Key challenges in ethical trade: Report on the ETI Biennial Conference 2003

Chapter 3
Building local multi-stakeholder code initiatives: the example of WIETA

The Wine Industry Ethical Trade Association (WIETA) in South Africa is one of very few local, multi-stakeholder groups working to improve labour conditions in a specific sector. It was founded in 2002 following an ETI project on the wine industry of the Western Cape and is already having a considerable impact on local labour practices. We included a workshop on WIETA so that we could share the experiences and lessons from this initiative and help to improve understanding of the practical steps, opportunities and challenges involved in setting up a local multi-stakeholder initiative.

 

3.1 Background

The experience of ETI and others has highlighted the importance of involving local organisations in code implementation. We have found that their knowledge of local labour and industry conditions, issues and perspectives is key for effective identification and resolution of labour problems. Unlike many sourcing companies and external NGOs, local organisations – be they national government institutions, union organisations, or community-based organisations – are more likely to be around in the long run. Their involvement is therefore critical to ensure that any improvements in labour practices are appropriate and sustained over time.

But for relevant local organisations to be effectively involved in monitoring and improving labour practices, a mechanism or institution is needed to bring and keep them working together. That is why there is growing interest among those involved in ethical trade in the opportunities for developing local multi-stakeholder code initiatives/organisations in supplying countries.

“We realise that we can't work in isolation, and the WIETA programme helps bring together managers and union workers from many farms. It provides an opportunity for workers and producers to discuss problems and to improve the relationships between them.”
NGO REPRESENTATIVE INVOLVED IN WIETA

Currently, very few such initiatives exist. However, one exciting exception is the new Wine Industry Ethical Trade Association (WIETA) in South Africa. WIETA grew out of the local interest, expertise and commitment stimulated by an ETI project, now completed, which tested different approaches to monitoring labour practices on wine estates, farms and co-operatives. While the project focused on developing monitoring methodology, those involved witnessed many examples of concrete improvements to working conditions that came about as a result of the project, as the case study below shows.

 

3.2 Why was WIETA established?

South Africa, a major exporter of wine, has widespread socio-economic problems affecting workers. Although labour legislation provides significant protection for workers, it is not always complied with. Many workers are unaware of their rights and few farm workers are organised. Resources and facilities to assist enforcement of rights are scarce in rural areas, and the minimum wage applicable in the wine industry is very low.

The ETI experimental project and the growing commitment by supermarkets to address labour conditions in their supply chains provided local stakeholders with a new opportunity and mechanism with which to tackle these problems.

“The pilot (the ETI experimental project in South Africa) has opened our mindset to the potential for improvement. An audit is an opportunity to learn and stretch our goals. We are forced to rethink our views and are now broadening our knowledge.”
PRODUCER INVOLVED IN WIETA

 

3.3 What is WIETA?

WIETA, formally established in November 2002, is a not-for-profit, voluntary association of stakeholders in the South African wine industry who are committed to ethical trade. An executive committee comprising labour, business, NGO and government representatives manages the body. Representatives from these constituencies are elected onto the Executive at the Annual General Meeting. A Chief Executive Officer, who reports to the executive committee, is responsible for the day-to-day management of the association.

WIETA's mission is to improve the working conditions of employees in the wine industry by:

• formulating and adopting a code governing labour standards for those involved in the growing of grapes and the production and bottling of wine;
• promoting the adoption of and adherence to the code among all wine producers and growers;
• educating producers and workers on the code;
• monitoring members' implementation of the code;
• determining ways of encouraging implementation of and compliance with the code as well as measures to be taken in the case of non-compliance with the code.

Working from the ETI Base Code and South African labour legislation, WIETA also addresses other issues specific to the wine industry, such as alcohol abuse, workers' housing and the right of workers not to be unlawfully or unfairly evicted from their housing on the farms.

“Because of the international clout and retailer pressure through WIETA, the lives of workers can be improved and real changes happen.”
TRADE UNION REPRESENTATIVE INVOLVED IN WIETA

 

3.4 How is WIETA funded?

ETI has provided funding to support the establishment of WIETA, and specifically to develop a membership handbook, publications for workers and auditor training. In the future, a substantial portion of WIETA's funding will come from the Common Customs Tariff rebate applicable to South African wine that is exported to Europe. All ETI member retailers benefiting from this rebate have agreed that the savings will be used to fund various developmental initiatives in the South African wine industry, including WIETA. WIETA will also be supported by membership fees and contributions towards auditing costs.

 

3.5 What is required of members?

Members of the association have different responsibilities:

• Executive Committee members: develop the code and decide how the association will best meet its objectives;
• producer members: implement the code at their workplaces;
• trade union members: create awareness of the code's provisions among their members;
• NGO members: provide expertise, training capacity and research capabilities;
• government members: help to identify ways of supporting effective code compliance in under-resourced rural areas;
• sourcing companies and agents: provide financial contributions and pressure producers to comply with the code.

 

3.6 Monitoring

Complying members will become accredited members of the association. Non-complying members will be required to develop an improvement plan, in consultation with employees or their elected representatives, setting out the steps that will be taken.

Follow-up audits will ascertain the extent to which these measures have been implemented. WIETA will be taking the following steps to ensure that its auditing programme will be effective:

• WIETA will select and train independent social auditors with a good understanding of legislation and social conditions on farms, and the skills to interact with workers;
• Both employers and employees will be present when the audit team explains how they will conduct the audit;
• Information obtained from management will be verified through a series of confi- dential interviews with a representative selection of employees and an inspection of the workplace and records;
• Findings will be fed back to management and the worker representatives.

 

3.7 Looking forward

WIETA envisages a number of challenges ahead. It plans to address these through:

• continuing to build relationships and trust between members;
• establishing its reputation as a local rather than ETI-based initiative;
• working to redress the imbalance of power between members – the process should be owned by the workers, the majority of whom are not organised;
• promoting transparency.