EXTERNAL ASSESSMENTTABACALERA ANDINA SA.
Burley farmers in Guayaquil

Agricultural Labor Practices Program

October, 2017

External Assessment

Table of Content
Executive summary .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3Market and company background .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 61. Implementation of the ALP Program .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 81.1. Commitment to the ALP Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.2. Strategy and objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.3. Internal capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.4. Communication of the ALP Code requirements to farmers. . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.5. Internal monitoring: data collection, accuracy, and addressing issues. . . . . . . . . . . . . . . . 15
1.6. Address systemic and/or widespread issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2. Farm-level assessment of working conditions regarding the ALP Code Standards.  .  .  .  .  .  . 20
2.1. ALP Code Principle 1: Child labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.2. ALP Code Principle 2: Income and work hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.3. ALP Code Principle 3: Fair treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
2.4. ALP Code Principle 4: Forced labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
2.5. ALP Code Principle 5: Safe work environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.6. ALP Code Principle 6: Freedom of association. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.7. ALP Code Principle 7: Compliance with the law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3. ALP Program: feedback from farmers, workers, and other stakeholders. .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 27
Appendices.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 29
Appendix I – TANASA Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Appendix II – Scope and methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Appendix III – Legal information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Appendix IV – Communication materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Appendix V – Reporting form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Appendix VI – Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Executive summary

EXTERNAL ASSESSMENT
Tabacalera Andina SA.

External Assessment

In October 2017, Philip Morris International(PMI) requested Control Union to conduct anexternal assessment of the Burley tobacco growing
operations of its affiliate Tabacalera Andina S.A.
(TANASA) in Guayaquil, Ecuador. The assessment
evaluated the labor practices of tobacco farmers,
and whether these were meeting the standards of
the Agricultural Labor Practices (ALP) Code1.
Under Ecuadorian Law tobacco farmers are
independent farmers that have a tobacco production
agreement with TANASA2; tobacco farmers are
responsible for informing, and complying with alllegal requirements and rights of all their workers or
personnel 3, therefore TANASA only advised farmers
on where they can request legal information anddid not review farmers compliance in labor issues.
Control Union (CU) also evaluated TANASA’s
structure and internal capacity to implement the
ALP Program, the understanding of farm practices,and how issues were being identified, recorded andaddressed.
CU interviewed 15 TANASA employees, one PMI
Regional employee, and four representatives of
two external organizations: Desarollo y Autogestión(DYA), TANASA’s partner for reducing child labor;
and the Asociación de la industria de Protección deCultivos y Salud Animal (APCSA), TANASA’s partner
for collecting empty CPA containers. Over a twoweek period, CU visited 24 farms4 throughout the
Milagro and Simon Bolivar regions of Guayaquil,
and interviewed 24 farmers, 18 family members
and 43 contracted workers. All farm visits wereunannounced.
Information triangulation was adopted to evaluate
farm practices. The three sources included

1.

2.
3.

4.

interviews, documentation, and observation,
together with a “Five Whys” problem analysis. The“Plan, Do, Check, Act” cycle was used to analyze
TANASA’s management approach.
All but one of the farmers interviewed by CU had
held contracts with TANASA in previous years. Overthe last years TANASA had gradually reduced thenumber of contracted farmers, selecting farmers
based on their tobacco production and compliancewith ALP criteria. Most of the contracted farmers
and current field staff had experience with PMI’s
ALP Program since 2010.
The ALP Program was fully integrated in TANASA’s
daily activities, processes and procedures. All
employees involved with ALP were committed andhad a good knowledge of the program. However,during the assessment CU noted that TANASA’s
ALP Program lacked in-depth root-cause analysis
of issues found at the farm level, resulting in an
inability to effectively address these issues. The
methodology used by the ALP team emphasizedacting on existing issues, rather than taking
corrective actions to prevent issues from happening
in the future.
Based on the findings of CU’s pilot assessment in2012 and the related action plan, TANASA initially
focused their actions and programs on two principles,
namely Child Labor and Safe Work Environment.
However, in 2017 TANASA staff started to address
all ALP principles, and began to include workers
and family members in the communication of theprinciples (before 2017, communication efforts
undertaken by TANASA were focused on farmers
only).

The main goal of the ALP Code is to eliminate child labor and other labor abuses progressively where they are found,and to achieve safe and fair working conditions on all farms from which PMI sources tobacco (see link). For more
information on the background of the ALP Program (see link).
The nature of the legal relationship between the tobacco farmers and TANASA, under which tobacco farmers are
independent farmers with their own personnel, resources and infrastructure.
TANASA mainly provides technical assistance for crop quality and to the progressive implementation of thestandards of the ALP Code. It does not give instructions, offers legal advice or monitors compliance of farmers’ labor
obligations with their personnel.
The minimum sample size was 20 farms, which is the square root of the total number of farms within the scope (389
at the time of the assessment).
4External Assessment

CU found that TANASA staff possessed an indepth understanding of labor issues at tobacco
farms, except for the Income and Work Hours
principle. For this topic, TANASA had not reported
any Prompt Actions or situations not meeting thestandard, even though CU identified several cases
during the farm visits. The reason for this according
to TANASA is because it does not review farmers
compliance towards labor obligations, however it
communicates tobacco farmers’ obligations underlabor law. While the field technician trainings did
result in a good understanding of the ALP Code, CU
found that their understanding of legal aspects waslimited.
To communicate ALP principles, TANASA used
several communication methods and materials.
The materials were good with clear instructions,but sometimes lacked information relating to legal
matters and Prompt Actions. Farmers were generally
unaware of legal overtime rates and workers’
benefits, as they did not receive sufficient legal
information as TANASA`s initial communication
efforts focused mainly on Child Labor. Please see
bellow section 1.4.
Although almost all farmers and most external
workers were aware of the ALP Program , awarenesswith family members interviewed was fewer
than half. CU found that the level of awarenesswas highest for the targeted focus areas of childlabor and safe work environment, but identified

significant knowledge gaps regarding the other ALP
Code Principles. Until 2017, TANASA had focused
their trainings on farmers only. As a result, ALP
knowledge among farmers was significantly higher
than among workers and family members.
CU found no evidence of child labor on the farms
visited, showing that TANASA’s efforts were paying
off. However, various other labor issues wereidentified, including unsafe work practices, farmers
not paying correct overtime rates or not providing
their workers with all legal benefits, and farmers andworkers lacking awareness of legal requirements.
Feedback received from farmers, workers, andother stakeholders mainly noted the reductionof child labor since the start of the ALP Program.
Several interviewees also reported an improvementin safety conditions at the farms. Field staff received
feedback from farmers during the farm visits andgroup meetings, but there was no formal channel
for farmers and workers to provide feedback to the
ALP team, other than communication through Field
technicians.
The outcome of this assessment can be used asa tool to facilitate management with continuous
improvement.
CU
acknowledges
TANASA’scommitment to addressing the issues identified
and defining areas of improvement through theimplementation of an action plan (see Appendix I).

5Market and company background

EXTERNAL ASSESSMENT
Tabacalera Andina SA.

External Assessment

TANASA is a vertically integrated (VI) affiliate of
PMI. Tobacco farmers are independent farmers thathave a tobacco production agreement resulting infarmers having a guaranteed crop sale, technical andfinancial assistance, and transport of their tobacco.
This system enables TANASA to make long-termplans, ensuring product quality and integrity, and aguaranteed supply to its customers.
At the time of the assessment (2017 crop), TANASA
had agreement with 389 tobacco farmers in the
Milagro and Simon Bolivar regions of Ecuador,
covering 1,189 ha of tobacco in total.

7

Chapter 1

Implementation of the ALP Program

EXTERNAL ASSESSMENT
Tabacalera Andina SA.

External Assessment

1.1. Commitment to the ALP Program
TANASA’s field and management personnel showedcommitment to the ALP program and defined it as
one of the company’s priorities. The ALP Program´sevolution was used by the staff to make decisions
and create strategies for the business.
To keep track of ALP implementation at the farmlevel, TANASA’s field technicians conducted regularfarm visits. Furthermore, the ALP Coordinator,
Agronomy Supervisor and Agronomy Manager (whowere part of the ALP Country Team, see Chapter 1.3)
conducted unannounced visits, including interviews
with farmers and workers about the ALP principles.
All those involved considered the ALP Program an
important step forward in achieving economic andenvironmental sustainability at the farms and goodlabor conditions for tobacco workers. In addition,
field technicians felt that the program was creating
a cultural change in the tobacco market.

1.2. Strategy and objectives
TANASA’s
objectives
andstrategies
for
implementation of the ALP Program were definedby the ALP Committee (Steering Committee
and ALP Country Team together). Based on theannual risk assessment performed by AB Sustain,
the ALP Committee developed a biannual ALP
strategy including guidelines to monitor program
implementation and identify gaps and improvement
areas, using color codes to classify and prioritizerisks.
Another strategy adopted by TANASA was to include
compliance with ALP principles in the criteria for
selecting farmers working with the company. In
recent years TANASA had gradually reduced thenumber of tobacco farmers, focusing on the best
farmers based on their tobacco production andcompliance with the ALP Principles. Farmers who
had unsolved Prompt Actions and it was a recurring
situation, risked non-renewal of their contract.

• Children involved in tobacco production andpotentially hazardous activities;• Farmer’s children helping in tobacco production;• Lack of PPE for GTS avoidance and CPA
application;• Unsafe storage of chemical products;• Chemical re-entry times not being respected;• Farmers not paying the legal minimum wage.
As part of their strategy to address these risks,
TANASA decided in 2017 to address theircommunication activities, training sessions andcommunication materials not only to farmers, butalso to family members and workers.
The risks outlined above are in line with CU’s
assessment, except that no evidence of child labor
was found during the farm visits. Additional issues
identified by TANASA related to payment of benefits,
payment of overtime hours, granting of rest days,
and lack of awareness of local labor regulations, butthese issues had not been prioritized as high risk.
TANASA had not analyzed the root causes of any theabove-mentioned risks. Furthermore, they only had
an action plan and initiatives in place to address theissues classified as high risk (see Chapter 1.6), there
was no action plan for the issues related to legal
benefits, overtime hours, rest days and awarenessof local labor regulations.

TANASA response:“An A3 methodology will be performed in order to gain
an in-depth insight of the issues identified during theControl Union´s assessment, such as (i) low awarenessof the principle related to income and work hours andcompliance with the law, (ii) unsafe management of
CPAs and handling of wet green tobacco. The A3 will
be conducted annually in the month of April, once the
new crop season starts, allowing TANASA to apply amore effective solution to these issues by leveraging
tools and resources such as communication materials,

TANASA’s risk assessment identified the following
practices as high risk:

trainings and DYA Foundation support for theidentified actions.”• Lack of Support Mechanism;
9External Assessment

1.3. Internal capacity

Regional Office, receiving regular guidance andsupport on the implementation of the ALP Program.

1.3.1. Dedicated organizational structure
TANASA’s organizational structure consisted of a
Steering Committee and ALP Country Team (acting
together as the ALP Committee). The ALP Country
Team included an Agronomy Team with a staff
member dedicated full-time to the function of ALP
Coordinator, part of the Agronomy team (see chart
below). TANASA worked in close contact with PMI

Field technicians were also part of the internal
structure to implement the ALP Program; they
provided the link between the management and thefield. TANASA worked with five permanent fieldtechnicians, who visited all tobacco farmers at least
six times per year, and one temporary technician,
who did not have ALP-related activities but visited
all farmers to address agronomy topics.

ALP Commitee

Steering Committee

GeneralManager

ALP Country Team

Leaf Manager

Agronomy team (3)CA Director

Corporate Affairs Coordinator

Senior Counsel

Legal Analyst

CounselEnvironmental Engineer

Field
Technicians(5 +1)

Farmers

TANASA response:“Control Union findings regarding the knowledge gap of field technicians was taken by TANASA as an opportunity to
improve activities. TANASA will perform an annual workshop to reinforce the ALP concepts, followed by a test during theyear´s second quarter, once the new crop season starts. ALP knowledge and correct implementation of the ALP code willcontinue with field technicians taking part in an annual performance review.
Also, the ALP Guide for field technicians will be reviewed and updated, and properly communicated to the Agronomy
team members as referenced in the section related to Principle 2 - Income and Work Hours. These actions will be done
during the second quarter of 2018.”

10External Assessment

1.3.2. Roles and responsibilities
All members of the Steering Committee and ALP
Country Team had clearly defined ALP-related
responsibilities. The legal department was
responsible for updating the staff about changes innational legislation and writing the communicationmaterials.
The Agronomy Team consisted of an ALP
Coordinator, Agronomy Supervisor and Agronomy
Manager, who were responsible for managing the
ALP program in general. Their responsibilities
included preparing the risk assessment action
plan, drafting quarterly reports for PMI Regional
Office, planning and training field staff, performing
unannounced visits, and analyzing farm datacollected by the field technicians.
The ALP Coordinator was responsible formaintaining the link between the field technicians
and the rest of the staff by organizing monthly
meetings with field technicians and quarterly
meetings with the ALP Committee. Furthermore,
the ALP Coordinator was responsible for discussing
and proposing initiatives. TANASA’s current ALP
Coordinator had been previously employed as a
TANASA field technician.
The Agronomy Supervisor (a function currently heldby the former ALP Coordinator) was responsible forkeeping the staff up to date about developments
within the ALP Program, training the staff, anddeveloping the biannual ALP strategy. The Agronomy
Manager was responsible for coordinating theactivities of the ALP Coordinator and Agronomy
Supervisor, and together with them, organizing andconducting field technician trainings.
The job description for field technicians included
ALP-related activities, namely visiting farms,
training all tobacco farmers on ALP, reporting
situations not meeting the standard and Prompt
Actions, monitoring the collection of empty CPA
containers, collecting farm data, and keeping trackof the situation on each farm. The responsibilities
and activities of the other members of the ALP
Committee, were clearly stated in a general
overview in TANASA’s online system.

