Today, industrial relations in the Urabá region where SINTRAINAGRO is active are widely viewed as the most advanced in any Latin American banana producing region or country. Last year, the union negotiated an impressive four-year collective agreement with producers association Augura, with a 14% pay increase in the first year. The union, which is proactive in women’s empowerment and inclusion in the rural workforce, also ensured the agreement included clauses to increase the number of women hired in the traditionally male-dominated industry. Thanks to conventions negotiated by the union and partnerships established in the community, the union has been able to support the educational attainments and training of the workforce as well as offering sporting opportunities for children and young people in the community.

Below, Adela Torres, General Secretary, discusses the history of the union that is a model in Colombia and beyond.

SINTRAINAGRO as a model of trade union unity in Colombia

As reported by Adela Torres, General Secretary

A bit of History

SINTRAINAGRO was born 48 years ago on the oilpalm plantations surrounding Puerto Wilches, a town 300 kilometres North East of Medellín, as a response to the precarious and subhuman conditions in which the workers lived. At the time, workers suffered from a lack of job stability, working days of over 14 hours, a lack of access to public services, healthcare or social security, hazardous working conditions and were accommodated in camps.

SINTRAINAGRO has had to face countless challenges in order to continue its trade union struggle. At the time of its inception in 1976, the country was experiencing acute social and economic crisis resulting from a historical period of Colombia’s history known as ‘The Violence’: a period of civil war that ensued after hundreds of banana plantation workers were killed by the military in Ciénaga in 1928 after striking for better conditions, leading to civil unrest that worsened when a left-wing political candidate was subsequently assassinated. While peace gradually returned to the area, SINTRAINAGRO continued to work to defend the labour, social and economic rights of workers and their families.

SINTRAINAGRO is affiliated to the Central Union of Colombian Workers, the CUT, is a member of the IUF and of COLSIBA, the Coordinating Body of Latin American Banana and Agro-industrial Unions.

Core Commitments

Since its inception, SINTRAINAGRO has remained loyal to its founding principles, of defending the social, economic and labour rights of workers. At the same time, the union has been firmly committed to its central purpose: of contributing to the strengthening of the social rule of law, to the deepening of economic, social and political democracy, and promoting the growth and capacity of trade unions, in a single national trade union by branch of industry.

Leaders of SINTRAINAGRO today recognise the significance of the unions social and political history. It is a history that demonstrates that it is possible to come from a position of adversity and anti-union violence to achieve the opening of “spaces of hope”. It is a history that demonstrates how joining the union can lead to tangible improvements in the living conditions of workers and their families.  It is a history through which the union has survived to earn a position of admiration and respect among the national and international community.

SINTRAINAGRO continues to work on the following key issues:

• Against labour precarisation
• Against labour outsourcing through cooperatives and subcontracting.
• For respect for freedom of association, collective bargaining and the right to organise freely.
• For labour contracting through direct contracts with companies.
• Against anti-union violence.

Model of Labour Agreement

Between 1970 and 1999 a period of violence in Colombia claimed the lives of many trade unionists, politicians, workers, military and businessmen. This violence destabilised the social and economic order in the agro-industrial productive regions, but through a political agreement between the government and armed groups, the trade union saw an opportunity to increase membership and pave the way to the signing of the first collective bargaining agreements.

Since then, and through the rethinking of the vision and programmatic objectives of the organisation, the culture of collective negotiation between the trade union and employers has been transformed, resulting in a climate of greater understanding on labour issues, improvement of the quality of life of workers, social development and a model of labour consultation in Colombia.

Over the last 25 years, the model of labour agreements between companies and SINTRAINAGRO has allowed for agile collective bargaining agreements to be negotiated which led to tangible benefits for workers and their families: this has become a decisive factor in productivity and therefore in workers’ wages. Ultimately, having an organised workforce with collective agreements in place favours the economic situation in productive regions.

These agreements, named ‘agreements on productivity, sustainability and decent work’, establish working commissions and activities that seek to ensure that both parties take initiatives to improve production. It is a negotiation model that seeks to improve market conditions and therefore the stability of the company and the workers.

Today, these agreements benefit over 33,000 workers in Colombia, across bananas, sugar cane, oilpalm, flowers, rice, and dairy products, and across 300 different companies. The major achievements of these agreements include the establishment of permanent employment contracts, recognition of social benefits such as healthcare and pensions, reducing occupational hazards, and gains in areas of housing, education and other benefits.

SINTRAINAGRO’s Presence

SINTRAINAGRO is present in the regions of Magdalena, Santander, Cesar, Risaralda, Tolima, Valle del Cauca, Cundinamarca and Antioquia; in the agribusiness of: Banana, Rice, Sugar, Sugar, Flowers, Oil palm, Dairy, Rubber, and Biodiesel.

SINTRAINAGRO and its contribution to reconciliation

SINTRAINAGRO has shown that it is capable of settling disputes through dialogue and consultation, an example of which is the collective bargaining model it leads.

