Salient Issue

Labour rights & conditions

Jobs in agriculture and mining are often low paid, precarious and dangerous. Unions and collective bargaining are essential for improving conditions, but efforts to organise are often undermined by employers, informal and seasonal work contracts or prohibitive laws.

Excessive work hours are commonplace, both for small-scale farmers and farm workers. For example, in flower production in Ethiopia and Ecuador, overtime is often compulsory and not paid at all or at a premium rate. The same is reported by two-thirds of garment workers in India. Banana workers in Guatemala log 12 to 15 hours Monday through Friday, with a half-day of work on Saturday.

Injury and illness is common. Flower workers are prone to repetitive stress injuries from working in crouched and bent positions for long periods of time. More than 80% of cocoa producers in Ghana have experienced cuts, burns, back pain or other injuries. In bananas, just 20% of workers using pesticides use masks and/or gloves regularly.

Among artisanal gold miners, 25-33% of miners suffer from mercury vapor intoxication with various symptoms from headache and insomnia to kidney effects, respiratory failure and death. In processing mills, poor ventilation causes respiratory infections in sectors like cotton, cashew and rice in South Asia.

Informal and short-term work hinder access to social security and trade unions. Temporary tea workers in Kenya earn less than half of permanent employees and are ineligible for union membership. Informal seasonal work is particularly common on smallholder farms that mostly rely on family labour.

Animosity toward trade unions is widespread. One of the worst affected sectors is in bananas, where workers have been dismissed for participation in union activities and puppet unions create divisions, as documented in Colombia, Costa Rica, the Dominican Republic, Ecuador, Nicaragua and Peru. Latin American coffee plantations are riddled with similar violations. In India, caste discrimination means that union leaders do not always represent the interest of all tea estate workers.

Unionisation is also a hot topic at the consumption end of some supply chains. In the US, unionisation is low in the food and beverage industry.

According to research

Fairtrade certified plantations had improved working conditions: better spaces, fewer working hours and improved job satisfaction.

Review of research on Fairtrade from 2015-2020, 2022, page 31.

Action

Fairtrade's response

Fairtrade endeavours to fight the root causes of substandard working conditions. We believe in a worker-led approach where workers lead the negotiations to prevent, mitigate and remediate labour risks with the support of Fairtrade.

Fairtrade collaborates with labour rights organisations and others to achieve structural changes that advance the rights of all workers, not just those employed by Fairtrade certified farms and plantations. Our initiatives seek to drive change beyond the level of individual companies. Recently, we have advocated for structural changes, particularly in the banana and floriculture sectors.

If a violation of a Fairtrade Standard requirement is found, the independent Fairtrade auditing body, FLOCERT, agrees on corrective actions with the organisation and checks their implementation.

According to research about banana plantations in the Dominican Republic

Fairtrade has positive effects for workers, particularly by offering a sense of job-security and improving voice and savings.

van Rijn et al., 2019, page 354.

Fairtrade response in detail

1. Preventive and mitigating measures

Fairtrade utilises a variety of tools to prevent and mitigate¹ the risks regarding workers’ rights and the freedom of association at farmer cooperatives and plantations.

The Fairtrade Standards are one of the tools. Based on ILO conventions and recommendations, the Standards include several requirements on working conditions, which apply to workers employed both directly and indirectly via subcontractors:

Tools, facilities and contracts. Plantations must offer all workers proper tools, work clothes, clean drinking water, toilets, hand washing facilities, and payslips. Written contracts must be offered to all workers employed for more than three months. Farmer cooperatives need to guarantee many of the same rights, such as protective clothing, clean water and legally binding contracts for permanent workers. Some of the requirements are applicable to farms that hire more than 10 workers for at least one month.
Leaves and breaks. Plantations also must ensure that overtime is voluntary and restricted to a reasonable amount. Sick leave, a minimum of 2 weeks paid annual leave, lunch breaks and legal social security are also required.
Freedom of association. Both plantations and farmer cooperatives must respect workers’ freedom of association and collective bargaining in line with ILO Conventions². They must allow each worker to join the workers’ organisation of his/her choosing – without facing any retaliation (see also non-discrimination).
Right to Unionise Guarantee. Plantations must furthermore sign the Freedom of Association Protocol and a “Right to Unionise” Guarantee provided by Fairtrade and display the latter in local languages in the workplace. A trade union or an independent, democratically elected workers’ organisation must exist, and management must meet with its representatives at least once every three months. Where a collective bargaining agreement exists, plantations must adhere to it.
Furthermore, there are concrete requirements on wages and gender equity.

