The Fairtrade system is one of the main regulatory systems operating in the specialty coffee market today. It is designed to ensure that farmers who grow good coffee really receive a fair price for their work. Moreover, their coffee can be either specialty according to the SCA scale or just good regular coffee, but without certification (Arabica or Robusta). In this article, we analyze questions and answers about various aspects of the Fairtrade system so that our readers can understand it better.
1. How does Fairtrade really affect the well-being of workers?
The global organization responsible for the implementation and compliance with the Fairtrade principles, as well as its national and regional offices, can conduct inspections of working conditions on specific farms. They monitor the reporting and activities of the system participants. The results of such work are reports that are transmitted both within the system between participants and, if necessary, to external monitoring and regulatory bodies of the country for their legal involvement in enforcement and monitoring functions. These may include trade unions, tax authorities, banks, business supervision offices, etc.
2. What other priorities does the Fairtrade system have?
In addition to creating conditions for fair remuneration for all participants involved, the Fairtrade organization sets fair trade standards that all producers who have this certification must meet. These include supporting environmental protection by regulating the use of chemicals and taking measures related to maintaining long-term soil fertility, water quality, managing deforestation, ensuring the preservation of biodiversity and waste management. Fairtrade provides free training and financial support for growing more sustainable crops (not only coffee) and helps farmers adapt, mitigate and increase their own resilience to climate change. In addition, Fairtrade promotes environmental certification - today about 65% of Fairtrade coffee has such certification thanks to the organization's systematic and financial support.
3. Does Fairtrade promote gender equality?
Fairtrade standards include a ban on discrimination based on gender or marital status, zero tolerance for violence or exploitation, and gender-specific policies and programs to support disadvantaged groups and minorities. Today, Fairtrade producers are increasingly establishing women’s business schools, with graduates going on to take up leadership positions in cooperatives and communities.
4. How does Fairtrade work in the climate crisis?
Around 125 million people around the world grow coffee. Fairtrade helps these producers to unite, share skills and knowledge to combat climate challenges, develop methodologies and recommendations for working in climate change adaptation, and help farmers participate in credit and financial programs and grants to offset the impact of climate change on their work or to re-orient themselves to growing other types of agricultural products.
5. Once an organization has received a Fairtrade certificate, is it permanent?
No. Each certificate holder must undergo periodic verification that their business is indeed operating in accordance with the system requirements, strictly adhering to them. If complaints are received against such a holder, their business processes are subject to inspection and re-certification. If during a scheduled or unscheduled inspection it is found that the company/organization is not conducting business in accordance with the Fairtrade principles, the certificate may be withdrawn or a fine may be imposed.
6. What is a violation of Fairtrade principles?
The list of violations includes the following:
• Unethical labor exploitation, such as the use of forced, bonded, or child labor that does not meet Fairtrade standards.
• Unfair wages, below the minimum recommended by Fairtrade or local laws.
• Discrimination based on race, gender, religion, age, or other factors in hiring, promoting, or treating workers.
• Failure to provide a safe and healthy working environment, including adequate equipment and safety measures.
• Poor environmental management that causes harm, such as illegal logging, improper waste disposal, or the use of banned pesticides.
• Lack of democratic worker organization, such as the prohibition of cooperatives or participation in decision-making processes, as well as persecution of workers for participating in such organizations.
• Misuse of Fairtrade premium funds in a manner unrelated to the well-being of workers or the community.
• Failure to provide transparent and accurate reporting on activities and supply chain.
• Corruption, fraud, forgery, intentional misrepresentation of information regarding compliance with Fairtrade standards and in business processes.
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