Social Compliance Audit Assistance from Produce Food Safety Services

More and more retailers are requiring operations to participate in social audits. This is done to ensure that products are being produced under ethical conditions, in compliance with legal requirements and consumer expectations. Think of it at an audit to protect workers’ rights and encourage responsible business practices.

Many social audits are based around the Ethical Trading Initiative (ETI) which is founded on the conventions of the International Labor Organization (ILO). This is an internationally recognized code of labor practice and is viewed as a global reference.

ETI Base Code

The ETI Base Code has 9 basic pillars:

• Employment is freely chosen
• Freedom of association and the right to collectively bargain are respected
• Working conditions are safe and hygienic
• Child labor is not used
• Living wages are paid
• Working hours are not excessive
• No discrimination is practiced
• Regular employment is provided
• No harsh or inhumane treatment is allowed

While most operations agree with these pillars, agricultural operations may have some difficulty achieving full compliance with these expectations.

Employment is freely chosen

For employment to be freely chosen there can be no forced, bonded or involuntary prison labor. Workers cannot be required to leave “deposits” or their identity papers with their employer. Also, workers must be free to leave their employment with reasonable notice. This must be proven with a documented program that is communicated to workers and suppliers.

Freedom of association and the right to collectively bargain are respected

Farm workers in the USA do not have the right to unionize under the National Labor Regulations Act (NLRA). However, the ETI Code asks that all workers have the right to join or form trade unions of their own choosing and to bargain collectively. Because it is restricted by law, employers are expected to facilitate the development of parallel means for independent and free association and bargaining.

Working conditions are safe and hygienic

Mitigations must be implemented to prevent accidents and injury associated with or occurring in the course of work. The causes of hazards inherent to the working environment must be removed and/or minimized. This may include needing lock-out-tag-out procedures, holding fire drills or providing workers with personal protective equipment (PPE).

Workers must receive health and safety training. For farming this may require training on topics such as heat stress, tractor safety, chemical safety, fire safety, first aid, fire extinguisher use and formal forklift training.

Access to clean toilet facilities and potable water must be provided. Where housing is provided, it must be clean, safe and meet the basic needs of the workers.

Child labor is not used

Children (under 14 years of age) may not be recruited for work. Operations must have policies in place to transition of any child found to be performing child labor to enable her or him to attend education until no longer a child. Workers under the age of 18 should not be employed at night or in hazardous conditions. Some states have additional requirements for workers under 18 which must be met such as having a work permit or limiting work hours during the school year.

Living wages are paid

Wages and benefits must meet legal standards or industry benchmark standards. All workers are provided written and understandable information about their employment conditions in respect to wages before they enter employment and about the particulars of their wages for the pay period concerned each time that they are paid. Deductions from wages as a disciplinary measure is not permitted. Any deductions from wages that are not legally required must be done with the express permission of the worker. All disciplinary measures must be recorded.

Showing in a social audit that this pillar is met largely includes going through the payroll for several workers. Issues often arise when outside payroll companies are employed and when there are a combination of domestic and foreign visa workers. When workers are paid piece-rate this can be difficult to verify.

Working hours are not excessive

This is perhaps the hardest pillar to fully comply with in agriculture. There are several key points which by nature of the industry and the job cannot be regularly met:

• Working hours, excluding overtime should not exceed 48 hours per week.
• All overtime is voluntary and is at least 125% of the regular rate of pay.
• The total hours worked in any 7-day period does not exceed 60 hours,
• Workers are provided with at least 1 day off in every 7-day period or 2 days off in every 14-day period.

The social audits cannot force compliance with these standards. However, when participating in a social audit that is required by a retailer, issues may arise when non-compliances are noted regarding working hours.

No discrimination is practiced

Discrimination is prohibited in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.

Regular employment is provided

Obligations to domestic employees cannot be avoided through the use of labor-only contracting, sub- contracting or homeworking arrangements. Apprenticeship schemes with no real intent to impart skills or provide regular employment are not allowed.

No harsh or inhumane treatment is allowed

Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation are prohibited. Operations are expected to have a written policy that is communicated to workers and suppliers. 

If you have questions about how to prepare for a social compliance audit, contact Produce Food Safety Services at (706) 407-2551 or email Beth Oleson at boleson@pfssinfo.com.