To explore the full set of Fairtrade’s Standards on labour conditions and FOA, please see the bottom of this page.

Fairtrade also works in several other ways to improve working conditions and advance the freedom of association:

Training. Fairtrade organises trainings to support workers and producer organisations to know and advance workers’ rights. As a result of Fairtrade trainings on social, economic and environmental issues, a majority of the participating organisations reported taking steps to improve workers’ rights and/or labour conditions. In Africa, 72% of organisations and in Asia 70% of participants said this in Fairtrade's Producer satisfaction survey for 2020.
Social dialogue. Fairtrade works to support dialogue between workers and their employers, in collaboration with producer organisations, local unions, and labour experts. A round table among banana industry actors in Peru is a prime example of our work to strengthen labour relations and resolve disputes between farmer organisations and trade unions.
Partnerships. In collaboration with trade unions and labour rights organisations, we support workers to organise and negotiate collective agreements on various aspects of decent work. Our work with the labour movement on banana plantations in Cameroon and Ghana, for example, has helped unions, employers and workers find agreements on decent wages, good labour relations, gender equity, and health and safety.
Comprehensive programme interventions. These are often necessary to support improved working conditions. Fairtrade has partnered with organisations to support artisanal and small-scale gold miners in South Peru to formalise their activities and reduce miners’ exposure to health and safety risks. In another example, Fairtrade joined forces with partners to launch a programme to empower flower farm workers in Ethiopia where 85% of the workforce are either female, migrant, or under 25. This 4-year programme trains workers and their unions to negotiate living wages and improved conditions, and advocate for their rights. For information on this and other current projects, please see Fairtrade’s project map.
Textile Programme. Given the scale and scope of the challenges to workers’ rights and conditions in the textile industry, Fairtrade launched the Fairtrade Textile Programme. This programme aims to engage actors across the textile supply chain to build capacity for workers’ rights, living wages, and health and safety measures. In one case, an Indian factory trade union has received training from a German trade union.
The Fairtrade Premium. The Fairtrade Premium allows workers and farmer cooperatives to invest in projects which directly benefit workers. Find an overview of the use of Fairtrade Premium here. Plantation and factory workers elect a Fairtrade Premium Committee that puts forth proposals to all workers on how to invest the Premium. Popular investments include scholarships for children, loan programmes, home repairs or direct cash payments. Expenditures of the Premium on health, education and housing improves the standard of living of workers and their families. Premium use is checked in every audit to ensure that it is not used to pay for programmes or services that should be provided by employers according to Standards.
Proven impact. Many studies have shown that the Fairtrade Premium has a positive impact on workers’ and their families’ lives. The majority of the Fairtrade Premium (81%) received by flower workers in 2019, for example, was spent on services to workers and their families.
Private sector collaboration. Fairtrade encourages and offers avenues for retailers, brands and traders to invest in labour rights and better conditions in factories and farms where they source – also beyond the Fairtrade premium. The best practice section of the Fairtrade Trader Standard encourages this.
Increasing worker representation in Fairtrade’s governance. It is important that workers and farmers have a strong role in decision-making at Fairtrade, as well. Fairtrade has a trade union representative on the Fairtrade Standards Committee – the eight-member body that debates and approves all Fairtrade Standards changes. There are also worker representatives in the General Assembly, Fairtrade’s highest decision-making body.
Awareness-raising in consumer countries and advocacy work. Fairtrade advocates for meaningful Corporate Sustainability Due Diligence legislation to address the root causes of human rights violations in global supply chains and highlight the need for fair prices, living incomes, and living wages.

Please see also the page on living wage and Fairtrade’s responses to the lack of living wages.

At the export, import and manufacturing stages, Fairtrade’s interventions against labour abuse are currently narrower in scope than at the production stage. The Fairtrade Trader Standard requires companies to be aware of and comply with national labour laws and fundamental ILO Conventions, including those on freedom of association and collective bargaining. This applies in Fairtrade certified supply chains regardless of whether the local county has ratified these ILO Conventions or not. Compliance with these requirements is checked in audits, if there are prior indications of non-compliance, such as allegations made by third parties.

In addition, traders are required to pay Fairtrade Premium and Fairtrade Minimum Price, which support farmer cooperatives and plantations to invest in socio-economic development of the community and of workers.