1.3.3. Training and knowledge of the
ALP Program
One formal ALP training session had been provided
to TANASA by Verité in 2010. Several of the current
members of the ALP Country Team had participatedin this training, i.e. those who were already part of
the team in 2010. The Agronomy Supervisor was
responsible for training the rest of staff. The Legal
Analyst and the lawyer were not trained in ALP at
TANASA, but had knowledge of the program before
assuming their current positions.
In general, all management staff had a goodunderstanding of the ALP Code, but their knowledgeof some of the legal information regarding empty
CPA containers was limited. The same was found forthe field technicians (see below).
Field technician trainings were provided by theAgronomy Team in 2014, 2015 and 2017. At the
beginning of the harvest period the Agronomy Teamdefined the training plan and generally organized
three trainings per year. Furthermore, ALP topics
were addressed at the monthly meetings between
the field technicians and the Agronomy Team. The
field technicians found the trainings useful for
obtaining knowledge, staying updated on the ALP
Program, and learning about the related procedures.
After completion of the 2017 training the fieldtechnicians took a test, and received feedbackon their performance from the ALP Coordinator.
Overall the results were reported to be satisfactoryby the ALP Team.
CU’s assessment of the field technicians’ knowledgeof ALP Code Principles showed the following results:
1. Child labor: All five field technicians interviewed
were aware that 18 was the legal minimum age
for working with tobacco. The law made thisprinciple easier to understand, as no one below
18 years of age could be involved in any tobacco
related activity.
2. Income and work hours: All field technicians
were aware of the maximum regular work hours,
and four (80%) were aware of the overtime
limits. Three field technicians (60%) were aware
11External Assessmentof both the national and the tobacco-specificlegal minimum wage, while two (40%) only
mentioned the national minimum wage. Noneof the field technicians mentioned the legal rate
for overtime payment, and none could mention
all legal benefits. None were fully aware of these
entitlements.
3. Fair treatment: All field technicians were able toprovide an explanation of this ALP Code Principle;
namely, that workers should be treated fairly andwithout discrimination. However, four (80%) did
not specifically mention that fair treatment alsomeant that there should be no sexual, verbal or
physical abuse or harassment.
4. Forced labor: All field technicians were able toexplain this ALP Code Principle, mentioning thatworkers should be free to leave their employment
and that farmers are not allowed to withhold
workers’ identity documents or delay payments.
5. Safe work environment: All field technicians
had a good understanding of the required safetymeasures at tobacco farms, such as the useof Personal Protective Equipment (PPE) andsafe storage of Crop Protection Agent (CPA).
However, when asked to identify “hazardous
activities”, three field technicians (60%) named
only the use of sharp tools and CPA application,leaving out all other hazardous activities(handling or applying suckercide; handlingor applying fertilizer; topping; stalk cutting;harvesting or handling green tobacco; stringing;
driving tractors or operating machinery withmoving parts; carrying heavy loads; working longhours; working in extreme temperatures; andworking at heights).
6. Freedom of association: All field technicians
had an adequate understanding of this ALP CodePrinciple.
7. Compliance with the law: None of the fieldtechnicians explained this principle completely,
they defined it as general compliance with
Ecuador national laws but were not able tomention: informing workers of their legal
rights and the conditions of their employment
when they start to work; requirements forworkers contracts and terms and conditions of
employment contracts.

1.3.4. Internal communication
The ALP Committee held quarterly meetings, inwhich they discussed and documented topics suchas situations not meeting the standard, Prompt
Actions, farm monitoring, field technician training,
progress of initiatives, and general market andcompany developments. Additional meetings
were held when needed. Quarterly reports, which
included the progress on ALP implementation,
were produced by the Agronomy Team and sent
to PMI Regional Office after approval by the ALP
Committee.
The Agronomy Team and field technicians held
monthly meetings, in which they discussed the ALP
Code Principles, reporting procedures, field dataand other topics. Apart from the formal monthly
meetings, the Agronomy Team also had informal
meetings with the field technicians and kept intouch via phone and e-mail.

TANASA response:“Although DYA Foundation and the Agronomy teamare in constant communication, there will be specificmonthly meetings among both teams, in which DYAFoundation’s work and findings will be presented inorder to evaluate how the program is progressing at
field level, to take corrective actions when necessary.
Additionally, DYA Foundation will take part of thequarterly sessions where the ALP team meets.”

1.4. Communication of the ALP Coderequirements to farmers
1.4.1. Communication strategy and tactics
TANASA started communicating the ALP Codeto farmers in 2010. At that time, communication
efforts focused mainly on the Principle of Child
Labor, because this was considered the mostimportant topic given the issues in the region.
From 2015 onwards, the Principle of Safe Work12

External Assessment

Environment was also included. However, trainings
on these topics were addressed to farmers only.
Since early 2017 TANASA included all Principles
in their communications and started to involve
workers and family members in trainings sessions.
TANASA had several communication channels with
farmers:• Field technician visits: TANASA’s fieldtechnicians conducted a minimum of six regular
visits per farm per year (two visits for each crop
phase: transplanting, growing/harvesting, anddelivery).
• Unannounced visits by the Agronomy Team:
Each year, during the harvest period, theAgronomy Team paid unannounced visits to
10% of tobacco farmers (randomly selected);
new farms were selected each year.
• DYA visits: In 2012 TANASA enteredan agreement with the NGO Desarollo y
Autogestión (DYA). This NGO was responsible
for visiting farms specifically to monitor farms
with children and check them for child labor
issues. In 2016 DYA was also responsible forcollecting farm data to complete the FarmProfiles. In 2017, DYA’s field technicians weretrained by TANASA’s Agronomy Supervisor
to address all ALP principles with the farmers
visited by DYA. (Note: the DYA visits did not
replace the regular farm visits by TANASA’s fieldtechnicians.)• ALP Videos: Each year, ALP videos were shown
to the farmers when they came to the office tosign their purchase and sale agreement withTANASA.
• Annual growers meeting – Casa abierta: Each
year, TANASA organized a growers meeting with
ALP-related activities, including lectures andgames.
• GAP Móvil: TANASA had a mobile training unit
(vehicle with a TV and education materials) for
training farmers, family members and workers
in topics related to ALP and Good Agricultural
Practices (GAP).

• Group meetings: When needed, the fieldtechnicians organized group meetings with
farmers to address ALP principles.
• Purchase/sale contracts: TANASA’s contracts
with farmers clearly stated the ALP principles
and the required commitment of farmers tocomply with these principles.
• Communications materials: TANASA had a wide
range of ALP communication materials (seebelow).
TANASA response:“TANASA will review and update its ALP training
materials that contain technical and legal information
by April 2018, time of the start of the new crop season.
In order to create more robust materials, TANASA will
benchmark its current communication materials withthe ones available within the LA region. Once ready,the new materials will be distributed to all farmers
and their workers as well.
Prevalent ALP topics defined as part of the risk
assessment, mentioned in section 1.2 and program
updates will be included during the field technician´svisit and during group meetings by the itinerant
program “GAP movil”.”

The template used by field technicians to record
their farm visits – known as the Ficha Técnica(see Appendix V) – included all ALP topics, andallowed field technicians to record which of the
ALP principles had been addressed during each
visit. During CU´s assessment two issues where
identified when verifying the Ficha Técnica of thevisited farms:• In one Ficha Técnica none of the ALP principles
had been marked as addressed by the fieldtechnician with the farmer. The technician inquestion claimed that he had talked to the farmer
about ALP but had forgotten to record this in the
document.
• During one of the farm visits together with CU’s
auditor, a field technician recorded in the Ficha
Técnica that he had addressed the Principle ofFreedom of Association, while he had not talked
to the farmer that day.
13

External Assessment

TANASA produced its own communicationmaterials (see Appendix IV) and distributed theseamong all tobacco farmers:• Safe Agrochemicals Management – 2017 harvest
leaflet: This leaflet provided information about
the chemicals used in tobacco growing, including
application methods, doses, re-entry periods,
and how to dispose of empty CPA containers.
• Safe agrochemical storage guide: This guideincluded a sticker to be put on the CPA storage
locker, with information on how chemicals must
be stored inside the locker and where the locker
must be placed. Furthermore, it included stickers
with security warnings for the backpack sprayer
and CPA mixing receptacle.
• Safe Work Environment practices leaflet: This
leaflet explained the required PPE for harvesting
and CPA application, and how to maintain a safeand organized work environment.
• GTS leaflet: This leaflet explained green tobacco
sickness (GTS), including symptoms, causes, andhow to prevent and treat the sickness.
• Cultivation of Burley tobacco Guide: This guidecontained agronomical instructions on burleytobacco cultivation, and information on GTS,
CPA application and ALP principles.
• Seven Principles leaflet: This leaflet provided
general information about the seven ALP
principles.
• ALP practical guide: This guide also informed
about the ALP principles, but contained moredetails regarding each principle.
• Calendar: This calendar included information
on GAP and was distributed each year among all
tobacco farmers.
• ALP Guide for field technicians: developed for
guiding the field technicians in prompt actions,
ALP principles, action plan flow and basic legal
information.

All communication materials were professionaland clear. One gap was noted in the ALP Practical
Guide for farmers, which did not mention the legal
requirement that workers working between 0:00
and 6:00 am are entitled to a 100% surcharge overthe daytime hourly wage.
All farmers interviewed by CU were aware of
the ALP program. In line with TANASA’s focusedcommunication efforts, the highest levels ofawareness were found for the topics of child laborand safe work environment, with some of theother topics practically unknown to the farmers.
The following graphs demonstrate the level ofawareness of the ALP Code Principles amongst
the 24 farmers interviewed, and the means ofcommunication through which they remembered
receiving information on ALP.
Awareness of ALP principles
among farmers:

Child labor

92%

Income andwork hours

33%

83%

Fair treatment

Forced labor

58%

Safe work
environment

88%

Freedom of
association

4%

Compliancewith the law

4%

0

5

10

15

20

25

14

External Assessment

Means of communication through which
farmers had received information on ALP:

Contract

21%

Regular FT visit

88%

50%

DYA Visit
Unannounced
visitsGap Móvil

25%

Group Meeting

46%

0

5

10

15

20

25

Among family members the level of ALP
awareness was low, with only eight (44%) of theinterviewees being aware of the ALP Code. Amongexternal workers awareness was higher, with 30
interviewees (70%) being aware. These findings
demonstrate that TANASA’s efforts in 2017 toinclude workers in training sessions were paying
off, while family members were not yet sufficiently
informed. Farmers, as well as family members andworkers lacked an understanding of legal aspects,
such as legal overtime rates and workers’ benefits.
This was likely due to the field technicians’ poor
understanding of this topic.

TANASA response:“Additionally, farmers meetings will be conducted
throughtheitinerant

program“GAP

movil”,

establishing a target of two group meetings per fieldtechnician during the crop season, covering all farmers
and also a minimum of two family labor or workers
per farm, during the crop season. At the end of the
training sessions, an individual test will be performed
in order to assess individual knowledge and therefore
take account for the potential plans and actions for
those points identified as weakness.”

1.4.2. Farmers’ responsibilities
TANASA included the ALP principles in the growing
contract, clearly stating the farmers’ responsibility
to comply with the ALP Program standards and their
duty to accommodate TANASA’s visits and external
audits.
Furthermore, TANASA incentivized farmers tocomply with the ALP Code. Poor performance on
ALP had consequences; for example, when a Prompt
Action was observed the farmer in question would
receive a letter about the situation, and had to sign aform committing to prevent the same situation fromhappening again. In addition, poor performance
affected the farmer’s ranking within TANASA’s
system. For example, farmers who had a Prompt
Action related to child labor would be relegated tocategory 01 (the lowest rank), risking non-renewalof their contract.

1.5. Internal monitoring: data collection,accuracy, and addressing issues
At the time of the assessment, TANASA wascollecting three types of ALP-related data from thefarms: socio-economic information (Farm Profiles);situations not meeting the standard (farm-by-farmmonitoring); and Prompt Action reports.
Data gathered from Farm Profiles was analyzed,
compiled and used for generating “Information on
local situation” documents with information on the
farm’s agricultural profile, the tobacco area, age
ranges and level of schooling of the farmer, family
members and workers, housing accommodations,type of workers, etc.
Data from the farm-by-farm monitoring and Prompt
Actions was gathered in the paper document Ficha
Técnica (see Appendix V), and entered later into thedigital Agronomy Management & Leaf Procurement(AMLP) system to generate the document ALP
casos 2016 y 2017. The Ficha Técnica was also used
for reporting situations not meeting the standard
and Prompt Actions. In the case of situations notmeeting the standard, field technicians were notobliged to report these to the ALP Committee,
whereas Prompt Actions always had to be reported;
15

External Assessment

in both cases field technicians had to agree on anaction plan with the farmer and return to the farm
15 days later to verify if the situation has beencorrected.

1.5.1. Socio-economic data: Farm Profiles
In 2016, the socio-economic information for FarmProfiles had been collected and compiled by the
DYA technicians, using the paper form Perfil defincas 2016. In 2017, TANASA’s field techniciansused copies of the 2016 forms filled out by the
DYA technicians to update and/or correct the FarmProfile information.
Farm profiles were available for all farms visitedby CU, 38% had been updated for the current year(2017). When comparing the reported data and thesituations observed at the farms, CU found only
two cases where the Farm Profile information wasslightly inaccurate (incorrect number of people
living on the farm, and incomplete listing of farmtasks) which is acceptable given this information
varies constantly.

TANASA response:“For the new crop season starting in April 2018,
update of farm profiles will be done by fieldtechnicians using a new electronic formulary,
available in their iPads. This new tool will allow faster
results in a shorter period of time if compared to themanual gathering of information. In order to strength
the reliability and accuracy of the Farm Profile andsystematic monitoring data, a validation will be doneby unannounced visits that will cover a minimum of
10% of farmers’ population. Visits will be performedby any member of the Agronomy management team(Manager, supervisor or ALP Coordinator) or any
member of the ALP country team. The implementationof these actions will start once transplanting season
begins for crop 2018.”

1.5.2. Systematic monitoring: situations
not meeting the ALP Code standardsof the farms against the ALP Code Principles, andreported their findings using the Ficha Técnica
paper form (Appendix V). As from 2017, all ALP
Principles and all Measurable Standards were being
monitored. According to the field technicians they
had sufficient time to fill in the form and record all
information after each farm visit. During the 2017
crop season the DYA technicians were also involved
in monitoring and reporting, for all ALP Principles(in previous years they had focused on the Child
Labor Principle).
At the time of CU’s assessment, 16 out of the 24 farms
assessed had the status of meeting all Measurable
Standards. However, on 14 (88%) of these 16 farms
CU found that the situation did not match the fieldtechnicians’ conclusion; in all cases, CU identified
issues related to safe work environment.
Furthermore, two of the interviewed farmers
reported that the field technicians would only visit
the tobacco crop but not the farmer’s house, where
the chemical lockers were placed. Hence, some of
the information recorded in the Ficha Técnica wasbased on farmers’ statements that were not verified
by the field technicians.
Finally TANASA had developed on September/2017,
an ALP Guide for the field technicians including
information on the ALP Principles, Prompt Actions,and basic labor laws (see Appendix IV, last item). CU
noted some gaps in the guide’s section on Prompt
Actions:• Income and Work hours: not entirely clear, it only
included “payment agreements” and “paymentfee”.
• Forced Labor: Here the Prompt Action list missed
the first item: “Workers are not able to leave thefarm due to debt or payments from previous
season not settled in full”.
• Safe Work Environment: Here the Prompt
Actions list missed: “Workers exposed to GTS
without protection”.

Situations not meeting the standard were reportedby the field technicians, who verified the status
16

External Assessment

TANASA response:“Systematic monitoring will be performed by
TANASA field technicians and DYA Foundation
during all the crop stages of the growing season. The
systematic monitoring will continue covering either
the field lots where tasks are being performed or
the farmer`s storage place where he keeps the crop
inputs such as CPAs, in order to verify the compliancewith proper practices. Unannounced visits will
also monitor data accuracy and reliability of thesystematic monitoring in order to cover all farmers.”

1.5.3. Prompt Actions
Prompt Actions were reported using the Ficha
Técnica (Appendix V), i.e. the same paper form
as used for reporting situations not meeting thestandard. When field technicians observed a Prompt
Action, the reporting procedure was as follows:

However, when CU asked them to define Prompt
Actions, two (40%) of them replied that these weresituations requiring an immediate action, while
three (60%) answered that these were situations
related to child labor and hazardous activities,
showing that none of the interviewees had a fullunderstanding of the concept.
Furthermore, in 2016 and 2017 up until CU’s
assessment, only Prompt Actions with regard toChild Labor and Safe Work Environment had beenreported. For 2016 this was understandable because
these were the only two principles being monitored
in that year. However, in 2017 all principles werebeing monitored (see Chapter 2.2).

