THE NEW WFTO GUARANTEE SYSTEM DRAFT – NOT FINAL
BOB CHASE [email protected]
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 [email protected] or 608-255-0440