Good Practices, Verified and Amplified How to Identify Shared Values Presented by Larry Berglund and Kristi Fairholm Mader Coastal Communities Social Procurement Initiative Purpose: To incubate social procurement for the Vancouver Island and Sunshine Coast Region that will support all local governments and First Nations in implementing social procurement. Members: 20 local governments, and counting! www.ccspi.ca Members have access to training, resources, consults and networks Agenda • The challenge of finding values-aligned suppliers • The importance of certifications • Business/Organization Certifications: • Buy Social Canada • B-Corp • Vancouver Island Green Business • Living Wage • Product Certifications: • Island Good • Fairtrade programs and practices Supplier Gaps • As social procurement becomes a best practice, finding suppliers who can deliver on social value is key • 2015 report identified 350+ social ventures on Vancouver Island… but where are they? How do you find them? Social Enterprises across the Island & Coast Social Enterprises across the Island & Coast Social Enterprises across the Island & Coast But how do you know…? Certification Cost (annual) Process • Employers prepare and submit a draft ‘Living Wage Employer No application fee (BC) Implementation Plan. • If the plan meets the conditions of the program, the employer is certified. • Must be a non profit or social Business Fee depends on size of enterprise revenues: $250- $1500 • Percentage of profits that go back Certifications to mission- test • 3rd party certification Fee depends on size of • Complete B Impact Assessment annual revenues and meet threshold and pass verification and update < $2M revenues: certification every three years $1,000- $2000 Vancouver Island Green • Fill out criteria Business Certification • 3rd Party site visit • Plan for improvement Annual certification fee of $250 Specialized construction and gift directories; Akselos Can develop pre-qualified suppliers list Living wage policies • What is a living wage? • How does a living wage policy work? What is a Living Wage? The cost of a Canadian household to meet its expenses under the following criteria: • 2 adults and 2 children • 1 child in FT day care; 1 child in pre- and after-school care • Adults are working 35-40 hours per week • 1 parent taking evening courses • Groceries • Rent • Transit pass 18 Minimum wage vs Living wage (2017) Province General Min wage Hourly living wage Alberta $13.60 $17.36 BC $11.85 $20.01 Saskatchewan $13.60 $16.46 Manitoba $11.00 $14.07 Ontario $11.40 $18.52 Nova Scotia $10.85 $19.17 19 Living wage cost exclusions • Excludes: • Credit card, loan or other debt obligations • Retirement savings • Owning a home • Saving for the children’s future education • Cost of elder care And excludes: Any costs “beyond the minimal required for recreational, entertainment or holidays” Any costs “beyond the minimal for emergency or hard times” 20 Living wage benefits • Lower staff turnover • Reduced recruitment and retention costs • Reduced sick time • Improved productivity through performance • Improved the quality of life • Redistributes wealth in the local community Living wage practices If a municipality adopts a Living Wage policy it agrees to pay its suppliers the living wage rate for that municipality. Only the workers who actually work on the municipal contract enjoy the LW rate. i.e. if a contractor had 100 custodial staff, and 15 employees worked for a municipality under a cleaning contract, only the 15 staff would receive the LW rate. The supplier is compensated for the wage differential between the LW rate and the rate it pays its other employees. The supplier does not bear the incremental wage differential. City of Quesnel Non-Compliance Process (New Westminster) • Please direct all notifications of possible non-compliance to the Purchasing Division by letter, fax, or e-mail ([email protected]). • The following details should be provided: • The name of the service provider or sub-contractor • The date, time, and location where the service provider or sub-contractor was working • The type of work that the employee was performing • Your name and contact information • All notifications to Purchasing will be held confidential. Purchasing will not accept anonymous notifications. • Upon receiving the notification, Purchasing will perform an audit of the service provider or sub- contractor. These audits may take the form of a review of paystubs issued by the vendor under review or any other means pertinent to arriving at a determination. • The service provider and/or sub-contractors will be required to compensate for any shortfall in pay to the affected employees at no extra cost to the City. Non-compliance may result in the cancellation of the Contract at the discretion of the City. Living wage options Only contracts above a certain value set by a municipality will apply i.e. City of Vancouver >$250k contracts; >120 hours per year May be applied to contracts with social enterprises Ideal for service contracts with entry level staff • custodial • serving staff Certification Cost (annual) Process • Identify products that are made on Vancouver Island Licensing agreement • Identify retailers that sell Vancouver Island products Product A Licensee sells Flocert is the independent third- Certifications finished products under party certification body that audits their brands with the farmers, workers, traders and FAIRTRADE Mark on companies to ensure they comply the packaging. with the international Fairtrade Standards. A Trader imports or manufactures Fairtrade goods that go on to be used in finished products. Island Good Certified Organizations Fair Trade Canada Fairtrade is a movement for change that works directly with businesses, consumers and campaigners to make trade fair for farmers and workers. The international Fairtrade system represents the world’s largest and most recognized fair trade system. What is Fairtrade Canada? • Fairtrade Canada is an independent non-profit organization that licenses the use of the FAIRTRADE Mark on products in Canada in accordance with internationally agreed Fairtrade Standards. • Fairtrade Canada is the Canadian member of Fairtrade International, which unites over 25 labelling initiatives across Europe, Japan, North America, Mexico and Australia/New Zealand as well as networks of producer organizations from Asia, Africa, Latin America and the Caribbean. Key objectives of the Fairtrade Standards • ensure that producers receive prices that cover their average costs of sustainable production • provide an additional Fairtrade Premium which can be invested in projects that enhance social, economic and environmental development • enable pre-financing for producers who require it • facilitate long-term trading partnerships and enable greater producer control over the trading process • set clear core and development criteria to ensure that the conditions of production and trade of all Fairtrade certified products are both socially and economically fair as well as environmentally responsible Fairtrade core elements: • training opportunities • non-discriminatory employment practices • no child labour • no forced labour • access to collective bargaining processes and freedom of association of the workforce • conditions of employment exceeding legal minimum requirements • adequate occupational safety and health conditions, and • sufficient facilities for the workforce to manage the Fairtrade Premium. What is a Fairtrade town? • To distinguish your community as a leader and to confirm your commitment to supporting the principles of fair trade, including a fair price, respect for labour standards, environmental sustainability, and more direct and equitable trade • To improve the livelihoods of millions of farmers and workers in the Global South who benefit from fair trade • To create awareness and encourage local citizens to make ethical and sustainable choices • To unite your community in a common cause Fair trade towns in Canada ~ 50 FT designated towns in Canada ~ 7 FT designated towns in BC ~ 0 FT designated towns on Vancouver Island University of Victoria is a FT designated campus Fairtrade http://guide.fairtrade.ca/ Fair trade Why are fair trade policies and practices well-accepted in Canada? Recap • 3rd party business certifications are recognized in contracts • 3rd party social enterprise certifications are recognized in contracts • 3rd party international standards are recognized in contracts • Living wage policies are recognized in contracts Good Practices, Verified and Amplified How to Identify Shared Values Presented by Larry Berglund and Kristi Fairholm Mader www.ccspi.ca.