Study

Of

Flower Label Program

On behalf of GTZ GmbH

Office of Social and Eco-Standards

December 2004

Presented by

Heidi Feldt, Censor

(Contact: H.Feldt@t-online.de)

Editor: Julia Ranke,

Office of Social and

Eco-Standards, GTZ GmbH

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Content

Abbreviations ................................................................................................................... 4 Summary........................................................................................................................... 5 An Overview of the Flower Label Program (FLP)........................................................... 6

1. Introduction .............................................................................................................. 8

1.1 International Flower Industry ............................................................................ 8 1.2 Production Conditions...................................................................................... 10 1.3 Labour Conditions............................................................................................ 10

Formation and Nature of Standards

2. The Flower Label Program..................................................................................... 12

2.1 Creation ............................................................................................................ 12 2.2 Structure of the FLP ......................................................................................... 16 2.3 Legitimacy and Legality of the Standards ........................................................ 17 2.4 Application of the Standards ............................................................................ 17 2.5 Expenses ........................................................................................................... 18 2.6 Communicativeness of the Standards ............................................................... 18

3. Parenthesis: Comparison to other Certifications in the Flower Industry ............... 18

3.1 Milieu Programa Sierteelt (MPS)..................................................................... 18 3.2 Flor Verde ........................................................................................................ 19 3.3 Kenyan Flower Council.................................................................................... 19 3.4 Max Havelaar ................................................................................................... 20 3.5 Assessment ........................................................................................................ 21 3.6 Prospectus: Present Flower Label Developments............................................ 21 3.7 Lessons Learned ............................................................................................... 22

Accreditation

4. Accreditation of Auditors ....................................................................................... 22

Conformity Controls

5. Conformity control in the flower industry in Ecuador, Zimbabwe, Kenya............ 23

5.1 Organisation of the Auditing and Certification Process .................................. 23 5.2 Control Sources ................................................................................................ 24 5.3 Control Methods ............................................................................................... 24 5.4 Evaluation of Inspection Results/ Certification Process .................................. 25 5.5 Economic Burden of Certification Systems ...................................................... 26

6. Effect of Introducing Private General Standards.................................................... 26

Value Added Strategies

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7. Value Added Strategies .......................................................................................... 27 7.1 Development and Marketing of FLP Cut Flowers ........................................... 27 7.2 Labelling of FLP Flowers ................................................................................ 28 7.3 Relevant Players in Customer and Product Information ................................. 29 7.4 Proposal for Future Increased Consumer Information.................................... 29 7.5 Motivation for Conversion in Companies ........................................................ 30 7.6 International Synchronising ............................................................................. 30

8. Contribution from Development Work .................................................................. 31

8.1 Support with Implementation of FLP Standards .............................................. 31 8.2 Possible contribution in the future: Public Relation and Public Purchase? ... 32

9. Effects of the Flower Label Program – Critical Success Factors & Lessons Learned.................................................................................................................................... 32

Appendix ........................................................................................................................ 34 Literature / References.................................................................................................... 34

Literature .................................................................................................................... 34 Campaign material...................................................................................................... 34 Interview Partners....................................................................................................... 35 Internet Addresses ...................................................................................................... 35

International Code of Conduct for Socially and Environmentally Friendly Production of Cut flowers (August 1998) ............................................................................................. 36

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Abbreviations

ACG Agrar-Control GmbH Asocolflores Asociación Colombiana de Exportadores de Flores

(Colombian Association of Flower Exporters) BMZ Bundesministerium für Wirtschaftliche Zusammenarbeit

und Entwicklung (German Ministry for economic cooperation and development)

BMVEL Bundesministerium für Verbraucherschutz, Ernährung und

Landwirtschaft (German Ministry for consumer protection, nutrition and agriculture)

BGI Verband der Deutschen Blumengross- und Importhandels

e.V. (German association of wholesalers and importers) COLEACP Europe – Africa – Caribbean – Pacific Liaison Committee

for the promotion of ACP horticultural exports EPA Environmental Protection Agency, USA FDF Fachverband Deutscher Floristen (Association of German

Florists) FIAN Food First Informations- und Aktions-Netzwerk FLP Flower Label Program GTZ Gesellschaft für Technische Zusammenarbeit GmbH

(German development organization) ICC International Code of Conduct within the cut flower

industry ILO International Labour Organization IUF International Union of Food, Agricultural, Hotel,

Restaurant, Catering, Tobacco and Allied Workers’ Association

KFC Kenyan Flower Council MPS Milieu Programma Sierteelt, (Dutch flower label) UN United Nations WHO World Health Organisation

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Summary

Flowers and particularly roses convey emotions. Nobody wants to give a rose which has been produced under degrading conditions using highly toxic pesticides which damage the environment. At the beginning of the 1990s evidence of appalling conditions in the African and Latin American flower industry became increasingly public. Poorly paid jobs, diseases caused by badly managed pesticide use, the suppression of union members and discrimination at the workplace were some of the complaints. The flower campaign, a joint effort of various German and European NGOs, addressed the problem and demanded socially and environmentally sound working conditions. The German association of flower traders and importers introduced a label called the Flower Label Program in response to this development. NGOs and unions criticized this label because of its lack of transparency and the shortcomings with regards to social standards. After long discussions the different interest groups (including unions, NGOs and producers from the developing countries) agreed on environmental and social criteria for flower production. In 1999 the Flower Label Program (FLP) was established as a label for sustainable flower production in developing countries. The certified FLP flowers are traded in Germany, Austria and Switzerland. All decisions concerning the label are taken by the board of directors formed by trade associations, unions, NGOs and producers. The objective of the FLP is to improve the working conditions on flower farms in developing countries. The FLP has the goal to integrate as many farms as possible instead of only certifying isolated best practice examples. The criteria of the FLP are based on internationally agreed upon Human Rights, social standards like the International Declaration on Human Rights and the ILO conventions on Core Labour Standards as well as the recommendations for Integrated Pest Management. This enables producers in developing countries to meet the standards. The FLP inspection and monitoring system is transparent. An officially accredited control institution called Agrar-Control is responsible for the first inspection of the farms. Further annual controls are required. They are fulfilled by local institutions and consultants assigned by the FLP. Additionally all members of the board of directors are allowed to visit the farms whenever necessary. The consumers’ behaviour is a central element for the further success of the FLP. The FLP will only expand if the demand for its products can be increased. Therefore the stakeholders involved will have to increase the promotion of the FLP thereby raising public awareness on the problem of working conditions in developing countries and presenting the alternative approach of the FLP. Another problem the trade associations and retailers are facing is the low

assortment of flowers offered by the FLP. At present mainly roses are on offer. In

order to increase the product range trade associations, NGOs and trade unions are

negotiating a new international flower label. The new label “Fair Flowers and

Plants” (FFP) will not be introduced onto the marked before 2007.

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An Overview of the Flower Label Program (FLP)

Founded 1999 (preceded in 1995) Declaration Certification (“Label”) for cut flowers from ‘humane and

environmentally friendly productions’. Foundation International Code of Conduct for the cut flower industry

(ICC) and the therein described guidelines. The guidelines describe the FLP´s goals and requirements, as well as the improvement of working conditions within the flower plantations.

www.flower-label-program.org; www.coc-runder-tisch.de Goal The improvement of work and living conditions of the

workers through respect and the guarantee of basic rights; the improvement of environmental safety in the international flower industry; the creation of a network of participants and the formation of a common ‘North-South’ responsibility for sustainable production within the cut flower industry.

Basic Principles The Universal Declaration of Human Rights.