TANASA response:“TANASA will perform an annual ALP workshop,
starting at the second quarter of 2018, in order toreinforce the prompt action concept and reporting
protocol, followed by a practical test for all field

1. Stop the risk activity and agree with the farmer
on an action plan. If the farmer is not willingto address the issue, the field technician must
contact the Agronomy Supervisor or ALP
Coordinator immediately, and plan a new visit
with them to the farmer in question (see point 3).
2. If the farmer agrees on an action plan, record thePrompt Action and the agreed action plan in the
Ficha Técnica.
3. In case a new visit is needed (i.e. when the farmer
is not immediately willing to address the issue),the field technician, together with the Agronomy
Supervisor or ALP Coordinator, again explains
the risks and consequences of the situation to
the farmer, and ensures that the farmer agrees
on an action plan.
4. Within the next 15 days after the incident, thefield technician pays a follow-up visit to check if
the situation is solved.
5. All Prompt Actions are reported in the Agronomy
Report and analyzed by the ALP Committee.
All TANASA field technicians interviewed by
CU knew the Prompt Action reporting protocol.

technicians. Prompt actions will continue to bereported in the “Ficha Técnica” throughout the crop
season and will include all ALP principles.”

1.5.4. Improvement plans for individual
farms
The reporting of Prompt Actions and situations notmeeting the standard was followed by developing
corrective action plans for individual farms, withclear deadlines and follow-up visits. These actionplans were agreed upon by the field technician
and farmer together; in case of farmer reluctance,
the ALP Coordinator and Agronomy Supervisor
were also involved. However, according to theinterviews and analysis of Ficha Técnica of thevisited farms the action plans did not ensure
continuous improvement, nor were they addressing
root causes, field technicians only corrected theissues found in the moment. For example, at one ofthe visited farms it was reported at the Ficha Técnicathat full CPA containers were not in the locker andempty CPA containers were lying around the house,
the corrective action reported in the document was17External Assessment

to organize all full CPA containers in the locker andempty CPA containers in the proper bag, but nofurther analysis to understand why the situation
was happening at the farm was done.

TANASA response:“As part of the workshop during Q2/2018, a root
cause analysis using A3 methodology will be
performed with field technicians in order to create
better plans to improve conditions in individual farms,
with clear deadlines and follow-up visits. These actionplans will be agreed upon by the field technician andfarmer, together. In case of farmer reluctance, the
ALP Coordinator and/or Agronomy Supervisor willorganize a farm visit to better evaluate altenative
actions.”

1.6. Address systemic and/or widespread
issuesBased on the risks and issues identified (seeChapter 1.2), leaf tobacco suppliers are expected toaddress systemic and/or widespread issues throughoperational (STP) initiatives, community programs(possibly supported by PMI’s Contributions) andengagement with key stakeholders.
For the practices considered high risk by TANASA –child labor, incorrect PPE usage, and incorrect CPA
storage – initiatives had been developed to reduce
the risks and set the following targets:• Reduce and eliminate child labor by providing an
After School Program: 525 children in 10 schools
in the growing areas;• Improve safety by providing metal CPA storage
lockers: all farms, one locker per farm;• Improve safety by providing PPE for harvesting
and CPA application: all farms, one set of each
PPE per hectare per farm.

To meet these targets, TANASA had implemented
the following operational initiatives at the time ofCU’s assessment:• Distribution of PPE for CPA application andharvesting: TANASA considered the root
cause for incorrect PPE use that farmers either
lacked PPE or had difficulties accessing proper
equipment. TANASA had therefore imported
certified PPE sets from Brazil and had distributed
these to all tobacco farmers . Most farmers foundthe sets very useful as they provided more
protection. However, CU found that on 21% of
the farms visited, people applying CPA did notwear the complete set of PPE provided (Chapter
2.5.2). Furthermore, on 21% of the farms, people
handling green tobacco did not use the required
harvesting clothes (Chapter 2.5.1). Hence, eventhough all farmers had received their PPE sets,
not all persons at the farm were using them,showing that behavioral change was still needed.
• Distribution of CPA storage lockers: To promote
safe CPA storage, TANASA had provided all
tobacco farmers with a CPA storage locker. All
farmers found the locker useful, as it improved
safety on the farm. However, on 38% of the farms
visited by CU, CPA containers were still not
being stored correctly (Chapter 2.5.2), showingthat the provision of lockers did not necessarily
result in safe storage.
• After School Program: This program was
implemented together with DYA and involved 10
schools and 525 children. The program allowed
farmers’ and workers’ children aged 6 to 13
years to participate in after-school activities
three afternoons per week, providing an extra
period for activities such as reading, writing
and drama lessons. During CU’s assessment one
farmer was found whose children participatedin this initiative, the other farmers did not havechildren or their children attended other schools.
This farmer reported to find the initiative usefuland planned to participate again next year.

18External Assessment

TANASA response:“TANASA will strengthen DYA Foundation work
capabilities while reviewing their full report of
the activities developed during 2017 that will beavailable by April 2018. Also as part of continuous
improvement, the DYA Foundation new plan for2018 will be continuously and thoroughly reviewed
by the ALP team and validated in order to reinforce
and support the areas reported as findings during theassessment.”

19

Chapter 2

Farm-level assessment of working conditions
regarding the ALP Code Standards

EXTERNAL ASSESSMENT
Tabacalera Andina SA.

External Assessment

This chapter describes CU’s assessment of theworking conditions on TANASA tobacco farmers
with regard to the ALP Code Principles andMeasurable Standards. ALP Code Principles areshort statements designed to guide farmers on
specific practices, resulting in safe and fair working
conditions. A Measurable Standard defines a goodpractice and over time can be objectively monitored
to determine whether, and to what extent, the labor
conditions and practices on a tobacco farm are inline with each ALP Code Principle.

2.1. ALP Code Principle 1: Child labor• TANASA participated in a network of companies
advocating against child labor named Red deEmpresas por un Ecuador libre de trabajo infantil;• Since 2012 TANASA worked together with the
DYA Foundation to investigate the extent towhich child labor was present on the tobacco
farmers and to obtain a better understanding of
the issue. On behalf of TANASA, DYA conductedfarm visits and farm monitoring with theobjective to address child labor at the farms andcreate awareness on this topic.

2.2. ALP Code Principle 2: Income andwork hours

There shall be no child labor.

Income earned during a pay period orMain findings and challenges

2.1.1. Children working and activities
performed
At the farms visited by CU no evidence wasfound of children younger than 18 years of age
being employed at the farms or being involved inhazardous activities, nor of child family members
below 18 helping with the tobacco crop.
All farmers and workers interviewed by CU were
aware of the legal minimum working age and theprohibition of minors working in any tobacco
related activity.

Analysis and priorities
This ALP Code Principle was one of the focus areasof TANASA, and had been monitored and addressedsince the company started implementing the ALP
Program in 2010. Furthermore, child labor was themost important topic in TANASA’s communication
efforts and reporting by field technicians.
In addition to implementing the ALP program,
TANASA was making extra efforts towards reducing
and eliminating child labor:

growing season shall always be enoughto meet workers’ basic needs and shallbe of a sufficient level to enable thegeneration of discretionary income.
Workers shall not work excessive orillegal work hours.
Main findings and challenges

2.2.1. Payment of workers
In 2017 the minimum wage in Ecuador was USD$375
per month, and the minimum wage for tobacco
workers was USD$376.29 per month. Salaries were
either calculated hourly, daily, or based on a piece
rate (per plant harvested).
According to TANASA´s legal analysis the wage
calculation for permanent and temporary workers
was done applying different legal rules. Permanent
workers - workers who worked all year round withthe tobacco farmer- were entitled to the minimum
monthly wage which was $376.29. Temporary
workers received payments per day or piece rate.
The legal practice allowed to calculate the dailysalary for temporary workers dividing the monthly
wage per 240 hours (monthly hours) times eight21External Assessment

hours (daily working hours)5, which constituted a minimum daily salary of $12,54. Based on that, CU found
one farm (4%) that not all temporary workers were paid the legal minimum wage per day – workers received$10 per worked day.

Breakdown of calculated salaries
Salary$10/day

23 farms with

$11- $14/day$15 - $19/day

Salary range$20 - more

Minimum

Maximum($/day)($/day)1 (4%)

05(22%)

17(74%)

10

34

0

0

1 (50%)

1(50%)

16

20

temporary workers
2 farms withpermanent workers

2.2.2. Payment schedule
All farmers paid their workers regularly inaccordance with the law , the majority on a weekly
basis – 19 (79%) of farmers. Two farmers (8%) paid
weekly and every fortnight and two farmers paid
weekly and at the end of service for piece rate
workers.

2.2.3. Work hours
At all farms visited by CU, workers complied withthe maximum legal working hours. No evidence wasfound for involuntary overtime hours. In general,
workers worked 7-8 hours per day. Workers
whose salaries were based on piece rate (which
was common during the harvest period) typicallyworked more hours as they were paid per plant
harvested. Although not all were aware of the legal
limits, none of the workers exceeded the maximum
legal working hours.
At 19 farms (79%) workers did not received two
resting days per week, as their working week
included Saturday mornings, without receiving the

5.
6.

7.

overtime payment according to the law for working
on a rest day. The main reason for not paying thecorrect overtime rates was insufficient awarenessamong farmers and workers about the legal
requirements and overtime rates.

2.2.4. Legal benefits
At 23 farms (96%) farmers paid their workers morethan the minimum wage, which added up to the13th and 14th month wage benefit as defined bylaw. Except for this benefit, none of the farmers
provided permanent workers with the additional
basic entitlements required by law. 7 The main
reason for this was that farmers and workers lacked
awareness about workers’ legal benefits.

Analysis and priorities
This ALP Code Principle was not a focus area for
TANASA, despite the fact that their risk assessment
performed in 2017 had identified issues related
to this principle as important risks. CU’s findings
show that one farm (4%) did not provide temporary
workers with required legal benefits and that the

See Appendix III
If the work is done on a rest day (i.e Saturday or Sunday) the employee (i) can be compensated with a free day
during the week, or (ii) is entitled to compensation with a 100% surcharge. (See Appendix III for more detailed legal
information).
In addition to 13th and 14th month salaries, workers are entitled to social security, 15% Dividends distribution,
Reserve funds from Social Security (after one full year under a labor relationship with the same employer), and 15
days of vacation per year (after one full year under a labor relationship with the same employer).
22

External Assessment

two farmers (100%) that had permanent workers
were not providing them with required legal benefits
and therefore were not meeting the standards forthis topic. CU assessment shows a lack of awarenessamong farmers, workers and field technicians about
legal overtime rates and workers’ benefits which
was in line with the limited awareness on these
topics among field technicians (See Chapter 1.3.3 Field technicians’ trainings reference).

TANASA response:• “TANASA´s

team

will

review

thecurrent

communication materials and modify themto include the applicable rights to each typeof worker the tobacco farmer might have (i.e.
permanent workers and seasonal workers). Suchas the ALP Guide, this booklet will emphasize the2.3.2. Support mechanism
Support mechanisms facilitate workers’ access to
information, assist workers in difficult situations,and mediate disputes between farmers and workers.
PMI’s leaf tobacco suppliers are expected to ensurethat farmers and workers have access to such amechanism.
At the time of CU’s assessment TANASA had juststarted to implement a support mechanism pilot
project. Since this project was launched only a
few months before CU’s assessment, the level ofawareness on this mechanism was relatively low,with 33% of farmers and 75% of workers not being
aware of it. Also, a significant part (40%) of the
farmers thought that the objective of the support
mechanism was to solve tax questions; they did not
relate it to the ALP program at all.

central obligations related to this principle as it
applies to each type of worker.”• “For this Income and Work Hours, TANASA willconsider tobacco farmers as compliant when
they have participated in the training and showknowledge/awareness of their primary obligation

In addition to a formal support mechanism, farmers
should make themselves available to their workers,
to discuss potential grievances so that these do notneed to be escalated. At all farms visited by CU,
farmers were available to their workers.

under legal benefits, minimum wage, working
hours, and others. The measurement will be thetest results each tobacco farmer and its employees
receive during the crop season.”

TANASA response:“TANASA will continue communicating the fairtreatment principle within the 2018 trainings
sessions despite no cases has been reported. Target is2.3. ALP Code Principle 3: Fair treatment
Farmers shall ensure fair treatment ofworkers. There shall be no harassment,
discrimination, physical or mental
punishment, or any other forms of abuse.
Main findings and challenges

2.3.1. Treatment of workers
No evidence was found of verbal, sexual, or
physical abuse on the farms. CU did not identify any
discriminatory practices.

to raise awareness of all measurable standards within
this principle and keep farms compliant.”

2.4. ALP Code Principle 4: Forced labor
All farm labor must be voluntary. There
shall be no forced labor.
Main findings and challenges

2.4.1. No evidence of involuntary labor
No evidence was found of workers being unable toleave their employment or working against theirwill, or of contracted prison labor. Furthermore,
23External Assessment

no evidence was found of workers being obliged tohand over their original identity documents or pay afinancial deposit.

In addition, at one farm (4%), CU observed a person
applying fertilizer without gloves; the reason given
was that the gloves were uncomfortable.

2.5. ALP Code Principle 5: Safe work
environment

TANASA response:“Training and communication materials on GTS
prevention will be updated during Q2/2018, and it

Farmers shall provide a safe work

will aligned with the previous crop calendar topping

environment to prevent accidents andseason. Unannounced visits will monitor the level ofcompliance and awareness.”

injury and to minimize health risks.
Accommodation, where provided, shall

2.5.2. Training and handling of CPA

be clean, safe and meet the basic needs

Handling CPA proved to be a challenge at manyof the farms visited. In terms of CPA storage, nine
farmers (38%) did not store their CPA safely, eventhough TANASA had provided them with a storage
locker. CU observed that these farmers left (empty
and full) CPA containers outside the locker, and/or
did not lock the storage, or had a broken locker.

of the workers.
Main findings and challenges

2.5.1. Training and awareness of GTS
At two farms (8%) not all persons handling green
tobacco were trained on the avoidance of GTS.
Furthermore, at five (21%) farms, workers who had
been trained were still not aware of the existence
and avoidance of GTS. At one farm (4%) the farmer
had been trained but still did not fully understandwhat GTS was and/or how to avoid it. Consequently,
the use of protective clothing was limited at some of
the farms. Although TANASA had provided PPE sets
for harvesting and CPA application to all tobacco
farmers , CU found that at five farms (21%) not all
persons handling green tobacco were wearing thefull set of required harvesting clothes (see graphbelow).
PPE used harvesting
6

4

At one farm (4%) not all people handling CPA weretrained. Although the farmers were generally
trained on CPA, their family members and external
workers, who also applied CPA on occasion, were
not always trained.
At five farms (21%), people responsible for CPA
application did not use the complete set of PPE.
The main reason, according to workers and family
members, was that they often forgot to bring PPE
to the field. Other reasons given included thediscomfort of wearing PPE in high temperaturesand being unaware of the necessity to use PPE. The
following graph shows what PPE was used on thefive farms in question:

5
4

4
3

2
0

0
Long-sleeve
shirt

GlovesLong pants

Shoes

Rain gear (in caseof wet tobacco)24External Assessment

PPE used applying CPA
TANASA response:“TANASA will review their current training programs
Overall/Apronand benchmark with other markets from the region

4

to fine tune communication materials regarding
CPA management, approach and training contents.

Mask

0

A new improved training program will be launchedduring Q4/2018, to cover all farmers and a minimum

Bootsof two workers or family labor during the season.

