Workshop For Members

Sri Lanka

Membership Status

of Sri LankaMembers:

5

1 Guarantee

d

2 Provisio

nal

3 Audit or Peer

Visit Due

1 SAR Due!

Selyn!

Not a member yet

Membership Growth!

Visit if neede

d

Honest!

References

Free

ReferencesCountry Network | In-Country Comments | 3

ReferencesDear WFTO Members of Sri Lanka,

The WFTO-Asia office is emailing you regarding an applicant to WFTO, XXX. Based in XXX, Sri Lanka is a private company founded in 2000. The reason behind their foundation was XXX. They have 35 primary producers that work on site, but mainly works with producer groups off site, of which there are 4 groups. XXX has 1 store. If you would like more information please request it or visit their website at www.website.com

As a member of WFTO this is your opportunity to share any comments you wish to make regarding the applicant's reputation with regard to WFTO principles and ethics. If possible, please send a response within the next 7 days. If you would like to know who this email was sent to please see the organizational list below my signature.

Lastly, please let the WFTO-Asia office know if you would like to seethese in country comments delivered in another way. We are always open toreceiving feedback on the effectiveness of this process.

Thank you for your participation.

Role Play:Christine = Reference

Elise = Applicant

The GS guarantees the compliance of members with the

WFTO Standard.

The GS (and label) guarantees the organization, not the

product.

The emphasis is on the Internal Monitoring System the FTOs use to

monitor their supply chains.

Self Assessment as the basic monitoring obligation for trading

organizations.

Monitoring:

Peer visit

Profile & Self

Assessment Report (SAR)

GSGuarant

ee System

Monitoring Audit

Fair Trade

Accountability Watch(FTAW)

Internal Monitoring System

(IMS)

Com

pone

nts

• Update every 2 years!

• Send to Asia for feedback

• Continuous improvement!

• You nominate Peer, Global confirms

• Alternates 2-6 years

• 2 Mo. after SAR

• WFTO approved auditor

• Alterantes 2-6 years

• 2 Mo. After SAR

• Online, accessible to

public• Raise alerts

about members’

compliance with

Standard

GS Monitoring Cycle

SAR Novembe

r 2017

SAR Novembe

r 2019

Peer Visit January 2017

Audit January 2019

SAR Novembe

r 2021 Peer Visit January 2021

Based on complexity, scale, control of the operation and use of label.

Risk FactorSet after first monitoring

Adjusted over time depending on findings

Internal Monitoring System

(IMS)

How Does WFTO Check Your IMS?

In your organization who is

responsible for the IMS?How is it recorded?

In pairs discuss how do you currently monitor suppliers?

Fair Price

Fair Wage

Living Wage

Note: Its important to distinguish between Living Wage calculators and Price

calculators !

In ALL the discussions with members, interviews and workshops, ONE factor prevailed: EVERYONE

fears the implications of implementing Living Wages.

#1 PRIORITY = GUARDING WFTO’S FAIR TRADING REPUTATION (we are WFTO – we are the guardians…)

Living Wages were achieved in 5 years… and that’s not all:

• Consumer paid less than 10% more – it wasn’t a ‘blind’ increase: they knew why – and campaigns built awareness and goodwill.

• SPIN-OFF ADVANTAGES: Increased awareness of WFTO label – differentiator in market; momentum of campaigns increased sales; negotiations and collaborative efforts strengthened relationships.

WORKERS

PRODUCER

ORGANISATIONS

AGENTSTRANSPORT & TAXES (NON-

NEGOTIABLES)IMPORT

ERRETAILE

RCONSUM

ER

CURRENT

SCENARIO

WAGES HALF OF

LWRETAIL PRICE

YEAR 1 20%ALL (EXCEPT TAXES AND TRANSPORT) SACRIFICE 0,5% MARGIN : ONLY

RETAIL LOSES 1c ON $6,17 – REAL EARNINGS FOR EVERYONE ELSE STAYS SAME. EXTRA COMES FROM INCREASED EFFICIENCIES.

+1%

YEAR 2 17%

ALL AGENCIES ‘SACRIFICE’ 3c PER YEAR : IN REAL TERMS ONLY MARGIN IS SACRIFICED – EARNING STAY THE SAME.

+2%

YEAR 3 14% +2%

YEAR 4 12,5% +2%

YEAR 5 9% +2%

OVERALL IMPACT

LW ACHIEVED: WAGES

DOUBLED!

MOST MARGIN

SACRIFICED BUT REAL EARNINGS INCREASED

NO LOSS OF REVENUE – ONLY MARGINREAL ‘LOSS’

= 1c on $6,17 in YEAR 1

LESS THAN 10%

INCREASE IN 5 YEARS.