^{1: Mitigating measures reduce the likelihood of an adverse impact (UNGP Interpretive Guidance, p. 12)}^{2: See further information on the website of Fairtrade International.}

2. Remediating measures

In spite of our efforts, labour rights violations can still occur in Fairtrade certified supply chains. Workers on farms and plantations remain among the most vulnerable groups in global trade. In many locations, progress is hampered by a vicious circle of poor working conditions, poverty, low levels of worker organisation and social dialogue, and unequal power dynamics between employers and workers.

When severe harm such as forced labour is identified or alleged, Fairtrade acts to protect the affected person(s) in line with our Protection Policy³. We work with national agencies and/or NGOs to enable remediating⁴ measures, a safe workplace and long-term wellbeing of the affected person(s), and with producer organisation to strengthen preventive measures.

When FLOCERT, the independent Fairtrade auditing body, identifies a violation of a core labour requirement, it requires corrective measures. Typically, the organisation needs to rectify the violation and develop and implement a relevant policy, procedure or project to facilitate prevention of further violations. This may require the organisation to reverse an inappropriate termination of contract or start engaging in collective negotiations with trade unions. Corrective measures must be taken in a timely manner to avoid sanctions, which can include suspension and decertification.

For example, in Brazil, a recent Fairtrade project supported orange farmer cooperatives to set up monitoring and remediation systems for poor labour conditions on their farms. The project aimed to increase the capacity of participating cooperatives to identify and adequately respond to poor working conditions and hiring practices, including issues of child and forced labour in productive areas. Please see Fairtrade’s project map for further examples.

However, Fairtrade cannot guarantee that each violation is fully remediated, including rehabilitation and compensation for the victim. Full remediation requires contributions from all the duty bearers, including local public authorities and each of the companies who have caused or contributed to the case.

Fairtrade has a global level grievance mechanism – the allegations mechanism housed at FLOCERT – which is under reform to strengthen its alignment with the UN Guiding Principles on Business and Human Rights.

In addition, Fairtrade certified plantations are required to have a grievance mechanism in place. Grievance mechanisms are not yet required of farmer cooperatives or traders, but these organisations do need to address and document any human rights and environmental complaints related to Fairtrade Standards.

^{3: Fairtrade’s Child Labour and Forced Labour Guidelines.
4: Remediation refers to the process of counteracting or fixing a human rights violation through measures that can include apologies, restitution, rehabilitation, financial or non-financial compensation, and punitive sanctions, as well as preventing the repetition or further cases of harm (UNGP Interpretive Guide, p. 12).}

Research about Ecuador’s flower farms suggests that

Fairtrade supports enhanced wellbeing, stable full-time jobs, equal wages, benefits and working conditions

Raynolds, 2020, page 657.

