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SIZA Guide to using the Ethical Trading Handbook
March 2014
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Acknowledgements
The SIZA Guide to using the Ethical Trading Handbook has been produced for the SIZA programme as a tool for Ethical Trade Facilitators to present
awareness sessions for farm and packhouse emplyoees on how to use the Ethical Trading Handbook. This guide also provides some background to ethical trade but its main focus is to inform people how best to access information in
the Ethical Trading Handbook.
We gratefully acknowledge all the people in the industry who contributed to the development of this Guide and to the South African Table Grape Industry
for funding its development.
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This pack is a guide to using the Ethical Trading Handbook for farm and packhouse employees
and is support material for Ethical Trade Facilitators who run SIZA awareness and training
sessions. While the focus is on how to use the Handbook it also provides useful information on
the background to Ethical Trade and the SIZA programme, ethical audits and the role of the
Ethical Trade Facilitator.
It is divided up into 6 sessions each consisting of a number of different topics
which can be used as required.
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ContentsSession 1: Introduction to Ethical Trade page 6
-Topic 1: What does ethical trade mean? page 7-Topic 2: Where does ethical trade come from and who drives this? page 11-Topic 3: Who drives ethical trade in the supply chain? page 13-Topic 4: What is the Global Social Compliance Programme? page 14-Topic 5: What value can ethical trade add to your business? page 19-Topic 6: Why is it important to have management systems in place? page 21
Session 2: What is the SIZA programme? page 24
-Topic 1: Background to the SIZA programme page 25- Topic 2: Goals of the SIZA programme page 30-Topic 3: SIZA Programme framework page 32
Session 3: The Ethical Audit page 33
-Topic 1: What is an ethical audit? page 35-Topic 2: What happens in an ethical audit? page 39
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Contents
Session 4: How to use the Ethical Trading Handbook page 42
-Topic 1: Introduction to the scope and content of the ET Handbook page 43-Topic 2: Finding information in the Ethical Trading Handbook page 46
Session 5: Checklists and Improvement Plans page 51
-Topic 1: How to use the Checklist as a self-audit page 52-Topic 2: Developing an Improvement Plan page 60
Session 6: The role of the Ethical Trade Facilitator page 63
-Topic 1: What is the role and purpose of the Ethical Trade Facilitator? page 64-Topic 2: Tasks and responsibilities of the Ethical Trade Facilitator page 66
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SESSION 1: INTRODUCTION TO
ETHICAL TRADE
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Topic 1: What does ethical trade mean?
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Ethical trade can have a number of different meanings, but our focus is on
Social and labour ethical practices in a business’s supply chain
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Ethical trade provides assurance to consumers that all the members of the supply chain comply with international standards
Supplier commitment is shown by adopting a code of labour practice for example, the SIZA Code of Practice that measures their compliance with minimum labour standards
The supplier must demonstrate that he or she is compliant by supplying evidence (for example, a payslip to prove minimum wages are paid and only legal deductions are made)
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The SIZA Code addresses the following types of issues: Wages Hours of work Health and safety Right to join trade union
* The SIZA Code of Practice is based on international conventions and South African labour laws
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Topic 2: Where does ethical trade come from and who drives it?
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The SIZA Code is based on:
ILO conventions that prescribe minimum standards
South African legislation
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Topic 3: Who drives ethical trade in the supply chain?
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Ultimately it is the consumer that wants to know that the food they buy is being produced in an ethically sound environment Pressure to prove ethical compliance comes from
consumers and civil society (NGO’s and labour unions) due to concerns over social and environmental conditions in supply chains
The media and research reports tell the stories
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Producers
NGOs
Export Agency
Importer
Agent
Shareholders
Consumers
Trade Unions
and NGOs
Supermarkets
Competitor Supermarkets
“Developing country”Producers
“Developed country”Consumer markets Change in
brand?
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Topic 4: What is the Global Social Compliance Programme?
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Global Social Compliance Programme (GSCP) An initiative of retailers (eg. Tesco, M&S, Ahold, Migros) to
support principles of non-duplication of ethical audits
GSCP reference code combines all the principles of the international ethical codes (ETI, BSCI, SA 8OOO) into a single reference code
The reference code can be adopted by industries such as the fruit industry as a platform for their own ethical standard
Fruit SA used the GSCP reference code as a platform to benchmark the SIZA Standard against international requirements and was found to be 92% equivalent
Aim? To reduce duplication of audits and to develop a clear, consistent message on best practice for suppliers globally
Why? To continuously improve conditions in the workplace 17
The South African fruit industry was proactive in its
response by initiating its own ethical trade programme,
using the GSCP reference tools as a globally accepted platform to benchmark its own Standard
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Topic 5: What value can ethical trade add to your business?
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An ethical trade programme focuses on continuous improvement in the workplace and adds value in many ways:
Efficiency + productivity
Motivation of workforce
Retain current markets and access to new markets
Supply chain sustainability
Use of resources to support capacity building
Audit costs Absenteeism
Managing Risk for individuals and the industry
Topic 6: Why is it important to have management systems in place?