The union has worked tirelessly to defend decent employment for its members and their families.

SINTRAINAGRO has been part of the protection, advice and guidance provided to victims of violence and displaced persons, aiming to ensure that victims receive comprehensive reparation.

The women’s secretariat of SINTRAINAGRO was created to offer specific support to women, seeking the increased participation and empowerment of working women, widows and single mothers, promoting women’s leadership and the defence of women’s rights as citizens.

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In a context of growing hunger and accelerating climate and biodiversity crises, the 300-member Agroecology Coalition today launched an ambitious strategy to rapidly accelerate the transition to sustainable agroecological food systems by 2030.

“Agroecology is an essential food system approach to tackle the climate, biodiversity and hunger crises together, and we need it to sustainably feed a growing population and respect nature. We can’t keep avoiding the destruction caused by extensive industrial agriculture.” said Monicah Yator, co-chair of the Agroecology Coalition and Founder, Indigenous Women and Girls Initiative (Kenya).

Bringing together pioneering governments, international agencies, scientific groups and civil society organizations, the Coalition launched its 2024-2030 strategy at an event hosted by the International Fund for Agricultural Development (IFAD). 

“Through prioritising sustainability and respect for the fundamental role of biodiversity and living soils, agroecology can build healthier ecosystems even while increasing productivity. The Agroecology Coalition is sending a powerful signal today, with its many members joining forces to boost investments, policies, research, and ability to implement a more integrated approach to food systems.” said Alvaro Lario, President of IFAD.

The EU was also represented at the Strategy launch. “I would like to congratulate the Agroecology Coalition for launching its strategy. With agriculture facing major challenges, agro-ecological practices can guide farmers all over the world to manage their land in more sustainable ways and increasing their resilience to biotic and abiotic stresses. The EU, through its policies and funding is supporting the transformation of agri-food systems to benefit producers, consumers and nature alike. The Agroecology Coalition is a partner in this respect and we are looking forward to a continued and strong cooperation in Europe and globally.” said  H.E. Alexandra Valkenburg, Head of the EU Delegation in Rome.

The challenges food systems are facing: 

Today’s food systems are responsible for one-third of global greenhouse gas emissions and nearly 80% of biodiversity loss. They often rely on chemical-dependent monocultures, making them highly vulnerable to shocks. These practices also contribute to forest destruction, the displacement of communities, water pollution, and soil degradation. Many farmers and food system workers, particularly women, Indigenous Peoples, and youth, have precarious livelihoods. In other words, today’s food systems are exacerbating poverty and social inequalities, and undermining food security and access to healthy, nutritious diets, with hunger still at “serious or alarming in 43 countries” according to the 2023 Global Hunger Index. 

The Agroecology Coalition approach: 

The new strategy that the Agroecology Coalition has launched set goals towards the acceleration of food systems transformation, among these.

• The Coalition is committing to foster increased investments for agroecology, motivating international agencies, governments, philanthropy, public and private funders and investors to step up, in quantity and quality, investments in agroecology.   Today, overall agroecology funding is on the rise and has reached US$44 billion a year. It is estimated however that a tenfold increase in the current investment (i.e. US$400 billion) will be required to create the conditions for agroecology to affect transformation in food systems required to address prevailing global challenges.  
• The Coalition will advocate for and amplify supportive policies, seizing opportunities for collective advocacy in international institutions as well as in other global and regional, and national, fora and processes, such as the three Rio Conventions, the UN Food Systems Stock take Moment, and Committee on World Food Security (CFS).  
• Fair and equitable access to markets for agroecological farmers and food provisioners remains a challenge and requires mainstreaming, while consumer awareness of agroecology and its multiple benefits is also limited. For agroecology to take hold in food systems, producers and consumers should be better connected.  For this the Coalition will support efforts towards developing dynamic local, territorial, national and regional markets and inclusive business models improving the livelihoods and influence of agroecological farmers and food system actors

“Senegal has been one of the founding members of the Agroecology Coalition in 2021 and we are proud of what we have achieved together. In Senegal, we took several concrete steps already, but we know that for agroecology to fulfil its bright future, we need to keep advocating jointly in international spaces and inspiring each other: this new strategy will help us. This is crucial as it’s not just about growing food, it’s about nurturing our land, our communities, and our future.”  said H.E. Ngor Ndiaye, Senegalese Ambassador in Rome.

Background:

In 2021, the United Nations Food Systems Summit (UNFSS) underlined the need for urgent actions to transform food systems. The Agroecology Coalition was set up in this context to bring countries and organizations together and step up their efforts to transform food systems through agroecology and simultaneously address multiple crises. Today it brings together around 300 members, including governments and organisations.

