European sugar industry agrees code of conduct

In February 2003, the European-level social partners in the sugar industry signed a joint code of conduct setting minimum standards for corporate social responsibility (CSR) in eight areas. The sector is the first to agree voluntarily at European level on minimum CSR standards on a broad scale.

A [code of conduct on corporate social responsibility in the European sugar industry](http://www.effat.org/5/5_1/5_1_4/Files EN/Sugar/nr 10 Corporate social responsibility code of conduct EN.pdf), developed in the industry's sectoral social dialogue committee, was signed by the European-level social partners - the European Federation of Trade Unions for Food, Agriculture and Tourism (EFFAT) and the European Committee of the Sugar Manufacturers (Comité Européen des Fabricants de Sucre, CEFS) - on 7 February 2003.

The European sugar industry

The European Union is one of the world's largest sugar producers and consumers. Sugar beet is cultivated on roughly 3% of the EU’s arable land, while cane sugar is grown on over 40,000 hectares in Spain and the French overseas departments. Raw sugar imports correspond to 1.7 million tonnes produced by the ACP (African, Caribbean and Pacific) countries. Data for 2000/1 provided by CEFS show that the European sugar industry comprises 56 companies and 143 factories and provides an income for 1 million people, either totally or partly, directly or indirectly. CEFS has members - both trade associations and individual companies - in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, the Netherlands, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland and the UK

The code of conduct

In July 2001, the European Commission issued a Green Paper on promoting a European framework for corporate social responsibility (CSR) (EU0107228F). It was intended to provide a 'launch-pad' for debate and to encourage employers to turn their attention to social and environmental concerns as well as economic goals. The sugar industry code of conduct makes specific reference to the framework provided by this Green Paper.

The code of conduct will come into effect on 1 January 2004, and sets voluntary minimum standards on eight social and employment aspects of the industry:

• human rights;

• education and training;

• health and safety;

• the relationship between the social partners;

• fair pay;

• working conditions;

• restructuring; and

• business relations and choice of suppliers.

Human rights

The European sugar industry, according to the code, complies with the principles and rights at work as defined by the International Labour Organisation (ILO) and in the United Nations (UN) Universal Declaration of Human Rights and in European legislation.

The industry agrees:

• to respect the freedom of association and the right for all workers to belong to and establish trade unions, and allow workers’ representatives the right of access to the enterprise (ILO Convention No. 87);

• to recognise the effective right to collective bargaining and the right for worker representatives to have access to the appropriate facilities to allow them to carry out their functions (ILO Conventions Nos. 98 and 135);

• to ensure that exercising these rights will not negatively affect the workers concerned;

• not to operate any form of forced or compulsory labour (ILO Convention No. 29);

• to oppose child labour (ILO Convention No. 182) and comply with Convention No. 138 as regards the minimum age for admission to employment; and

• to oppose discrimination of any sort and to undertake to guarantee and promote equal opportunities and equal treatment for men and women (ILO Conventions Nos. 100 and 111 and EU Directives 76/207/EEC, 2000/43/EC[EU0006256F], and 2000/78/EC[EU0010274F]).

Education, vocational and lifelong training

The industry will provide its employees with the best possible skills and abilities so as to develop their individual potential to the maximum and will give specific technical and health and safety training to employees as necessary. The code also recommends that companies offer significant opportunities to young people.

Health and safety

The industry undertakes to secure for its employees a healthy and safe working environment, and to prioritise preventive measures in health and safety as well as to implement industry-specific training programmes, safety procedures and policies.

Relationship between the social partners

The social partners (CEFS and EFFAT) recognise the importance of constructive social dialogue and information and consultation procedures for employee representatives. The code states that all industry companies implement EU information and consultation legislation, and that, at national level, the representation of employees and collective bargaining apply in accordance with the legislation, and often beyond.

Fair pay

The present pay levels in the sugar industry meet or exceed the minimum rates provided for by branch or industry collective agreements and/or legal provisions, according to the code. When no agreement or pay scale exists, wages are enough to ensure that workers and their families have a decent standard of living, as defined by the UN Universal Declaration of Human Rights and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.

In order to avoid any discrimination, the industry also recognises the right for employees in similar conditions to receive equal pay for equal work (ILO Convention No. 100, Article 141 of the Treaty establishing the European Community and EU Directive 2000/78/EC).

Working conditions

The code states that the European sugar industry meets European legislation covering working conditions and complies with branch or industry standards on working hours. Where there are no existing standards, the social partners may conclude appropriate agreements, guaranteeing minimum working conditions generally in force in comparable companies in the country concerned. As regards working during sugar-processing seasons, there is scope for special agreements between the social partners or with the public authorities.

Restructuring

The industry participates in social dialogue within the European framework, and in the regular exchange of views and information with regard to issues affecting the sugar sector. In cases of restructuring, as well as in the event of investments having a social impact as provided by the code of conduct, the sugar industry acts in a socially responsible way. It also takes steps to improve the employability of employees.

Business relations and choice of suppliers

The European sugar industry expects socially responsible behaviour from its suppliers. These are generally chosen on a professional business basis, but for major suppliers this also includes a consideration of their CSR, according to the provisions of the code of conduct. The European industry will thus encourage CSR at global level and will seek to make a concrete contribution to the fight against child labour.

The industry supports all European provisions aimed at counteracting fraud and corruption in international trade and, in the general context of business ethics, undertakes to comply with the Organisation for Economic Cooperation and Development (OECD) guidelines for multinational enterprises (EU0009270F) or, beyond the area of CEFS's own activities, to promote the guidelines as far as possible .

Monitoring, assessment and updating

The code provides for the following monitoring, assessment and updating activities:

• EFFAT and CEFS undertake to conduct a joint annual assessment of the implementation of the code of conduct at European level, which will take the form of an annual report. This will be presented in February of the following year, within the context of the sectoral social dialogue committee, at a specially convened meeting;

• the necessary data will be collected by the social partners, and will be collated by an ad hoc group. This group will include two sectoral committee members from each organisation;

• the code of conduct will take effect from 1 January 2004, with the preceding year devoted to preparations for its implementation. The first report, to be presented in February 2004, will take stock of activities undertaken so far, and of the European-level monitoring structures to ensure adequate communication, promotion and training on the code. A set of examples of good practice appended to the code (see below) will be updated as needed; and

• to ensure a wide dissemination and good understanding of the code, it will be translated into relevant languages, with the French, English and German versions deemed authentic.

Examples of good practice

An [annex](http://www.effat.org/5/5_1/5_1_4/Files EN/Sugar/nr 10 best practice examples EN.pdf) provides examples of good practice in the areas covered by the code, as identified at companies in Austria, Denmark, France, Germany, Greece, Italy, the Netherlands, Spain, Sweden, the UK, and at European level.

Commentary

The CSR code of conduct for the European sugar industry is a landmark agreement, since this industry is the first sector to agree voluntarily on minimum CSR standards on such a broad scale. It is said to reflect 'the commitment of the social partners progressively to develop and demonstrate the overall sustainability of the sugar industry'. The motivation behind the accord was summed up by the chair of the joint working group, Peter Rasmussen: 'Our vision is to create added human and social value by incorporating corporate social responsibility into all our activities.' Harald Wiedenhofer, the general secretary of EFFAT, voiced the trade union view: 'We welcome that the code of conduct contains concrete proposals for implementation and regular evaluation.' Fundamental to the signing of the agreement is the necessity to ensure that the sector remains competitive, while the social partners commit themselves to complying with the code’s minimum standards. (Beatrice Harper, IRS)