United Nations - 1948

The International Covenant of Civil and Political

Rights. United Nations - 1966

The International Covenant of Economic, Social and

Cultural Rights. United Nations - 1966

Basic Work Norms, ILO – 1998

• Prohibition of the employment of children under the age of 15 years

• Prohibition of forced labour • Freedom of association • The right to collective bargaining • The equality of treatment of all employees

Additional Social Standards

• Payment of an existentially reasonable wage (Minimum: legally defined minimum wage)

• Occupational security (Fixed employment contract) • Working week may not exceed 48 hours

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• Work and health safety standards on par with internationally recognised basic health and safety standards

The Rio Declaration on Environment and

Development

• Environmental protection and sustainable use of natural recourses

• Reduced usage of pesticides, fertilizers and other chemicals

Jurisdiction FLP Producers as well as their partners and suppliers or contractors Product Mainly roses but also carnations and foliage Producing Countries Ecuador; Kenya; South Africa; Tanzania; Zimbabwe Consumer Countries Germany; Austria; Switzerland Participating Groups Producers

Commerce: Flower Importers (BGI) and Association of florists (FDF) Unions: IUF and IGBAU Non-Government Organisations: FIAN; ‘terre des hommes’ and ‘Brot für die Welt’

All have equal rights on and form part of the Board of

Directors of the FLP Standards Controls External, independent controlling: Primary inspection of the farms by Agrar-Control GmbH Annual subsequent controls by local partners Continual monitoring by Unions and NGOs

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1. Introduction

1.1 International Flower Industry

Every year the world spends about € 31 billion on cut flowers and according to the Association of German Florists (FDF), € 4 billion of this is spent by German households alone. Germany is thus, the leading flower buying nation in Europe. Be this as it may, a very small proportion of the cut flowers come from local or European, greenhouse or ‘free land’ production. Approximately every third cut flower which is bought comes from Africa or Latin America and of these particularly from the countries Kenya; Zimbabwe; Ecuador and Colombia1. As far as roses are concerned, an even larger percent of the flowers come from the developing countries. Particularly in the winter months, more than 50% of the traded roses come from countries in the South. Flowers are relatively new to the agriculture industry in the countries of the southern hemisphere. It is only in the past 30 years that flower production has proven to be a meaningful part of these countries industrial development. Developing countries have increased their market share of the flower industry from 20,8% in 1990 to 30% in 1997 – with indications of continued future growth tendencies. The largest export nation, with a proportional quota of 50% of the industry, is still The Netherlands. New competitors from the developing countries made their entry into the market in the beginning of the 80’s and experienced strong growth in the 90’s. It was possible for particularly, Colombia and Ecuador to increase their market share of the US market, while the African countries, like Kenya; Zimbabwe; Zambia and South Africa improved their position on the European markets. In developing countries, Colombia takes first place among the flower producing countries. In 1999, this country alone exported flowers to the value of 600 Million USD, which makes up 14% of the world market. The Ecuadorean annual cut flower export volume is about 200 Million USD, an international market share of 2,7% and an important source of foreign currency income. The leading African cut flower producing country is Kenya, followed by Zimbabwe, Zambia, Tanzania, South Africa and Malawi.

1 Uganda, Zambia, Tanzania, India, Bolivia and Costa Rica are showing signs of strong growth as flower producing countries.

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Total Export of Cut Flowers in 20002

Country In 1000 USD

The Netherlands 2.003.393 Colombia 566.986 Ecuador 215.414 Kenya 144.441 Zimbabwe 63.797

With production activity in over 50 countries, the flower industry is a good example of the globalized economy. The global trade of flowers is first and foremost made possible by improved transportation. In flower producing countries in Africa and Latin America though, there is no local trade to speak of in these products. A substantial local retail of cut flowers is not a realistic option for the near future as this would require an investment of ‘know how’ and technology from the international market for use in local flower production. Example: Kenya The plants stock originally come from a German breeder; the technical consultant is from Holland; the greenhouse is constructed by a French company; the pesticides are from Swiss and German multinationals; the capital is from investors whose headquarters are all over the world. The rose will be transported by KLM or Lufthansa Cargo. And the commission goes to the Dutch auctioneer or Swiss wholesalers. (Blumenwelten, 2001) Since the rose and other cut flower markets in Europe and the USA seem to be economically stable and the industry creates a large number of employment positions in developing countries, the World Bank and other institutes encourage development partnerships with the aim of sustainable flower production. Similarly, the German development organization ‘Gesellschaft für Technische Zusammenarbeit GmbH’ (GTZ) support the Flower Label Program (FLP) in the form of a ‘private-public partnership’ with the Association of German Flower Wholesalers and Importers (BGI). Since even more producing countries and producers have entered the cut flower market the price which producers receive has fallen since the 90’s. Even though the price fall has not been drastic, J. Pertwee (2000), international rose industry expert, advises not to

2 Jeremy Pertwee, World of Exporters of Floricultural Products. www.pathfastpublishing.com, (compare the statistics of International Association of Horticultural Products (AIPH) at www.aiph.org, that differ slightly.)

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increase quantities of roses3. His presumption is that only the highest quality cut flowers will be able to compete on the European market. The core restriction for the economic stability of flower farms in developing countries is their absolute dependence on demand from the industrialised countries, for which they produce a luxury product.

1.2 Production Conditions

The ideal basic conditions4 for rose production are: • Maximum day temperature of 28ºC, night temperatures not below 15ºC • Clean water; daily necessity is about 60m³ pr. ha. • Protection from rain; good protective cover • Greenhouse with constant humidity level • Good lighting, at least 10 hrs of sunlight daily Many of these conditions can be artificially created in greenhouses in most parts of the world. The highlands in Latin America and East Africa afford ideal production areas, due to their climate and constant favourable light conditions. There is also a large workforce at a relatively low wage level to be found in these countries. Furthermore, of great importance to the flower industry is a good infrastructure, so that flowers can be delivered as quickly as possible to the European or North American markets. It has been shown that a good connection to an international airport is a deciding factor when it comes to competition. Flower production is a capital and labour intensive sector. J. Pertwee (2002) has compared the required capital for a farm in Kenya to one in Holland and came to the conclusion that with the same initial capital, one could have a production on 6 ha whereas in Holland one could only have a 2 ha production5. The main factors for this competitive situation are: initial capital costs; recurring costs of labour, energy and chemicals as well as yield per ha and transport.

1.3 Labour Conditions

Compared to other agro industry sectors, the flower industry is labour intensive through out the year6. Accordingly, the flower industry in Colombia creates between 50 and 60

3 Pertwee states that rose prices at the Dutch auction are so low that they often only just cover production and marketing costs. According to him, the prises in the USA are at 20 – 26 USD cents per rose, where as in Holland they are about 1 – 6 USD cents per rose. He looks to the different sales methods to explain the large difference. In the USA the sale of roses is decentralised and spread over a large number of importers, while on the European market, a large concentration occurs at central Dutch auction houses. The prices on the Dutch market are used as indicators for the other European countries. 4 Jeremy Pertwee, Fresh Cut Roses, Market Trends 2000, www.pastfastpublishing.com 5 J.Pertwee, Competitiveness between rose growing countries, 2002. The amount needed for a production on 6 ha in Kenya is 2.532 Mio. USD, whereas in Holland 2.580 Mio. USD is required for 2 ha. The average production in both cases is about 1Mio. stems pr. year. 6 In average the rose industry estimates with ca. 15 and 35 permanent jobs pr. ha in Ecuador and Zimbabwe respectively.

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thousand work places7; more than 30.000 in Ecuador and in Kenya and Zimbabwe the number is about 10.0008. Work in the flower industry is poorly paid. Wages in flower productions in Kenya, Colombia and Ecuador are based on the legal minimum salary but are sometimes lower. The average working week is about 52 hours long. Most workers have a short term contract or non at all. In this way farm owners avoid paying the compulsory social securities. Included in these securities are allowances for health insurance and maternity leave for women, who, with 65% of the employees, make up the largest group employed in flower production. Example: Kenya “65% of workers on Kenyan flower farms are employed as “casuals”. Employers are not required to pay social securities for “casual” workers. This means that pregnant women do not have the otherwise legal right to maternity leave. “Casual” workers often don’t receive the necessary uniforms and they are not allowed to become members of trade unions.” (from Flowers for Justice, 2001) The level of union organisation on most flower farms is low and the unions’ influence is very weak. On many occasions the workers who are interested in establishing a union are either fired or experience repressive pressure. Particularly in Colombia more and more cases of repression against unions have become public. Additionally, the heavy use of pesticides and fertilisers presents a danger to workers who, without the correct protective clothing, come into contact with these chemicals. The workers are generally poorly informed about the health risks involved in their jobs. Recurring diseases in flower farms include allergies; skin diseases and respiratory diseases and miscarriage rates are very high.

