Fairtrade is an alternative approach to conventional international trade. It guarantees that disadvantaged farmers will receive fair and just prices for their products and in addition a Fairtrade Premium which directly benefits the farmers. Fairtrade certification is awarded by The Fairtrade Labelling Organization (FLO), based in Bonn, Germany. Anyone awarded Fairtrade certification can use the independent Fairtrade Mark on their goods. VREL exported its first fruit proudly bearing the Fairtrade Mark in 1996.
In addition to the benefits provided by the Fairtrade premium, to meet the Social and Labour standards set by FLO, VREL has increased wages to 30% above the National Minimum wage, appointed a Personnel Manager to mediate between management and unionised workers to promote industrial harmony and established training programmes and Trade Union education programmes. All employees are on permanent contracts and are entitled to maternity leave, sick leave, compassionate leave and study leave. Schemes such as these are virtually unheard of in Ghana.
Alex Yeboah-Afrari -
Personal Manager of VREL Alex Yeboah-Afari is the Personal Manager of VREL and the chairman of the Premium Comity. He explains the benefits he and his fellow workers are getting from being part of Fairtrade.
"I have been with VREL from the beginning, in 1988. I worked on the fields, in the nursery, everywhere. I supervised the making of roads and drains.
In Ghana having a job is everything. It enables you to marry, have children and your social esteem is protected. My situation feels wonderful. To maintain and educate my family is a big achievement for me as I am a single parent to two girls and Fairtrade has helped me do this.
AgroFair is not just an importer of our fruit. It is also a partner in our operations. In 1996 our plantation was on the verge of collapse and Solidaridad, the organization behind AgroFair, stepped in and bought 25% of the company’s shares on behalf of the workers. The cash was injected into the plantations and the company was revived. This is a remarkable thing that Fairtrade has done."
"The premium is the extra money that is paid on top of the price for every box of bananas that is sold as Fairtrade. The extra sum is paid by the consumers who buy the Fairtrade bananas. In our case the premium is one dollar and seventy five cents. Seventy five cents is used to maintain existing environmental and social standards and one dollar goes straight to the workers.
The main function of the Premium committee is to use the funds that are made available in our premium gains. The committee is composed of ten people; two management and eight workers representatives. We form a joint body to take decisions on how the premium has to be used. In line with the criteria of FLO the representatives of the committee are chosen democratically and we meet at least twice a month, but we mostly meet more often than that.
Every year the committee proposes a work plan, generated out of workers interests through dialogue. Workers could make a proposal for a bathhouse, a toilet or some kind of improvement somewhere. The committee looks at these propositions, prioritizes what can be done and draws up a work plan. We send it back to the general assembly, a meeting of the workers delegates, and if the majority approves with the work plan our work begins for the year.
The Premium Committee started in VREL in 2000 but 2005 is absolutely our best year so far. The premium is generated by the quality of the product and that explains why in 2005 we have much more premium then we were expecting. We have improved our production capacity and had no major setbacks.
All our decisions are made in a democratic process. The hundreds of bicycles we have purchased in 2005 were initially not in our work plan, because we did not assume that we could generate so much premium. Even though there was the need for transport. It was until the second quarter of 2005 that we realized that we had money and that we even could have much more money by the end of the year. Then the need for bicycles came back in."
Gariba Musa Mr. Gariba Musa, secretary of the local branch of the General Agriculture Union and a member of the Premium Committee, works as a security man with VREL. At the school next to the oldest plantation he shows the computer laboratory that VREL was able to donate to the school with money from the premium.
"This is just one of the many things that we were able to afford with the premium that we have received. We have constructed the building and donated ten new computers and an air conditioning unit to let the whole community profit from it. The premium has improved our lives in many ways. All the various trees around the plantations were planted with money from the premium. It supplied a connection to the main water system so we don’t have to bring water with us or drink the water of the river, which can make you very sick. The premium supplied the construction of latrines and showers. It provided all workers with a health scheme and pregnant women with maternity leave. There are nurses with emergency equipment installed on every plantation. We have purchased a bus that all workers can use to bring people to a funeral or go to some activity. In a big celebration 500 bicycles were provided to all the workers, in order to give them more independence in their ways of transport. Last but not least is the end of year bonus that everyone receives at Christmas. Every year there are new goals to meet."
Each farm at VREL is equipped with a medical clinic. This is manned by a nurse who treats farmers with minor injuries and complaints. More serious ailments or injuries are treated at the local hospital and are paid for by VREL. The company is also investigating whether they can extend this scheme to other close family members of employees.
Nurse Gladys shows her little clinic at the plantation: "The most common injuries are cuts from weeding. The workers also come with waist pains from bending over, headaches from the sun and malaria. Besides this I have received several training courses on AIDS and I pass that information on to the workers. I tell them that AIDS is real and I explain how you can get it. The workers come here and pick up condoms."
Computer Laboratory inside the school In a small village nearby a female worker who fell ill sits in front of her hut with a bandage on her leg. Mary Zoyiku doesn’t speak English very well, but the nurse translates. "Three days ago I cut my leg very badly with the cutlass while weeding. The cutlass got stuck in the vegetation and suddenly ended up in my leg, just under the knee. There was much blood, my fellow workers rushed me to the nurse and later I was transported to Akuse hospital. There I had to lie down and a doctor took care of me. Every day I have go back to let them dress the wound. Because the company has send me on paid leave, I don’t have to worry about my job and income, but I still have to pay 30.000 Cedi’s (three dollar) a day for a taxi to bring me to the hospital and take me back."
The nurse promises Mary to look into this and see if the vehicle which is pending between the different sites will be able to provide transport for her. Mary can’t walk properly and looks very miserable, but her children, when asked, want her to be back on her work. They simply can’t understand that she will not loose her job this way.