WFTO - Fair Trade, Empowerment and Human Rights

When we examine the Principles of Fair Trade and it quickly becomes apparent the intention of Fair Trade is to Empower disadvantaged producers and their communities. The principles reflect business practices free from exploitation; are based on respect for universal human rights, women's rights, child rights, minority and migrant rights, rights of the disabled, and labour rights; embrace gender equality; and incorporate environmentally sound practices. However, the fact remains that for many of our producers their rights are not well known; the Universal Declaration of Human Rights remains an abstract idea, an international convention far from their immediate reality. 

This year Human Rights day is on Saturday the 10th of December. Join together to celebrate recognition of the very foundation of our Fair Trade Movement and check out the World Fair Trade Article on Human Rights and Fair Trade:

WFTO - Fair Trade, Empowerment and Human Rights

For a downloadable pdf version of the article:

Fair Trade, Empowerment and Human Rights

Also, in my last post I challenged Fair Traders around the globe to celebrate this day. Included in that challenge was a poster contest for children to draw their favorite article from the Convention of the Rights of the Child!

Send photos of your winning posters on Child Rights to be published on the Journey for Fair Trade!!!!  

When you have some really great entries select the best, take a photo of the winners and send it to me: journer (at) gmail.com and I will feature your young Fair Trade artists on my blog! Make sure you send me information about the featured artists as well!! Try to limit the number to one to three winners in your event. Entries from anywhere in the world are welcome.  

Join Chou, Little Journey, and I in making the future a better place for all of us; join in the global celebration of Human Rights Day on Saturday, December 10th!

Mitch Teberg, MA 

International Consultant

Sustainable Development / Fair Trade

Researcher / Trainer / Consultant 

Feel free to add your comments, suggestions, and ideas below; or commit to holding a special event on December 10th. 

WFTO - To Create a Vision for Fair Trade

For Fair Trade to be successful as a global movement there needs to be a clear and comprehensive vision. To create that vision begins with a reflection on hard lessons learned in the Global Recession of 2007-08.

I invite you to contribute to the development of this truly global vision:

 

WFTO - To create a vision for Fair Trade

Mitch Teberg, MA

For a downloadable PDF version of the article:
To Create a Vision for Fair Trade

"Our Values, Our Fair Trade Principles"

Ethical principles form the foundation of the Fair Trade, and when discussing these principles in practice we are really talking about the way business should be conducted around the world on a day-to-day basis, placing people and planet above profit and private gains. The principles are not a political ideology, but sensible, humane and logical aspirations for living on a shared planet.

In the last series, "From Principles to Practices", I focused on the importance of breaking down principles to an everyday occurrence. Coincidentally on June 20th, I received a weekly newsletter from Carola Reintjes, Chief Executive of the World Fair Trade Organization. In this newsletter she presented a terrific idea for promoting Fair Trade principles. With the permission of WFTO, I have reprinted that newsletter here:

Dear members, dear FAIR traders,

 

Shalom, Jambo, Dobar dan, Bula Wantok, Buenos días, Good day, Ciao, Bom dia, Nihao, Asalamou Aleikoum, Bonjour, Mabuhay, Konnichi wa, Namaste!

 

Today I would like to share with you a very simple proposal. I strongly believe in the simple and small things in life. Simple things and small gestures can have high impact, and can potentially change lives.

 

If a journalist asked you what it is that makes you different from other business, some of you might tell a long story, others might just say “We are fair traders”. But when this journalist keeps on insisting (surely a habit which characterizes all journalists around the globe), and asks what makes a Fair Trade Organization different from conventional companies, our answers will be very similar. We might not use the same words, we might express in multiple forms, but we will try to tell the journalist that our business is based on values. Some of us might mention our Fair Trade principles. The journalist will feel our pride when we explain to him/her our value-based approach to production and trade.

 

At the Mombasa AGM we approved our new WFTO Fair Trade System for membership, monitoring and certification which has at its core our 10 principles. We slightly changed the wording of our principles and incorporated the cultural identity into one of our principles. 

 

We would like to challenge you around our 10 principles. Can you imagine yourself, your colleagues, all employees, workers and producers knowing our principles? Just imagine! It would be very powerful.

 

Just imagine a visitor coming to see you, a buyer, a consultant, or an auditor. Imagine whomever he/she asks about your values, about the principles, and about how you incorporate these principles into your daily work, there will not be 50 different answers but only one common answer: a clear reference to our principles, and a clear explanation on how you work with these principles, how your organizations embeds them into your daily work.