Banana Link joins the coalition as part of our continued efforts to advocate for and support transitions towards sustainable production systems within the banana and pineapple export industries, by reducing dependence on hazardous substances and mono-crop production systems, and minimising adverse health and environmental impacts on workers, communities and the environment. We believe that sustainable production systems based on agroecological principles are integral to the future of banana and pineapple industries based on fair and ethical trade, decent work and living wages, and fair market access for small farmers.

Below: Bananas grown with a cover crop of Arachis pintoi in Guadeloupe. (Photo, CIRAD)

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SITRABI has taken an active role in recent years in seeking to educate workers in the Pacific South plantations belonging to several companies. For several years this work was supported by the British trade union confederation TUC and Banana Link. More recently, a programme of the US Department of Labor and the AFL-CIO Solidarity Center has supported this work and the US Labour Attaché has acted as a guarantor of good faith in the dialogue with the company. Guatemala is the fourth largest exporter of bananas globally, and the United States is the main export destination for Guatemalan bananas.

Banana Link continues to play a role of facilitating regular dialogue between SITRABI and Grupo AgroAmérica, one of the largest producing companies in the country which employs some 7,000 workers in its two subsidiaries in the South. Following the events that took place this May, Banana Link facilitated a series of calls between the company and the union to try and find solutions to the problem.

Senior AgroAmérica management played an active role in finding solutions and, as the statement from SITRABI confirms, a group of workers have been reinstated and local management and security personnel have received training on human rights issues. Banana Link wishes to draw public attention to AgroAmérica’s commitment to trade union freedom and calls on its customers in North America and Europe to take account of its willingness to engage in good faith dialogue.

Read the full statement from SITRABI below:

“In relation to the situation that occurred in the farms operated by Frutera del Pacifico, a subsidiary of AgroAmerica, this May, which involved the sacking of workers who had been trained in human rights and labour rights, SITRABI wishes to make the following statement.

We recognise the dialogue that has taken place to address and resolve the problems that have arisen and to respect freedom of association. We appreciate the spirit of collaboration and goodwill shown by all parties in this process. Deborah Martierrez, Labour Attaché at the US Embassy in Guatemala, and Jason Boccaccio, Deputy Director for Central America at the Solidarity Center, acted as guarantors in this dialogue.

Frutera del Pacífico has declared and reaffirmed its commitment in the agreement concluded on 14 June 2024, to respect freedom of association and the participation of workers in the formation of a union, as well as in training groups and their interest in forming and associating freely. Frutera del Pacifico has stated that it has taken action to prevent any subcontracted management, administrative or security personnel from engaging in actions that could be considered retaliatory, intimidatory or in violation of the rights to freedom of association and unionisation, in accordance with the agreement reached on 14/06/2024, the legislation in force and international conventions.

Five people have been reinstated at the VISTA BELLA farm since the 17^th June, and two others will start in July of their own free will. Measures have been put in place to ensure that their labour rights are fully respected.

We note that the corporation had in the past a successful relationship of more than 20 years with a union allied to SITRABI in Izabal, which ended amicably due to natural phenomena beyond the control of both parties. According to the corporation’s spokespersons, it maintains successful relations with two unions in other operations where freedom of association and labour rights are respected.

We will continue the process of constructive dialogue, jointly promoting respect for labour rights and dialogue mechanisms. We commit to continue to work together to strengthen a fair and equitable working environment for all.

We urge all parties concerned to pay attention to this declaration, which demonstrates good faith and willingness to respect and guarantee ILO Conventions 87 and 98.”

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Below: a meeting with workers at the Hispañola Fresh Fruit plantation in Botoncillo

Earlier this year, union leader Crusito Toribio visited banana producing companies and their associations across the country, and supported the renewal of contracts for 350 smallholder ‘parceleros’ with producing company Global Banana. The union is keen to work with business to find solutions to the problems that have affected the industry in recent years, which has seen a significant downturn in production levels.

The union is a close partner of the Fundacion Etnica Integral, a Dominican non-profit with over 20 years of experience working with migrant workers and their families. It has also forged close ties with local NGO the Socio-Cultural Movement for Workers of Haitian Origin (MOSCTHA) who run mobile health clinics, and the Congregation of Pastors of the Haitian Church, whose support has been indispensable in enabling the union to engage with the large portion of the workforce who are of Haitian origin.

The union has benefited from the Dominican government’s ‘Comunidad Segura’ program, which has provided the funding to appoint two community managers to support the union consolidation.

Over the last two years, the union has rolled-out a series of training and capacity building programmes across the country. Women’s empowerment has been a central theme of recent training work. More training is planned for later this year.

Below (3): Union-led training sessions with women workers 

Below: General Secretary Crusito Toribio with a worker on a recent farm visit

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In letters of congratulation, the Izabál banana workers’ union and regional coordinating body COLSIBA enthusiastically welcomed the decision of workers in Escuintla to organise themselves, noting that it was against a backdrop of recent intimidation and repressive action on the part of their employers.

