Factory Standard for Apparel and Home Goods Version 1.4.0 Fair Trade USA Published: November 15, 2017 Effective: January 15, 2018 Version 1.4.0 This document is available free of charge in electronic format on the Fair Trade USA website: www.FairTradeCertified.org All rights reserved © 2018 Fair Trade USA No part of this publication may be copied, reproduced, distributed, published, or transmitted without full attribution. Note on Translations Translation accuracy of any Fair Trade USA standard and policy document into languages other than English is not guaranteed nor implied. For any question related to the accuracy of the information contained in the translation, refer to the official English version. Any discrepancies or differences created in the translation are not binding and have no effect for auditing or certification purposes. Contact Fair Trade USA 1500 Broadway, Suite 400 Oakland, CA 94612 USA Phone: +1 (510) 663-5260 Fax: +1 (510) 663-5264 E-mail: [email protected] Website: www.FairTradeCertified.org Factory Standard for Apparel and Home Goods November 15, 2017 Page 1 of 109 Version 1.4.0 Table of Contents INTRODUCTION .............................................................................................................................................................................................................4 Fair Trade USA’s Mission and Vision ........................................................................................................................................................................ 4 Fair Trade USA’s Theory of Change .......................................................................................................................................................................... 4 Objective of this Standard .......................................................................................................................................................................................... 5 About this Standard .................................................................................................................................................................................................... 5 Using the Factory Standard for Apparel and Home Goods ....................................................................................................................................... 7 Other Important Documents ....................................................................................................................................................................................... 9 Contact Fair Trade USA ........................................................................................................................................................................................... 10 SECTION 1: Empowerment (EM) ................................................................................................................................................................................ 11 SUB-SECTION 1.1: Fair Trade Management Systems (MS) .................................................................................................................................. 11 SUB-SECTION 1.2: Worker Participation, Transparency, and Financial Accountability (PTA) .............................................................................. 15 SUB-SECTION 1.3: Grievance Procedure (GP) ...................................................................................................................................................... 29 SECTION 2: Economic Development (ED) ................................................................................................................................................................. 31 SUB-SECTION 2.1: Fair Trade Premium (FTP) ...................................................................................................................................................... 31 SUB-SECTION 2.2: Conditions of Employment; SA8000: Working Hours and Remuneration (CE)...................................................................... 31 SECTION 3: Social Responsibility (SR); SA8000 Standard........................................................................................................................................ 48 SUB-SECTION 3.1: Protection of Children and Young Persons; SA8000: Child Labor (PC)................................................................................. 48 SUB-SECTION 3.2: Freedom From Forced Labor and Human Trafficking; SA8000: Forced and Compulsory Labor (FL) .................................. 52 SUB-SECTION 3.3: Occupational Health and Safety; SA8000: Health and Safety (OH) ....................................................................................... 57 SUB-SECTION 3.4: Freedom of Association; SA8000: Freedom of Association and the Right to Collective Bargaining (FA) ............................. 78 SUB-SECTION 3.5: Non-Discrimination; SA8000: Discrimination (ND) ................................................................................................................. 82 SUB-SECTION 3.6: Women's Rights (WR) ............................................................................................................................................................. 85 SECTION 4: Environmental Responsibility and Management (ERM)......................................................................................................................... 87 SUB-SECTION 4.1: Monitoring Systems (MS) ........................................................................................................................................................ 87 SUB-SECTION 4.2: Hazardous Materials (HM) ...................................................................................................................................................... 88 SUB-SECTION 4.3: Waste Management (WM) ...................................................................................................................................................... 92 SECTION 5: Trade Requirements (TR) ....................................................................................................................................................................... 94 SUB-SECTION 5.1: Basic Requirements (BR) ........................................................................................................................................................ 94 SUB-SECTION 5.2: Supply Chain Traceability (ST) ............................................................................................................................................... 96 SUB-SECTION 5.3: Subcontracting (SC) ................................................................................................................................................................ 97 ANNEX 1: Composition and Eligibility to Serve on the Fair Trade Committee (FTC) ................................................................................................. 99 Factory Standard for Apparel and Home Goods November 15, 2017 Page 2 of 109 Table of Contents Version 1.4.0 ANNEX 2. The Constitution ....................................................................................................................................................................................... 103 ANNEX 3: The Fair Trade Premium Bank Account ................................................................................................................................................... 104 ANNEX 4: Fair Trade Premium Expenditure Guidelines ........................................................................................................................................... 105 ANNEX 5: Needs Assessment................................................................................................................................................................................... 107 ANNEX 6: Fair Trade Premium.................................................................................................................................................................................. 108 ANNEX 7: Restricted Materials List ........................................................................................................................................................................... 109 Factory Standard for Apparel and Home Goods November 15, 2017 Page 3 of 109 Fair Trade USA’s Mission and Vision Version 1.4.0 INTRODUCTION Fair Trade USA’s Mission and Vision Fair Trade empowers workers, farmers, and fishermen to fight poverty in ways that improve lives and protect the environment. Rather than creating dependency on aid, it harnesses the power of markets to help producers, businesses, and consumers alike to invest in a better future. Fair Trade USA, a nonprofit organization, is the leading certifier of Fair Trade products in North America. Fair Trade USA and partnering Conformity Assessment Bodies audit and certify supply chains to help ensure that workers, farmers, and fishermen are paid fair prices and wages, work in safe conditions, protect the environment, and earn community development funds to improve their lives. Fair Trade USA’s Theory of Change Fair Trade USA views workers, factory management, businesses and consumers as an ecosystem of partners. Each of these key stakeholder groups needs the others to realize their goals. Fair Trade USA believes that: • Workers and factory management will have more sustainable