 

Now my simple proposal:  

•  Print our Fair Trade principles; 
•  Make sure you only use the recent version approved at the Mombasa AGM; 
•  (Download) the document in English (see below) and Spanish (see at bottom);
•  Eliminate all previous versions from your files, only use this last version; 
•  Distribute copies to your colleagues, employees, workers and producers; 
•  Hang them on your wall at your work-place (desk, table, wall, …); 
•  Assure everybody does the same; 
•  Try to organize a short session every week, or ask for it to be organized; 
•  During the session discuss collectively one of the principles (one every week); 
•  In ten weeks your staff, workers and producers will have gone through a wonderful training on the 10 principles; 
• Tell us about your sessions, tell us about your good experience,  but as well about the problems you come across when implementing the principles; 
• Take photos during the sessions, film your sessions; 
• Share your experience, photos, film, drawings, with us; 
• We would like to share your good experience with other members, we will tell your story to motivate others.

This simple proposal is meant for all of us, producer organizations and marketing organizations, manufacturers and traders, exporters and importers, wholesalers and retailers. Don’t just assume that in your organization people are well trained on our principles, just because your organization has been in Fair Trade business for 20 or 30 years.

 

You might need to translate the principles into your local language/s.

You might need to convert them into graphics, drawings.

We surely cannot make the mistake to be exclusive around our values.  

All of our employees, workers and producers have a right to clearly understand what they are working for. Many hours of their live will be dedicated to Fair Trade, so we better make sure we reach out to all the people we are responsible for.

 

Our Fair Trade principles are our family silver. They make us unique in a highly competitive and exploitative world out there. Let us make sure we dedicate the attention our values deserve, and let us make sure each of the persons we are responsible for in our organization clearly understands and implements each of the principles.

 

We wish you a GOOD week, and an interesting first session,

 

On behalf of the Secretariat,

 

Carola           
WFTO © 2011

WFTO 10 Fair Trade Principles June2011-2

I like this idea because Carola's proposal is practical. It requires no costly effort and is essential to the sustainability of the Fair Trade Movement. More importantly, this activity needs to be done by organizations throughout the supply chain! There are many creative ways to make this a fun interactive and memorable activity. The best way to transfer ownership of these principles is through providing opportunities for staff and workers to teach others!  

The Principles of Fair Trade in Bahasa Indonesia,
at the workshop of a Mitra Bali silversmith

Most producer groups Chou and I met with on this journey had some degree of knowledge of the Fair Trade principles. Admittedly, there was room for improvement for some and an activity such as Carola suggests will definitely improve the situation. When principles are not shared with producers and key people within a Fair Trade Organization it can have disastrous results. In Cambodia, we witnessed how Fair Trade can fail those it is intended to benefit when the principles of Fair Trade were not integrated into the day-to-day operations and were not passed on to empower the craftswomen and men. Admittedly, it was the most challenging post to write because it was contrary to the results I had hoped to publish. 

In that blog post I asked myself, "What do I do when I go to listen to the voices of Fair Trade, but the voices are absent? By absent, it is not that they are missing as in people do not want to share their views on what Fair Trade means to them... I found myself asking, what happens when, for no fault of their own, the very people who you go to listen to, don’t have an answer because they don’t know what you are asking?"  For insight to the personal and organizational effects of disregarding the principles, you can read the blog post:

The Sound of Silence

However, the practice of our shared principles is not for producers alone! I can name at least one American certified Fair Trade importer who could really use Carola's activity (Read: Coffee Part II - "It's not my Problem"), and from what I have heard, it sounds like the problem is more wide spread than we would like to admit. 

Since starting this blog, I occasionally receive emails from people who plan to take similar journeys related to Fair Trade. Sometimes they are socially conscious backpackers, other times they may have something they wish to contribute to the Fair Trade movement and feel that a journey to meet producers is a good approach. Recently, I received an email from a Fair Trade / Environmental Activist in Spain. He shared his plan to conduct a journey of his own to follow-up on Fair Trade. However, as an advocate he expressed a sincere concern regarding the Fair Trade Movement in Spain that should be ringing alarm bells for all of us. With his permission, I reprint part of his email here: 

Hi Mitch,

I've just landed to your blog and I must sincerely congratulate for all your work and investigation in favor of fair trade. I work as environmentalist for Friends of the Earth - Spain, at the same time I'm involved in various non-prof fair trade, social and wildlife groups that keep myself happily busy and always on guard to fight for human and nature rights!!!

