SIZA Guide to using the Ethical
Trading Handbook
March 2014
1
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.
2
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.
3
Contents
Session 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
4
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
5
SESSION 1:
INTRODUCTION TO
ETHICAL TRADE
6
Topic 1: What does ethical trade
mean?
7
 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
8
 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)
9
 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
10
Topic 2: Where does ethical trade
come from and who drives it?
11
 The SIZA Code is based on:
 ILO conventions that prescribe minimum standards
 South African legislation
12
Topic 3: Who drives ethical
trade in the supply chain?
13
 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
14
Competitor
Supermarkets
“Developed country”
Consumer markets
“Developing country”
Producers
Consumers
Change in
brand?
Shareholders
Trade
Unions
and
NGOs
Supermarkets
Agent
Importer
NGOs
Export
Agency
Producers
15
Topic 4: What is the Global
Social Compliance Programme?
16
 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
18
Topic 5: What value can ethical
trade add to your business?
19
 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
20
Topic 6: Why is it important to have
management systems in place?
21
 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
22
 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 Discrimination
o Ethical trade
o Child labour
o Sexual harassment
23
SESSION 2: WHAT IS
THE SIZA
PROGRAMME?
24
Topic 1: Background to the SIZA
Programme
25
FPEF (Fresh
Produce)
Exporters’
Forum)
Subtrop
(Subtropical
Fruit)
CGA (Citrus)
Board –
Fruit SA
SATI (Table
grapes)
Hortgro
(Deciduous
fruit)
26
 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
27
 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)
28
 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
29
Topic 2: Goals of the SIZA
programme
30
 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
31
Topic 3: The SIZA Programme
Framework
32
Step 1
Step 2
Work with grower members +
stakeholders to drive common
goals + continuous improvement
Businesses
appoint
Ethical
Trade
Facilitators
Role of the
Ethical
Steering
Group
Step 3
Monitoring
Liaise with
retailers,
importers,
NGO’s +
unions
Communication and
Engagement
Step 4
Management
Structure
•Awareness raising and
training
•Self-assessment questionaire
•Ethical Audit
•CAP and Improvement Plan
Data-system
Captures data
Provides
statistics +
trends to
industry
Continuous
Improvement
Training based
on audit
findings
Development
programmes
based on need
Monitoring
33
SESSION 3: THE
ETHICAL AUDIT
34
Topic 1: What is an Ethical Audit?
35
 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 noncompliances)
36
An ethical audit is:
 A way of jointly agreeing on
how to fix a problem
 A constructive way to advise
people of problems
 Focussed on continuous
improvement
 Aimed at supporting
producers + pack house
owners
 Aimed at an ongoing process
An ethical audit is not:
 A pass/fail exercise
 Aimed at catching people out
 A tick box exercise (like
GLOBALG.A.P)
 Able to be overlapped with
other audits
37
 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)
38
Topic 2: What happens in an
ethical audit?
39
2. Site Assessment
•Auditor collects information
about the site
•Uses this information to
create a site profile
1. Pre-Audit
administration
•Auditor visits the site to do an
assessment
•Collects evidence during verbal
interviews with employees and
management
•Collects visual evidence and
documents
•Audit body gives management a
report with the details of the
findings made throughout the
audit process
•Evidence collected during the site
assessment used to draw up a
complete report giving details on
all areas of compliance and noncompliance
•The report could be uploaded onto
the SEDEX database for buyers and
other stakeholders in the supply
chain to view the report and
monitor progress
•Any corrective actions agreed on
the day of the audit must be
uploaded onto SEDEX to allow
customers to track and monitor
continuous improvement of the
site
3. Post-Audit
administration
40
 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
41
SESSION 4: HOW TO
USE THE ETHICAL
TRADING HANDBOOK
42
Topic 1: Introduction to the
scope and content of the
Ethical Trading Handbook
43
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
4
5
CHILD LABOUR AND YOUNG EMPLOYEES
FREEDOM 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
12-25
28 - 37
139
44
 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
45
Topic 2: Finding information in
the Handbook
46
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
47
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?
48
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?
49
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?
50
SESSION 5:
CHECKLISTS AND
IMPROVEMENT PLANS
51
Topic 1: How to use the
Checklist as a self-audit
52
 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 compliant
2. To ensure you have all the evidence needed to prove
this
53
Example: Child Labour Checklist
54
Example: Child Labour Checklist
55
Topic 2: Developing an
Improvement Plan
60
 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
61
Use the Table to draw up your own Improvement Plan
Issue
Action
Steps to take
Resources needed
(money, time,
materials)
Who should
lead, who
should be
involved
When to be
completed by
62
SESSION 6: THE ROLE
OF THE ETHICAL
TRADE FACILITATOR
63
Topic 1: What is the role and
purpose of the Ethical Trade
Facilitator?
64
 The Ethical Trade Facilitator has a very important
role to play in his/her own organization!
1. To promote understanding of ethical trade
2. To recognise people who support ethical trade in
their supply chain
3. To actively participate in the SIZA programme
4. To build momentum, capability + ownership for
ethical trade in the business
5. To deliver on the goals of the SIZA Programme
65
Topic 2: Tasks and Responsibilities
of the Ethical Trade Facilitator
66
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
67
Success
Factors
Area
Tasks / responsibilities
1. Managing
Performance
Supporting
• Support colleagues and/or suppliers to deal with major or persistent issues on
the reporting
the site.
• Provide updates to management on ethical trading performance and progress.
process
• 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
68
Success
Factors
Area
Tasks / responsibilities
3. Managing
Change
Share
knowledge
and support
change
•
•
•
•
4. Building
awareness
and gaining
commitment
Celebrate
success and
gain
commitment
•
•
•
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.
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.
69
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South African Fruit Growers Ethical Trading Workbook