Compliance criteria

Labour rights and conditions in Fairtrade Standards

Standard	Criteria	Type	Year
Small-scale producer organisation	You do not use production, quotas and piece-work employment as a means to avoid time-bound contracts. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	0
Small-scale producer organisation	You make payments to workers at regularly scheduled intervals that workers are aware of. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	0
Small-scale producer organisation	Workers are provided with pay slips. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	0
Small-scale producer organisation	You have set maternity leave, social security provisions and non-mandatory benefits according to national laws, or according to CBA regulations where they exist, or according to the agreement signed between the workers' organisation and the employer, whichever is the most favourable for the worker. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	D	6
Small-scale producer organisation	Where possible you have assigned all regular work to permanent workers. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	D	3
Small-scale producer organisation	You have issued all permanent workers with legally binding written contracts of employment. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	1
Small-scale producer organisation	You have provided the worker with a copy of the signed contract and ensure they are aware of their rights and duties, responsibilities, salaries, and work schedules by providing it in a format and language they understand. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	1
Small-scale producer organisation	You and your members provide clean toilets with hand washing facilities close by, and clean showers (showers only for workers who handle pesticides). (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	0
Small-scale producer organisation	The showers and toilets are separate for women and men and the number is proportional to the number of workers. (Only applicable for organisations and/ or individual members with more than 10 workers that are present for one month or more during a year working more than 30 hours per week or equivalent)	C	0
Small-scale producer organisation	You and the members of your organisation ensure that all field workers have access to clean drinking water that is available in the region. (Applicable to all workers employed by the organisation and/or the individual members)	C	0
Small-scale producer organisation (Cane sugar)	You and the members of your organisation ensure that all field workers have clean drinking water.	C	0
Organisation with hired labour	The company has provided opportunities to workers and staff to develop their skills and qualifications. If not, convincing reasons are provided.	D	3
Organisation with hired labour	Payments are made on time, at regularly scheduled intervals that have been communicated to workers.	C	0
Organisation with hired labour	Workers receive payslips or equivalent regularly or upon request providing a clear account of wages earned, allowances, bonuses, overtime payment, and all deductions in detail.	C	0
Organisation with hired labour	All permanent workers have a legally binding written contract signed by worker and the employer, and has at least the job description, working hours, pay rate, overtime regulation, social benefits entitlements and deductions, annual paid leave, protection of the worker from loss of pay in the case of illness, disability or accident, and a notice period for termination that is the same as the notice period for the employer.	C	0
Organisation with hired labour	Temporary workers who are employed for a period of 3 months or more of uninterrupted service have a legally binding written contract of employment with a job description, signed by employee and employer.	C	0
Organisation with hired labour	In case of dissolution of the contract the notice period is identical for employer and worker.	C	0
Organisation with hired labour	All workers are made aware of their rights and duties, responsibilities, salaries, and work schedules as part of the legal labour contract.	C	0
Organisation with hired labour	Workers have a signed copy of their employment contract in a format and language they understand.	C	0
Organisation with hired labour	There is an alternate legally established system, that recognizes the worker as an employee of the company and ensures the worker the necessary protection as required under the Standard sections 3.5.6/3.5.7 (India) (Only applicable in case of the absence of a formal contract practised in the sector)	C	0
Organisation with hired labour	The company complies with applicable national and local legislation and industry standards regarding working hours and overtime regulations.	C	0
Organisation with hired labour	The company does not require workers to work in excess of 48 hours per week on a regular basis	C	0
Organisation with hired labour	The company allows workers at least one day of rest for every 6 consecutive days worked, unless exceptional circumstances apply.	C	0
Organisation with hired labour	The company has a received approval from FLOCERT for an exception in case it does not allow at least one day of rest for every 6 consecutive days worked. However, workers do not work more than 14 hours per day or more than 72 hours per week or more than 18 continuous working days without rest.	C	0
Organisation with hired labour	The exceptions granted by FLOCERT are communicated to workers in form and language understood by workers.	C	0
Organisation with hired labour	Overtime is voluntary and not required on regular basis.	C	0
Organisation with hired labour	Any overtime does not extend over a period of more than 3 consecutive months and/or does not exceed 12 hours per week, unless exceptional circumstances apply.	C	0
Organisation with hired labour	The company has received prior approval from FLOCERT for an exception in case its overtime exceeds the defined limits.	C	0
Organisation with hired labour	National legislation for overtime is complied with if it exceeds the above requirements.	C	0
Organisation with hired labour	Overtime is compensated at a premium rate that is applicable to compensation by payment or by allocation of time. If neither national legislation, nor CBA, nor agreements with unions specify these rates, the following factors apply: a factor of 1.5 for work performed on regular workdays. For work performed on the regional day of rest, public holidays and night work a premium at a factor of 2 is applied	C	0
Organisation with hired labour	At least 2 calendar weeks of paid leave per year are granted to workers, not including sick and casual leave. The leave period is in line with national legislation and/or CBA, if either of these exceeds 2 weeks.	C	0