7 The Colombian companies even estimate 75.000 work places; according to www.colombianflowers.com 8 FIAN, 2001

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Example: Ecuador “Among the most common illnesses are influenza; skin problems; eye irritations; stomach complaints; varicose veins and back problems. The high miscarriage rate is most likely due to direct contact with poisonous sprays. Now and again we’ve had to use very poisonous pesticides. We really should have stayed out of the greenhouses but, they wouldn’t allow it because then our work would have been delayed. So we had to quickly return to our work in the greenhouses. The plants were still wet with pesticides. This led to a few accidents by poison.” (Dr. Adriana Gonzalez Guevara, in Blumenwelten)

Example: Colombia

“Workers have almost no protection against pesticides. The “sprayers” receive protective uniforms which are often torn. The correct time to recommence work after spraying has taken place is not kept. Workers are often sent back into the fields even though these are still wet with pesticides. In some companies they even spray while women are working in the fields.” (Vamos, Interview with Flower Workers, 2001 Blumenwelten) The largest environmental problems in the flower industry exist because of the extensive use of pesticides and their incorrect storage, usage and disposal. Because of this, severe soil and groundwater contamination occurs in the areas immediately around flower farms. A comparison of productions within agriculture reveals the following: where on an intensive barley production in central Europe, 1,5 kg – 2,5 kg of pesticides are used, on a lily farm in Holland 90 kg are used per hectare per year. In Colombia the annual pesticide usage is even as high as between 212 kg and 337 kg per hectare.9

Formation and Nature of Standards

2. The Flower Label Program

2.1 Creation

Due to reports of appalling working conditions in the Ecuadorean and Colombian flower industries, the human rights organisation FIAN; the children’s interest group ‘terre des hommes’; the evangelical aid organisation ‘Brot für die Welt’ and other NGOs launched the ‘Blumenkampagne’ campaign in 1990/91. The campaign is not aimed against the flower industry in developing countries, but instead strives to establish more humane working conditions. It supports the workers on flower farms, 9 Gärtnerbörse 27/1995, Chemie oder Nützlinge, Importierte Schnittblumen im Kreuzfeuer

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thereby enabling them to claim their rights. The campaigns aim is to inform the public about conditions on flower farms and to pressurize the industry and producers to improve the working and living conditions of the local population. In the beginning the campaigns work was concentrated in Colombia, but because of reports of similar problematic working conditions in other parts of the world, the campaign gradually incorporated other countries. In the 90’s the campaign took advantage of the strong turnover ‘Flower Profit Days’ like Valentines Day and Mother’s Day for public activities and to increase public awareness about the situation of the workers in the flower industry. To protect the sector in the interim from image loss and threatened income and to sensitize their members to the whole organic and social question, in the mid 90’s the Union of German Flower Wholesalers and Importers (BGI) developed a label called Flower Label Program (FLP). The BGI-label was developed together with Ecuadorean flower producers. The Colombian flower industry had already refused external revisions of their production areas and had left negotiations. FLP had already at that time combined environmental and social standards, but concentrated on the environmental aspects. The right to representation was, at that time, not a part of the listed criteria, as this was perceived as being interfering with the countries internal affairs. Agrar-Control GmbH was employed to inspect the plantations; at that time the decision to grant the label was solely that of BGI. NGO’s criticized the lack of transparency of the label, as well as the inadequate consideration of the social aspects in the listed criteria. The realisation of the Flower Label Program was supported locally by the GTZ in Ecuador (1995-97) and thereafter in East Africa and Zimbabwe (1998-2000) with resources from the Ministry of Development and Foreign Aid (BMZ). With the cooperation of BGI, the production companies were advised about the conversion to the FLP labels criteria. International experts in social standards and integrated plant protection were also consulted. Hence 18 flower farms in Eastern and Southern Africa and 30 businesses in South America were prepared for actual certification. The projects’ office in Bonn, which is responsible for both the consideration of flower farms in partner countries as well as the PR work in Germany, was financed by the GTZ for the first 4 years. At the same time the campaign ‘Blumenkampagne’ together with other European development organizations and the international trade union IUF10, drew up an alternative Code of Conduct for the flower industry. Additionally the campaign arranged workshops with organizations and unions from Colombia and other export countries. These meetings lead to and became part of the formulation and main points of the now recognized Code of Conduct (for cut flower production). There was no formal vote of the contents by the North and South NGO’s. In 1998 the “International Code of Conduct for the production of cut flowers” (ICC) was made public. It is based on Universal Human Rights, the Basic Work Norms of the International Labour Organization and basic environmental standards. 10 International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Association, Gent

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In 1999, BGI; FDF (Association of German Florists); the union IGBAU (Industriegewerkschaft Bauen-Agrar-Umwelt) and the campaign ‘Blumenkampagne’ agreed on the common label, FLP, based on the above mentioned International Code of Conduct for the production of cut flowers (ICC). Since 1999, the number of FLP certified flower farms has grown from 20 to 51 companies in 5 countries11; Ecuador; Kenya; Zimbabwe; Tanzania and South Africa. Ecuador, with 30 companies, has the largest share. Content and Jurisdiction of the Code The principles, by which the Flower Label is granted, are outlined in the “International Code of Conduct for the production of cut flowers” (ICC), which incorporates the following basic principles: • Prohibition of employment of children under the age of 15 years • Prohibition of forced labour • Freedom of association and collective bargaining • Equality of treatment of all employees • Sufficient minimum wages (legal minimum wage at the very least) • Security of employment by permanent contracts • Working hours (no more than 48 hours per week on a regular basis) • Health and Safety at internationally recognised standards • Protection of the environment and sustainable use of natural resources • Reduced usage of pesticides, fertilizers and other chemicals Social basis for the principles are: • The Universal Declaration of Human Rights (U.N. 1948) • The International Covenant of Civil and Political Rights (U.N. 1966) • The International Covenant of Economic, Social and Cultural Rights (U.N. 1966) • The Basic Work Norms12 of the International Labour Organisation (ILO 1998) as well as other relevant ILO conventions The FLP criteria suggest the payment of existentially satisfactory wages. Companies are obliged to pay wages at a level of 3% above the legal minimum wage. The FLP makes no further wage requirements as this constitutes a part of the representative wage agreement of the workers. On average FLP companies in Kenya, which has a minimum 11 FLP has also had 2 members from Columbia. They left the organization though at the end of May 2003. It was suspected that the Colombian flower export union had pressurized the member farms to leave. 12 Describes the norms i.e. basic standards, which the ILO summarised in the 1998 ‘Declaration on Fundamental Principles and Rights at Work’

• Prohibition of child labour (Convention 138 and 182) • Prohibition of forced labour (Convention 29 and 105) • Freedom of association and the right to collective bargaining (Convention 87 and 98) • Prohibition of discrimination (Convention 100 and 111) • The Convention concerning labour conditions (110, 115 and 170) became for all intents and

purposes expanded social standards.

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wage of 50 USD per month, pay 100% more in wages, whereas the Ecuadorean flower producers pay 3% more than the legal minimum wage at 120 USD13. To date the FLP has not systematically analyzed extra financial benefits such as transport; childcare; etc. The guidelines for the use of dangerous and carcinogenic pesticides by the World Health Organisation (WHO) and USA’s Environmental Protection Agency (EPA) are adhered to when considering the use of chemicals. The FLP´s criteria for crop protection are based in work done by the biological institute in Braunschweig in the 80’s. On the basis of good, professional practice in Europe, the institute developed standards which became acknowledged on an international level and developed into the integrated crop protection standards. Since the joint agreement of the FLP in 1999 and its members, commerce and the campaign ‘Blumenkampagne’, the ICC-Code of Conduct has been binding for flower producers as well as their subsidiaries and their suppliers. Companies who had been certified under the original FLP label established by BGI had to therefore submit to spot checks. With a positive result, the companies were allowed to continue to make use of the FLP label, but a negligent result induced special transitional regulations. There are guidelines and check lists which describe the FLP principles, (see www.flower-label-program.org) which help the producers with self-improvement and the inspectors as additional aid to their examinations. Companies are responsible for documentation with respect to their work with the individual test criteria.