According to SITRABI, between 10^th and 11^th May 2024, at least 15 workers were unfairly dismissed by Frutera del Pacífico, a subsidiary of the AgroAmérica group.  This was following efforts made by SITRABI over a number of years to educate banana workers in Southern Guatemala – where around 80% of the nation’s banana workers are based, and 80% of the country’s bananas are grown – on freedom of association and labour rights. SITRABI noted that the workers who were dismissed had all participated in this training.

‘All the dismissed workers had decided to learn about the reality of the country and their rights under the law by participating in labour rights activities. Within two weeks of their participation in these activities, and one day before the dismissals began, company security personnel in military fatigues interrogated and intimidated the workers for a long time, and at least 15 of the workers were subsequently illegally dismissed’ SITRABI stated in a letter to AgroAmérica, one of the largest agribusinesses in Guatemala.

The union went on to state that ‘Frutera del Pacífico management accused the dismissed workers of engaging in discussions against the interests of the company during non-working hours, on their days off.’  SITRABI demanded that the dismissed workers be reinstated with backdated pay, and that the company respect freedom of association. 

In response to the union’s communications, the owner and corporate affairs manager of Grupo AgroAmérica met with the SITRABI leadership and have accepted the reinstatement of 9 workers. They have also given written assurance that the company respects workers’ rights and freedom of association. The company has reinstated 5 on 17^th June and others who part of the agreement will strat agina shortly. Frutera del Pacifico has also rolled out compulsory human rights and labour rights training for administrative teams and security personnel on the affected farms.

While the incident has taken a toll on the corporate image of AgroAmérica in a time of increased international scrutiny of worker rights, it is noteworthy that both the company and the union have been able to engage in good faith open dialogue to work on a resolution acceptable to both parties. SITRABI is expected to publish a response to AgroAmérica’s remedial actions in the next few days.

The establishment of a union in the Southern region of Guatemala’s banana industry is an important development that may herald a new era for worker rights in the country’s industry. Reports have highlighted the stark difference that union affiliation makes for banana workers in Guatemala. A 2021 study published by the Centre for Global Workers Rights at Penn State University  found that non-unionised workers in Guatemala earned less than half the hourly pay and worked on average 12 hours more per week than their unionised counterparts, were 81% more likely to face verbal abuse, and that women working on non-unionised packing plants were 58% more likely to experience sexual harassment. 

Guatemala is still considered to be one of the top-ten worst countries for workers, with the ITUC Global Rights Index 2024 noting the prevalence of violence and intimidation against trade unionists, coupled with insufficient efforts to investigate, contain and control anti-union violence on part of the government. Sadly, in 2023, there was more than one case of union activists within the banana industry being assassinated, including Doris Aldana, a member of SITRABI’s Women’s Committee and a mother of four.

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The Fairtrade Foundation was given the green light to push ahead with a shared-responsibility initiative designed to tackle human rights and environmental challenges in tropical supply chains last November, when informal guidance issued by the UK’s Competition and Markets Authority (CMA) confirmed that the initiative was unlikely to be in contravention of competition law. Known as the ‘Shared Impact Initiative’, it is set to bolster retailer efforts to tackle supply chain risks in coffee, cocoa and bananas. A year-long pilot phase of the scheme in Colombia, Ghana, Kenya and Côte d’Ivoire is due to start imminently, and will be followed by the signing of three-to-five-year contracts on the part of five UK retailers.

The scheme is intended to both guarantee and increase the sales of Fairtrade certified produce on participating farms as retailers make long-term, pooled sourcing commitments, building closer relationships with suppliers and gaining clearer insight to the challenges they face. While the CMA informal guidance is centred on environmental sustainability and climate change adaptations, the potential of the initiative to have broader social impacts is recognised. The crux of scheme is that by providing producers with guaranteed sales and the associated financial security that comes with longer contracts, an enabling environment is created for investments into social and environmental sustainability. The UK’s two leading retail brands, Tesco and Sainsbury’s, are understood to be among the five retailers poised to participate in the scheme.

Tackling Structural Issues in Banana Supply Chains

According to Fairtrade Foundation associate director for responsible business, Anna Mann, the initiative is conceived to tackle some of the underlying root causes of the negative social and environmental impacts of trade. Fragmented and opaque supply chains, a lack of long-term investment and fluctuating sales have limited the scope of producers to invest in climate change adaptations, sustainability or improved wages and working conditions. And while Fairtrade certification guarantees a minimum price and a workers’ premium, producers may be able to sell only a small proportion of their produce as Fairtrade certified, limiting the positive impact that certification can have on a farm. 

In early 2023, UK retailers committed to implementing living wages in their banana supply chains by 2027, with parallel commitments already established in Germany, Belgium and the Netherlands. Over the last year, industry debate has centred on the most effective means of ensuring that workers are paid a living wage. Projects that piloted worker engagement in wage data verification returned positive results, and retailers across the four countries with living wage commitments have publicly recognised the role that unions can play in salary negotiation, affirming that  “Collective bargaining is the most sustainable approach to wage improvement” in a statement released in February.

