard for Apparel and Home Goods (Factory Standard) and the Agricultural Production Standard (APS). Related Documents • Fair Trade USA Agricultural Production Standard • Factory Standard for Apparel and Home Goods • Requirements for Certificate Scope Under the APS • Requirements for Certificate Scope Under the Factory Standard for Apparel and Home Goods • Remediation of Zero Tolerance Findings Under the Agricultural Production Standard • Remediation of Zero Tolerance Findings Under the Factory Standard for Apparel and Home Goods Policy on Zero Tolerance Issues Under the Factory Standard and the Agricultural Production Standard Page 1 of 6 July 2020 Version 1.0.0 1. List of Zero Tolerance Issues 1.1. The following table lists the types of audit findings and associated compliance criteria that represent a Zero Tolerance issue and trigger a Zero Tolerance finding. 1.2. Not all non-compliances with the listed criteria would trigger a Zero Tolerance finding – only when non-compliances are of the severity described in the Situations Meeting the Severity Level column result in a Zero Tolerance finding. 1.3. In addition to the types of findings described explicitly below, a CAB has the discretion to classify any similar finding as Zero Tolerance if it determines that it is of equivalent severity to those listed in the Situations Meeting the Severity Level column. Zero APS Factory Factory Standard Situations Meeting the Severity Tolerance Criteria APS Compliance Criteria Standard Compliance Criteria Level Issue No. Criteria No. Workers who refuse overtime are penalized, for example, with threats of dismissal, pay cuts, demotion, etc. There is no kind of forced There is no kind of forced labor, Mandatory overtime in violation of labor, including bonded labor, including bonded labor, human local law, excessive or systemic Forced Labor human trafficking, contract trafficking, contract substitution, delay in payment. and Prison 2.1.1.a SR-FL 1.1 substitution, indentured labor, indentured labor, slave labor, Labor slave labor, prison labor, or Workers are subjected to any form prison labor, or any restrictions any restrictions on freedom of of mental of physical coercion to on freedom of movement. movement. force them to remain employed or are working against their will. Employer retains salary, benefits, property, personal documents, or controls worker bank accounts. Worker(s) under 15 years old, under The minimum age for direct or The minimum age for direct or the age interfering with compulsory indirect employment is the indirect employment is the Child Labor 2.2.1.a SR-PC 1.1 schooling laws, or under the highest of: the legal working highest of: the legal working minimum age established by law, age; the legal age of completion age; the legal age of are found working on the farm or in Policy on Zero Tolerance Issues Under the Factory Standard and the Agricultural Production Standard Page 2 of 6 July 2020 Version 1.0.0 of compulsory schooling; or, age completion of compulsory the facility. This does not include 15. schooling; or, age 15. children of farmers helping on the family farm under conditions in line with the standard. The employer does not interfere Any interference with the with the rights of freedom of establishment, functioning, or 2.3.1.a association or collective All workers have the right to administration of a workers’ bargaining. form, join, and organize trade organization or collective union(s) or worker bargaining, such as preventing Freedom of The employer does not representatives of worker Association SR-FA 3.1 organizations of their choice discriminate or retaliate against and to bargain collectively on organizations from free access to trade union members or workers workers in violation of local law. 2.3.1.b their behalf with factory who have attempted to form or management. Punishing, threatening, intimidating, join a trade union or other harassing, or bribing trade union worker organization. members or worker representatives. Certificate Holders, employers, The workplace is free from and small producers do not abuse, including: corporal engage in, support, or tolerate punishment and physical Any physical, sexual, psychological, Harassment the use of corporal punishment, 2.4.2.a ED-CE 1.1 harassment; sexual or verbal abuse and harassment of and Abuse mental or physical coercion, harassment; and, workers. verbal abuse, or any other form psychological and verbal of harassment including sexual harassment. harassment. Indoor workplaces and on-site Factory buildings and 3.2.1.d buildings are maintained to be SR-OH 1.1 grounds are maintained to be Immediate and substantial threat to safe. safe. life or health of workers within the In hot climates and in hot Workers have the right to workplace including: lack of building Safety workplaces, workers are remove themselves from structural integrity, fire hazard, lack provided with suitably cool water imminent, serious of access to water in extreme heat, 3.2.1.e SR-OH 9.1 and shade for rest breaks in danger without seeking or dangerous exposure to order to protect against heat permission from hazardous chemicals. stress. management. Policy on Zero Tolerance Issues Under the Factory Standard and the Agricultural Production Standard Page 3 of 6 July 2020 Version 1.0.0 Workers and farmers are not exposed to hazardous pesticides and fertilizers beyond 3.2.2.a what is indicated as safe in the manufacturer's instructions or Safety Data Sheet. The Certificate Holder does not interfere with the independent decision-making of the Fair 1.1.2.e Trade Committee. This commitment is declared in writing and shared with the FTC. The administration and use of Premium use and accounting is Attempt to influence the use of the Premium EM-PTA the Fair Trade 1.2.4.a transparent to Premium Premium through coercion or Misuse 8.1 Premium is transparent and Participants. corruption of the Premium transfer coherent. to the Fair Trade Committee by Where the Certificate Holder is management of the Certificate responsible for paying Fair Holder, farm, facility, or factory. Trade Premium to the Fair 5.2.3.b Trade Committee, the correct amount of Premium is paid and no deductions are made. Fair Trade products are separated from non-Fair Trade 5.1.1.a products throughout production, Only the CH may sell product Intentional and unauthorized transport, processing / manu- as Fair Trade Certified™ substitution of non-Fair Trade Scope Traceability facturing, and in storage […]. which has been produced at Certified product in order to Policy Only products grown on farms sites included in the scope of increase quality or quantity of sales included in the scope of the their Certificate. of Fair Trade Certified product. 5.1.1.d Certificate can be sold as Fair Trade. Policy on Zero Tolerance Issues Under the Factory Standard and the Agricultural Production Standard Page 4 of 6 July 2020 Version 1.0.0 The entities, products, sites, The Certificate Holder does not The Certificate Holder sources from and activities that must or 5.3.1.a sell products as Fair Trade or subcontracts some or all its may be included in the scope Unauthorized unless the product and its Scope production processes of a Fair of the Certificate are Production Scope production site have been Policy Trade Certified product to a non- accurately included and are in Policy included in the scope of the Certified farm, facility, or factory in compliance with the full Certificate. violation of the Scope Policy. Scope Policy. The Certificate Holder must ensure access to all sites where Access denied to facilities, in part or Audits are allowed to proceed Fair Trade activity takes place, whole, to workers (including for unobstructed and all Denied including all its facilities and confidential interviews), to records 5.3.2.a TR-BR 1.1 information necessary to Access worker accommodations, or to any employee considered a complete the audit is made relevant records, factory key element to complete the FTUSA available to the auditors. management, and workers to audit. authorized auditors. Management does not Any attempt to bribe auditors, Field interfere in the conduct of Fair Advisors, or any Fair Trade USA Trade USA’s audits, including employees, including employees It is our policy to conduct TR-BR 1.2 the selection of documents, from contracted firms, or to business transactions in an workers chosen by auditors otherwise compromise the FTUSA ethical manner without conflict for interviews, and/or by impartiality and integrity of audits Integrity Statement of interest or unjust personal coaching workers. and related certification processes. of Values gain and the same is expected Bribes include offerings in money, services, gifts.
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