13 Interview with Mrs.Weitpert at the FLP office, April 2003.

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2.2 Structure of the FLP

The FLP consists of four interest groups: • The producers • Commerce (flower importers-BGI and the florist association-FDF) • Trade Unions (IUF-the German member is IG BAU) • Non-Government Organisations (amalgamated in the campaign ‘Blumenkampagne’: FIAN, ‘terre des hommes’ and ‘Brot für die Welt’) Fig. 1 Flower Label Program e.V.’s organisational diagram

The Flower Label Program was founded in May 2003. Through the union of this association the individual interest groups are now represented by four chambers. Each chamber has at its disposal, independent of the number of members, 10 votes at the annual general meeting where the four members of the board of directors are chosen. An internal work group’s responsibility is to see to it that the unions and NGOs, first and foremost, engage themselves in the examination and improvement of the standards. As the standards are based on the ICC, ongoing developments coincide with updates to the ICC. The final decision on developments is taken at the annual general meeting of the association. Since 2005 the responsibility for actual marketing of the label has rested with commerce, NGOs and the producers. Public relations for the FLP have been handled by the NGO members of the campaign, FIAN in particularly.

Board of Directors

Consisting of 1 rep. from the producers, commerce, trade Unions and NGOs

Producers 10 votes

Commerce 10 votes

Unions 10 votes

NGO 10 votes

Responsibilities: • Definition of criteria • Acceptance of new

producers • Selection and

assignment of inspectors

• Awarding of the label

FLP Office Local coordination

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A project bureau was established in Bonn wherefrom FLP operations and expansion would be handled. The office coordinates the above mentioned processes and capacitates contact between coordinators and farms at a local level as well as the different interest groups in Europe. There are FLP coordinators in Ecuador and Kenya. Their task includes encouraging new members to join, the capacitating of introduction seminars for new companies and to make communication between the producers and the FLP easier.

Procedural Guidelines and Conflict Solving Mechanism

In addition to the independently controlled standards, of great importance to the workers is an institutionalised complaints process. To ensure that complaints can be handled confidentially the flower campaign works very closely with Christian establishments, NGOs and unions in the particular countries. These institutes receive complaints and hand them on to the responsible parties in the FLP board of directors. In a conflict situation the board of the FLP is the highest authority.

2.3 Legitimacy and Legality of the Standards

The FLP is based on ‘The Universal Declaration of Human Rights’, the U.N.’s international human rights agreement, the ILO’s ‘Basic Work Norms’ as well as an integrated pesticide procedure. In the social arena the standards comply with internationally agreed upon norms, which are also upheld in the countries where the FLP has active members. Ecuador; Kenya; Zimbabwe; South Africa and Tanzania have ratified most of the ‘Basic Working Norms’ of the ILO convention14. By ratifying conventions the country is bound to pass laws in accordance with them. In respect to the controls, the laws of the particular countries and the FLP criteria are duly adjusted. In these cases it is important that the most beneficial ruling is made use of. This is not necessarily always the FLP criteria. It is quite feasible that the law of a country requires a shorter working week and longer maternity leave.

2.4 Application of the Standards

The level was set so that as many producers from developing countries as possible would be able to participate. This though does not mean that the producers do not need assistance with the actual implementation. As an indication of this, about half of all flower plantations did not pass their first inspection. There still remains a great lack of understanding and information concerning the use of integrated pesticides, i.e. the use of environmentally and people friendly pesticides. To alleviate this situation workshops for management and professional personnel are organised, although at this point in time the demand is greater than it is possible to supply.

14 Exception: Kenya and Tanzania have not ratified the ILO conventions 100 and 110; prohibition against discrimination.

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Of equal importance is the education of the employees. The FLP companies commit themselves to make information about the ICC available to their employees, but there remains a long way between knowledge and practice. This is especially apparent in countries and thus companies where the trade union infrastructure is relatively weak. Workshops and education are organised mainly be FIAN in cooperation with national trade unions and NGOs. In this case too, the requirement is far larger than the capacity.

2.5 Expenses

The flower farms bear the costs of the inspections. The expenses for the first inspections carried out by ACG are about 2500 USD. The annual membership fee is the basic cost of 1000 USD and then an additional 100 USD per ha though to a maximum of 2500 USD. This includes the annual inspection. Inspections done due to the lack of adherence to the FLP criteria can be necessary and the cost of such inspections is covered by the companies themselves. Data outlining the costs required of a company for the conversion to the FLP criteria are not available.

2.6 Communicativeness of the Standards

According to the FLP office the criteria are relatively easy to communicate. While encouraging new members, the coordinators have noticed that certain of the social standards are met with misunderstanding or even outright refusal of implementation by some producers. This is especially the case when it comes to the prohibition of a pregnancy test before employment. Some farm owners feel that it is their right to be able to test women before they are employed. Other companies refuse to pay the extra social securities to their employees. As these producers in the main part only employ staff on a short term basis, the employees would not come to benefit from any long term social benefits anyway. Thus, the expenses for social securities are seen as unnecessary by many.

3. Parenthesis: Comparison to other Certifications in the Flower Industry

3.1 Milieu Programa Sierteelt (MPS)

MPS was founded in 1995 in The Netherlands and is a label which is not based on a basic list of criteria but, rather on a ranking system. Companies in Europe, Africa; Asia and Latin America of similar size are then examined in the areas; energy use; fertilizer and pesticide usage; water usage; waste disposal. A rank between A-C is then applied. The MPS controls are done by Societé Général de Surveillance (SGS), an international auditing firm. MPS has only relatively recently integrated social standards into their assessments. The category “Socially Qualified” has existed since 1998, but is only a requirement in developing countries.

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3.2 Flor Verde

As a response to the debate about production conditions in the flower industry, export organisations in production countries in Africa and Latin America developed their own flower certification. Thus, in 1996, the union of Colombian flower exporters, Asocolflores, introduced their new label called ‘Flor Verde’. Prior to this announcement, Asocolflores and the German union of exporters, BGI, had held discussions about a joint certification, which Asocolflores had terminated. The label constitutes environmental and social standards, but not the right to organisation. According to Asocolflores15, half of the flower production in Colombia has been certified under ‘Flor Verde’. Asocolflores do all testing and controls themselves.

3.3 Kenyan Flower Council

The Kenyan Flower Council (KFC) has developed an extensive practical guideline for flower farms which acknowledge both environmental and social standards. The KFC differentiates between the ‘Silver Code’ which covers just the basic requirements and the ‘Gold Code’ which honours companies who surpass the basic standards. Many of the requirements correlate to the International Code of Conduct, within the flower industry (ICC), on which the FLP is also based. In 2002 the KFC and MPS agreed to cooperate in the areas; international certification; auditing and implementation. In their joint declaration the parties make clear reference to the ICC: “The partnership will promote the social module of both MPS and KFC to ensure that members abide by the laws of Kenya, as well as the requirements of the International Code of Conduct with regard to social accountability”16. There is though not made consideration for either trade unions or NGOs. Flower producer associations in other African countries, Zimbabwe and Zambia for example, have also created their own Codes of Conduct.

15 Comparative information on www.colombianflores.com 16 Quote from KFC´s Website www.kenyaflowers.co.ke from 23.05.2003.

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Tab. 2 Comparison of Flower Labels

Label Business

to

Business17

Consumer Nr. of

certified

farms

“core

working

norms”

Standards/

Ranking

External

inspections

Participation

of external

participants18

MPS X 10019 Partial Ranking yes no

KFC X n.a. Partial

Standards yes no

Flor

Verde

X 156 Partial Ranking voluntary no

FLP X 51 yes Standards yes yes

3.4 Max Havelaar

In Switzerland Max Havelaar sells flowers with the fair trade certification through the supermarket chains Migros and Coop. The criteria for this label compare to those for the FLP and MPS. The inspections of the companies also follow the same guide lines as the FLP. Distinct to the previously named labels, Max Havelaar pays a premium on top of the market price for its flowers. This premium is paid directly to the producers and a committee with representation from management and the workers then decide how the money should be distributed. In this way, in 2001 17 flower productions received 300.000 Swiss Francs. The introduction of a combined commission, which this is, has repeatedly caused dissatisfaction with the trade unions in developing countries. They claim that Max Havelaar has thus marginalised the trade union power of representation. The import and export group COLEACP20 has evaluated the existing codes of conduct and certification systems in place in the developing countries with those in the European Union. As a result of this analysis, the document ‘Harmonised Framework21’ was published in 2001, which acts as a basis upon which to develop international codes within the production of agricultural products in the ACP22 countries23.