3

This training module will be part of the “GAP movil”
program and a test will be performed at the end of the

4

Glovestraining to assess their level of knowledge, in order toGoggles1

None of the above

1
0

1

reinforce the weakest topics during field technician´svisits.”2.5.3. Clean drinking and washing water
2

3

4

5

With regard to CPA re-entry periods, CU found ahigh level of awareness among farmers, with all
farmers being aware of the importance to stay outof the field after recent CPA application. Only one
farmer (4%) stated that he did not ensure no one
entered the field after recent CPA application;
all other farmers (96%) informed their workers
verbally. However, none of the farmers posted
warning signs to keep people from entering recently
sprayed fields.
Twelve farmers (50%) did not safely dispose of
empty CPA containers, as shown in the following
table:

No evidence was found of farmers not providing
clean drinking water to family members andexternal workers. At all farms visited, workers
brought their own water, or they drank the samewater as the farmer. Twenty-one farms (88%) did
not have sanitary facilities close to where they
worked, and none of the farms had washing water
and/or soap available near the field.

TANASA response:“TANASA will deliver sport bottles of 1 Liter capacityand promote the campaign “boil your drinking water”,
so they can use it to carry clean water.
Regarding sanitary facilities close to the farm, it is anational reality that no facilities exist within the field

Disposal of empty CPA
containers
Empty containers lying

Number of farms

lots in small-scale agriculture. TANASA´s team will
map potential alternatives (such as mobile sanitary
and washing units) and implement a pilot during peak4

season activities in Q4/2018.”

around at the farm
Containers being reused

1

Containers within reach of1

childrenContainers not triple
washed/perforated

6

2.5.4. Basic safety measures
Although the farms contracted by TANASA weregenerally small-scale, most farmers had taken basic
safety measures, including: (1) having a means oftransport available to go to the hospital in case ofan accident (88%); (2) having taken first-aid training(79%); and (3) ensuring that their equipment and25

External Assessment

tools were stored safely (71%). However, only two
farmers (8%) had a first-aid kit on the farm, and only
one farmer (4%) had secured resources to act incase of fire.

2.7. ALP Code Principle 7: Compliancewith the law
Farmers shall comply with all laws ofAnalysis and priorities
TANASA had distributed CPA lockers and PPE for
harvesting and CPA application to ensure that all
farmers would be able to take the required safetymeasures. However, CU’s findings demonstrate thatthese initiatives had not fully resulted in the desiredchange of behavior. As unsafe practices have beenin place for a long time, it is unlikely that they
will change quickly. Therefore, it is important tounderstand the reasons behind these practices andset targets referring to actual change of behavior.
CU’s findings indicate that many farmers still have
limited awareness and understanding of the needfor safety measures. This is likely the main reason
for them not changing their behavior, despite theavailability of adequate safety items provided by
TANASA.

2.6. ALP Code Principle 6: Freedom of
association

their country relating to employment.
Main findings and challenges

2.7.1. Information on legal rights
Workers typically were only informed about theirbasic employment conditions, such as the wage theywould receive, the hours they needed to work, theirtasks, and payment conditions. However, none of
the farmers informed his workers fully about theirlegal rights. The main reason identified was that
farmers lacked the required knowledge about legal
requirements to inform their workers properly.
According to TANASA the reason for this isthat TANASA only started communicating all
the principles in 2017, before communication
efforts were focus in Child Labor and Safe Work
Environment.

Analysis and priorities

Farmers shall recognize and respect
workers’ rights to freedom of association
bargain collectively.
Main findings and challenges

2.6.1. Workers’ right to freedom of
association

In line with the understanding among fieldtechnicians on this topic (see Chapter 1.3.3 - Field
technicians’ trainings reference), farmers weregenerally unaware of the legal rights of workers.
They also did not understand that it was their
responsibility to inform workers about their legal
rights.

TANASA response:No evidence was found of farmers disrespecting
the workers’ right to freedom of association. Labor
unions were not active in the region.

“TANASA proposal for principle 7 actions is detailed
in the section for Principle 2. It encapsulates all thelegal obligations relating to labor matters, since it

Analysis and priorities

requires that farmer’s workers be informed of theirThis ALP Code Principle was not a focus area for
TANASA, which is justified, as there seemed to be
no risk of violation of the workers’ right to freedomof association.

Therefore, the measures mentioned in principle 2,

legal rights and the conditions of their employment.
tools and communication material are adequate tohelp TANASA`s efforts to generate awareness andknowledge among farmers.”

26

Chapter 3

ALP Program: feedback from farmers,
workers, and other stakeholders

EXTERNAL ASSESSMENT
Tabacalera Andina SA.

External Assessment

As part of the assessment, CU asked farmers, family
members and external workers what had changed at
the farms since the start of the ALP Program. Sixteen
farmers (67%) declared that the safety on the farms
had improved and/or that involvement of children
in tobacco growing had been reduced since thebeginning of the ALP program. Four workers and/or
family members (7%) reported that involvement ofchildren in tobacco growing had been reduced since
the beginning of the ALP program, one stated that
CPA management had improved and one stated thatknowledge about GTS was higher.
During their farm visits field technicians
communicated with several people on the farms,
i.e. not only farmers, but also workers and family
members. The field technicians discussed thereceived feedback during meetings with the ALP
Coordinator and Agronomy Supervisor, who inturn were responsible for reporting these findings
to the ALP Committee. However, there was noformal channel for farmers and workers to provide
feedback to the ALP team.
Only two farmers (8%) declared that they had
provided feedback to the field technician. One gave
positive feedback regarding the ALP program, andthe other had requested PPE, which, according tothis farmer, had still not been provided.

28

Appendices

EXTERNAL ASSESSMENT
Tabacalera Andina SA.

External Assessment

Appendix I – TANASA Action Plan

Tabacalera Andina S.A. affiliate of Philip Morris International

Agricultural Labor Practices Action Plan
201830

External Assessment

Introduction
The Tabacalera Andina S.A. (TANASA) operation in Ecuador is concentrated in the areas of Simon Bolivar
and Milagro, both situated in the province of Guayas, where tobacco farms are dedicated entirely to the
production of Burley type tobacco. In these areas, the vast majority of tobacco farmers have a smallscale commercial farming operation, usually renting plots of land nearby their homes during the crop
season, in which they perform field tasks with the help of family members and local workers.
TANASA welcomes the outcome of the labor practices assessment of tobacco farmers made by Control
Union (CU). Now supported by the assessment findings, TANASA will continue improving activities tofulfill the commitment of implementing the Agricultural Labor Practices (ALP) code in tobacco farms.
This assessment will be an additional and useful tool for the Agronomy team to guide the actions foreach of the Agricultural Labor Practices principles.
For the 2017/2018 crop, TANASA directly signed commercial agreements with 389 farmers for a totalof 3,000 ton. During the assessment, Control Union found no evidence of child labor, forced laboror discriminatory practices, positively demonstrating the importance of all the work done so far to
implement ALP Code.
In order to understand the local context and to get a full picture of the findings made by CU during theassessment, it is important to observe the local legal background. Under Ecuador laws, tobacco farmers
are independent farmers that have a tobacco production agreement with TANASA. According to this,they are responsible for informing and complying with legal requirements regarding their hired workers
or personnel.
Considering the legal framework of the relationship between TANASA and tobacco farmers, TANASA
offers technical assistance to farmers through Field Technicians, who secure crop quality and promote
continuous improvement for the implementation of the ALP Code at farms.
The CU assessment report highlighted a number of positives findings, such as:-High awareness of farmers and workers of the legal minimum working age and of the prohibition ofminors working in any tobacco related activity;-

No evidence of unlawful employment of children and adolescents during the assessment.

-

Availability of safety equipment for all farms, such as Personal Protective Equipment (PPE) andproper storage lockers for Crop Protection Agents (CPAs).

-

Farmers complying with payment schedules and maximum legal working hours, with no evidence of
non-voluntary overtime.

-

No evidence of unfair treatment and discriminatory practices between farmers and workers.

-

No evidence of forced labor.

-

No evidence of farmers disrespecting workers’ right to freedom of association.

TANASA acknowledges the areas for improvement mentioned by Control Union that will require
additional efforts in the implementation of the ALP Code, among them:-

Increase the level of awareness of principle Income and Working Hours among farmers and workers.

31

External Assessment-

Improve awareness and better explain among farmers and workers, the purpose of the local Support
Mechanism (Centro de Apoyo) maintained by DYA Foundation.

-

Promote a behavior change for the use of safety measures and tools while performing tobacco
hazardous tasks, like management and handling of Crop Protection Agents (CPA) and during tobacco
harvest to avoid Green Tobacco Sickness (GTS).

-

Improve farmer`s knowledge about hiring requirements and their legal responsibilities, to informtheir workers properly.

Until CU assessment, due priority setting in other principles, TANASA has communicated farmers with
only basic information regarding labor laws and the farmer’s obligations under labor laws. From 2017
crop season, TANASA started to provide basic information, and will be providing deeper information onlabor laws during the next crop seasons, pointing out where farmers can request legal advice on thesematters.
However, as Ecuador laws are very restricting regarding TANASA´s direct interference in the relation
between farmers and their workers, in order to avoid a misconstruing of the legal relationship it has withtobacco farmers, TANASA refrains from assessing if farmers comply or not with all their labor obligations.
Despite the existing difficulties in the Ecuadorian market, CU acknowledges all the effort put by TANASA
in the implementation of the ALP Program, reflected in a clear organizational structure consisting of a
Steering Committee and the ALP Country Team, with clearly defined responsibilities for the ALP related
activities.
1. IMPLEMENTATION OF THE ALP PROGRAM
1.1 Commitment to the ALP program
Findings
Control Union (CU) found that TANASA`s personnel is committed with the ALP Program and its
implementation is an important step forward to achieve good socio-economic conditions in tobacco
farms.
Action plans
TANASA will strength its ALP implementation program by working for the behavioral change of
farmers and workers. TANASA`s field and management teams will keep committed to the ALP
implementation, while the Agronomy team will monitor the implementation of the program throughregular field visits, as described in section 1.4 of the action plan and also performing unannounced
visits during the tobacco season as detailed in section 1.2-. The outputs of these actions will be used
to make business decisions to positively affect ALP implementation.
Since the ALP program was initiated in Ecuador, TANASA has included ALP clauses in its commercial
agreements. TANASA will continue covering all ALP principles within its commercial agreements with
farmers. Additionally, the company will use the internal farmer assessment categorization, which
includes analysis for all seven ALP principles, as part of the farmer evaluation. In this categorization,
each principle have a weighted factor within the assessment. Famers with recurrent non-compliancesand failures to take corrective actions, will case by case be evaluated, for a non-renewal of theircommercial agreement for the next season. TANASA will maintain this practice and will implement
32External Assessment

this aspect of the action plan in April 2018, once the new crop season starts. The objective is tocomplete the farmer´s assessment of the new crop by March 2019, once the buying season ends.
Expected outcomes-

To have farmers with a deeper understanding and ownership of the ALP program on their farms-

Promote behavioral change and improved practices at farm level.

-

Internal farmer assessment taking in consideration all ALP principles.

-

All ALP principles covered by farmer’s commercial agreement for crop 2018.

1.2 Strategy and objectives
Findings
CU confirmed that TANASA has a formal documented strategy defined by the ALP committee basedon an annual risk assessment. However CU mentioned that TANASA had not performed a root cause
analysis of the identified risks.
Action plans
ALP strategy
TANASA will update its ALP strategy based on a 3-year plan, strengthening the points raised by CU
and keeping it documented for internal tracking. This 3-year plan should be completed by the endof March 2018.
Risk assessment
During April 2018, a new risk assessment will be performed based on the findings from Control Union
assessment and on data gathered from farm monitoring, and once finalized this risk assessment will
be validated by the local ALP team.
Root cause analysis
An A3 methodology will be performed in order to gain an in-depth insight of the issues identified
during the Control Union´s assessment, such as (i) low awareness of the principle related to income
and work hours and compliance with the law, (ii) unsafe management of CPAs and handling of wet
green tobacco. The A3 will be conducted annually in the month of April, once the new crop season
starts, allowing TANASA to apply a more effective solution to these issues by leveraging tools andresources such as communication materials, trainings and DYA Foundation support for the identified
actions.
Unannounced visits
This activity will cover a minimum of 10% of farmers’ population and could be performed by any
member of Agronomy management team (Manager, Supervisor or ALP Coordinator) or any memberof the ALP committee during all the crop stages of the growing season.

33

External Assessment

Expected outcomes-

These actions will make possible to have a better understanding of many traditional practices
and how to achieve a behavioral change in order to effectively address issues.

-

Better understand how well the field technicians are communicating and training farmers andalso how well DYA Foundation’s approach works

1.3 Internal capacity
Findings
TANASA has an ALP organizational structure with clear roles and responsibilities. CU found some
gaps on the field technicians’ knowledge of the Principles regarding income and work hours,
hazardous tasks, fair treatment and compliance with the law. CU also noted some gaps in the ALP
Guide (a booklet for field technicians) that will be addressed.
Action plans
Dedicated organizational structure
TANASA will keep working with its current organizational structure, which consists of a Steering
Committee and ALP Country Team. Field technicians are part of the internal structure to implement
the ALP Program, providing the link between management and farmers.
Roles and responsibilities
Members of the Steering Committee and ALP Country Team will continue to have clearly defined
ALP roles and responsibilities. If there is a change in team members, this will be available in meeting
minutes and communicated to all members accordingly.
Training and knowledge of the ALP program
Control Union findings regarding the knowledge gap of field technicians was taken by TANASA as
an opportunity to improve activities. TANASA will perform an annual workshop to reinforce the ALP
concepts, followed by a test during the year´s second quarter, once the new crop season starts. ALP
knowledge and correct implementation of the ALP code will continue with field technicians taking
part in an annual performance review.
Also, the ALP Guide for field technicians will be reviewed and updated, and properly communicatedto the Agronomy team members as referenced in the section related to Principle 2 - Income andWork Hours. These actions will be done during the second quarter of 2018.
Internal communication
TANASA will continue with their internal communication program based on monthly meetings among
Agronomy team and quarterly meetings with the ALP team, all the gatherings will have meeting
minutes.
Although DYA Foundation and the Agronomy team are in constant communication, there will be
specific monthly meetings among both teams, in which DYA Foundation’s work and findings will
be presented in order to evaluate how the program is progressing at field level, to take corrective
34

External Assessment

actions when necessary. Additionally, DYA Foundation will take part of the quarterly sessions where
the ALP team meets.
Expected outcomes-

ALP country team with high awareness of their roles and responsibilities, and of any organizationalchange.

-Improve field technicians´ understanding and knowledge of the ALP code that would help themin their communication with the farmers.

-

New ALP Guide available for field technicians to clarify questions related to ALP implementation.

-

ALP team constantly updated about field situations in order to properly address identified issues.

