the new wfto guarantee system draft – not final bob chase bob.chase@serrv

THE NEW WFTO GUARANTEE SYSTEM DRAFT – NOT FINAL

BOB CHASE BOB.CHASE@SERRV.ORGSottotitolo

CHARACTERISTICS

The new WFTO Guarantee System includes:• some existing membership control elements of WFTO• new elements

Definition of a Quality Management System certifiable

The design of this Guarantee System is based on:• best practices of Producer Group Internal Control Systems (ICS)• best practice of Organic Participatory Guarantee Systems (PGS), • independent monitoring audit • existing WFTO membership system experiences

OBJECTIVES The Guarantee System shall ensure that WFTO members adhere to the organization’s Principles as expressed in the new WFTO Standard approved in 2012 by the WFTO Board of Directors.

TOOLS The three main components to assess members’ respect for the WFTO Principles are: • Self Assessment: every 2 years• Monitoring Audit by an approved WFTO auditor or audit according to an equivalent

Fair Trade certification scheme every 2- 6 years depending on the risk category • Peer Visits by local peers nominated by the FTO: every 2 - 6 years depending on the

risk categoryAdditionally, the ‘Peer Watch’ tool provides a mechanism for ongoing feedback and monitoring between FTO members and by members of the public.

CLASSIFICATION OF THE WFTO MEMBERS Trading WFTO members (producers, traders) are categorised in three risk categories based on:• complexity• scale• control of their operation• whether they use the WFTO label on their products or not.

1• Low risk

2• Medium risk

3• High risk

Initial Risk assessment

Findings of the audits or visit

Updating of the category

Definition of the Risk category

The risk category influences the depth and frequency of monitoring

WFTO GUARANTEE SYSTEM CYCLE FOR DIFFERENT MEMBER TYPES

Low Risk Trading FTO

Medium RiskTrading FTO

High RiskTrading FTO

Non-Trading Members

Self Assessment Every 2 years Every 2 years Every 2 years Every 2 years

Monitoring Audit

Every 4 yearsafter 2 good audits reduced to every 6

years

Every 4 years Every 2 yearsOnly if issues arise from peer visit or

peer watch

Peer Visit

Every 4 yearsafter 2 good audits reduced to every 6

years

Every 4 years Every 2 yearsEvery 4 years

(except FT regional networks)

Monitoring visits alternate with peer visits.

Thus the frequency of physical visits (either monitoring audits or peer visits) is as below:

WFTO GUARANTEE SYSTEM ASSESSMENT FREQUENCY

LOW RISK TRADING

FTO

MEDIUM RISK

TRADING FTO

HIGH RISKTRADING

FTO

NON-TRADING

MEMBERS

Assessment Visit frequency(peer visit or monitoring audit)

Every 3 years; (after 2 successful

initial audits)Every 2 years Every year

Every 4 years, higher in cases of

concerns

MONITORING SCHEDULE

• Monitoring audit

Qualification • Peer visit

Approval or sanction • Monitoring

audit

Approval or sanction

At least every 2 year

At least every 2 yearAudit reports of other Fair

Trade schemes that are accepted by WFTO as

equivalent, can be accepted as a qualifying audit

For high risk operations there may be an intermediate approval or sanctions process in

line with their annual assessment frequency

The use of WFTO label is possible only after the

completion of the new self assessment against the

Standard

NEW MEMBERSAny producer or trader organization that is committed to Fair Trade and can demonstrate sound behaviour from a social, economic, cultural and environmental point of view in line with the WFTO Principles can apply to be registered as member.

New members are first “provisional” members with restricted rights. After they have passed their first monitoring audit successfully they can be approved as full members.

An associate organization - donor organization or national or international agency that supports or campaigns for more just trading conditions - cannot be registered as a Fair Trade Organization/member but can become an associate member

Step NotesResponsible

Desire to join in WFTO

FTO applicant

Downloading all required information

Compilation of the WFTO Profile Form and

the WFTO Self Assessment

WFTO web site/ Regional WFTO Office

Giving All data and documents requested

1

2

3 At least one of the three refereesexpressed must be an existing

member of WFTO

FTO applicant

FTO applicant

NEW MEMBERS

Step NotesResponsible

Opening of the file4

A unique number for each applicant organization is provided by WFTO

Secretariat

Membership Office

Confirmation?5Membership

Office

Follow up thereferences

6Membership

Office

yes

A reference must be obtained from each referee

Confirmation?Referee Find an alternative referee

FTO applicant

no

Request for other information

no

yes

7

Step NotesResponsible

Contact all other members of WFTO in

the candidate’s country

References confirmed? ?

no

Draft of a reccomandation as a Provisional Member

yes

8

9

10

Membership Office

Membership Office

After a deep screening of the applicant’s Self Assessment

Approvation? The applicant is rejected

no

yes

11WFTO

Regional Board

Step NotesResponsible

Applicant becomes a Provisional Member

Filling the documents of the Provisional

Member

WFTO Secretarial

12

Formally confirmation of the approval

WFTO Global Board

13The Global Board has the authority

to veto.

Signing of the WFTO Membership Contract

Provisional Member

13The membership fee is to be paid

once accepted as a member

Scheduling FirstMonitoring audit ?14

The Provisional member needs to address any identified needs for

action before a Monitoring audit is scheduled

Step NotesResponsible

First Monitoring audit ?15

WFTO Standard observed? ?

no

yes

16 ?

Making a recommendation to the WFTO Board of

Directors

Standard and Guarantee

System 17

The first monitoring audit must take place within 24 months of becoming a Provisional member, otherwise the

Provisional membership lapses

Step NotesResponsible

Making a recommendation to the WFTO Board of

Directors

Standard and Guarantee

System 17

Formally approval of membership

WFTO Board of Directors

18

Receiving notification of full membershipFTO19

The FTO receives a WFTO membership contract to sign and the Use of the WFTO label agreement if

applicable

Seting the FTO’s guarantee system

monitoring schedule

WFTO Guarantee

System 20

After a risk analysis of the FTO, the WFTO Guarantee System Manager

informs the organization aboutschedule

PILOT PROJECTS IN PROGRESS1 ACP Nepal2 Ayni, Bolivia3 Creative H'crafts India4 El Puente, Germany• El Puente suppliers5 KTS, Nepal6 Pachacuti, UK• Pachacuti Suppliers Ecuador7 PeopleTree, UK• PeopleTree suppliersBangladesh8 Selyn, Sri Lanka9 SMOLart, Kenya10Thanapara SwallowsBangladesh•• 11

IN GENERAL FEEDBACK HAS BEEN POSITIVE

• “I too wanted tell you that the system is very clear, not at all complicated and not too expensive at all. Except for the charges of Eco cert for certifying I did not have to incur any other expense.”

• …Johny Joseph, Director, Creative Handcrafts

• But there are recommendations for changes coming out of the Pilot projects..and there will be changes as it moves forward.

THE SYSTEM IS ABOUT PEOPLE

WORKERS

FARMERS

ARTISANS

CUSTOMERS

IS THIRD PARTY VERIFICATION NECESSARY?HOW SHOULD IT HAPPEN?IF NOT THIS SYSTEM THEN WHICH ONE?

• Thank you• Bob Chase bob.chase@serrv.org or 608-255-0440