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Good management systems allow a business to run effectively
They help to demonstrate to an auditor that the business complies with ethical standards
You must be able to show proof of everything you say that you do
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Examples that can be used as proof: Payslips – can prove how much employees have
been paid Employee contracts – can prove that somebody is
employed, for how long and under what conditions Workplace policies – should be visible in the
workplace, explained to all employees and used to demonstrate the business’ position on critical issues such as:o Discriminationo Ethical tradeo Child labouro Sexual harassment 2
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SESSION 2: WHAT IS THE SIZA
PROGRAMME?
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Topic 1: Background to the SIZA Programme
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These organizations come together to represent the industry’s interests around common issues Example: Ethical Trade
FSA represents 5,000 producers 400,000 employees
FPEF represents 110 export houses
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FSA developed + implemented an Ethical Trade programme, later formalised as the Sustainbility Initiative of South Africa (SIZA), in response to increasing demands on growers by international retailers.
SIZA Programme is: Locally managed, locally relevant Aligned to South African legislation Complies with international standards and requirements Allows growers to avoid duplication of ethical audits Allows for collection of data to inform needs Provides support for growers (capacity-building
programme) Focus on continuous improvement (development-led not
audit-led)
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SIZA Programme includes: SA standard (based on GSCP reference code; aligned
to SA law) Audit methodology (based on GSCP reference tool)
How the audit will take place How often audits will take place How non-compliances will be verified, etc
Auditor recognition (based on GSCP reference tool)
Ethical Programme Guidelines Management structure Dealing with complaints (eg from audits) Capturing data Support for continuous improvement, etc
Topic 2: Goals of the SIZA programme
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Goals of the SIZA Programme are: To ensure the industry drives its own ethical trade
programme in a professional manner To support ongoing improvement of labour conditions
on fruit farms and pack houses To help manage commercial risks allied to ethical
trade matters To give retailers + other stakeholders confidence in
South African supply base Reduce the number, duplication + costs of audits by
converging with other ethical programmes To support ethical practices along the supply chain
Topic 3: The SIZA Programme Framework
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SESSION 3: THE ETHICAL AUDIT
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Topic 1: What is an Ethical Audit?
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Ethical audit: Aims to measure current performance Identifies areas where improvements can be made Involves interviews with employees Conducted by professionally trained auditors
More time-consuming and costly then other audits, therefore takes place less frequently based on SIZA Audit Frequency Matrix (frequency depends on nuber of non-compliances)
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An ethical audit is:A way of jointly agreeing on how to fix a problem A constructive way to advise people of problemsFocussed on continuous improvementAimed at supporting producers + pack house ownersAimed at an ongoing process
An ethical audit is not:A pass/fail exerciseAimed at catching people outA tick box exercise (like GLOBALG.A.P)Able to be overlapped with other audits
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How is an ethical audit different to a GLOBALG.A.P audit? Aims to ensure food safety for export
products Assures consumers that a product was
produced with minimal negative impact to the environment + decreased use of chemicals
Focuses on good agricultural practices (G.A.P) Does not focus on fair labour practices (like
an ethical audit)
Topic 2: What happens in an ethical audit?
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What is the purpose of the feedback session?
Conducted after the site assessment Between the auditors and management To discuss any non-compliances found How these can be addressed What actions will be taken + by whom Agreed by both parties Uploaded onto the system once corrective measures
have been completed
SESSION 4: HOW TO USE THE
ETHICAL TRADING HANDBOOK
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Topic 1: Introduction to the scope and content of the Ethical Trading Handbook
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Chapter Issues
Page numbers in Handbook
1 ETHICAL TRADE IN THE FRUIT INDUSTRY 1 - 7
2 MANAGEMENT SYSTEMS 8-9
3 FORCED, BONDED, INDENTURED AND PRISON LABOUR 12-25
4 CHILD LABOUR AND YOUNG EMPLOYEES 28 - 37
5FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING 38 – 49
6 DISCRIMINATION, HARASSMENT AND ABUSE 50 – 65
7 HEALTH AND SAFETY 67 - 89
8 WAGES, BENEFITS AND TERMS OF EMPLOYMENT 91 - 110
9 WORKING HOURS 116 - 130
10 ETHICAL TRADE AND THE B-BBEE SCORECARD 132 - 134
11 TRAINING AND THE SKILLS DEVELOPMENT LEVY 135 - 137
INDEX 139
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Each chapter in the handbook which deals with the Code has the following sub-sections: What does the Code say? What does South African law say? Guidelines to the law and best practice Common questions and answers
This will add to the ease of use and you should quickly become familiar with how to use the handbook
Topic 2: Finding information in the Handbook
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1. Identify the issue that you have and need assistance with
2. Go to the index at the back of the Handbook and search for that topic (in alphabetical order)
3. Now go to the relevant page number in the Handbook
Don’t forget there is also more information available on the website:
www.siza.co.za
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Case Study 1: Sexual Harassment / Discrimination
Sara lodged a complaint of sexual harassment with the manager of the farm. She said the supervisor in her section often came physically close to her, sometimes touching her and then making comments of a sexual nature. She stated she had complained to management before but her complaints were ignored. She also said that she believed she had been overlooked for promotion because she was a woman and that jobs which she was qualified to do had been given to men with less skills than her.
