Palma Futuro is a project funded by the U.S. Department of Labor (USDOL) and implemented by Partners of the Americas (POA) and its partners, Social Accountability International (SAI) and J.E. Austin Associates (JAA).
Palm oil is an ingredient in approximately half of all packaged products bought at supermarkets. In South America, Colombia has emerged as the fourth-largest exporter of palm oil worldwide, and Ecuador as the eighth largest. Working closely with leading private sector partners in the palm oil sector, Palma Futuro aims to improve the implementation of social compliance systems that promote acceptable conditions of work and reduce child labor and forced labor in palm oil supply chains in Colombia and Ecuador. The project will also disseminate best practices in social compliance systems in these and other palm oil-producing countries, particularly Brazil and Peru.
Palma Futuro is guided by two expected outcomes: 1) Strengthened capacity of private sector partners in the Colombian and Ecuadorian palm oil sector to implement a robust and sustainable social compliance system, and 2) Increased understanding, at regional and global levels, of promising practices in social compliance systems in palm oil supply chains.
Palma Futuro will also be in charge of the preparation of various knowledge products that are part of a regional and global collaboration strategy that includes participation in international forums, development of national workshops in the target countries, and knowledge management of lessons learned throughout the project.
Partners of the Americas is an NGO based in Washington D.C., United States, founded in 1964 with the aim of creating ties of regional cooperation and social development between the United States and Latin America and the Caribbean. In Colombia, specifically, POA has worked for over 50 years in the following areas: education and youth exchange; combatting child labor promoting youth leadership; and agriculture and food security.
Funding is provided by the United States Department of Labor under the cooperative agreement number IL-32820-18-75-K. 100 percent of the total costs of the project is financed with federal funds, for a total of 6,000,000 US dollars.
Acronyms: Partners of the Americas (POA), U.S Department of Labor (USDOL), Roundtable on Sustainable Palm Oil (RSPO), Network of Companies for Ecuador Free of Child Labor (ETI Network), Social Performance Teams (SPT), Private Sector Partners (PSP), Training of Trainers (ToT) and Social Compliance Systems (SCS)
Palma Futuro is implemented in the departments of Magdalena and Cesar in Colombia, and in Ecuador. Likewise, the project will share its successful experiences related to social compliance systems with relevant stakeholders in Brazil and Peru.
Through Fedepalma and Propalma, the project is expected to transfer knowledge, promote the replication of social compliance systems, and disseminate best practices and lessons learned derived from project activities, throughout its members in Colombia and Ecuador.
Palma Futuro has several strategic allies that represent the institutional framework of the palm sector in Colombia and Ecuador, which are presented below:
According to USDOL-ILAB, a social compliance system is an integrated set of policies and practices through which a company seeks to ensure maximum adherence to the elements of its code of conduct, or that of an industry association or group of multiple stakeholders, covering social and labor issues. These systems are a component of the programs of Corporate Social Responsibility, sustainability, or management of a company.
*For more information, see https://www.dol.gov/ilab/complychain/ and download the Comply Chain: Business Tools for Labor Compliance in Global Supply Chains app developed by the United States Department of Labor at https: // www.dol.gov/general/apps/ilab-comply-chain
Study tour on good practices in the implementation of the Social Compliance System in San Alberto, Cesar
Palma Futuro carried out the Study Tour on good practices in the implementation of the Social Compliance System in San Alberto, Cesar, between July 27 and 29, 2022, with Palmas del Cesar, a partner of the project, hosting the tour. During the two days of activities, fruit suppliers, that thanks to the support of Palmas del Cesar and Palma Futuro, have already incorporated adjustments to their Management System, which allow them to guarantee compliance with labor rights were visited. The guests also attended the Palmas del Cesar supplier fair, where they were able to observe this good practice that contributes to strengthening the communication channels between the extraction plant, its suppliers, and other interested parties. Representatives from El Roble, Palmagro, Aceites and Palmaceite, from Colombia, as well as from PROAmazonía and ANCUPA of Ecuador, all partners of the project, participated in the tour.
Workshop on the Comprehensive Monitoring and Evaluation Plan in Santa Marta, Colombia
Between July 6 and 8, 2022, the Palma Futuro Comprehensive Monitoring and Evaluation Plan (CMEP) review workshop was held. The workshop focused on the presentation of the progress made in the 26 project indicators, the analysis of challenges and risks, and the formulation of concrete actions to meet each of the objectives outlined in the CMEP framework. The workshop was attended by the PSPs, who presented the results and contributions of the project in the activity of each of the companies. Finally, the team of the implementing partner, SAI, attended the sessions in which the course of action for the advancement of the project was defined, the new implementation strategy in Ecuador was socialized, and the estimated times for the completion of the activities determined within the framework of the CMEP were defined.