According to Mann, the Shared Impact Initiative will support the key role of unions in bargaining for wages. By giving farm and plantation management the long-term financial security that the 3-5-year contracts offer, they can better predict sales volumes and prices, enabling them in turn to engage in meaningful negotiations with unions around wages. In the banana industry, labour costs can account for almost half of the total costs of production, so the implementation of responsible sourcing practices that include long-term contracts as well as increased purchasing prices is crucial to ensure worker salaries can be improved. For Fairtrade, this is the route that will allow certified farms to move away from a system where worker incomes are boosted up to living wage levels though the payment of bonuses from the worker premium, an approach that was always intended to be temporary, she says.

The Bottom Line is Price

This week’s publicity around Fairtrade’s Shared Impact Initiative coincides with renewed calls from Latin American and Caribbean banana producers (see below) for the adoption of the Fairtrade methodology across the European industry in order to calculate a fair price that considers environmental sustainability efforts and fair wages. Referring to decisions by German retailer Kaufland’s controversial move to sell bananas at E0.88 per kilo in April and Italian retailer Eurospin’s announcement of an E0.85 per kilo price in May, the producers criticised a lack of progress on the root causes of sustainability issues – in their view a combination of low prices and a lack of shared responsibility on the part of retailers. The statement went on to criticise the development of sustainability tools and schemes that lacked producer engagement, did nothing to solve the underlying issues, and demonstrated a lack of knowledge about producing countries’ internal mechanisms for achieving a living wage, such as collective bargaining or public policy and legislation.

While there has been no suggestion yet that European retailers are on the brink of universally adopting the Fairtrade pricing methodology, Mann is clear that the Shared Impact Initiative is aimed at increasing the volume of Fairtrade certified produce they source overall, rather than retailers moving volumes of Fairtrade sourced bananas around. This means that more bananas would be bought at the Fairtrade minimum price across the industry: welcome news after the announcement of a two-year moratorium on new certification earlier this year, a decision that was apparently taken in the context of market saturation for Fairtrade bananas, and in order to protect the sales volumes of existing certified farms and cooperatives.

And while the initiative is currently focussing on only three banana producing countries, and one European retailer group, Mann hopes that the initiative will be to encompass other groups of retailers across Europe and beyond, in turn allowing for the incorporation of other producing countries and the development of much bigger buying pools that can increase the impact. As Mann states, ‘We want this to be inclusive of every banana producing origin where Fairtrade works: we don’t work in an origin where there are no problems, or profound challenges, or risks posed by climate change. The initiative would be meaningful to every group that we work with so our aim is to build the market demand, scale up the volumes and increase the number of producer groups involved.’ 

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The Agricultural Plantation Workers’ Union SITRAP, located in the province of Limón on Costa Rica’s Caribbean coast, is an independent trade union representing plantation workers employed primarily in the banana and pineapple industries. These industries dominate the economic activity of the region, where the union estimates there are almost 30,000 hectares of banana production and over 11,500 hectares of pineapple production.

Founded in the 1970s, for the first decade of its existence, SITRAP represented almost the entirety of banana workers in the region, and had established collective bargaining agreements with all the major multinational banana companies operating locally. However, from 1982, the union came under a concerted attack.  Fruit producing companies, with the support of a politically conservative section of the Catholic Church and funding from the US Embassy, succeeded in all but dismantling SITRAP and other independent trade unions. Since then, SITRAP has continued to defend the rights of banana and pineapple plantation workers in a hostile environment where an ideological crusade against the trade unions made it incredibly difficult for them to survive.

This anti-union culture permeates the nation’s banana industry and has been more recently been adopted by industrial pineapple companies that have started operations in the country. Workers who choose to join an independent trade union – and even their family members – are subject to permanent pressure to leave the organisation and over the decades, thousands have lost their jobs for organising. Nonetheless trade unions have survived and several collective agreements have been negotiated in a number of individual plantations.

Today, SITRAP defines itself as a union that is independent of governments, political parties, employers, ideological and religious conceptions, that practices democratic and participatory unionism, and strengthens the culture of dialogue, tolerance and mutual respect between people, organizations and institutions.

In the face of widespread refusal by the industry to engage in social dialogue, the union’s leadership has had to develop new models of working. SITRAP has led the struggle to defend worker’s rights by building an organisation that is relevant to families, women and young people.

Labour Day 2024 – a different day 

This year, instead of mobilising its membership to attend the traditional May Day marches and rallies in the capital of San Jose, SITRAP decided to organise activities for local workers and their families.

« This 1st May we decided to commemorate the historic struggle of workers for an 8 hour day in a different way », explains SITRAP’s General Secretary Didier Leiton Valverde.