After many years involved in fair trade, social issues and environmental protection, I've decided to take a some time off to travel Asia and South America with the aim to visit communities and see if fair trade is really working as a catalyst for social and economic change and to value if we are all working towards building a sustainable future for both humans and nature.

I must say that there is a lack of transparency in FT issues in Spain, all shops buy direct from importers but there is a few information from importers on the real impact on communities: working conditions, families, health, education, rights,...everyone seems to be pretty happy just buying FT goods and no-one ask any further questions. To this point there are quite a few voices raising to demand more information and a real reports and analysis on FT impact on communities....but no-one seems to hear our demands.

In order to solve this lack of transparency and impact issue I've decided to travel to Asia and Latin-América to see things for myself. This journey will keep me on the move for at least two years. If everything works OK I hope to spend a year in Asia and the rest in Latin-América...

Warmest regards from Spain and all the best with your project, you are carrying out a fantastic work !!! 

I am encouraged by his personal commitment to follow-up on the impacts of Fair Trade. However, he also brings up a serious issue that directly relates to the importance of knowing the Fair Trade Principles regardless of where you find yourself in the supply chain. As an importer, retailer, consumer or advocate, how can we promote Fair Trade if we don't share the direct impacts of Fair Trade principles in a community?

One of the main motivating factors for Chou and I to embark on this journey was to learn about and present the impact of Fair Trade on producers. I have been in many Fair Trade shops and I am often disappointed that the only information about the producers is on a small sales tag. Surely Fair Trade retailers can provide more information than that! 

There are many ways to bridge the existing gap between producers and consumers. Here are a few examples that I have seen:

• Provide handouts or brochures that offer links to producer websites.
• Feature a simple one-page summary of a producer group each month with a couple photos.
• Offer opportunities to travel to meet producer groups in near-by locations, or for the adventurous offer Fair Trade travel packages to foreign countries - I recently reviewed a brochure for Fair Trade tourism in Cebu, Philippines! Use the trip to take photos and get their stories to share in the store when you return!
• Bring Fair Trade producers to connect directly with customers for a special occasion or fundraising event.

Information about the producers themselves, their community, the social issues they are addressing, and the impact of Fair Trade can be used as a selling point to connect consumers to producers; a value-added measure big box-store retailers can not offer. Unlike conventional trade, Fair Trade is intended to bridge the distance between producers and consumers; this is exactly the reason importers, retailers, their staff and Fair Trade volunteers could all benefit from Carola's suggestion. 

If the principles are understood throughout the supply chain, the information regarding the impact of Fair Trade is more readily shared! In many cases Fair Trade producers have websites and it is possible to see the impacts of Fair Trade through the information they provide. In other cases producers may not have access to the internet. In either case, the onus of responsibility for providing such information is on the importers and retailers alike. 

As Carola wrote, "We surely cannot make the mistake to be exclusive around our values." Find out how those principles are making a difference and share your findings!

Thank you for following our blog. Chou and I welcome your comments, ideas and suggestions as we delve into the multitude of issues surrounding Fair Trade. 

To be charitable is a virtue; 

     to be empowered is a human right. 

Fair Trade empowers the disadvantaged, integrates the marginalized, and supports the impoverished with viable livelihoods. Click here to donate to the Fair Trade.

Mitch Teberg, MA

Los Diez Principios Comercio Justo June2011

From Principles to Practices - Part III

In my last blog post about breaking down principles to practices in contracts (From Principles to Practices Part II) with Fair Trade producer groups, I discussed and provided examples of the purpose behind such a contract:

1. To provide clear definitions for common understanding
2. Assign clear and practical areas of responsibility to both the producer and the buyer for each principle. A Fair Trade contract cannot be one sided!
3. Reference the relevant United Nations and ILO Conventions, thereby integrate a Rights-Based Approach into the contract
4. Create a platform for in-depth discourse to develop common understandings that overcome social and cultural barriers between the buyer and the producer

To that blog post, Dr. Sabam Malau, Chairman of the North Sumatera Coffee Forum (NSCF) made a few additional points from his own experience that are particularly important if Fair Trade is to be considered fair to producers. First, he explains the need for an independent third party to verify adherence to the principles. Secondly, he defines a fair price for coffee growers as one that provides the farmers with a viable livelihood. Lastly, he points out the importance of establishing a forum inclusive of the local government while integrating a Rights-Based Approach to programs and policies. With his permission I have posted it here:

Thank you Mr. Mitch Teberg for the explanation above for it is a very good idea of understanding and implementation of the fairness principles. That's very inspirational.