Palma Futuro held the first Regional Forum in Pucallpa, Peru
On June 22, 2022, the first Regional Forum "Implementation of Social Compliance Systems in the Palm Sector: Good labor practices and value generation in palm oil production in the region" was held. The forum took place in the city of Pucallpa, located in the department of Ucayali, Peru, and had about 90 attendees from organizations in the palm sector in Peru, Colombia and Ecuador.
Within the framework of the forum, Palma Futuro, the PSPs, and the actors linked to the project shared experiences through lectures and discussions that took place during the day. In this way, after the general presentation of the project by Palma Futuro, the presentations focused on the lessons learned in the implementation of the SCS by Palmagro; the successful experience in conflict resolution by Palmas del Cesar; the experience in the labor formalization of small producers by Trabajo Seguro; and the participation of Aceites y Palmaceite in the discussion “Social compliance and certification/audit processes in global value chains”, which also featured panelists from Oleaginosas Amazónicas S.A. of Peru (OLAMSA), the National Association of Palm Growers of Ecuador (ANCUPA) and Solidaridad Peru, who served as facilitator of the discussion.
The actors from Peru and Ecuador participated with the presentation of good practices in the implementation of complaints and claims mechanisms by Grupo Palmas del Perú, the experience of small producers told by Industrias Oleaginosas Monte Alegre S.A. of Peru (INDOLMASA) and the presentation of the gender approach in the Ecuadorian palm oil sector by PROAmazonía. The forum ended with the signing of the Letter of Intention between Palma Futuro and the National Oil Palm Board of Peru (Junpalma), thus expanding the project's Knowledge Network in the region.
Commemoration of the World Day Against Child Labor
Palma Futuro joined the commemoration of the World Day against Child Labor 2022, along with the Colombian Network Against Child Labor. The project, as a member of the Network, participated in the special bulletin published on June 12, 2022, in which different organizations ratified their commitment to the prevention and eradication of child labor, as well as continuing to promote good practices that help mitigate this problem. Additionally, during the month of June, the project emphasized the contents on child labor prevention during the sessions and activities carried out with the Community Circles created by the project.
Palma Futuro participated in the dialogue "A solutions approach for companies: How to stay competitive in a changing regulatory landscape through collaboration" organized by the Thomson Reuters Foundation
On June 9, 2022, the director of Palma Futuro participated as a moderator in the dialogue "A solutions approach for companies: How to stay competitive in a changing regulatory landscape through collaboration" organized by the Thomson Reuters Foundation. The PSPs participated in the dialogue, particularly El Roble and Aceites, who shared their experience in the implementation of sustainability and social compliance practices, derived from the joint work carried out within the framework of Palma Futuro.
Palma Futuro participated in the VII Palm Sustainability Meeting
Palma Futuro´s team participated in the VII Palm Sustainability Meeting, held within the framework of Fedepalma´s National Congress, held between June 1 and 3, 2022 in Bucaramanga, Colombia. During the event, the main objectives of the project were socialized, as well as the main results of the Case Study of Palmas del Cesar, the Market Analysis and Value Chain of Palm Oil in Colombia and Ecuador, and the Study of Labor Conditions in the Palm Oil Sector. The Meeting was attended by the International Labor Organization and Trabajo Seguro, in addition to several companies in the sector and associated foundations.
Signing of the Letter of Intention with the National Association of Oil Palm Growers (ANCUPA) in Ecuador
Palma Futuro held meetings with ANCUPA in Ecuador, with the purpose of presenting the objectives, scope, and results of the project to date and inviting them to participate in the training process for producers, suppliers, and technicians in SCS, as part of the new strategy of the project in Ecuador. The meetings resulted in a Letter of Intention signed in March 31, 2022, between Partners of the Americas and ANCUPA, which formalized ANCUPA's participation in the project, as well as its integration in socialization events and dissemination of good practices of the project.
