Alistair Smith, international coordinator of Banana Link, reflects on an important week for the banana industry following the World Banana Conference in Rome.
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.