1.4 Communication of the ALP code requirements to farmers
Findings
CU mentioned that TANASA put in place a communication plan when the ALP program started.
Initially its main focus were child labor and safe work environment. More recently during 2017, theremaining principles were included as part of the communication strategy. CU thoroughly described
the several communication channels and materials utilized by TANASA. However, CU found that theadministration of the “Ficha Técnica” managed by the field technicians had some gaps that needed
to be addressed. In addition, new communication efforts should be made in order to improve levelof awareness of all other principles of the ALP code among farmers, family members and workers,
to strengthen and enhance farmers’ responsibilities within the program.
Action plans
Communication strategy and tactics
TANASA will review and update its ALP training materials that contain technical and legal information
by April 2018, time of the start of the new crop season. In order to create more robust materials,
TANASA will benchmark its current communication materials with the ones available within the LA
region. Once ready, the new materials will be distributed to all farmers and their workers as well.
Prevalent ALP topics defined as part of the risk assessment, mentioned in section 1.2 and program
updates will be included during the field technician´s visit and during group meetings by the itinerant
program “GAP movil”. There will be a minimum of six field visits per farm during the crop season:
two visits during seedling period, two visits during field tasks and two visits from harvesting totobacco sales. Additionally, farmers meetings will be conducted through the itinerant program “GAP
movil”, establishing a target of two group meetings per field technician during the crop season,covering all farmers and also a minimum of two family labor or workers per farm, during the crop
season. At the end of the training sessions, an individual test will be performed in order to assess
individual knowledge and therefore take account for the potential plans and actions for those points
identified as weakness.
Also, an annual event aimed to all farmers, family member and workers called “Casa Abierta”,
will be carried out during March 2018, before the new tobacco season. This event will count with35

External Assessment

the support of DYA Foundation and other external stakeholders such as APCSA (empty containers
management) and TANASA´s suppliers of CPA and fertilizers.
The training and communication will be aligned to the farmer assessment as referred in the section
1.1, reinforcing the frequency of trainings and specific topics to those farmers identified withknowledge gaps and compliance issues. All the ALP training material will be aligned to coincide withthe crop calendar, to ensure that the training is focused on issues that are more prevalent duringthat period, e.g. Green Tobacco Sickness (GTS) trainings will be done during harvesting season. All
the training and communication materials will be distributed to all farmers and their workers as well.
Farmer`s responsibilities
As stated in section 1.1: “TANASA has included ALP clauses in its commercial agreements. TANASA
will continue covering all ALP principles within its commercial agreements with farmers. Additionally,
the company will use the internal farmer assessment categorization, which includes analysis for allseven ALP principles, as part of the farmer evaluation. In this categorization, each principle have aweighted factor within the assessment. Famers with recurrent non-compliances and failures to takecorrective actions, will case by case be evaluated, for a non-renewal of their commercial agreement
for the next season. TANASA will maintain this practice and will implement this aspect of the action
plan in April 2018, once the new crop season starts. The objective is to complete the farmer´sassessment of the new crop by March 2019, once the buying season ends.”
Expected outcomes- Improve understanding of the ALP program and knowledge of farmers, family members and farmworkers, in order to raise their awareness level of the program in a way that will positively impact
behavioral change.
- Enhance farmer’s ownership and leadership for the implementation of the ALP program at farmlevel.

1.5 Internal monitoring: data collection, accuracy and addressing issues
Farm Profiles are essential information to better understand the different farm situations and to beable to identify issues and take corrective actions. During the last years, farm data has been gathered
manually and then consolidated into an electronic database to properly analyze them. TANASA
acknowledges that due to the farm dynamics, some information regarding number of people ortasks performed at farm could vary depending of the crop season, e.g. the number of workers andactivities during transplanting will not be the same during the peak activities such as harvesting andleaf grading. The same concept is applicable for systematic monitoring, as there will be crop periods
with higher risk of non-compliance.
Findings
Control Union reported that all the farm profiles were available during the assessment, however
some documents were still in the update process for the crop 2017. CU found only two cases where
the Farm Profile information was slightly inaccurate (incorrect number of people living on the farm,and incomplete listing of farm tasks).
36

External Assessment

Regarding systematic monitoring, CU findings did not match with the field technicians` conclusions
about some farms meeting all the measurable standards. For prompt actions (PA), CU found that
although field technicians knew the reporting protocol however they did not have a full understandingof its concept. Additionally, only Prompt Actions related with child labor and safe work environment
have been reported, and none related to the other five ALP principles. For the topic improvement
plans for individual farms, CU reported that no root cause analysis was carried out to understand
why the situation was happening in order to ensure continuous improvement.
Action Plans
Farm profiles
TANASA will finalize the update and analysis of the farm profiles (FP) related to crop 2017 by theend of February 2018. For the new crop season starting in April 2018, update of farm profiles will bedone by field technicians using a new electronic formulary, available in their iPads. This new tool willallow faster results in a shorter period of time if compared to the manual gathering of information.
In order to strength the reliability and accuracy of the Farm Profile and systematic monitoring
data, a validation will be done by unannounced visits that will cover a minimum of 10% of farmers’
population. Visits will be performed by any member of the Agronomy management team (Manager,
supervisor or ALP Coordinator) or any member of the ALP country team. The implementation ofthese actions will start once transplanting season begins for crop 2018.
Systematic monitoring
Systematic monitoring will be performed by TANASA field technicians and DYA Foundation during all
the crop stages of the growing season. The systematic monitoring will continue covering either thefield lots where tasks are being performed or the farmer`s storage place where he keeps the crop
inputs such as CPAs, in order to verify the compliance with proper practices. Unannounced visits will
also monitor data accuracy and reliability of the systematic monitoring in order to cover all farmers.
Prompt actions
Regarding the lack of understanding by field technicians of the prompt action concept, TANASA will
perform an annual ALP workshop, starting at the second quarter of 2018, in order to reinforce theprompt action concept and reporting protocol, followed by a practical test for all field technicians.
Prompt actions will continue to be reported in the “Ficha Técnica” throughout the crop season andwill include all ALP principles.
Improvement plans for individual farms
As part of the workshop during Q2/2018, a root cause analysis using A3 methodology will be
performed with field technicians in order to create better plans to improve conditions in individual
farms, with clear deadlines and follow-up visits. These action plans will be agreed upon by the fieldtechnician and farmer, together. In case of farmer reluctance, the ALP Coordinator and/or Agronomy
Supervisor will organize a farm visit to better evaluate altenative actions.
Expected outcomes
a. Reliable information regarding farm profiles, systematic monitoring and prompt actions.

37External Assessmentb. Unannounced visits performed during each crop season to assure data accuracy.
c. Improved field technicians’ knowledge and implementation regarding prompt actions, reporting
protocol and root cause analysis, in order to fine tune the reporting of issues and implement
timely and effective action plans.
d. Individual improvement plans tackling the root causes of issues.

1.6 Address systematic and/or widespread issues
Findings
CU stated that TANASA has been addressing issues related to principles Child Labor and Safe Work
Environment. For child labor, it has implemented an After School Program run by DYA Foundation(third party NGO). For safe work environment, there are initiatives in place such as distribution of
PPEs for CPAs application, GTS protection and CPA storage lockers. However, CU found that some
farmers are not properly using these equipment and tools.
Action plans
DYA Foundation (Desarrollo y Autogestión) is a NGO that works to progressively eliminate childlabor at fields. In their methodology, they work directly with farmers and schools in tobacco areas,using specific techniques to get closer to farmers and to understand what drives child labor. Goingforward, TANASA will strengthen DYA Foundation work capabilities while reviewing their full reportof the activities developed during 2017 that will be available by April 2018. Also as part of continuous
improvement, the DYA Foundation new plan for 2018 will be continuously and thoroughly reviewed
by the ALP team and validated in order to reinforce and support the areas reported as findings
during the assessment. As stated in section 1.3, there will be specific monthly meetings between DYAFoundation and TANASA, where DYA’s work and findings will be presented in order to evaluate how
the program is progressing at field level, allowing corrective actions when necessary. Additionally,
DYA will take part of the quarterly sessions when the ALP team meets. The specific dates of themeetings will be communicated to all members accordingly, and available in meeting minutes.
A root cause analysis will be performed to better understand the reasons behind the partial or
non use of CPA equipment and the incorrect use of the CPA locker. An updated training for CPA
management, with support of “GAP movil”, will start in May 2018 in order to have a better impact
in the behavioral change of the farmers and workers, target being to cover all farmers and also aminimum of two family labor or workers per farm during the crop season. The damaged PPEs andlocker equipment will be replaced after a specific field verification made by field technicians. All the
initiatives mentioned above will be covered in the unannounced visits as well, as previously detailed.
Expected outcomesa. More efficient and accurate action plans to identify and address widespread issues.
b. Improve CPA management and behavioral change towards it, in order to progressively decrease
prompt actions raised due CPA management.
c. Progressively eliminate child labor through DYA Foundation programs.

38

External Assessment

2. FARM-LEVEL ASSESSMENT REGARDING THE ALP CODE STANDARDS
2.1. ALP code principle 1: Child labor
Findings
CU found no evidence of child labor on the farms visited, showing that TANASA’s efforts are paying
off.
Action plans
TANASA acknowledge that child labor has been a significant issue in Ecuador, not only in tobacco
farms, but also in most agricultural activities. As a result, public and private entities have undertaken
various actions to create awareness on this subject and work toward its eradication. Several steps
have been taken by TANASA to progressively tackle this issue such as reinforcing communication
with tobacco farmers and workers to sensitize them on this matter. DYA Foundation has been a key
stakeholder through a series of plans implemented at field level since 2011, from diagnostics to havemore information about child labor, development of programs to prevent child labor, to continue
participating with the network of companies that advocate for a country free of child labor. Duringcrop 2017 around 540 boys and girls participated in the DYA Foundation initiative called After School
Hours, where more than 50% of the participants had a direct connection either with tobacco farmers
or workers.
It is important to highlight that during July of 2017, TANASA has been recognized by the Ministry ofLabor for its active participation in the public and private alliance within the network of companies
looking for the common goal of preventing and eradicating child labor in Ecuador
Despite the positive results of the assessment in this topic, TANASA will continue implementing
actions to eradicate child labor through updating and strengthening DYA Foundation programs inthis matter such as: i) after school hours, ii) field monitoring, iii) follow up of reported cases and iv)
awareness campaigns related to ALP topics. All these activities will be performed during the crop
season.
Expected outcomes
Farmers maintain a high awareness and compliance with this principle.

2.2. ALP code principle 2: Income and Work Hours
While analyzing ALP Principle 2, is important to consider and to understand the complexity of theEcuadorian laws and its regulatory environment, which creates several obstacles for farmers tocomply with all regulations, which are applicable to agricultural activities in general, small or large
scale.
The complexity lies in the series of procedures that employers must follow to formalize and comply
with all of their obligations as employers. Moreover, to fully apply such legislation in a country withsignificant social, economic and cultural differences among its population is by itself a difficult andchallenging process.

39External Assessment

However, the complexity of Ecuadorian laws does not exempt the tobacco farmer from a minimum
knowledge of the labor legislation and of the consequences of being unaware of it. With that in mind,
and considering the legal relationship between the tobacco farmers and TANASA8, since early 2017
communication materials have been under development to provide training sessions and effective
communication with tobacco farmers and their employees, their labor obligations and rights.
The next section will detail TANASA actions to tackle CU findings on this principle.
Findings
CUs assessment of Income and Work Hours says:•

Relatively low level of awareness among farmers, workers and field technicians about legal
overtime rates and workers’ benefits.

•

At 16 farms (67%) farmers paid their workers more than the minimum wage, which added
up to the 13th and 14th month wage benefit as defined by law. Except for this benefit, noneof the farmers provided workers with the additional basic entitlements required by law, forpermanent or temporary worker.

•

At 19 farms (79%) workers did not receive two rest days per week nor did they were paid theovertime payment according to the law for working on a rest day.

•At one farm (4%) not all temporary workers were paid the legal minimum wage per day –workers received $10 per worked day.

CU main findings for this principle can be summarized by relatively low awareness among tobacco
farmers and their workers of the local labor regulations, e.g. applicable legal benefits, overtime
hours and rest days.
As CU mentions in its report, this ALP Code Principle was not a primary focus for TANASA until
early 2017. Since last year, TANASA included all ALP Principles in the communications, and involved
tobacco farmers and workers in training sessions. During previous years, TANASA efforts focused
mainly on the Principle of Child Labor, which was the priority topic and main issue when ALP Code
implementation started in 2010. In addition, since 2015, the Principle of Safe Work Environment
was included.
Action plans
All the actions mentioned in this section will be implemented during the 2018 tobacco crop season,
and will be monitored every three months (quarter year) to measure the effectiveness, impact, andcomprehension of its target audience, with an overall review at the end of the crop season to finetune them, as needed.

8.

Tobacco farmers are independent farmers that have a tobacco production agreement with TANASA; tobacco farmers
are responsible for informing and complying with all legal requirements and rights of all their workers or personnel.

40External Assessment

Internal measures
Continue to improve the training to all of the Country team and Field Technicians (FT). The training
will include:•

An introduction presentation of the outcome of Control Union’s (CU) assessment once the newcrop season starts around April to May 2018.

•

An explanation of the seven ALP principles, with particular emphasis on Income and Work Hours,
and Compliance with the Law.

•

A thorough discussion on the legislation for those aspects related to ALP once the new crop
season starts, between April and May 2018.

•

Test to measure the ALP Country Team and field technicians awareness and knowledge of the
ALP Code and labor obligations (legal overtime rates, applicable workers’ benefits, rest days,
minimum wage9 applicable for each type of worker and any relevant local labor regulation).

For field technicians (FTs): TANASA will develop a new booklet with ALP Code, which includes sections
with specific information for each type of worker the tobacco farmer might hire, as was identified
by the CU assessment. Accordingly, the materials for the 2018 crop season will incorporate in amore specific and detail manner, the income, work hours & benefits to farm workers applicable topermanent and seasonal workers. The material will provide information on how to calculate theminimum wage depending on the type of worker. For example, the minimum wage for seasonal
workers will cover the minimum wage for daily workers and the minimum wage of per piece workers.
External measures
Strengthen and renovate all communication materials and tools design for tobacco farmers andtheir employees. This materials must take into account the particular needs of each relevant groupor audience, with the aim of ensuring that all of the elements and tools used to deliver accurate
messages are appropriate to the target audience (farmers and workers).
For Tobacco Farmers
To promote awareness, TANASA`s written materials from now on will include specific information foreach type of workers the tobacco farmers might hire. Accordingly, the materials for the 2018 crop
season will incorporate in a more specific manner the income, and how to calculate it, work hours &benefits to farm workers applicable to permanent and seasonal workers.
TANASA´s team will review the current communication materials and modify them to include theapplicable rights to each type of worker the tobacco farmer might have (i.e. permanent workers andseasonal workers). Such as the ALP Guide, this booklet will emphasize the central obligations related
to this principle as it applies to each type of worker.

9.