17 A ‘Business to Business’ label is one which is not seen by the consumer, but only exists between business partners, for example EurepGap. 18 Refers to a Co-operation between Unions and NGOs in the development and monitoring of criteria. 19 According to an e-mail correspondence with MPS dated 10.12.2003; MPS has 50 companies in Latin America and 50 in Africa. 20A liaison committee of European exporters and importers from Africa, the Caribbean and Pacific areas, who promote the export of fruit, cut flowers and plants from the ACP countries to Europe. Members within the flower industry are Kenyan Flower Council, Tanzanian Floriculture Association, Uganda Flower Exporters´ Association, and Export Flower Growers Association in Zimbabwe. 21 The ‘Harmonised Framework’, January 2001, www.coleacp.org 22 About 78 countries in Africa, the Caribbean and the Pacific with whom the EU has decided, through the ‘Lomé-agreement’, to provide customs preferences. 23 Even though the main focus within the policy lies on environmental aspects, particularly in the area of protection of natural resources and usage of pesticides, also social aspects like working contract, social security, children protection and equality of treatment are taken into consideration.

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3.5 Assessment

In comparison with other Codes of Conduct in the flower industry the FLP is recognisable by: • The equality in consideration to the social and environmental aspects, particularly when it comes to freedoms of association and organisation as well as the right to collective bargaining. In other certifications there has up to now not been made provision for these. • A non-partial control system and awarding of the label through a joint committee comprised of producers, unions, commerce and non-government organisations. The multi-stakeholder approach lends the label a lot of credibility. In May 2003, the association ‘Consumer Initiative24’ made the FLP their “month’s label” and grounded their choice in the labels good credibility.

3.6 Prospectus: Present Flower Label Developments

In April 2003 the FLP directorate, the Dutch MPS, the international trade organisation Union Fleurs, the international trade union IUF and the campaign ‘Blumenkampagne’ agreed upon a joint consumer label. It will most likely be called “Fair Flowers and Plants” (FFP). There is to be created a consumer label with shared criteria while the two certification systems, FLP and MPS will continue to exist as “business-to-business” labels. In practice this implies that MPS will have to incorporate the FLP´s social standards into their label and the FLP will have to design a registration and ranking system to do with pesticide usage. This means that companies which are certified under MPS will have to accept an inspection which is based on FLP criteria and conversely, FLP companies will have to document their use of chemicals and, in some cases decrease the quantities used. In the future only those companies who fulfil both the FLP criteria and the MPS ‘A ranking’ will be awarded certification. Marketing of the new label will be coordinated by the international trade organisation Union Fleurs, which represents 19 countries. In Germany this function will be realised by BGI. The rights to this label are considered jointly by members. If any one of the parties steps back from the agreements, no other one of the parties may make use of the label. There has, as of yet, not been laid a date for the new labels launch. The main hindrances have been financing and marketing processes.

24 The German Consumer Initiative is an association of critical consumers in Germany with main focus on organic, social and health safety of consumers www.verbraucher.org. On their web site www.label-online.de the association offers an appraisal of different products.

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3.7 Lessons Learned

One of the FLP´s greatest assets is its credibility. This is due to professional inspections done by Agrar-Control GmbH and monitoring by trade unions and NGOs, who have no vested economic interest in the flower industry. The labels credibility is also of utmost importance because the certified products are imported from developing countries and the European consumer has no access to the regulatory information. This factor should be taken into consideration when introducing other standards in the developing countries. The FLP is a product label based on a multi-stakeholder approach. This approach encourages all involved parties to cooperate. The short distribution channel within the flower sector also favours this approach. The selection of the FLP criteria has seen to the application of human rights as well as the implementation of internationally recognised social and environmental standards. The criteria make it possible for a large number of companies to comply with them, but at the same time they are demanding enough to put FLP companies in a positive light. A moderate membership fee makes it possible for companies to join FLP.

Accreditation

4. Accreditation of Auditors

Agrar-Control is registered with the German accreditation system, the control body for organic production companies and they are also accredited at the EU. The company has many years of experience controlling agricultural products in Europe. The control of social standards is relatively new to Agrar-Control. For the active controls external personnel are employed. The requirements for this part of the job are experience in development work as well as country and language knowledge.

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Conformity Controls

5. Conformity control in the flower industry in Ecuador, Zimbabwe, Kenya

5.1 Organisation of the Auditing and Certification Process

Primary Inspection

The primary inspection is done by Agrar-Control GmbH (ACG)25, on which it is decided whether a farm can become certified under the FLP criteria. ACG is based in Bonn and is the recognized by the German states accrediting system as the control body for agricultural products. Support is provided by the ‘Chamber of Agriculture’ of Rhineland, a partner company to ACG. They provide the training of inspectors and preparation for their work overseas. The inspectors are hired on a commission bases by ACG. In the area, environmental protection it is primarily agro-engineers who specialise in ornamental plants who are employed. The employment of chemists and biologists has proven less successful, as these tend to have insufficient experience with the use of pesticides and fertilizers in plant production. With regards to the areas, labour and social standards people with experience within development work, are preferred for employment. Knowledge of the particular countries language is a prerequisite. Subsequent Inspections

When a company has received the FLP certification, it must undergo an annual inspection which is conducted by local sources. It is the FLP directorate that decides who conducts these inspections. At this point there is no absolute selection process. Instead the directorate’s members utilise a long relationship with reviewers/censors, non government organisations and independent institutes like the International Centre for Insect Physiology and Ecology in Kenya. As a basic principle each inspection is done by 2 persons: an expert within environmental and plant protection and another within social standards.

25 ACG is a government recognised private control organ. It is partially managed by the public sector, producers and trade unions. The shareholders of ACG are ‘Chamber of Agriculture’, Rhineland and Westphalia-Lippe; Agricultural Control Associations of Rhineland and Westphalia-Lippe e.V.; Agricultural Association of Rhineland; Agricultural Association of Westphalia-Lippe; Provincial Fruit and Vegetable Farmers Association of Rhineland e.V. and the National Market Gardeners Associations of Rhineland and Westphalia-Lippe

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5.2 Control Sources

FLP members are obliged to make the following documentation and statistics available for their primary as well as the subsequent inspections:

• A record of all workers and their attended training programs • A record of all work contracts and all payrolls • A record of working hours and overtime paid to all workers • An organization chart of the company and a list of the members of the Workers´

Representatives Body. A list of the supervisors responsible for safety, health, waste disposal and environmental protection

• A list of the First Aid personnel and training programs. A record of the regular medical checks of all workers

• Statistics regarding contamination of personnel with pesticides or other chemicals

• A list of the spray operators with their attended training programs • A record of all pesticide and fertilizer applications and the corresponding

monthly summary records • A record of the maintenance and calibration of the spraying equipment and the

controls and change of the respiratory filters • A record of pesticide and chemical stocks • A record of the weekly water consumption in the greenhouses • A record of pesticide and chemical waste disposals • A record of non-chemical waste disposal • A record of recycled materials

Within the scope of the inspection the workers are interviewed under the absence of management, the production areas as well as workers homes are visited.

5.3 Control Methods

All FLP certified companies undergo regular – at least once a year – controls. It is also possible that additional, impromptu tests can be done. These could be a result of complaints. To allow for a comparison of information, the inspections are done according to a check list, which is employed for the primary inspection as well as the subsequent controls. In addition to the standard questioner, private interviews are also carried out.

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5.4 Evaluation of Inspection Results/ Certification Process

The admission process into the FLP for a company follows these steps:

1. A company expresses interest in being admitted by the FLP and completes the so called ‘Pre-Inspection Checklist26’ with basic information concerning production conditions. The information is then sent to the FLP office in Bonn. A reasonably priced pre-inspection is then offered by the local FLP coordinator.

2. There after a primary inspection of the company is carried out by two

independent experts from Agrar-Control GmbH in the areas, labour /social standards and environmental/gardening. On average it takes 1 day per plantation. The costs of this inspection are borne by the company. About half of the plantations do not fulfil the FLP criteria on their first examination.

3. With the information from these inspections and the existing documentation

Agrar-Control creates their first evaluation and supply recommendations concerning possible disparities. These reports form the foundation for the FLP directorates’ future decision.