Organisation with hired labour	Lunch and work breaks are defined, granted and respected.	C	0
Organisation with hired labour	There is a regulation on regular sick leave and sick leave caused by employment injury which is at least according to national legislation and it is honoured.	C	0
Organisation with hired labour	The regulation ensures that workers are protected from being dismissed during temporary sick leave and guarantee the worker some form of income during sick leave.	C	0
Organisation with hired labour	Sick leave is not deducted from annual leave.	C	0
Organisation with hired labour	All workers are provided with legal social security.	C	0
Organisation with hired labour	All regular work is undertaken by permanent workers. Time-limited contracts and subcontracting are undertaken only during peak periods, in the case of special tasks and under special circumstances.	C	0
Organisation with hired labour	Production, quotas and piecework employment are not used as a means to avoid time-limited contracts.	C	0
Organisation with hired labour	All standard contracting of seasonal/temporary workers for regular work for the Fairtrade production is undertaken directly rather than through a subcontractor.	C	1
Organisation with hired labour	The company only subcontracts workers for non-regular work, or in special circumstances, if it is unable to contract directly.	C	1
Organisation with hired labour	The recruitment practices of any agency or person involved comply with the requirements detailed in Fairtrade Standard requirement 3.5.24 (see CC 3.5.0.63 to .67). (Only applicable if the company actively recruits workers from other regions within the country or from other countries)	C	0
Organisation with hired labour	Clean drinking water is provided close by for all workers and is clearly labelled .	C	0
Organisation with hired labour	Drinking water is analysed at least twice a year to correspond with seasonal variations. (Only applicable if water purity has been identified as a risk)	C	0
Organisation with hired labour	The company provides clean toilets with hand washing facilities close by.	C	0
Organisation with hired labour	Changing rooms are provided for all workers with lockable storage facilities if requested.	C	0
Organisation with hired labour	Clean showers are provided for workers who handle pesticides.	C	0
Organisation with hired labour	All facilities are separate for women and men and the number of facilities is in proportion to the number of workers (minimum proportion is 1:25).	C	0
Organisation with hired labour	Suitable rest areas are provided for workers.	D	6
Organisation with hired labour	A canteen with cooking facilities is provided where necessary and if requested by workers. (Not applicable to small companies)	D	6
Organisation with hired labour	The company provides proper tools and suitable work clothes for all workers appropriate to their tasks, and replace them regularly free of charge. (Not applicable to small companies for tasks not related to handling of hazardous chemicals)	C	0
Organisation with hired labour (Flowers)	Every worker receives at least 3 weeks of paid annual leave per year. Independent of the type of contract of a worker, paid leave is allocated pro-rata to the duration of the contract after two consecutive months of service.	C	0
Organisation with hired labour (Flowers)	The employer ensures that workers are included in an appropriate state or private social security scheme, covering at least invalidity and injury at work, occupational illness, maternity and old-age benefit.	C	0
Organisation with hired labour (Flowers)	In case shops and canteens are not available you provides a suitable area where workers can store and consume their food away from the working area.	C	0
Organisation with hired labour (Flowers)	Eating in working areas does not take place.	C	0
Organisation with hired labour (Flowers)	Workers are aware that they have the right to remove themselves from danger resulting from their work.	C	0
Organisation with hired labour (Sports balls)	Records are kept in the stitching centres and subcontracted units and include the following: • name, address, age of workers • daily attendance • number of sports balls stitched on each working day per worker • wages paid per worker (and all deductions made) • advances paid to workers and the current balance of advance payments provided • number of balls received for stitching per working day • total number of balls stitched per working day	C	0
Organisation with hired labour (Sports balls)	The sports ball company offers long-term piece workers in factories and factory-owned or leased stitching centres permanent work contracts. The company also encourages subcontractors to offer permanent work contracts to piece workers more frequently.	C	3
Organisation with hired labour (Tea)	Temporary workers who work for 6 consecutive days or for at least 10 days in a month, or more of uninterrupted service, have a legally binding written contract of employment with a job description in a language they understand, signed by employee and employer. In which case 3.5.8 in the HL Standard also applies. The contract includes duration of contract, hours/day per week worked, job description, wage level, wage deductions, notice period, detail on in-kind benefits, responsibilities of employer and employee, and includes explanation on grievance procedure. In the case of dissolution of the contract, the notice period is identical for employer and employee.	C	1
Trader	You are aware of the applicable labour laws in your country and of the fundamental ILO conventions. (Also applies to additional entities) (Not applicable to FSI cotton after ginning stage)	C	0
Trader	There are no indications that you violate any of the local labour laws or the fundamental ILO conventions. (Also applies to additional entities) (Not applicable to FSI cotton after ginning stage)	M	0
Trader	You set conditions of employment according to legal and CBA regulations where they exist.	R	0
Trader	All permanent employees have a legally binding written contract signed by the employee and the employer that covers all details required by applicable legislation.	R	0
Trader	You comply with applicable legislation working hours and overtime regulations.	R	0
Trader	You comply with any additional applicable legislation regarding conditions of employment.	R	0
Trader (Seed cotton)	You and all your additional entities and / or subcontractors have a valid Social Indicator that demonstrates efforts to comply with the ILO Conventions as defined in the Fibre Crops Standard. (Not applicable to spinners operating only under the FSI model)	C	0