Questions:What is/are the issue(s)?What does the law say?What is recommended (Best Practice)?Where did you find the information?
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Case Study 2: Child Labour
John is a producer and he employs young people over the age of 15 years to work during holidays. Fanie is one of the young boys he employs. Fanie is 16 years old and asks John for full time employment on the farm. He says he has left school because his parents can’t afford to send him and they need him to earn some money for the family. John wants to know whether it is legal to employ the young people during the school holidays and also whether he can employ Fanie seeing as he has left school and he urgently needs to earn an income.
Questions:What is/are the issue(s)?What does the law say?What is recommended (Best Practice)?Where did you find the information?
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Case Study 3: Loans / Deductions
Basie is a small-scale grower with 15 permanent workers. Basie regularly loans money to his employees for them to buy food at the farm shop. He deducts this amount off their wages every week. He writes down the purchases in a small book at the shop but doesn’t get the workers to sign for this. However his workers are now complaining that he is deducting too much from their wages. Basie wants to stop making the loans. He comes to you for advice because he wants to do what is right in terms of the law.
Questions:What is/are the issue(s)?What does the law say?What is recommended (Best Practice)?Where did you find the information?
SESSION 5: CHECKLISTS AND
IMPROVEMENT PLANS
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Topic 1: How to use the Checklist as a self-audit
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Checklists?
Found at the end of each chapter in the Handbook
Reflect the requirements of the Ethical Standard
Used as a form of self-audit
1. To check whether your site is compliant2. To ensure you have all the evidence needed
to prove this
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Example: Child Labour Checklist
Example: Child Labour Checklist
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Topic 2: Developing an Improvement Plan
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An Improvement Plan helps to identify issues that need attention and the tasks that are required to ‘fix’ these
Its purpose is to organize and develop solutions to address a specific issue, challenge or problem
Here are some examples of issues that could be addressed:
Handling of chemicals by untrained employees
Deductions made for safety and protective clothing Children between the ages 15 to 18 years helping out during
school holidays Policy on Discrimination not in place No structure to enable communication between management and
workers
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Issue Action Steps to take
Resources needed (money, time, materials)
Who should lead, who should be involved
When to becompleted by
Use the Table to draw up your own Improvement Plan
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SESSION 6: THE ROLE OF THE
ETHICAL TRADE FACILITATOR
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Topic 1: What is the role and purpose of the Ethical Trade Facilitator?
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The Ethical Trade Facilitator has a very important role to play in his/her own organization!
1. To promote understanding of ethical trade2. To recognise people who support ethical
trade in their supply chain3. To actively participate in the SIZA
programme4. To build momentum, capability +
ownership for ethical trade in the business5. To deliver on the goals of the SIZA
Programme
Topic 2: Tasks and Responsibilities of the Ethical Trade Facilitator
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Ethical Trade Facilitators play a supportive role in their own organisations or for suppliers by encouraging and building an understanding of the requirements of the ethical trade programme
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Success Factors
Area Tasks / responsibilities
1. Managing Performance
Supporting the reporting process
• Support colleagues and/or suppliers to deal with major or persistent issues on the site.
• Provide updates to management on ethical trading performance and progress.
• Give feedback where necessary to the SIZA programme – for example, good news stories for the website.
• Review audit reports through Sedex (if access is given).• Work in your own organisation and/or with suppliers to deliver on
their Corrective Action Plans and to develop their Improvement Plans
• Ensure that people who are responsible for using Sedex are keeping up to date with Sedex requirements.
2. Supporting Continuous Improvement
Supplier training
• Keep everyone informed of updates from the SIZA Website
• Use the audit results , Corrective Action Plan (CAP) and Improvement Plan to identify what the needs are, and what initiatives should be put in place to remedy the problems ; these initiatives will includes awareness-raising and training programme
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Success Factors
Area Tasks / responsibilities
3. Managing Change
Share knowledge and support change
• Be the ‘go-to’ person for advice on supporting improvements in labour practices amongst suppliers.
• Support your organisation and/or suppliers to adopt new approaches
• Share learning’s with colleagues and/or suppliers about how to change and improve the way information from self-audits and third party audits is used.
• Receive and communicate updates on labour standards from SIZA website.
4. Building awareness and gaining commitment
Celebrate success and gain commitment
• Help raise awareness and understanding of ethical trading issues with colleagues and/or suppliers
• Get colleagues and /or suppliers on board with the SIZA programme goals.
• Collect good news stories about social conditions on farms and submit these to the SIZA programme for their website.
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