4. The FLP directorate decides whether the company shall receive FLP

certification or not. In cases of strong violation of the FLP criteria the companies are imposed further constraints. Normally companies are given three months in which to rectify any violations but this deadline can be extended to six months in exceptional cases.

5. In such cases Agrar-Control performs a follow-up inspection at the expense of

the company. In cases of minor violations, recommendations are delivered and these have to be rectified by the next routine inspection.

6. An annual inspection, equal to the primary inspection, is then carried out by

local institutes. In Ecuador the Centre for the Study and Assessment of Health (CEAS) caries out the inspections, in Kenya the International Centre for Insect Physiology and Ecology (ICIPE) assists with inspections. In Zimbabwe the FLP work together with the Ecumenical Support Service. The FLP directorate also appoints independent inspectors to the controls.

7. The FLP directorate also has the right to visit any of the companies at any time.

There is no formal complaints procedure in the FLP. There is though a nominated person in each country who receives complaints from the workers. This could be churches, trade unions or non government organisations. The complaints are then delivered to members of the unions or NGOs who sit on the board of directors of the FLP and are considered. According to the evaluation the company receives a deadline by which the disparities have to be rectified and will be controlled on the next

26 Download the Checklist at www.flower-label-program.org/d2/preinspect.rtf

26

inspection. One of the sanctions for non compliance with the standards is the removal of the label.

5.5 Economic Burden of Certification Systems

The competitiveness of the certified companies is not influenced despite the costs of certification and implementation27. Expenditure on pesticides is at 3-4% of total production costs, thus the costs of implementing the criteria are financially negligible. But on the social level, the financial costs weigh a little heavier, even if wage costs (ca. 3%) compared to transport (ca. 20 – 25%) is categorised as a “negligible operational expenditure factor”. Social expenses should be seen in the light of a better educated employee, (e.g. the usage of pesticides) a better team spirit and motivation, not to mention less illness related absentees and accidents in the production. A plan to systematically register improved labour and production conditions is planned. In their controls the FLP makes use of nationally recognised, international certification organs (for the primary inspection) as well as local inspectors (for the subsequent inspections). The advantage of using Agrar-Control GmbH is their credit in Germany and in the EU as a control organ for agricultural products. This is vital for trade. The local certification organs, as a rule do not enjoy similar accreditation. In Kenya and Tanzania one would most certainly work together with AfriCert, which has now been ISO certified. AfriCert was earlier supported by GTZ in capacity building. There is no functioning network as of yet in Colombia, South Africa and Zimbabwe. In these countries work continues together with local partners to create a solid cooperation which ideally should be able to fulfil the ISO standards.

6. Effect of Introducing Private General Standards

According to collaborative statements by the interview persons, the employees’ position in the companies has improved drastically due to the implementation of the FLP standards. Although there are no systematic analyses concerning which social/labour situations have improved. It is planned to do these studies in the future. Example: Colombia “I only started working here 3 months ago, but I already have a fixed contract and I earn 340.000 Pesos. From the first day I have had social security and a subsidy for the bus. I get work cloths at no extra cost. There are also little support benches so that we don’t exert our backs too much. All in all, I’m very satisfied. They do spray a bit but, mostly on weekends and then there are no people in the greenhouses until Monday.”

27 Interview with Dr. R. Schrage, ‘Chamber of Agriculture’ Rhineland, May 2003

27

Example: Zimbabwe “Zimbabwe is regionally a leading export country in cut flowers, in southern Africa. The cut flower industry is relatively young. It has existed since the 80’s and has expanded ever since then. The production aerial for flower producers is relatively small compared to more traditional agriculture products such as tobacco, maize and vegetables. Through the introduction of the FLP the social and labour conditions of agricultural workers in other production companies has also improved. This is first and foremost apparent in the improved health services and housing conditions as well as initiatives to common projects.” “In Zimbabwe the employer is legally obligated to give a person full time employment after they have worked for 8 consecutive months. This then leads to the employer dismissing employees after 8 months and then after a while employing them again. Thereby there has been created a throng of ‘permanent casual workers’ who have no right to social securities. FLP plantations give these people permanent contracts. Women receive, for the first time, paid maternity leave.” (Jonah K. Gokova, Ecumenical Support Service, Harare/Zimbabwe: from Global Social Standards in Focus, Expo October 2000) Whether the FLP standards have had an effect on national law making or their implementation in the countries where there are FLP companies is yet to be investigated. Undeniable though, is the influence which the FLP based on the International Code of Conduct has had on other flower labels. Both the Dutch MPS label and the Kenyan Association of Flower Exporters are now applying the ICC.

Value Added Strategies

7. Value Added Strategies

7.1 Development and Marketing of FLP Cut Flowers

The campaign ‘Blumenkampagne’ started using reality on the flower farms in Africa and Latin America as part of their public actions in the 90’s. The German flower trade tried to remedy a dangerous reputation loss by introducing the FLP label. After a mediocre success this was only achieved after non government organisations became part of the FLP label. The joint FLP label was made public at the flower Expo in Essen in 1999 and in the same year advertised for Mother’s Day. Consumer countries for the FLP are Germany, Switzerland and Austria. Traders estimate that the demand for FLP roses increased steadily until the end of 2001 and has since stagnated. BGI estimates that at this moment FLP flowers have a market share of 3 - 4% in Germany.

28

In certain market segments, high quality roses from Ecuador should reach a market share of approximately 75 – 90% in the winter months28. There are to date, no figures on the exact German market share for roses as this data is still being assimilated. One of the weak points which come up first from commerce is the relatively limited selection, especially from flower traders who sell mainly flower bouquets. As the FLP at this point in time, offers mainly roses, one can not offer certified bouquets as there is only very little certified foliage for the rose bouquets. Flower traders urge to increase the supply of certified foliage and through cooperation with the Dutch initiative MPS, hope to create an expanded selection and thus a larger chance at marketing the product. Since 2002 there have been plans to introduce the FFP label and since then the FLP label has not been actively promoted by ‘commerce’. As it is still unsure if the new label will actually be launched, a new marketing strategy will be introduced in 2005.

7.2 Labelling of FLP Flowers

It is not easy for the consumer to recognise an FLP flower at present. It had been decided that every 20th rose should be marked with a band, displaying the FLP label, but one would search in vain in florist shops for the label. For the most part, a sticker on the florists’ window shows that FLP flowers can be bought there. The FDF sees a problem with actual labelling of the individual flowers, as this would set aside the other flowers in their assortment. FLP flowers do not have an artificial surcharge as is the case in other fair trade products. The price of an FLP flower is created solely due to market mechanisms. To guarantee the required transparency towards the consumer though, it is necessary to label the FLP flower supply. Public Relations The FLP´s public relations are carried out on the main part by the non government organisation ‘Blumenkampagne’ and here particularly by FIAN29. According to FIAN there is a large demand for information material from churches, local labour organisations e.g. ‘terre des hommes’ and FIAN as well as from ‘Third World Shops’ and Unions. About 3000 subscribers are reached through the FIAN flower letter. In holding with the local Agenda-21 activity the city parliament of Bamberg, Potsdam and Lorrach have decided to either purchase FLP certified flowers or those from local regions. Under the slogan -“Fairschenk Blumen! Umweltschonend & sozialverträglich”, (Fair Given Flowers! Environmentally Friendly & Socially Sound) ‘commerce’, the Third-Word Initiative, the city of Bielefeld and its Consumer Council have decided to buy flowers solely from local regions or those which are certified30. This action has been in place for more than three years as a part of the national Agenda-process.

28 Interview H. Möller, BGI, April 2003 29 The main part of the information pertaining to employees conditions on flower plantations for the FLP is from F. Brassel (FIAN) 30 FLP, MPS A and the label “Grüne Zertifikat” are recommended.

29

The Consumer Council has decisively chosen not to exclusively promote the FLP label as, according to a statement of theirs, there is a supply shortage and it is not always possible to get the flowers.