Indeed, yes, both sides (buyers and producers) has its own duties. However, I do believe that a third party must play a key role i.e to match buyers' and producers' interest. The third party can be NGO, person, or government. As long as no conflict of interest they face, they can then contribute significantly to fair trade implementation.

We NSCF-North Sumatera Coffee Forum has been trying to spread the idea of fair trade, such as coffee price at growers level must be high enough that coffee growers can then have enough income for better livelihoods and for maintaining their coffee field sustainably by using GAP/SOP. The coffee growers have right to live good, have right to be treated fairly, have right to live in friendly ecology/environment, have right to prepare good education for their children etc.

NSCF will stimulate coffee stakeholders to form coffee forum in each regencies or subregencies. To do that, NSCF needs external supports (technical and financial) to establish the forums and then train the forum members. For short and simple explanation: such coffee forums will disscuss then with the local government so that the local government will decide policies/program based on people rights. The forums will also make good relationship with buyers. It's a kind of win-win solution for all sides. The producers will produce coffee with highest quality continuously, and buyer will buy coffee with highest price.

I do understand that the tasks of NSCF is not easy. However, NSCF have done something through spreading the idea to decision makers and people near to them as well as to the coffee exporters. Although the results are not yet seen significantly, but at least they already rethink their policies/program. Otherwise, the future of coffee will be questioned and unclear.

Thank you. Kind regards.

Dr. Sabam Malau
Chairman of NSCF-North Sumatera Coffee Forum
http://northsumateracoffeeforum.blogspot.com

I wholeheartedly agree with Dr. Sabam Malau. His first point is quite important - the need for independent verification. An independent third party is essential to ensure both parties adhere to the agreement. A third party such as an NGO, person, or government has several tools at its disposal. Participatory Rural Appraisal (PRA) is a commonly used methodology in the field of Development for conducting assessments and as a basis for project evaluations. The same tools can be modified for a third party evaluation of Fair Trade practices. For example, interviews with key people involved such as management, review of the transactions between the buyer and the producer, a review of the current practices throughout the supply chain, conducting an inquiry directly with producers, and group discussions with various stakeholders. These are just a few of the many tools used in project evaluations that would be applicable here.

In the Helvetas contract, it states: “Verification of compliance to the contract will be conducted by external auditors with an understanding of the local political, social and cultural contexts and extensive knowledgeable of Fair Trade Principles and Practices. To ensure a fair disposition in the audit, both the Producer and the Buyer will be assessed according to the terms of the contract.”  In short, it is not only the producer who is held accountable, but the buyer as well.

His second point on defining a fair price is the cornerstone of Fair Trade. He utilizes a set of criteria to determine fairness. 

• Improving livelihoods
• Maintaining sustainable farming practices
• Live well
• Fair Treatment
• Live in a safe, unpolluted environment
• Children receive good education
• Etc

In establishing Ten Principles of Fair Trade, the World Fair Trade Organization also defines the payment of a Fair Price:

Principle Four: Payment of a Fair Price 

A fair price is one that has been mutually agreed by all through dialogue and participation, which provides fair pay to the producers and can also be sustained by the market. Where Fair Trade pricing structures exist, these are used as a minimum. Fair pay means provision of socially acceptable remuneration (in the local context) considered by producers themselves to be fair and which takes into account the principle of equal pay for equal work by women and men. Fair Trade marketing and importing organizations support capacity building as required to producers, to enable them to set a fair price.

© WFTO

Both approaches center on the participation of producers which integrates the cost of living and production. 

Another approach is termed as a "Living Wage" and is often upheld as a standard for Fair Trade. Notably, a "Living Wage" does not contrast with the WFTO or NSCF definitions. 

© Bennett cartoon from the Christian Science Monitor

What is a "Living Wage"? 

Firstly, it is not a minimum wage. Frequently a minimum wage is lower than a "Living Wage" and keeps families trapped in poverty. Another important distinction is that a minimum wage is set by legislative bodies whereas a "Living Wage" is set by the producers themselves. 

By definition a "Living Wage" is designed to provide a minimum estimate of the cost of living for low wage families. The estimate does not reflect a middle class standard of living. The living wage is calculated as a wage sufficient to provide food for an adequate diet and the remaining basic needs for the worker household with an additional 10% added on for discretionary income. For this reason the average number of wage earning adults per household in the target community is included in the calculation.

The "Living Wage" is a calculation reflecting the basic needs of a family and integrates a means for a family to get out of poverty in a particular context. By this, I mean it is flexible enough to be applied in rural or urban settings, as well as in various cultural or political settings. For example, in rural communities the cost of day-to-day living is generally less expensive. This calculation allows for variations by involving the poor in calculating their own day-to-day costs. 