The material will provide information on how to calculate the minimum wage depending on the type of worker. For
example, the minimum wage for seasonal workers will cover the minimum wage for daily workers and the minimum
wage of per piece workers.
41

External Assessment

The reviewed material will provide more detail and comprehensive information for tobacco farmers,
emphasizing legal overtime rates, applicable workers’ benefits, rest days, minimum wage applicablefor each type of worker and any other relevant local labor regulation.
On top of that, the idea is to hand out messages and reminders to farmers and workers during thegrowing cycle in a periodically basis (i.e., three times per season, with one per crop stage).
After delivering the training and the communication materials, field technicians and DYA Foundation
will conduct unannounced exams/tests with the tobacco farmers throughout the crop season tomeasure their knowledge, awareness and comprehension.
The tests will be conducted at least twice a year: One at the beginning of tobacco season and one
at the end of the season to accurately measure any progress in the comprehension of the materials.
Results of exams will be summarized periodically to determine strengths and weaknesses, so that
we can target more efficiently our training and communication materials and focus future trainings
on the areas identified as weakness.
Additionally, any gathering or meeting will be used to assess farmers´ understanding, to evaluate
the effectiveness of materials and the areas that would need a review or to be strengthened for the
training of tobacco farmers.
Furthermore, we will continue to point out where tobacco farmers can request legal advice on thesematters so farmers can comply with their labor obligations. This is in addition to the support line andthe DYA Foundation assistance center, which they can use to get guidance on matters related to the
ALP code.
For Tobacco Farmers employees
Communication materials covering all ALP principles, with a specific section detailing which
employee’s rights the tobacco farmer should comply. The idea is that the written content will besupported by pictures (drawings in comics book style) to help promote a better understanding of
the seven ALP principles.
As mentioned for tobacco farmers, field technicians and DYA Foundation will also conduct
unannounced exams/tests with farm workers throughout the crop season to test their tobaccoknowledge and awareness. These results will be summarized to measure effectiveness andcomprehension among farmers’ workers.
Finally, we will also reinforce the availability of the support line to workers, so they can use it in casethey need support with matters related to the ALP Code. The situations reported will be reviewed
internally during ad hoc meetings to analyze them case by case, in order to elaborate effective actionplans based on each situation. All the cases reported through this tool will be considered as part of
the annual farmer assessment categorization.
PROMPT ACTIONS FROM INCOME AND WORK HOURS
Findings
CUs assessment on prompt actions says:

42External Assessment“No Prompt Actions had been reported for payment below minimum wage and lack of overtime
payment, even though Control Union did observe several of these cases during the assessment.”
The reason for this finding is that as CU mentions in its report, up until CU’s assessment, only Prompt
Actions about Child Labor and Safe Work Environment have been reported. This was an approachconsistent with TANASA’s objective of tackling first in its communication and overall efforts what wasconsidered urgent matters, due to the particular socio-economic factors in the region.
In 2017 TANASA started to cover all principles, mainly by communicating to farmers with different
materials the essential information on labor law, and pointing out where tobacco farmers can request
legal advice on this matters, so farmers can comply with their labor obligations.
Action plans
For the 2018 crop season, we will expand the tobacco farmer assessment categorization to decidenon-renewals of farmer’s tobacco contracts based on their compliance with the ALP Principles
and tobacco production, as stated in section 1.1. CU acknowledges the used of this mechanism intheir Assessment, and it has proven very useful to secure tobacco farmers’ commitment to the ALP
Program. TANASA will start implementing this aspect of the action plan from April 2018 and thetarget is to complete the new farmer assessment applicable for crop season 2019/2020.
Accordingly, we will expand the farmer categorization assessment to include all the principles of the
ALP code, by assigning a proportional weight in the overall evaluation of tobacco farmers at the endof each crop season.
For this Income and Work Hours, TANASA will consider tobacco farmers as compliant when they
have participated in the training and show knowledge/awareness of their primary obligation underlegal benefits, minimum wage, working hours, and others. The measurement will be the test results
each tobacco farmer and its employees receive during the crop season.
For example, if test results show there is a low knowledge of a particular area, the tobacco farmer
will receive additional communication materials, for him and his employees, so progress can bemade for the next round of exams.
The 2018 crop season will be a pilot to deploy this activity in addition to the farmer categorization
system, to progressively increase their awareness and knowledge of their obligations as employers.
TANASA will work with DYA Foundation to collect aggregated data related to income and working
hours of workers through an anonymous survey (or a similar mechanism). DYA Foundation willproduce a data file, with aggregate data related to this information, allowing TANASA to evaluate
the effectiveness of their communication material, training, and initiatives to focus future trainings
on the identified weak areas.

2.3. ALP code principle 3: Fair Treatment
Findings
During the assessment no discriminatory practices were mentioned. Regarding the support
mechanism, CU found that the level of awareness of the system was low due to the project has been43

External Assessment

working just for few months and people interviewed correlated it with a mechanism to solve tax
questions only.
Action plans
Training and communication
TANASA will continue communicating the fair treatment principle within the 2018 trainings sessions
despite no cases has been reported. Target is to raise awareness of all measurable standards within
this principle and keep farms compliant.
Despite no discriminatory practices were found during CU assessment, this topic remains very
important. In order to evaluate if there is a potential risk of unfair treatment, DYA’s survey will also
include questions that can identify potential discriminatory practices or patterns regarding genderinequality payments or other unfair conditions.
Support mechanism
TANASA, with support from DYA Foundation, will revamp the communication strategy in orderto reach a higher level of awareness about the support mechanism among farmers and workers,
while improving the correlation with ALP topics. A DYA Foundation communication campaign on
the support mechanism will start prior to the peak season, during harvesting and grading (August
to December). Reported situations will be reviewed internally during ad hoc meetings to analyze
case by case in order to elaborate effective action plans based on each issue. All the cases reported
through this tool will be part of the farmer assessment categorization. Also, unannounced visits will
monitor the implementation progress of the activities within this principle.
Expected outcomes-

Encourage farmers and workers to keep complying with this principle.

-

Improve the level of awareness of the support mechanism and how to properly use it, whileassociating it with ALP matters.

-

Detect potential blind spots regarding unfair treatment among farmers and workers with support
from DYA Foundation.

2.4. ALP code principle 4: Forced labor
Findings
CU reported no evidence of involuntary labor.
Action plans
TANASA will continue communicating the forced labor principle within the trainings sessions. Field
technicians and unannounced visits will include the monitoring of this principle. These activities willtake place during crop season 2018.

44

External Assessment

Despite no forced labor practices were found during the assessment, TANASA understand this topic is
extremely important. In order to evaluate if there is a potential risk of forced labor, DYA Foundation’ssurvey will include questions that can detect potentially non-compliance of this principle, such as no
freedom to leave the work place, end of season payments, and other situations that could lead toforced labor conditions.
Expected outcomes-

Improve the level of awareness among farmers and workers of this principle.

-

Encourage farmers and workers to comply to this principle.

-

Detect potential blind spots regarding forced labor conditions among farmers and workers, withsupport from DYA Foundation.

2.5. ALP code principle 5: Safe Work Environment
Findings
CU mentioned that despite a series of trainings and distribution of safety equipment to farmers andworkers, there is still a knowledge gap and lack of proper use that demonstrate these initiatives had
not fully resulted in the desired change of behavior.
Action plans
Safety hazards are inherent to farming and some farmers and workers still have limited awarenessand understanding of the need for safety measures, despite the availability of adequate equipment.
As so, this principle relates to situations that could have a direct impact over the safety of individuals
involved on tobacco farming.
Prevention and avoidance of Green Tobacco Sickness (GTS)
Handling wet green tobacco is a hazardous task which may result in GTS, and therefore requires
farmers and workers to use protective clothing which include long sleeves, long pants and protective
gloves in order to reduce skin contact. Training and communication materials on GTS prevention
will be updated during Q2/2018, and it will aligned with the previous crop calendar topping season.
Unannounced visits will monitor the level of compliance and awareness.
Management of Crop Protection Agents (CPA)
In order to work on the behavioral change of farmers and workers, TANASA will review their current
training programs and benchmark with other markets from the region to fine tune communicationmaterials regarding CPA management, approach and training contents. A new improved training
program will be launched during Q4/2018, to cover all farmers and a minimum of two workers orfamily labor during the season. This training module will be part of the “GAP movil” program anda test will be performed at the end of the training to assess their level of knowledge, in order toreinforce the weakest topics during field technician´s visits.

45External Assessment

During Q2/2018, TANASA will also perform a review of the physical conditions of the safety
equipment and tools that farmers use, like CPA lockers, PPEs and CPA backpacks in order to replacethem if damaged.
To reinforce re-entry interval to fields with CPA application, TANASA will strength its training andcommunication material, and conduct a pilot during Q3/2018 for installing warning sign posts to
inform people when a tobacco lot has been sprayed, not allowing anyone to enter. The objective is
to standardize a model or methodology for all farmers.
TANASA plans on leveraging this principle with the external stakeholder APCSA, who will reinforce
the safety disposal of empty CPA container program in order to avoid potential issues. This will be
performed during the second half of 2018.
Clean drinking water, washing water and sanitary facilities
For clean drinking water, workers usually bring their own water, or they drink the same water as thefarmer. TANASA will deliver sport bottles of 1 Liter capacity and promote the campaign “boil yourdrinking water”, so they can use it to carry clean water.
Regarding sanitary facilities close to the farm, it is a national reality that no facilities exist within thefield lots in small-scale agriculture. TANASA´s team will map potential alternatives (such as mobile
sanitary and washing units) and implement a pilot during peak season activities in Q4/2018.
Basic safety measures
To complement the training program, a new module of first-aid training will be performed during
the crop season 2018. Also field technicians and unannounced visits will monitor that farmer`sequipment and tools are stored properly.
Expected outcomes
a. Change of behavior in farmers and workers regarding the safety practices in order to better use
the provided tools and avoid potential issues.
b. Improve farmers and workers knowledge regarding concepts of GTS protection and CPA
management.
c. Farmers and workers have their own boiled drinking water at the field.
d. Farmers and workers better use the safety tools provided by TANASA.

2.6. ALP code principle 6: Freedom of association
Findings
CU reported no risk of violation of the workers’ right to freedom of association.
Action plans
TANASA will continue communicating the freedom of association principle within the trainings
46

External Assessment

sessions. Field technicians and unannounced visits will include the monitoring of this principle.
These activities will take place during crop season 2018.
Expected outcomesa. Improve the level of awareness among farmers and workers of this principle.
b. Encourage farmers and workers to keep complying with this principle.

2.7. ALP code principle 7: Compliance with the law
Findings
CU assessment of this principle says that: “Farmers were generally unaware of the legal rights ofworkers. They also did not understand that it was their responsibility to inform workers about theirlegal rights”.
As explained in the section action plans of Principle 2, the relatively low awareness by tobacco farmers
and its workers is attributed to the fact that field technicians only started communicating all theprinciples in 2017, by basic information on labor law, pointing out where farmers can request legal
advice on these matters. Nevertheless, since the 2018 crop season, new communication materials willemphasize tobacco farmers’ obligations to their personnel to create more awareness among tobacco
farmers and their personnel regarding legal rights.

This relatively low awareness can be also attributed to the complexity of Ecuador labor laws. The
complexity lies in the series of procedures that employers must follow to formalize and comply withall their obligations as employers. Moreover, to fully apply such legislation in a country with significant
social, economic and cultural differences among its population is a difficult and challenging process.
Action plans
TANASA proposal for principle 7 actions is detailed in the section for Principle 2. It encapsulates all
the legal obligations relating to labor matters, since it requires that farmer’s workers be informedof their legal rights and the conditions of their employment. Therefore, the measures mentioned inprinciple 2, tools and communication material are adequate to help TANASA`s efforts to generateawareness and knowledge among farmers.
To increase tobacco farmers’ awareness on their obligation to inform all their employed workers
about legal rights, TANASA will:•

Implement a signed document stating that tobacco farmers have informed and explained laborrights to all workers.

•

Work with DYA Foundation to create posters, leaflets or printed material for the farms, so farmers
can display or present to their workers to inform them of their labor rights.

These actions will be performed during the crop season, starting from April 2018.

47

External Assessment

CONCLUDING REMARKSAs CU mentions in its report, the seven ALP Principle were not a primary focus for TANASA until
early 2017. During the previous years, TANASA efforts focused mainly on the Principle of Child Labor,
which was the priority topic and main issue when ALP Code implementation started in 2010. We areproud of our ALP team, knowing their efforts paid off and there was no child labor occurrence during
the assessment.
Since 2015, the Principle of Safe Work Environment was included. It is now time to expand ouractions towards ALP and include all the seven principles in our activities.
TANASA´s management and employees are fully committed to the implementation of the ALP
Action plan described in this document. The objective is to further embed and maintain ALP aspart of the business culture, as a normal day-by-day behavior, while we continue into the journeyof implementing the ALP Code in all farms with directly signed commercial agreements from which
TANASA sources tobacco.

48External Assessment

Appendix II – Scope and methodology
Assessment team
The team responsible for conducting this assessment
consisted of two auditors (from Peru and Spain)
and two coordinators – one from Brazil and one
from Argentina. The auditors conducted farmassessments and interviewed the field technicians,
and were accompanied by the coordinator
during the first two days of field visits. The twocoordinators interviewed TANASA management
and the Agronomy team. The auditors as well as thecoordinators had been trained by Verité and CU
before the assessment. This qualification process
consisted of the following stages:• Selection of candidates by CU;• Webinars organized by CU to verify suitability ofcandidates;• Completion of online training provided by Verité;• Full week classroom training conducted by Verité
with CU; and• Two-day preparation training by CU directlyprior to starting the field visits.

Desk review
Prior to this assessment TANASA was requested tosend documentation to CU to give the assessment
team a better idea about the market characteristics
and the management systems that were in place.
TANASA provided the legal information that was
relevant to the ALP Code (see Appendix III for moredetailed legal information). This was important toensure a thorough preparation of the assessment.

Opening meeting
On 10 October 2017, CU started the assessmentwith an opening meeting at TANASA’s head officein Quito, Ecuador. This meeting was attended

by TANASA’s ALP Country Team and Steering
Committee, including the ALP Coordinator,
Agronomy Team, Corporate Affairs Team andLegal Team, as well as the Environmental Engineer,
General Manager and Leaf Manager. Furthermore,
the meeting was also attended by a representativefrom PMI Regional. CU presented the objectives
and approach of the assessment, while TANASA
provided a brief overview of the market andcompany background.

Methodology for ALP implementation
system review
The methodology used for the evaluation of
TANASA’s implementation of the ALP Program
was based on the widely used PDCA 10 cycle. This
cycle is a management method for the continuous
improvement of processes and products. CU spent
two days (10 and 11 October 2017) at TANASA’s
head office to interview management staff, analyze
documentation and evaluate TANASA’s systems
to better understand how the implementationof the ALP Program was organized. In total, CU
interviewed eleven management personnel,11five field personnel, 12 and one representativeof PMI Regional. Additionally, CU interviewed
representativesoftwostakeholders:thecoordinator and two field technicians of the NGO
Desarollo y Autogestión (DYA), and the chief officerof the Asociación de la industria de Protección deCultivos y Salud Animal (APCSA), the organization
involved in collection of empty CPA containers. Allinterviews were conducted individually, so thatinterviewees felt comfortable and able to speak
freely and raise any issues.

Scope and farm samplingThis assessment focused on the Burley tobacco
farmers located in the Simón Bolivar and Milagro
regions of Guayaquil, Ecuador (see graph below).

10. Plan, Do, Check, Act
11. All members of the ALP Country team and Steering Committee
12. Five field technicians.
49External Assessment

The two regions were considered homogenous and comparable based on farm size, geographical spread,language spoken and cultural aspects, and were therefore assessed together within the same scope.

Scope of assessment: Burley farmers in Guayaquil (source: TANASA)
The red pins indicate the growing areas and the yellow pin shows the location of TANASA’s Guayaquil office

In the two regions assessed, the majority of the
farmers grew an area of 1-3 hectares of tobacco
contracted by TANASA. The average contractedarea per farmer in 2017 was 2.8 hectares.
In 2017, TANASA had contracted a total of 389
Burley farmers. To constitute a meaningful sample,
CU needed to visit at least 20 farms, the squareroot of the total population of farmers within thescope. In total, CU visited 24 farmers, which were
either sampled randomly or selected based on thefollowing criteria:• Geographic spread; and• Farm size: different farm sizes selected to ensure
diversity, but focus on the larger farms to ensurelabor practices could be assessed.
Over a period of two weeks, CU visited an averageof six farms per day, with a reporting day after eachfield day. The graphs below provide demographic
information about the selected farms.