« Traditionally, along with all the other unions, we have taken part in the big national march in honour of the Chicago martyrs, where we have denounced the violations of human and labour rights that many working people face in Costa Rica. But this year we marked the occasion with the men and women workers and their children in one of the few plantations where we have been able to negotiate better conditions ».

The activity took place in the Duacari 4 plantation that belongs to Fresh Del Monte BANDECO subsidiary in Guacimo canton. The day started with a greeting to all the workers, including those from the neighbouring district of Sarapiqui where the national trade union of public and private sector employees ANEP has a growing membership. The day continued with a series of football tournaments for children, women and men with prizes, a piñata, lunch and ice-cream provided by SITRAP.

The day was organised in cooperation with the union’s branch committee in Duacari 4 and the union’s executive committee, whilst the company provided its facilities.

SITRAP’s statement went on : « This type of May Day celebration reflects SITRAP’s commitment to education and unity. By focussing on the participation of the youngest children and all their families, we are not only honouring the memory of the Chicago martyrs and calling out human rights violations in the plantations, but we’re also generating awareness and solidarity amongst the future generations. For SITRAP it is vital that children and young people understand the meaning of International Workers’ Day and the history of struggles for fair working conditions. By sharing these values and seeking the spirit of unity, the quest for better standards of living will be stronger and stronger. »

To all accounts people enjoyed themselves and the achievement of decent work in Costa Rica’s tropical fruit plantations is one step closer.

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So, what do these developments mean for the world’s largest banana exporting nation? This week, the Coordinating Committee of Labour Organisations of Ecuador (COLAE) released a statement marking international labour day. Referring to a recent referendum in which citizens voted against labour flexibilization measures – including the ability to contract workers by the hour – the statement reads:

This 1st May 2024, in a spirit of fraternity and solidarity, the Coordinating Committee of Labour Organisations of Ecuador greets all the working men and women of the world, of Ecuador, and of the banana industry.

On this great day of the working class of the world we remember with admiration and respect the heroic deed of the martyrs of Chicago in 1886, who offered their lives so that in the world we have the 8-hour day, today so harassed by the anti-worker policies of the labour market. However, in Ecuador on the 21st of April 2024, voters responded with a resounding NO to the hourly work contracts that the referendum wanted to legitimise. This would have further weakened the labour laws that defend the workers rights hard-won by past generations through great effort and sacrifice – rights and laws embodied in our political constitution, labour code and the ILO.

In these difficult times, we confirm our commitment to work together, strengthening ourselves and our country, defending stable and decent work, living wage, and respect for human dignity. We call for the unity of the labour movement, so that through our different forms and organisational expressions, we can unite to defend what has cost so much effort and sacrifice to achieve.

Alistair Smith, Banana Link’s International Coordinator, spoke to Ecuador’s Banana Export TV in an interview on the state of the nation’s banana industry at this moment of change. While a living wage for workers may be written into Ecuador’s constitution, he says, it is time for the industry to wake up and accept that the reality on the ground is not so rosy: many workers, hired on a casual and part-time basis, don’t earn a living wage. Only once we accept this reality, can we work together to find solutions. See the interview captioned in English below.

Source: Banana Export TV Youtube Channel

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“Suck it up, buttercup” is another way of saying “deal with it!”. This is the heart of the message coming from the vast majority of banana industry players at the recent World Banana Forum conference in Rome, which brought together diverse stakeholders from across the globe. In a world where fruit prices are effectively set by supermarkets at the end of the chain, it is a message that the prices they pay their suppliers must to go up, and the era of super-cheap banana prices for consumers must draw to a close. The bottom line is that consumer prices, and correspondingly the prices paid per box to banana producers, is nowhere near sustainable. Things are going to have to change. Retail buyers are going to have to deal with it.

As one North American marketing company CEO pointed out to the Forum: “Oranges and bananas were pretty much the same price per pound in 1980. Today banana retail prices in the USA have little more than doubled whilst orange prices have more than quadrupled. If banana prices had followed the same inflationary path as oranges they would be sold at $1.26 per pound (£2.18 per kilo). Instead they were at $0.61/pound in January 2024.”  However, as we know, bananas in the UK are much cheaper now than when the supermarket chains went into price war mode over 20 years ago now.

“Banana prices will rise with temperatures”

This is not an appeal to the good ethics of major buyers, but can be taken as a warning that if price increases are not planned for, they will be imposed. As the BBC reported during the World Banana Forum conference, for example, experts predict that temperature rises will make banana export production unviable in many of the current origins. In the meantime, the chances are very high that rising temperatures will lead to less production and therefore higher prices.

In any case, the economics of selling bananas too cheaply makes no sense. Growers are increasingly squeezed between the demands for increasing social and environmental standards on the one hand, and prices that do not reflect the costs of sustainable production on the other. This dynamic, if allowed to continue, will eventually bring down the whole banana trade edifice. Small producers – the canary in the coalmine of the industry – are already falling by the wayside en masse. As the Caribbean calypso warned, consumers may have to read “Yes, we have no bananas!” on empty shelves.