Secondly, in some countries there is a limit to the number of children a family can have, most notably is China's One-Child Policy. In other communities where no such legal restrictions exist, socio-cultural and religions norms and pressures may influence the number of children in a family. For example, in some cultures it may be a common practice to have six or seven children while in other cultures there may be fewer children per family, which may be due to external influences such as effective family planning and awareness campaigns. 

A third influencing factor is also influenced by socio-cultural norms. In some Asian countries it is common to have three generations residing in the same household. However, that is quite a broad generalization. For a calculation to be accurate, the producers need to be involved in answering particular questions. For example, "Amongst the producers is it common to have three generations residing in the household?" "Has a recent event such as a natural disaster or economic recession forced families to move in together?" For these reasons the producers themselves are essential for the calculation to be accurate. 

Discussing the Value Chain and a Living Wage at the
Helvetas Workshop in Hanoi, Vietnam, May, 2011.

I have reviewed a few variations of this calculation and integrated my findings into the Helvetas contract as follows:

 Living Wage Calculation:

[(Average cost of basic needs per HH for 1 month)
+ 10% Savings]

----------------------------------------------------------------------------

Average no. of adult wage earners per HH

Note: Individual “basic needs” include food, water, clothing, daily use items, communication and transportation costs, cost of schooling, average medical costs, etc. Household monthly expenses include rent and household utilities, maintenance costs, etc.

We had participants in the Helvetas Workshop practice with this and strongly suggested they repeat this exercise with the craftswomen and men as a means to ensure they are providing a fair and living wage.

During our travels in SE Asia from December, 2010 to May, 2011, Chou and I followed up on producers and the wages they earned. Often times, the wages were above the minimum wage, but not yet to a "Living Wage" standard. In most cases their pay covered all their costs, but there was little or no room for much beyond that. This does not suggest that Fair Trade has failed producers. When I inquired as to the reasons for not achieving a "Living Wage" standard with management of the local Fair Trade Organizations, I would frequently hear the same problems: Sales were not high enough for the FTO to be able to pay a higher wage at this time. Keep in mind that most Fair Trade producer groups are heavily dependent on export. It is important to note here that although recovery from the 2007-08 Global Recession is occurring in many Western nations, that does not mean that Fair Trade sales have returned to pre-recession levels. 

Many times I had discussions with the management of local FTOs on ways to expand markets, diversify products and value-add to their product line. If you are reading this blog and would like more ideas in this area, read about development of local and national markets in the February, 2011 blog posts: Franchising Fair Trade and Defining Competitive in Local Markets. For an inspirational approach to localizing Fair Trade for coffee farmers, check out the January, 2011 blog post: To Make Coffee Sustainable and April, 2011 post: Coffee Part III: Empowering Communities through Action.

www.helvetas.biz

For the Helvetas contract, the Annex it stipulates the payment of a  Fair Price and mainstreams gender: 

• Producer sets minimum wages according to a “Living Wage” calculation in the local context. 
• Producer guarantees equal pay for equal work by women and men. 
• Producer ensures women and men have equal access to skills training and capacity building to increase income generating opportunities.

However, Helvetas didn't want the "Living Wage" standard to be an impeding factor, but an established goal that could realistically be attained. For those cases where providing a Living Wage is not attainable upon contracting, the contract specifies:  

"Where a Producer is not in compliance with the practices detailed in the Annex, Helvetas will work with the Producer to jointly create a progressive Action Plan which will include identifying areas for improvement, further research, and training in order to enable the Producer to modify current practices in a reasonable time-frame. An Action Plan will be created within 60 days of contracting and agreed upon adjustments will be integrated into Producer Development Strategies to ensure compliance within 1 to 3 years from the date of contract." 

Buyers working with producers to create an Action Plan provides a platform for in-depth discourse to develop common understandings that overcome social and cultural barriers. Defining a "Living Wage" is just one of many common understandings that need to be developed between buyers and producers in Fair Trade.

Again, I would like to add a special thanks to Helvetas Vietnam (www.helvetas.org.vn) for permitting me to write of our work together to make the world a better place. Recognition also goes to my partner and greatest supporter, Chou. We are currently residing in Ho Chi Minh City, Vietnam, where I will continue to keep up this blog delving into relevant issues as I write about our Journey for Fair Trade.

 

Feel free to add your comments, thoughts or ideas below or catch me on facebook.

Mitch Teberg, MA