50External Assessment

Farm size (N=24)(ha contracted by TANASA)

Farmers previously contracted
by TANASA (N=24)

4%

4%

21%

75%

96%

0-1 haYes
No

1<2 ha>2 ha

Stage of tobacco production

Type of farm (N=24)4%Growing

3%21%

Topping

10%75%

Harvesting

14%

Farm with family members andlocal workers
Farm with only local workers(no family members)Curing

11%

0

2

4

6

8

Family farm with only family
members working

10 12 14 1651

External Assessment

Due to the openness and collaboration of TANASA,
CU managed to conduct all visits unannounced.
This meant that the farmers had not been informed
about the visit and its objective prior to CU’s arrival.
TANASA had informed farmers several weeks before
the assessment that a visit could take place within acertain period but said nothing in the days prior to
the visits. CU informed TANASA about the names ofthe selected field technicians and selected farmers
only on the day that their visit would take place.
The reason for this was that CU wanted to obtaina realistic picture of the farm practices, which wasmost likely to be seen when arriving unannounced.

Methodology for ALP farm practices
review
The methodology used during the farm visits was
based on triangulation of information. Auditors were
instructed to seek at least two, preferably three,sources of information. They used their findings
to draw conclusions about whether farm practices
were meeting the standard of the ALP Code. Thesesources could be interviews with farmers, family
members, workers, crew leaders, or sharecroppers.
Sources could also include documentation andvisual observation of the farm area, field, storage
facility, and curing barns. This methodology was
also used to investigate the underlying factors that
increase the risk of not meeting the standard. In
addition to information triangulation CU also used
the “Five Whys” methodology, a commonly usedtechnique to obtain an understanding of problems,
to investigate the reasons behind certain issues.
Before every interview CU explained the objectiveof the assessment and assured interviewees that all
information would be kept completely anonymous.
Next to assessing labor practices, CU also verified
the impact of TANASA’s management systems at
the farms, to assess how these were perceived by
the field technicians, farmers, family members, andother people working at the farms.

all interviews with farmers were conducted without
the presence of the field technicians. In total, CU
interviewed 24 farmers, 18 family members and 43
workers. All persons interviewed were adults (18years or older).

100%
80%
60%

21%

40%

51%

20%
0
Interviewees
Farmers
Family members
Workers

Demographic information on the 61 family members
and external workers interviewed:

100%
80%
60%

Wherever possible, these interviews wereconducted individually and without the presence ofthe farmer, to avoid undue bias. For the same reason,

92%

40%
20%
0

People interviewed

28%

8%GenderMale
Female52External Assessment

Duration of employment of hired workers (43people interviewed in total).

12%

5%

7%
11%

65%

Less than 1 month

Reporting procedure
During the assessment, auditors reported after eachfield day to the coordinator. This person monitored
the auditors’ findings, and provided feedback
whenever necessary. The coordinator compiled
all findings and combined these with the findings
from the management assessment. Public releaseof CU’s assessment report demonstrates PMI’scommitment to transparency, which is an importantcomponent of the ALP Program. CU authored thefinal report, which was evaluated by Verité. PMI
reviewed the report to ensure consistency of thepresentation of CU’s findings worldwide. Finally,
TANASA reviewed the report to verify that all theinformation was correct, and to finalize their action
plan that was based on this report.13

1-3 months
3-6 months
6-9 months
Permanent

Closing meeting
On 20 November 2017, a closing meeting took place
at TANASA’s head office in Quito, Ecuador. As withthe opening meeting, this meeting was attended
by TANASA’s ALP Country team and Steering
Committee, including the ALP Coordinator,
Agronomy Team, Corporate Affairs Team andLegal Team, as well as the Environmental Engineer,
General Manager and Leaf Manager. Furthermore,
the meeting was attended by a representative fromPMI Regional. This time the Verité consultant alsojoined the meeting (by phone).
CU presented the initial findings and TANASA
requested clarification of certain items. A
constructive discussion took place on several topics.
Overall, CU’s findings were considered a useful basefor taking action to improve the implementation of
the ALP Program.

13. Leaf tobacco suppliers can start drafting their action plans after the closing meeting, as initial findings usually do notdiffer much from the final report.
53

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Appendix III – Legal information
The information below has been provided to Control Union before the assessment by TANASA. Control
Union reviewed this information to ensure that it was clear and complete so that it could be used for theassessment.

1.
1.1

Principle 1 – Child Labor
Minimum age for employment (in tobacco)

Article 134 of the Labor Code (LC) establishes an express prohibition for the employment of minors (i.e.
less than 15 years of age). The law does not distinguish or makes an exception on this; the age requirement
applies to all minors under 15 years old.
Minors (15 until they turn 18) cannot undertake any dangerous or risky activities. Hazardous work can only
be done by workers who are 18 years or older. Most farming activities are deemed hazardous or dangerous
activities. On top of that the National Council of Childhood and Adolescence for Ecuador included thefollowing activities as prohibited to minors that are related to agricultural practices:-Working with tobacco products.
1.2
Requirements applying to farmers’ own children or other family members such as nieces andnephews helping on the farm
Article 134 of the Labor Code (LC) establishes an express prohibition for the employment of minors (i.e.
less than 15 years of age). The law does not distinguish or makes an exception on this; the age requirement
applies to all minors under 15 years old.
1.3

Age (or ages) limit for compulsory schoolingAccording to the law, education is mandatory from the elementary cycle to the middle school level. Normally,
this would mean children must attend until they are 15 years old. However, if someone working at the age
between 15 and 18 years old, has not finished their basic education, they have the right to have two working
hours per day from the employer with the objective of finishing his/her studies (Art. 135 LC). There areno special permits for the demand of these two hours. The law states that the working day for minors is a
6-hour maximum and that they should be allowed a minimum of two hours until they complete school until
they complete the mandatory primary cycle.
1.4
Definitions of hazardous work (incl. agricultural activities that constitute hazardous work) as wellas any tasks that workers under 18 are specifically prohibited from participating in by law
On top of that the National Council of Childhood and Adolescence for Ecuador included the following
activities as prohibited to minors that are related to agricultural practices:•

Fabrication and handling of chemical products and substances.

•

Fabrication and handling of pesticides and nitrogen compounds.

54

External Assessment•

Fabrication or handling of pesticides and other chemical substances for agricultural use.

•

Fumigation of crops or plantations.

•Fertilizing crops or plantations.

•Preparation of chemical mixes or substances for crops or plantations.

•Preparation of compost for crops or plantations.

•

Working in charge of the warehouse of a plantation or crop.

•

Planting crops or plantations.

•

Propagating crops or plantations.

•Preparation of chemicals.

•

Weeding.

•

Activities requiring fertilizing.

•

Clearing undergrowth.

•Working with tobacco products.

1.5
Other restrictions or requirements on the employment of workers under 18 years (e.g. limit on
work hours, work permits, etc.)
The Code of Childhood and Adolescence (CCA) also establishes restrictions to the work of minors:
The working hours of minors (15 until they turn 18) cannot exceed 6 hours a day and for five days a week.
Regardless of whether or not they have finished or not middle school or basic
Working hours must be organized in such a manner that they do not disrupt the Child’s right to receive
an education. This obligation requires that in the event the minor has not finished basic education, theemployer must give the minor 2 hours each day so the minor can go to school to finish their basic education.
The two hours are outside of the working day for the minor; the employer needs to give the opportunity anddoes not impede for him to attend. The purpose is to guarantee that they at least complete the minimum
basic education. By law minors (15-18) are not allowed to work at night. Night work by law is the time
between 19h00 to 06h00.
The Labor Authorities have to record a detailed registry of all the minors that are working, which requires
the employer to register all the minors that are working under that the Ministry of Labor Relations.
All minors must have an individual labor contract, and this contract must be “in writing and registered in the
Municipality [in which the minor is working] and in the Labor Inspection [a dependency of the Ministry ofLabor] of the respective jurisdiction.”

55

External Assessment2.

Principle 2 – Income and Work Hours

2.1

Laws on regular and overtime hours (e.g. maximum work hours)

Article 47 of the Labor Code (LC), states that the daily maximum regular working hours is 8 hours and theweekly maximum is 40 hours. Local law accepts overtime wages defined by the Labor Code as Supplementary
hours. The supplementary hour is all the work done beyond or outside the daily 8-hours. It cannot exceed 12hours per week and 4 hours daily.
2.2

Requirements that employers must meet to request overtime from workers

There are no specific requirements.
2.3

Laws on regular and overtime wages (e.g. minimum wages, minimum wages agreed with unions)

The minimum wage for permanent workers since they work full time for the tobacco grower their income
should be the minimum wage applicable to tobacco sector, in 2017 USD$376.29.According to the Labor
Code, all benefits are payable proportional to depending on the type of contractand the effective time theemployee works for a particular employeer. For example seasonal (less than 1 year) contracts that last lessthan 1 year, do not grant certain benefits. i.e. Annual vacations See section 2.4. bellow.(i.e. Social security isoffered as long as there is a labor relationship, and is deducted from the employee salary a portion the otheris covered by the employer.). Each month employer must discount 9.45% of the employee wage destinedfor social security.
The minimum wage for daily seasonal workers needs to be calculated per each day of work. To do that we
do we need to:•

Divide the minimum wage for tobacco sector (USD$376.29) by 240 hours, that according to the
Ministry of Labor is the hours of the working month.14 The result would be the minimum wage per
hour.

•

With the minimum wage per hour, we need to multiply by 8 hours (the amount of working hours perday), and you get the minimum daily wage for daily workers. NOTE that you get the same result bydividing the minimum wage tobacco sector by 30.

It would look like this: (376.29/240)*8= USD$12.54 (Daily minimum wage seasonal daily workers).
On top of that, the daily seasonal workers are entitled as indicated in section 2.4. to the Special Bonus in
December and before the school season begins (decima cuarta y decimo tercera sueldo).
The special bonus remuneration or “decimos” are calculated as follows:
Minimum tobacco wage (USD$376.29/12)= USD$31.35 per month
14. GENERAL Provisions: SEGUNDA.- Para el cálculo de la decimotercera y decimocuarta remuneraciones y dela participación de utilidades, se considerará el período anual de 360 días, incluidas las vacaciones, y la jornada
laboral mensual equivalente a 240 horas. ( INSTRUCTIVO PARA EL PAGO Y REGISTRO DE LA DECIMOTERCERA Y
DECIMOCUARTA REMUNERACIONES Y LA PARTICIPACION DE UTILIDADES). 					Art. 224.num. 5.Labor Code. 5. Cálculo de horas suplementarias o de tiempo extraordinario, sin considerar la semana
integral por debajo de las 240 horas al mes. Dicho trabajo suplementario o extraordinario deberá calcularse sobre
240 horas mensuales.

56External Assessment(USD$31.35/240)*8= USD$1.045 daily “decimo”.
So the final daily wage per daily seasonal workers would be:
USD$12,54+USD$1.045 (decimo tercer sueldo)+ USD$1.045 (decimo cuarto sueldo) = USD$14.64 (Total
Daily minimum wage seasonal daily workers)
Accordingly, all seasonal daily workers are entitled to receive a daily minimum wage of USD$14.64 per each
day they work. For seasonal by piece workers, they should get a similar treatment than daily seasonal
workers regarding their wage.
Concerning the role of custom, as indicated in section 7.4, article 8, 22 of the Labor Code (CT)15 recognizes
that the uses and customs of the place, in industry or work may be used to regulate or fix working conditions.
Specifically, the CT for the section of the agricultural seasonal daily workers recognizes custom as a source togovern the employment relationship. In the specific case, the customs would apply to working conditions ofdaily seasonal workers such as that they paid for each day they work, the working schedule among others.
Custom would not have a role to allow daily seasonal workers receive less than the minimum daily wage pereach working day or that overtime hours are above the maximum allow by law.
Payment in kind is allowed only if it is an extra or additional to the minimum wage stablish by the government.
It cannot be used as substitute. The general rule of the labor code requires that employees are paid in aworking day and in their working place.16 However, parties can agree to payments in other days or in othertime. What it is a working day and working place depends on the particular of each case for example if theemployees usually works in a field and Saturdays the payment can take place those days and in those places.
It is important to consider that in practice if payment is done outside of work days or workplace the Ministry
might consider as small administrative sanction but nothings else.
The minimum wage applies to all workers and depending on the type of contract or workers they received
the proportional part of the minimum wage. Finally, each year the Ecuadorian Government defines theminimum wage employer must pay to all their employees. As well, the Ecuadorian Government defines atable with the minimum wage a worker should receive depending on the job they are executing. For the year
2017, the minimum wage is set at USD 375, and the specific salary for tobacco agro-workers is USD$376.29.
For overtime wages, An extra 50% is charged if the shift is until the midnight, and an extra 100% is charged
if the shift is from 12:00 am until 6:00 am. All overtime should be accepted by the employees and it isvoluntary. However, if the daily working hour begins before 6 a.m, the working hours before 6.am must havean extra 25% charge per hour. If the work is done in a rest day (i.e Saturday and Sunday) the employee canbe (i) compensated with a free day during the week or is entitled to compensation with a 100% surcharge.
2.4

Laws on basic entitlements to be paid to workers (e.g. social security, health care, holidays,

2.5

Wage and hours law specific to piece rate workers, seasonal workers, and migrant workers

15. Art. 8.- Contrato individual de trabajo es el convenio en virtud del cual una persona se compromete para con otra u
otras a prestar sus servicios lícitos y personales, bajo su dependencia, por una remuneración fijada por el convenio,
la ley, el contrato colectivo o la costumbre.									Art. 22.-.- En los contratos que se consideren tácitamente celebrados, se tendrán por condiciones las determinadas
en las leyes, los pactos colectivos y los usos y costumbres del lugar, en la industria o trabajo de que se trate. En
general, se aplicarán a estos contratos las mismas normas que rigen los expresos y producirán los mismos efectos.
16. For further reference, please view article 96 of the Labor Code.

57

External Assessment

As a general rule the employers should pay their employees the following benefits:i)Social Security,ii)

Special Bonus in December and before the school season begins (decima cuarta y decimo tercera
sueldo). Accordingly, in December employers pays the employee an additional full wage to the wage
the employee usually receives and before the school season begins they must pay just the equivalentof a minimum wage). If the employee receives the minimum wage then the additional remuneration
would two minimum wages. Currently the employers pay 1/12 of the remunerations each month. For
temporary or seasonal contracts (less than a year) the employee must receive the payment as longs
as the season lasts or it is working.

iii)

15% Dividends distribution of the net utility after each business year (if the Company/employer haveprofits)17.

iv)

Reserve funds from Social Security (after one full year under a labor relationship with the same
employer you can access this benefit through Social Security)v)

15 Days of vacation (after one full year under a labor relationship with the same employer)*If the worker does not complete a full working year with the employer, the Labor benefits must be pay inproportion to the effective days worked.
2.6
Laws on payment of wages relevant to the frequency of payment in agriculture, for example, laws
on whether end-of-season one-time payments are permissible
The Labor Code as well establish on article 83 that the employer must pay the employee his wage on amonthly basis, this acts as maximum timeframe when salaries should be paid. In practice, and since the law
does not forbid it, there can be a daily, weekly and a biweekly discharge of the total monthly wage18.
2.7

Laws on in-kind payment

Payment in kind is allowed only if it is an extra or additional to the minimum wage stablish by the government.
It cannot be used as substitute. The general rule of the labor code requires that employees are paid in aworking day and in their working place.19 However, parties can agree to payments in other days or in othertime. What it is a working day and working place depends on the particular of each case for example if theemployees usually works in a field and Saturdays the payment can take place those days and in those places.
It is important to consider that in practice if payment is done outside of work days or workplace the Ministry
might consider as small administrative sanction but nothings else.