Goal: 2020

LUNCH BREAK

Lunch discussion point:Food Basket! How do the prices differ from region to region. How many calories do producers need?

Average family size of producer groups?

10 FAIR TRADE PRINCIPLES

Who has the translated version?

Self Assessment Report Schedulin

g

• Email if you do not know due date (24 months from last SAR)

• 4 month email “heads up” from the regional office

• Do not send additional docs.• Submit 2 weeks early to

WFTO-Asia for feedback• Plus time to amend

• WFTO-Asia will submit it to Global

SAR Do you pay producers/suppliers immediately on deliver of goods?

Producers/suppliers are paid immediately upon delivery of the product

Standard

HOW?Evidence to support what you claim

To improve performance against FT Standard over next 2 years

SAR Working Session – Questions?

WHO?

• Someone local – possibly in a similar trade• Share best practices, tools, experiences• Engage with local WFTO network!

Peer Visit Frequency for the Trading Members

Low Risk Medium Risk High Risk

Peer Visit

Every 4 yearsAfter 2 good audits/visits, reduced to every 6 years

Every 4 years (alternating with Audit)

Every 2 years(alternating with Audit)

Optio

nal F

irst T

ime

Only Lombok Peer Visit

PEER

VIS

IT

Peer Visit

PEER

VIS

IT

CostWho • Someone independent & local

• Someone trained & authorized by WFTO

Duration

• Range 2 – 5 days• ½ day per supplier visited

• Average 1,000 Euros• Min. 575 Euros

Number of unverified suppliers(e.g. producer groups)

Number of suppliers visited

1 12-5 2

6-10 3More than 10 Square root

AUD

IT

Audit

Alternative CertificatesAvoid duplicationAU

DIT

Previously assessed and found to be comparable to the supplier monitoring requirements of the GS:

• ECOCERT• FLO Cert• FUNDEPPO• IMO – Fair For Life• Naturland

Other social certification bodies may be accepted as partially equivalent.Shared auditor, ie Control Union

GS Handbook Page 23 or 23/Ch 6

Fair Trade Accountability Watch(FTAW)

FTAW

FTAW Minor allegations are briefly investigated further and

are considered for the next regular audit during which they are followed up and cross verified by means of workers’ interviews, site inspections and document reviews as applicable.  Major allegations are always followed up in detail, with all investigations and findings fully documented.

a) Indicate measures the organisation must take within given time

b) Appoint someone within WFTO to establish the extent of changes needed

c) Recommend to appoint a conciliator

d) Do an investigation or audit, which should be carried out within 6 months, and may lead WFTO to take one of the following decisions:

- no action because of insufficient evidence and close the procedure; - request organisation to take measures within a given time- deregistration to status of provisional membership (until measures taken)- suspension from membership and process of sanction

Q & A ?

6. Exclusive- its only available to WFTO members.

1. Differentiate you from others who claim to be selling fairly or ethically. This difference is based on commitment and values that make it extremely difficult for others to compete against. 2. Reinforces the strategic relationship you have with the Fair Trade movement.3. Supports a price premium.

4. Complements your brand strategy.5. It will provide regulatory acceptance.

GUARANTEED MEMBER TRAID AID, WHY DO WE WANT THE LABEL?

The use of the label is not compulsory but highly recommended to strengthen the movement.

COMPARED TO OTHER LABELS PRESENT IN THE

MARKET, THIS LABEL IS NOT A PRODUCT CERTIFICATION BUT AN ORGANIZATIONAL

LABEL.

Rebranding the Product:First Buyer Labelling ContractConventional Buyers

• Register in WFTO’s Buyer Database• Respect at least a selection of 10 FT

Principles• 2 Transparency & Accountability• 3 Fair Trading Practices• 4 Payment of a Fair Price• 6 Non Discrimination• 7 Safe Working Conditions• 10 Environment

• Agree to WFTO’s right to conduct independent audit

• Listed in the FTAW• Pay License fee 1% per purchase

order, min. 100E

Annu

al

Fee

Turnover / income Membership fee

Regional fee

Total annual

payment In Euros

FTO - Trading

< 135,000 400 100 500

135,000 - 400,000.003 x turnover 175

calculation based on turnover

400,000 - 1 million.003 x turnover 250

calculation based on turnover

> 1 million 3,000 + 350 for every extra million 250

* Max 2,600

calculation based on turnover

FTSO

< 135,000 400 100 500

135,000 - 400,000 1,250 175 1,335

400,000 - 1 million 1,250 250 1,500

1 million – 5 million 2,000 250 2,250

> 5 million 3,000 250 3,250 FTN

Flat cost: 400Other Costs:• Payment of Audit & Peer Visit (transportation,

accommodation)• Handling Fee 100-750 Euros

**Please fill out + return the reflection handout

Q & A