7.3 Relevant Players in Customer and Product Information

In an internal agreement in the FLP there is a work division which makes the non governmental organisations and trade unions responsible for the standards and their development and marketing is the responsibility of BGI and FDF. This arrangement has only been partially successful. A large part of the marketing is still done by NGOs and their volunteer action groups, funded mainly by churches. Apart from these the GTZ has funded a handful of PR activities. The FLP31 and FIAN32 offer information about the FLP and situations on the plantations to their members on their respective web sites. It is also possible via the internet, to get contacts to the ca. 800 florists who stock fair trade flowers. Apart from the organisations that are directly involved, the Consumer Council (NRW) and Consumer Initiative e.V. have both compiled information material for the Flower Label. Direct contact to the producers is managed by the FLP office in Cologne and via the regional coordinators. To increase awareness of the FLP in the different countries, information seminars are held for the producers. Flower producers who display an interest are supported in the conversion of their production to that of the FLP by the regional coordinators. The office in Cologne offers professional as well as organisational support (incl. training of experts, pre-inspection). BMZ via GTZ supported with the conversion of companies in Ecuador, East Africa and Zimbabwe. They have also supported the FLP office in Cologne.

7.4 Proposal for Future Increased Consumer Information

At this point in time there is no professional marketing strategy for FLP certified flowers. ‘Commerce’ is preparing to launch the new ‘Fair Flowers and Plants’ (FFP) label. As the time frame for this launch is as of yet unclear, it was decided at the annual general meeting of October 2004 to create a new marketing strategy. Another important component in consumer information is the labelling of the actual flowers as an FLP product. Marketing and information material about the FLP should be freely available in shops. At this point florists are limitedly used to inform the customer about the FLP; or rather they themselves are not offering to be used. In the light of this, the comment that there is only a limited supply of FLP flowers should be taken seriously. Through a merger between FLP and MPS this problem could be reduced. Another possibility is offered by the campaign ‘Blumenkampagne’ in

31 www.flower-label-program.org 32 www.fian.de

30

Bielefeld, where florists have made the joint decision of supplying either FLP flowers, MPS labelled flowers or flowers from the local regions in their flower shops. Florists should in all events be very active in the informing of the consumer. Accordingly, florists should be able to give qualified information about the FLP. To guarantee this, the production conditions in the flower industry and the basic principles of the FLP should become a theme in the florist education. One potential which has only partially been taken advantage of is public support. As of now three German city councils have decided to solely buy certified flowers. This number can certainly be improved upon, especially if the FLP and MPS join and increase their assortment. Other certified products are also trying to become part of the official decision. As the public expenditure policy is a complex issue, coordination with other labels would be advisable.

7.5 Motivation for Conversion in Companies

The advantage for companies is improved loyalty and a greatly improved motivation from the workers which then leads to an improved production. The number of illness related absentees and accidents at the workplace decrease due to the improved labour process and protective equipment. This is emphasised by statements from inspectors and their control rapports. Another positive development is an improved image for the flower industry in Europe and the production countries due to the improved environmental and water conditions in the areas around these companies. This is directly traceable to the professional handling and disposal of chemicals33. The product is traded at market price; the surcharge received for fair trade products is not paid. It is not paramount for the companies to be certified by the FLP to gain access to the European market. Criteria such as quality and supply as well as trustworthy business relations are important for commerce34. Whether traders request FLP labelled flowers from their suppliers relies heavily on consumer demands.

7.6 International Synchronising

Contact has been established with international organisations such as Migros (Swiss Fair-Trade-Concept), the Dutch Blumenbörse (MPS label) and the Ethical Trading Initiative, England to create a common label. This led to a cooperation agreement with MPS. An intensive exchange with the Max Havelaar organisation to establish an improved cooperation is taking place. Primary discussions with other international label initiatives such as EurepGap have already taken place and are being pursued. The FLP has reordered their membership of EurepGap and are striving for a closer cooperation. As many EurepGap criteria are equal to the FLP standards, the FLP

33 Interview with Frank Brasse, FIAN, April 2003 34 Interview with Magnus Kron, Florimex, June 2003

31

immediately offers a combination control where producers can get both certifications at once. These controls are conducted by the independent organisation Agrar-Control, Germany (ACG)35.

8. Contribution from Development Work

8.1 Support with Implementation of FLP Standards

Consultancy Companies are generally advised by the coordinators before the primary inspection. From 1995 to 1997 the GTZ consulted the Ecuadorian companies and between 1998 and 2000 companies in East Africa about the FLP implementation. The consultancy service was conducted by experts within the area of integrated plant protection and social standards. Education Program for Employees In a round table forum of the Code of Conduct, pilot projects whose goal is to create instruments for the implementation of the standards and to gather experiences of such, are followed. The aim is that these projects can be transferred to other sectors, such as agriculture. The pilot project “Education Program for Employees on the International Code of Conduct within the cut flower industry” is aimed at employees on FLP farms. The first step to inform employees of their rights is information about the International Code of Conduct within the cut flower industry. FLP companies are required to display publicly the ICC in the common language of the country. The Code of Conduct exists in English, Spanish, German and Dutch as well as in Kiswahili (Tanzania, Kenya, Uganda), in Shona (Zimbabwe) and Afrikaans (South Africa). The IUF, the Friedrich Ebert Foundation and FIAN have developed a training program for the employees in the flower industry. Themes are: conditions for employees, social and ecological consequences in the flower industry, world market for cut flowers, the International Code of Conduct within the cut flower industry as well as the Flower Label Program. Material for these themes has been published in English and Spanish under the title “Flowers for Justice”. Several workshops for workers have been conducted on farms in Zimbabwe, Kenya, Tanzania and South Africa, as well as in Ecuador, Bolivia, Costa Rica, Guatemala, Colombia and Peru.

35 Report from the PPP office, 03.06.2004

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8.2 Possible contribution in the future: Public Relation and Public Purchase?

One of the tasks for development work could be to strongly encourage public decision makers in Germany to support the purchase of socially and environmentally ‘correct’ products from developing countries. Here the GTZ could act as a bridge between the different labels, the public spending policies and political decision makers. Another important action point for the GTZ is consumer and producer information. While the informing of producers in Africa, Asia and Latin America forms a part of one of the most important undertakings of the development organisations, consumer information does not belong to the original GTZ operation description. One of the main arguments for companies in Africa, Asia and Latin America to move towards the observance of social and environmental standards is consumer demand from the industrialised countries. But the demand, on the other hand, requires a corresponding level of informed consumers36. In this area the GTZ could improve the level of consumer information concerning the conditions in flower production as well as promote the FLP. This could for example be done under the jurisdiction of the Ministry of Consumer Interests Protection, Nutrition and Agriculture (BMVEL) and in cooperation with the Consumer Centre.

9. Effects of the Flower Label Program – Critical Success Factors & Lessons Learned

Compared to the situation in the beginning of the 90’s labour and living conditions of ca. 12.000 employees of FLP companies have improved drastically. This is based on their social situation, conditions at their work areas and production companies as well as their social security. The certification itself has, according to those that use the FLP label, proven to be an effective instrument in environmental improvement in the areas around flower plantations. The central success factor for the FLP though has been the consumers’ attitude. ”FLP only makes sense, if the consumer demands it, because everything is traded”37. Since ‘commerce’ has left the task of marketing the FLP label and public information concerning, for example, the conditions on flower farms, entirely up to non-government organisations, it is not likely that the demand for FLP flowers will increase significantly. This is a central problem for the future success of the FLP. Commerce fears a discriminatory effect on their other assortments and of their suppliers if FLP certified flowers are positively promoted. This is why the label has, to date only been moderately promoted. 36 Likewise it is important to be able to inform about bad conditions and the completion of campaigns by NGOs. 37 Interview with H. Möller, BGI, 2003

33

Another critical factor is the economic advantage for flower companies to join the FLP. It is held that FLP certification ensures and improves access to the European market. This though, can not be proven. It would be better for ‘commerce’ to consider a prioritisation of companies which bear the FLP label (e.g. financial benefit). This could be organised through the already existing supplier relationships. The FLP can only function with the cooperation of the different partners: commerce, producers, NGOs and unions. It is therefore important that all the interest groups continually show an active interest in the FLP.