17. Art. 97.- Participación de trabajadores en utilidades de la empresa.- El empleador o empresa reconocerá enbeneficio de sus trabajadores el quince por ciento (15%) de las utilidades líquidas.				
Este porcentaje se distribuirá así: El diez por ciento (10%) se dividirá para los trabajadores de la empresa, sinconsideración a las remuneraciones recibidas por cada uno de ellos durante el año correspondiente al reparto yserá entregado directamente al trabajador. 									El cinco por ciento (5%) restante será entregado directamente a los trabajadores de la empresa, en proporción asus cargas familiares, entendiéndose por éstas al cónyuge o conviviente en unión de hecho, los hijos menores dedieciocho años y los hijos minusválidos de cualquier edad.
18. For further reference, please view articles 80 through 85 of the Labor Code.
19. For further reference, please view article 96 of the Labor Code.

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2.8

Legal requirements for migrant workers to ensure they are legally permitted to work

Migrant workers (i.e. from another country), need to have the proper working permits and visa according
to Ecuador migration law.
2.9        Other specific rules applicable to migrant workers
There are no other specific requirements.

3.

Principle 3 – Fair Treatment

3.1
Laws defining and prohibiting verbal, psychological, physical punishment, and sexual harassment
and abuse
Article 11 of Ecuadorian Constitution forbids any discrimination to their citizens. Article 79 from Labor Codestates that every worker deserves equal wages for equal tasks, and no worker shall be discriminated by theirsex, age, ethnic, color, social status, language, religion, political association, place of birth, sexual orientationor health. Finally, verbal, psychological, physical punishment, sexual harassment, and abuse are practices
that are forbidden in Ecuador. These practices are sanction by the Ecuadorian Organic Criminal Code andLabor Code3.2

Laws defining and prohibiting discrimination

Article 11 of Ecuadorian Constitution forbids any discrimination to their citizens. Article 79 from Labor Codestates that every worker deserves equal wages for equal tasks, and no worker shall be discriminated by theirsex, age, ethnic, color, social status, language, religion, political association, place of birth, sexual orientationor health. Finally, verbal, psychological, physical punishment, sexual harassment, and abuse are practices
that are forbidden in Ecuador. These practices are sanction by the Ecuadorian Organic Criminal Code andLabor Code.
3.3

Protection of workers from discrimination (workers’ rights and employers’ obligations)

In Ecuador currently, there is no a special regulation in place, people suffering from discrimination could filea constitutional action for protection; or if it is work related could file a labor claim against the employer or
employees involved, and be entitled to compensation on top of the compensation for wrongful termination.
Recently the Ministry of Labor issued a resolution with norms employers must follow when hiring andrecruiting personnel to prevent discriminatory practices. It is only applicable for the recruiting and hiring of
personnel process20.
3.4

Laws on resource for victimized workers, if applicable

There are no specific provisions, except for the ones described above in this section.

20. For further reference, please view Resolution N.82 from the Ministry of Labor, published on the official Gazette
N°16 on June 16, 2017.

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4.

Principle 4 – Forced Labor

4.1

Legislation on forced labor

Article 66 of the Ecuadorian Constitution forbids any forced or prison labor. As well, the Labor Code on
articles 3 and 4, declares that labor contracts shall not be forced and the employee must never be forced
to renounce to his rights. Finally in Ecuador, there is no a specific law regulating forced labor, general laborlaw will apply.
4.2

Laws on prison labor

There are no specific provisions.
4.3

Legislation regulating the operation of labor brokers and other third party recruiters

In Ecuador, the intermediation/outsourcing of workers is not permitted except in very limited situations. (i.e.
messaging services, security, cleaning, gardening). Tobacco activities as they are not expressly contemplated
under the exception, they could not be intermediated or outsourced.
The Labor Code, regulates team and group work21 in a very general matter, stating that a written contract isalways needed. The employees under these labor contracts have the same rights than regular workers, andare entitled to the same rights, compensations within the group or team.
4.4
Laws relating to limits or prohibitions on recruitment fees and deposits workers may be required
to payAccording to labor code, employers are not allowed to charge any fee to workers for admitting them
to work, charge interest for salary advances, or to retain more than the 10% of the salary for fines or
penalties.
5.

Principle 5 – Safe Work Environment

5.1
Requirements for provision of medical protection, such as availability of first aid kit, health &safety training, etc.
None reported in the Legal Questionnaire.
5.2

Requirements to report accidents and injuries

Under Labour Law, each employer must report all the labour accidents and injuries sufer by theirpersonnel. (i.e. Tobacco producer must report accidents of his personnel).
5.3
Requirements for personal protective equipment needed for using, handling, storing, or disposingof crop protection agents (CPA). This might vary depending on the CPA in question
Under labor law ,executive decree 2393, it is the responsibility of the employer to provide safety clothes kit

21. For further reference, please view articles 16 and 19 of the Labor Code.

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External Assessment(pants, hat, boots, gloves, full face) to their employees. There is no specific requirement, the obligation isto provide the protective equipment the employee will need according to the job to be done or activity.22
5.4
Restrictions on CPA use, handling, storing, or disposing. Most countries will have restrictions onvulnerable populations interacting with CPA (or prohibit this outright), such as people under 18, pregnant
women, nursing mothers, etc.
For minors please see the previous sections of prohibited/hazardous activities. For all other vulnerable
populations, there is not a specific prohibition or it a total ban on doing their activities. Therefore, isrecommended that Vulnerable people avoid use and CPA handle, and if they must or do so the law
requires that they do so with the protective gear. It is the employer responsibility to make sure that its
personnel is properly trained and has the protective gear.
5.5

Restrictions on farm equipment (such as maintenance and licensing for operators)

There are no specific provisions.
5.6
Other legislation related to CPA, such as how and where they may be stored or transported; more
explicit restrictions for specific CPA; weather conditions under which CPA may or may not be applied; andany other restrictions limiting contact or exposure with CPA
There are no specific provisions.
5.7

Requirements related to providing drinking water and safe housing for workers

No specific law o requirement, for this matter.
5.8

Specific requirements if worker accommodation is provided

Labor Law defines minimum conditions: Water, cooking area, sealing.

6.

Principle 6 – Freedom of Association

6.1

Laws on organizing unions and their operation (workers’ rights and employers’ obligations)

Ecuadorian Constitution states that workers have the right to constitute associations and syndicates. Employers
can’t deny this right to their employees. As well Ecuadorian Labor Code states that once a formal pleading to
the local labor authority has been submitted to constitute a syndicate or labor associations (inclusive when
this pleading is only being analyzed), workers have a special protection that guarantees stability in their jobs
and can’t be fired by their Employers. Once the syndicate is established, their representatives can’t be firedby the Employer even after a year they cease in their functions.
Under labor law there are no other form of workers representation. What can be done is to form civilorganizations or associations similar to chambers of commerce, or artisans associations which are civil law
entities that do not represent its members before their employers, and they do not do collective bargainingof behave of their members.
22. REGLAMENTO DE SEGURIDAD Y SALUD DE LOS TRABAJADORES Decreto Ejecutivo 2393 Registro Oficial 565 de
17-nov.-1986 Ultima modificación: 21-feb.-2003

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6.2

Requirements for collective bargaining

There are no specific provisions.
6.3

Prohibitions on union discrimination and employer interference in their operations

There are no specific provisions.
6.4

Requirements that worker representatives be in place

There are no specific provisions.

7.

Principle 7 – Compliance with the law

7.1
Laws and regulations on employment contracts (incl. necessity for written employment contracts,
and if is not what are the grounds to consider the existence of a verbal employment agreement)
The general rule in the Labor Code is that contracts must be written23. Not having a written contract when
the law requires one, is and administrative fine that the employer must pay. It does not limit or precludes
the employee form demanding his rights under labor law.
Oral agreements are exceptional and allowed only in the following cases:•

Construction contract;•

Piecework agreement and;•Contract by task.

However, if any of these agreements are going to last more than 1 year or the sum of the wages the employer
is going to pay to his workers is above 5 times the “Salario Básico Unificado” (for this year will be USD 1875),
its mandatory to have a written agreement.24
7.2

Required content for written employment contracts

The basic clauses labor agreements must have are: i) type of work, ii) the way it should be developed (which
includes the working schedule), iii) wage amount and the way it will be paid, iv) term of the contract, v)
working place, vi) sanctions in case of a breach of contract25.
7.3

Deadline for conclusion of the contract (e.g. on the date of hire or within 30 days of hire)

The general rule states that labor agreements end by resignation of the employee or termination of
the labor relationship. In cases of termination of the labor contract, the employer has to justify his/her decision. If this does not happen, this will be considered as an illegal/ wrongful termination which
entitles the employee to get torts and compensations (Employer has to pay compensation established inart. 185 and art. 188 of the LC), to compensate the employee for the wrongful termination. For further
information please see section 7.5.
23. For further reference, please view article 14 of the Labor Code.
24. For further reference, please view article 19 of the Labor Code.
25. For further reference, please view article 21 of the Labor Code.

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Exceptionally depending on the type of contract, labor agreements terminate when the activity is completed,
when the season ended if it is seasonal, or when the reason for the hiring of a temp personnel ended (i.e.
maternity leave, medical absence, etc.).
7.4
Requirements for various types of employment contracts (indefinite term, definite term, temporary
workers, probationary workers)
According to Ecuadorian Law, the following agreements must be written26:•

Seasonal. – This type of Contract can only be celebrated during a define cycle or time period of theyear. Workers have access to all labor benefits , but in proportion to the effective time they work27.
For example, they do not have annual vacations because the contracts last less than a year andextends to the season only, the same with the reserve funds. The employee needs to be call eachseason otherwise is considered a termination.

•

Occasional. - To fill up a replacement, or satisfy an exceptional surge in production. No longer than
180 days. Minimum wage plus a 35% surcharge.

•

For task. - For a particular task or activity, once the task is concluded the contracts is finalized.

•

Labor Agreements with Minors that are between 15 and 17 years old.;•Labor Agreements that require an expertise in an area (lawyers, doctors, engineers, etc.)

Agreements not mentioned in the list above, can be oral agreements.
7.5
Requirements for termination of employment (termination with or without cause, wrongfuldismissal, notice periods required to end employment)
Employee and employer can end the labor relationship by mutual agreement or the employee by using theeviction procedure (two weeks notice) detailed in article 185 of the Labor Code. The eviction procedureis the notice that the employee gives to his/her employer declaring his intention to terminate their labor
relationship. The employee must notify his intentions to his employer 15 days before the employee last day
of work. The eviction procedure is available for employee at any time during the labor relationship. Whenthe labor relationship ends by eviction procedure, the employer has to pay a 25% (calculated with his last
remuneration) for each year of service as a bonus to his employee.
Outside of that process employer can terminate the labor relationship under the Unjustified Dismissal/
wrongful termination of art 188 of the Labor Code. When the employer fires an employee without legalcause. In this case, it has to pay a compensation to the employee:•

If he/she has worked at least three years, it will have to receive the equivalent of 3 months ofremuneration•

If he/she has worked for more than three years, it will have to receive the equivalent of a month of
remuneration for each year of service, with a maximum of 25 remunerations.

This compensation will be paid and calculated using the last remuneration the employee was receiving.
To calculate the compensation compensation partial years (i.e. 6 months) will count as a whole year.
26. For further reference, please view article 19 of the Labor Code
27. For further reference, please view article 17 of the Labor Code63

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Local law set out a notice period required to end an employment agreement when the agreement has a trial
period. Employer may end the labor relationship prior the end of the 90 days trial deadline just by notifying
his employee. The final option for ending the labor relationship is under the Visto Bueno procedure, which
is an administrative process before the Ministry of labor where the employer seeks to obtain the approval
from the local authority that exists a breach of the labor agreements from the employee. This procedure
grants the authority to the employer to fire the employee without paying the compensations granted under
the unjustified/wrongful dismissal. It is exceptionally used in Ecuador.
7.6
Options for farmers to obtain legal assistance about their obligations (e.g. government department,
local labor office, farmers association etc.)
Farmers can obtain legal assistance from the Ministry of Labor, and consult the local employment authority
called “Inspector del Trabajo” for information; contact the Public Defense Office, and the Ministry of Justicethat have a section dedicated to this. Leaf contracts must respect the contractual guidelines given by theOrganic Law of Rural Lands and Ancestral Territories and the Civil Code. There are not templates of formats
for these contracts, and there is not a requirement of a government approval for these contracts.

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Appendix IV – Communication materials
2017 Calendar:

Safe Agrochemicals management – 2017 harvest leaflet:65External Assessment

GTS Leaflet:

ALP 7 principles leaflet:66External Assessment

Cultivation of Burley tobacco Guide:67

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ALP Guide for Field technicians:

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Appendix V – Reporting form

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Appendix VI – Glossary

ALP

Agricultural Labor Practices

ALP Code

PMI’s Agricultural Labor Practices Code

ALP Code Principle

Short statements that set expectations of how the farmer should manage
labor on his/her farm in seven focus areas

ALP Program

Agricultural Labor Practices Program

APCSA

Asociacíon de la Industria de Protección de Cultivos y Salud Animal(Industry association of crop protetion and animal health). [freetranslation]

Correction

Any action that is taken to eliminate a situation not meeting the standard

Corrective action

Steps taken to remove the causes of a situation not meeting the standard

CPA

Crop Protection Agents

Crew leader

Person responsible for managing a group of workers

DYA

Desarrollo y Audogestión NGO

Family farm

Farm that depends mainly on family members for the production of
tobaccoFarm Profiles

A data collecting tool developed by PMI with Verité to track the socioeconomic profile of the farms

GAP

Good Agricultural Practices

GTS

Green Tobacco Sickness

Leaf tobacco supplierCompany that has a contract with PMI to supply tobacco but is not a
farmerMeasurable Standard

A Measurable Standard defines a good labor practice on a tobacco farmand helps determining to what extent the labor conditions and practices
on a tobacco farm are in line with the ALP Code Principles

Migrant labor

Labor coming from outside the farm’s immediate geographic areaNGO

Non-Governmental Organization

Piece work

Payment at a fixed rate per unit of production/work

PMI

Philip Morris International, Inc. or any of its direct or indirect subsidiaries

PPE

Personal Protection Equipment

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Preventive action

Steps taken to remove the causes of potential situations not meeting thestandard

Prompt Action

A situation in which workers’ physical or mental well-being might be atrisk, children or a vulnerable group – pregnant women, the elderly - are indanger, or workers might not be free to leave their job

Root cause

The underlying reason that caused a situation not meeting the standard

Root cause analysis

A set of analyzing and problem solving techniques targeted at
identifying the underlying reason that caused a situation not meetingthe standard

Sharecropping

A system of agriculture in which the farmer has a partner (“socio”)
who either works together with the farmer or manages a plot of land.
Costs of inputs and/or revenue are shared.

STP

Sustainable Tobacco Production

SRTP

Social Responsibility in Tobacco Production; industry-wide program

Support mechanism

A way for workers to access information and get support in difficult
situations and for workers and farmers to get support in mediating
disputes. Farmers have access to additional services to improve laborand business practices.

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