longitudinal impact assessment study of sugar producers in malawi

4. Labour conditions
4.1 Employment policy Gender policy not seen.
4.2 Freedom from discrimination No discrimination
4.3 Freedom of labour Both employers and employees are aware of the
4.4 Freedom of association and
collective bargaining
regulations. No forced, bonded or child labour
The workers have a workers committee but they
indicated that it is not a very helpful organisation.
They are in the process of forming a Union through
the Sugar Plantations and Allied Workers Union.
4.5 Conditions of employment Conditions are at least to national minima.
4.6 OHS Improving for labourers, but still room for further
improvement
9.2 Trader Standards
The FLO generic trader standard principles 14 have been entered into Table 9.2
below, and the extent of KCGL compliance is noted.
Table 9.2 FLO International generic standard principles for traders
STANDARD COMPLIANCE WITH STANDARD
Pay a price to producers that aims There is no Fairtrade minimum price for cane sugar.
to cover the costs of sustainable This was not mentioned as an issue
production: the Fairtrade Minimum (http://www.fairtrade.net/fileadmin/user_upload/content/
Price
010110_EN_Fairtrade_Minimum_Price_and_Premium_
Table.pdf )
Pay an additional sum that The Fairtrade Premium is US$60/mt made sugar. This
producers can invest in
has been paid direct to KCGL from 2004-present
development: the Fairtrade
Premium.
Partially pay in advance, when Illovo Sugar (Malawi) provide an advance on a quarterly
producers ask for it.
basis which provides producers with a steady income
throughout the year.
Sign contracts that allow for long- There is a 25 year contract in place between KCGL and
term planning and sustainable Illovo Sugar (Malawi)
production practices
Traceability It is impossible to distinguish Kasinthula sugar from
estate sugar as it is all processed together. This was
explained at certification and accepted. There is no
significant difference in quality characteristics between
Kasinthula and Ncholo estate sugar.
9.3 Organisational support and business development
There is good support to the Trust from TWIN in terms of organisational training of
the different Committees. These are reported under Section 6. Training support
(particularly on technical matters) is also available from Illovo. Members also visited
Hong Kong, Uganda and South Africa for Fair trade events, and some expect to go to
South Africa for certificate level training in sugar cane technology in 2010. Other
managers were sent for staff development training in 2009. The TWIN Producer
Partnership Programme has been trying to understand the supply chain challenges
14 http://www.fairtrade.net/generic_trade_standards.html
48