Living wage push is forcing the issue

As European retailers organise to start counting the cost of ensuring the payment of living wages for all those working at the beginning of banana supply chains, it is finally becoming evident that prices must include the cost of filling living wage gaps, where they are identified. The implications of establishing decent work and incomes for banana workers will not only improve workers lives, and those of their families, but will have a bearing on broader global issues. As one workers’ leader from Central America stated in Rome: “Low income for planation workers is directly related to low prices per box. Mass migration to United States and Spain is provoked by the lack of economic opportunities in banana producing countries.”

In a joint statement ahead of the Forum, producers from Latin America, Africa and the Caribbean called for Fairtrade minimum prices to be established as the basis for future pricing. In Rome, a clear consensus was expressed that in order to negotiate and pay decent wages, producers need decent prices.  Responsible purchasing means negotiating prices that recognise and account for the social, economic and environmental investments that producers must, and are increasingly expected to make. On the issue of covering better wages for all, it will simply not be sustainable to make contributions to bonus payments for a few years while continuing to pay unsustainably low prices.

As one multinational put it: “Price needs reassessing by retailers, and the buyers and CSR team need to be in the same room. Buyers should be incentivised on the success of living wage implementation. We can’t have the buyers and CSR teams incentivised with opposing tasks.”

So, what is the true price of bananas?

Living wages for workers is just one of the costs of sustainable production that the current pricing model does not cover. If banana production systems are to become climate and disease resilient and non-toxic to people and the environment, the industry is going to need to pay a price that allows producers to invest in trailing different varieties and production systems, such as agroecological or regenerative farming methods. Where the price paid for bananas is kept artificially low, the social and environmental debts accrue: this can look like an upturn in precarious work (increasing use of part-time or casual workers, dependence on third-party contractors, exploitation of undocumented migrant workers) a developing hostility towards workers’ right to independently organise, or harm done to the environment when land and water is left contaminated with heavy metals. The ripples continue to expand, impacting the health and wellbeing of the families and children of workers, and the communities they live in.  

The only serious study on “true prices” put the real costs of bananas, including the unpaid social and ecological costs, at between 50% and 100% of what is currently paid to big conventional growers.

The African growers’ representative put it this way : “’True Price’ means includes all externalities. We need to take long-term view that can cost in decent work, climate adaptation, the development of new varieties and agroecological transitions.”

Some retailers are listening and leading the way

Following negative press on price-setting, Aldi has abandoned the tender-based system and has put in place a new approach with collaboration between buying and sustainability teams and partner consultation. This includes a long-term commitment to buying relationships. Tesco and, most recently, Sainsbury’s have also developed longer-term relationships with producers.

Aldi South’s approach to “shared responsibility” includes more frequent price updates to reflect costs of sustainable production, using changes in the Fairtrade minimum prices as a basis for decision-making. Their representative appealed to others:

“Legislation doesn’t yet cover responsible purchasing practices but we want to serve as a blueprint to other retailers and encourage them to follow this shared responsibility approach.”

The Tesco representative stated that “long term contracts are the basic element of responsible sourcing practices”. He proposed that the Forum determine a reference value for the Cost of Sustainable Production.

Alistair Smith, Banana Link’s international coordinator, also highlighted the role of supermarkets in educating consumers, who need to be prepared for higher prices for their favourite fruit:

“For too long, supermarkets in most countries have only communicated on price when talking to consumers about fresh bananas. It should simply not be possible any longer to respond to consumer demands for fair trade, living wages and sustainable farming by keeping purchasing prices as low as they are and saying nothing about all the other issues.”

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Major steps have been made last week for responsible business, mature labour relations, living wages, gender equity and agroecological transition in bananas… and well beyond.

From the fourth conference of the World Banana Forum at FAO in Rome, via the approval in Geneva by the ILO Governing Body of a definition and strategy on living wages, to the final agreement in Brussels by EU member states on the corporate due diligence directive, the week could go down in history as a high-point for collective human endeavour in dialogue, negotiation and regulation.

Tasting the diversity of bananas at the World Banana Forum conference at FAO in Rome

In Rome

At the fourth conference of the World Banana Forum in Rome, some 300 representatives of trade unions, small farmers’ organisations, national and multinational producers, fruit traders, retailers, NGOs and certifiers agreed to step up the collaborative work on the wide range of issues that the Forum has developed over the last 15 years. Carbon and water footprints, the quest for banana varieties that are disease-resistant and climate resilient, living wages, responsible buying practices, fair prices that cover the costs of sustainable production, freedom to organise trade unions and negotiate collective contracts, gender equity and a safe and healthy work environment.