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Appendix

Literature / References

Literature

• BMZ Kampagne für Sauber Kleidung, DBG Art Work, CDG e.V: CDG at Expo

2000. Global Social Standards in Focus. Best Practices. Monitoring of Codes of Conduct, October 2000, P. 47 – 56

• Blumenwelten – der dornige Weg vom Feld zur Vase. Brochure with same name, Vamos and LAG3W, Münster, 2001

• European Federation of Food, Agriculture and Tourism Trade Unions (EFFAT): Blumen und Pflanzen aus fairer Produktion, Brussels 2003

• FIAN, Friedrich Ebert Stiftung, IUF Flowers for Justice: Implementing the International Code of Conduct, Herne, 2001

• FIAN, Magazin für wirtschaftlichen, sozialen und kulturellen Menschenrechte: Blumen weltweit – auf der Suche nach Sozialstandards, Nr. 4/100

• GTZ: Sozialstandards in der Technischen Zusammenarbeit, Eschborn 2002 • Hartmann, Kathin: Schönen Blumen machen viele Frauen glücklich – und

andere krank. Das Flower-Label-Program zertifiziert Blumen, die in Entwicklungsländern menschenwürdig und Umweltschonend angebaut werden, in: Frankfurter Rundschau, Edition from March 11th, 2003, Nr. 59

• Köpke, R; Röhr. W.: Codes of Conduct, Cologne 2003 • Pertwee, Jeremy: Fresh Cut Roses, Market Trends 2000,

www.pastfastpublishing.co • Pertwee, Jeremy: Production and marketing of roses, Elsevier International

Business Information, 2000 • Pertwee, Jeremy: Competitiveness between rose growing countries, 2002

Campaign material

• Exhibitions Blumenwelten: Part of the campaign, “Wir handeln fair, NRW”.

Possible to get from Vamos, Achtermannstr. 10 – 12, 48143 Münster, vamos@munester.de

• Video, Blumengrüsse vom Äquator” 2001, 25 Minutes. Possible to get from FIAN, Overweg 31, 44625 Herne

• Fairschenk Blumen: Brochure from Bielefelder Blumenkampagne, o.J. • Campaign guidelines for local activities about the Flower Label Program 2000.

Possible to get from FIAN • Blumenzeitung 1999, Possible to get from Brot für die Welt, Stafflenbergstr. 76,

70184 Stuttgart

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Interview Partners

Frank Brassel, FIAN Dr. Reiner Schrage, ‘Chamber of Agriculture’ Rhine Henning Möller, BGI Nicola Espei, FDF Dr. Rheinhard Pauw, Agrar-Control GmbH Maria Kopf, Verbraucherzentrale, Bielefeld Silvia Honsberg, IG BAU Silke Peters, Terre des hommes Magnus Kron, Florimex

Internet Addresses

BGI – Association of German Wholesalers and Importers www.bgi-ev.com COLEACP – Europe-Africa-Caribbean-Pacific Liaison Committee for the promotion for ACP horticultural products www.coleacp.org FIAN – Food First Information and Actions-Netzwerk www.fian.de Flower Label Program www.flower-label-program.org International Association for flower wholesalers (Union Fleurs) www.unionfleurs.com ILO www.ilo.org Kenya Flower Council www.kenyaflower.co.ke Asocolflores www.colombianflowers.com Max Havelaar www.maxhavelaar.ch Milieu Programma Sierteelt www.st-mps.nl terre des hommes www.terredeshommes.org UNO www.uno.org Consumer initiative www.verbraucher.org Consumer Centre North Rhine Westphalia www.vz-nrw.de

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International Code of Conduct for Socially and Environmentally

Friendly Production of Cut flowers (August 1998)

Preamble

The following ‘Code of Conduct’ guarantees that flowers will be produced on the basis of socially and environmentally friendly criteria. The code stipulates a concise description of minimal human rights, labour and environmental standards for the international cut flower industry. Companies and their suppliers undertake to uphold the requirements of these standards and assure that their partners and their suppliers do too. The Codes are kept in a short, concise format enabling them to be displayed in the work place and to avoid confusion between these minimum standards and their implementation. An independent body will be formed to perform independent inspections in order to control and support the implementation within companies. A control checklist, containing the requirements and information pertaining to the procedures as stipulated in the previously mentioned Code, will be made availabe. Companies agree to uphold the ILOs most important conventions, which form the basis for this Code. Companies ensure that the requirements of these guidelines are, as a basis, upheld by their partners and suppliers by requiring them to compel their business partners to do the same. Companies accept that an independent control concerning implementation of this Code can take place. The Code only defines minimum standards which should not by confused as highest standards or used as an argument in collective bargaining. If national law and these criteria address the same issue, the strictest requirements are chosen. The Codes text, which must be displayed in the work place, must also describe the procedure a worker can take to, in a private manner, complain if the criteria have been disregarded.

Code of Conduct

1. Freedom of Association and Collective Bargaining

The rights of all workers to form and join trade unions and to bargain collectively shall be recognized (ILO Conventions 87 and 98). Workers representatives shall not be subject of discrimination and shall have access to all workplaces necessary to enable them to carry out their representation functions (ILO Conventions 135)

2. Equality of Treatment

Workers shall have access to jobs and training on equal terms, irrespective of gender, age, ethnic origin, colour, marital status, sexual orientation, political opinion, religion or social origin (ILO Conventions 100 and 111). Physical harassment or psychological oppression, particularly of women workers, must not be tolerated.

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3. Living Wages

Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income. Pay should be in cash, direct to the workers, promptly and in full. Information to wages shall be available to workers in an understandable and detailed from.

4. Working hours

Hours of work shall comply with applicable law and industry standards. In any event, workers shall not on a regular basis be require to work in excess of 48 hours per week and shall be provided with at least one day off every week. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a premium rate.

5. Health and Safety

A safe and hygienic working environment shall be provided. Companies shall provide free and appropriate protective clothing and equipment, and comply with internationally recognized health and safety standards (ILO Conventions 170). Workers and their organizations must be consulted, trained and allowed to investigate safety issues. There should be regular monitoring of workers´ health and safety. Companies shall supply drinking water; provide clean toilets and offer showers and washing facilities. Where housing is provided, it should comply at least with the minimum standards for size, ventilation, cooking facilities, water supply and sanitary facilities (ILO Conventions 110, Articles 85-88)

6. Pesticides and Chemicals

Every company should asses the risks of the chemicals used and apply measures to prevent any damage to the health of their workers. Companies shall record and reduce pesticide and fertilizer use by adequate techniques and methods. No banned, highly toxic (WHO I) or carcinogenic pesticide or chemical should be used. Safety instructions and re-entry intervals must be strictly observed and monitored. Spraying, handling and storing pesticides and chemicals should be done by specially trained peopled with suitable equipment. Stores, apparatus and equipment must be clean, safe, handy and conforming to international standards.

7. Security of Employment

Work, which is by its nature not seasonal or temporary, shall be done by workers on permanent contracts. Provisions for non-permanent and seasonal workers, including freedom of association, should be not less favourable than for permanent workers. Every worker shall get a copy of his or her contract.

8. Protection of The Environment

Companies should make every effort to protect the environment and the residential areas, avoid pollution and implement sustainable use of natural resources (water, soil, air, etc.)

9. Child Labour Is Not Used

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There shall be no use of child labour. There shall be no workers under the age of 15 years or under the compulsory school-leaving age, whichever is higher. Children under 18 shall not work in hazardous conditions (ILO Convention 138). Adequate transitional economic assistance and appropriate educational opportunities shall be provided to any replaced child workers.

10. No Forced Labour

There shall be no forced labour, including bonded or involuntary prison labour (ILO Conventions 29 and 1005). Nor shall workers be required to lodge “deposits” or their identity papers with their employer. Implementation Requirements To overview the implementation of the Code of Conduct an independent body, accepted by all parties involved (for example trade unions, NGOs, employers) shall be formed. This body will set the term for an independent process of verification of compliance with the Code of Conduct. The companies shall report regularly about the progress made in the implementation of the Code. The independent body shall make provisions for workers, trade unions and other concerned groups to lodge complaints about violations of the Code, which if serious, have to be followed up. The Code shall be translated into local languages and prominently displayed in the place of work. The English version of the Code is the valid one. Developed by: IUF – International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers Associations, Geneva Flower Campaign, Germany IG BAU – Industriegewerkschaft Bauen Agrar Umwelt, Germany (German Union) Christian Aid, UK FNV – Association of Unions, The Netherlands OLAA - Organisatie Latijns Amerika Activiteiten, The Netherlands Fair Trade Centre, Sweden Blumen-Koordination, Switzerland (flower coordination)