Bananas: Unpeeling the Banana Trade - The Fairtrade Foundation

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7.Going further continuedpremium but are also empowered by their involvementin Fairtrade. In some cases this may be more difficult,for example in countries where trade unions are activelydiscouraged or repressed; or where employers may tryto use the existence of the Fairtrade Joint Body and theattraction of its financial resources to discourage workersfrom organising independently. The Fairtrade system iscommitted to working with local and international tradeunions to ensure that plantation owners are trulycommitted to workers’ empowerment and developmentand to this end has set up an international working groupspecifically to explore how core labour rights, especiallythe right to Freedom of Association, can be ensured onFairtrade certified plantations.7.3 Supporting migrant labourersThe ‘race to the bottom’ has substantially increased thesub-contracting of labour and the Fairtrade system willcontinue to evolve to ensure that all workers’ rights areupheld. One example of this is the policy that has beenadopted for Fairtrade certification in the DominicanRepublic to ensure that the rights of Haitian migrantworkers are protected despite changes in nationallegislation that cut the proportion of foreign workers toa maximum of 20% and resulted in a number of Haitianmigrants being sacked. Poor wages and the collapse ofthe banana industries in some countries, such asNicaragua, increasingly drive workers to migrate in searchof work – it is estimated that more than 50% of workerson Costa Rican plantations are Nicaraguan orPanamanian. If Fairtrade premiums are invested inprojects on the plantation site and in local communitieswe also need to consider how the Fairtrade labellingsystem can develop the flexibility to enable a transientlabour force to have the right, for example, to send ashare of the Fairtrade premiums back home totheir families.7.4 Sharing benefits with workers on small farmsIt is also important to ensure that the workersemployed by small-scale farms or by co-operatives areempowered and share in the benefits of Fairtrade. This isnot a straightforward process as although small farmersemploy a significant number of workers, many are likelyto be seasonal, temporary and migrant workers. Alsopoor farmers may earn so little themselves that they areunable to pay the legal minimum wage to the workersthey employ. While such workers will benefit fromcommunity-based investment using Fairtrade premiums,such as improved healthcare or education services, it is acritical challenge to identify how these hired workers canbe more involved in decision making on premium use, orcould benefit from additional training or support.7.5 Mainstreaming with integrityA key challenge facing Fairtrade is how to increase theinvolvement of multinational companies in the system,while keeping the needs of small, disadvantagedfarmers and poor workers at its core. There is no doubtthat scaling up Fairtrade through the multinationalretailers and companies can have life-changing impactfor the growers involved. But as more multinationals getinvolved with Fairtrade, we need to make certain that theFairtrade system is continuing to deliver true engagement,with partners fully committed to improving supply chainrelationships.7.6 Fairtrade in an unfair trading systemCurrent international trade rules are not designed tofavour trade based on fair prices and living wages, or todifferentiate products that respect international labour andenvironmental standards. When traded internationally, anorganic Fairtrade certified banana is treated exactly thesame as a banana from a plantation where labourstandards are violated and workers’ health and theirenvironment are damaged.Although the constitution of the WTO refers to promotingsustainable development, their trade rules, rather thansupporting high standards, in effect treat higher ethicaland environmental standards as an obstacle to the freemovement of goods. There is a long way to go before weget trade rules that genuinely reflect the rights andresponsibilities set by the ILO.Continuing to work towards just and fair trade rules, usingthe success of Fairtrade in the banana industry as justone powerful example, remains a key role of the Fairtrademovement as well as the wider campaigning communityof organisations including Banana Link, Oxfam and theTrade Justice Movement.page 14 Unpeeling the banana trade
8.Fairtrade: Tipping the BalanceAlthough Fairtrade has so far made a significant impact on the world banana trade and the lives ofmany of those most disadvantaged by it, there is still a great deal more to do if Fairtrade benefitsare to reach more of the people who need them most. This is why a key priority of the FairtradeFoundation’s strategy is to propel Fairtrade sales to a new level – reaching 50% of the UK bananamarket by 2012. 35 We estimate that if together we – the Fairtrade movement, companies,supermarkets and consumers – can achieve this ambitious target, over $20 million annually inFairtrade premiums alone will go to farmers and workers to help them invest in the development oftheir businesses, communities and the future of their families. When the other benefits of Fairtradecertification are also considered it is clear that by tipping the balance we can support small farmersand workers to also be better equipped to deal with the new and emerging threats to theirlivelihoods which exist: EU reform which could push the Caribbean banana industry out ofbusiness altogether; climate change which affects the poorest disproportionately and could have acatastrophic effect on conditions for banana growing; and the emergence of new suppliers affectingtraditional banana producers.Nine years on, individual consumers, civil society, institutions and mainstream companies havetaken up the challenge of Fairtrade and contributed to this astonishing social transformation.Fairtrade bananas have started to challenge the status quo of a global industry that needs a seriousoverhaul. But a huge amount remains to be done. Just as the banana symbolises the success ofthe Fairtrade movement so far, it also clearly illustrates the challenges which the rapid growth of theFairtrade model has to resolve if the vision of a fair and sustainable banana economy is to becomereality. Nobody is under the illusion that Fairtrade alone is the answer to all the problems facingsmall producers and plantation workers dependent on the world banana trade.However, it is clear from the description of the impacts outlined above that a guaranteed minimumprice, coupled with high social and environmental standards and fair trading relationships acrossthe supply chain, can start to reverse the damage of decades of unfair trade. To make real, lastingchanges to the banana industry for the benefit of the most disadvantaged in the supply chain, thereare ways for everyone, from farmers to consumers, to do their bit.35Tipping the Balance. The Fairtrade Foundation’s vision for Transforming Trade 2008-2012. The Fairtrade Foundation. 2008.page 15 Unpeeling the banana trade
Page 1 and 2: Unpeeling the banana tradeA Fairtra
Page 3 and 4: Executive summaryThe banana: cheap,
Page 5 and 6: In response to growing consumer dem
Page 7 and 8: Banana wars: a timeline1992 Formati
Page 9 and 10: Higher shipping, distribution and l
Page 11 and 12: Since the 1990s, Latin American ban
Page 13 and 14: 5.2 EmpowermentEmpowerment is at th
Page 15: 6.Going furtherThere is no doubt th
Page 20: Fairtrade Foundation3rd Floor, Ibex

Bananas: Unpeeling the Banana Trade - The Fairtrade Foundation

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