All these elements of sustainable production and trade remain central to the key players and to the work plan of the Forum. New agreements include the need to reduce ‘over-certification’ and the associated burden on producers and workers, the importance of the fair trade minimum price method to cover costs of sustainable production, and the crucial role of social dialogue and collective bargaining to raise wages and make continuous improvements towards decent work for all.

A broad consensus was expressed on the need for responsible purchasing practices including fair pricing methods as the key lever to ensure the long-term sustainability of the industry. An appeal for more retailers in Europe and North America to implement such practices was made by Aldi Süd which has taken a lead role since 2022 in this area.

Another broad consensus was achieved in favour of strong social dialogue and collective bargaining as the basis for all living wage efforts, necessitating ever greater engagement between the different industry actors to ensure such dialogue can take place. Where restrictions on freedom of association for workers to organise freely are still prevalent, companies need to change the way they view their key social partners and their independent organisations. The ILO policy guidelines for the promotion of decent work in the agri-food sector agreed after a thorough tripartite process last year provide a clear road map for all.

The gender equity sessions at the WBF conference heard about progress made in employing more women in production and administration in some countries, especially Colombia and several African countries, but needs to be accompanied by more worker training for empowerment, to reduce sexual harassment and discrimination in the workplace and to address gender pay gaps.

In Geneva

The Governing Body of the United Nations’ only tripartite body, bringing together governments, trade unions and employers approved the Report of Experts on Wage Policies, including living wages. This is the first time in the organisation’s 105 year history that the ILO has been given a clear mandate to work on living wages as such.

As well as defining living wages and setting out appropriate methodologies, the approved report states :

« The operationalisation of living wages should not be a one-size-fits-all approach and should reflect local or regional differences within countries. Both tripartite and bipartite social dialogue, particularly collective bargaining, are crucial mechanisms to operationalize living wages. Social dialogue, including collective bargaining, contributes to the fair distribution of the gains generated through value-added along global supply chains. […]

« The operationalisation of the concept of a living wage within the broader wage-setting process should be evidence-based and take into account the ILO key principles of wage-setting processes, in particular:

(a) Considering the needs of workers and their families and economic factors in wage-setting processes. The needs of workers and their families and economic factors are the two pillars of wage-setting processes […]

(b) Strengthening social dialogue and empowering wage-setting institutions, particularly collective bargaining. This includes strengthening the capacity of wage-setting institutions and the ability of social partners to bargain collectively on wage issues and/or to participate in tripartite social dialogue on wage policies. Collective bargaining can take place at different levels and can include different elements such as wage payment systems, wage structure, or wage composition. […]

(d) Ensuring national and/or local ownership. The operationalisation of living wages should be a process anchored at national level. National and local ownership, with participation of social partners, is required for successful implementation. This should ensure that national and local circumstances are considered.

(e) Ensuring gender equality and non-discrimination. The operationalisation of living wages should aim to close gender pay gaps and end wage discrimination, taking as a basis the principle of equal pay for work of equal value.

(f) Using robust and reliable data and statistics for an evidence-based approach. Information and data are needed to support wage-setting institutions and the operationalization of living wages. Information and data on economic factors, labour market characteristics, sectoral context and enterprise performance are needed for an evidence-based wage-setting process and periodic living wage adjustments.

(g) Taking into account the root causes and challenges of low pay, such as unfair distribution of value, low total factor productivity, informality, weak institutions and compliance systems. This also requires extending the coverage of minimum wage systems to all workers to redress the exclusion of certain categories of workers from legal coverage. […]

(h) Recognising the role of the State. Governments should invest in the quality and delivery of public services, including health, education, social protection and infrastructure to contribute to realising a decent standard of living. Furthermore, strengthening compliance systems, such as labour inspectorates and other relevant authorities, is key to ensuring that workers receive the wages to which they are entitled. »

As with the Decent Work Policy Guidelines, this provides an internationally approved road-map for all players.

In Brussels

After a few hair-raising weeks for those who have advocated proper regulation of corporate behaviour for many years, the 27 EU member states have finally agreed a Corporate Sustainability Due Dilgence Directive. For a while it looked like some minority political forces in Europe would succeed in completely sabotaging the regulation, but a watered down version negotiated by the Belgian presidency of the European Union was agreed on 15th March.

« The due diligence directive will set obligations for large companies regarding actual and potential adverse impacts on human rights and the environment, with respect to their own operations, those of their subsidiaries, and those carried out by their business partners. » states the preamble agreed by the Council of Ministers.

Even if the directive concerns only around 5000 large companies, and no longer applies to some of the higher-risk sectors, it is a first basis for national and international regulation on which other efforts can build. Significantly, all major retailers selling the majority of the bloc’s fresh bananas should be covered by the requirements.

After years of voluntary efforts, private sustainability certification and good faith dialogue of the willing, Banana Link looks forward to a new phase of the urgently needed economic, social and ecological transformations where we can no longer say that nobody has set any rules.

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