Webinar: Evolution and experiences in the prevention and eradication of child labor in Colombia and Ecuador
On Wednesday, March 23, 2022, the webinar "Evolution and experiences in the prevention and eradication of child labor in Colombia and Ecuador" was held, organized jointly by Palma Futuro and the Colombian Network Against Child Labor. The discussion dynamics adopted for the webinar included the following participants: Mauricio López, executive director of the Colombian Network Against Child Labor; Santiago Zúñiga, Vice President of the Business Network for an Ecuador Free of Child Labor (ETI Network), Daniela Peralta, Director of Attention to Priority Groups of the Ministry of Labor of Ecuador, Silena Restrepo, head of sustainability at Palmagro S.A; and Angélica Nieto, specialist in Social Compliance of Palma Futuro, and Alejandro Torres, director of Palma Futuro, moderated the discussion. The webinar was developed in three thematic blocks in which aspects associated with the incidence and dimension of child labor were addressed; the role and tools that arise from the private sector for the prevention, mitigation and eradication of child labor; and the Palma Futuro findings during the SCS implementation process with the PSPs in Colombia.
Socialization of the Case Study of Palmas del Cesar in Quito, Ecuador
On Thursday, March 17, 2022, Palma Futuro held a socialization and knowledge exchange event in Ecuador. During the event, Fabio González, general manager of Palmas del Cesar, shared his experience in resolving labor disputes and the adoption of a palm culture characterized by good relations between company and workers. The workshop was attended by representatives from Propalma, ANCUPA, PROAmazonía, RSPO, DANEC, Oleodavila, and the Ministry of the Environment of Ecuador. Additionally, the socialization of concepts associated with living wage was carried out by RSPO and on SCS by Palma Futuro.
Palma Futuro held the first Sectorial Workshop in Santo Domingo de los Tsáchilas, Ecuador
On Wednesday, March 16, 2022, the First Palma Futuro Sectorial Workshop was held in Santo Domingo de los Tsáchilas, Ecuador. The sectoral workshops are spaces for socialization that allow the interaction and connection of key actors in the palm oil sector, to increase the understanding of SCS and good labor practices. The Workshop had 20 participants from organizations and companies such as Propalma, ANCUPA, the DANEC Group, Organic Supply, Quevepalma, Reypalma, the Ministry of Production, Foreign Trade, Investments and Fisheries, and the Ministry of the Environment of Ecuador. The socialized content focused on SCS, labor practices and risks in the palm oil supply chain. The main results of the Palma Futuro research products were also socialized.
Partners of the Americas was one of the organizations invited to the event "Mobile Inspection" organized by the Ministry of Labor of Colombia in the municipality of Agustín Codazzi, Cesar
The event, held on September 9, 2021, also had the participation of Fedepalma, the International Labor Organization (ILO), and focused on the presentation of services from different entities for workers and companies within the area of influence of the municipality. The Palma Futuro team presented the project during the installation of the event, and additionally, presented the advances in the investigation "Labor conditions and COVID-19 in the palm oil sector: Challenges and opportunities in Colombia and Ecuador” during a meeting organized with the municipal government.
Later, in a second private meeting, the Palma Futuro staff had the opportunity to hold a more extensive conversation with the team of the Palmas del Sicarare extraction mill, in which it was agreed to create a space during the last quarter of 2021 to carry out the review and potential documentation of good practices in Social Compliance Systems that may be taking place in the extraction mill.
Palma Futuro advances in monitoring work in Magdalena
In September 2021, the Palma Futuro Monitoring and Evaluation staff accompanied the trainings scheduled by the Social Accountability International (SAI) trainers with the Aceites and Palmaceite S.A. teams. The farms of suppliers of Aceites and Palmaceite in Magdalena were visited, specifically the farms La Carmela, San Pedro, and Ontario. During the visits, the team identified the different levels of implementation of social compliance practices in suppliers, as well as potential good practices, lessons learned and aspects to improve in the implementation of the project.
It is expected that the culmination of the monitoring and evaluation rounds that will be carried out from September, and will continue until the completion of the project, will serve as an instrument to promote continuous improvement in the implementation of Palma Futuro, as well as a channel for identification of practices in social compliance systems that can be documented and socialized in the project's dissemination events.
Webinar: Labor conditions and COVID-19 in the palm oil sector: Challenges and opportunities in Colombia and Ecuador
On September 18, 2021, the webinar “Labor conditions and COVID-19 in the palm oil sector: Challenges and opportunities in Colombia and Ecuador” was held. The presentation focused on the effects of the COVID-19 pandemic on the socioeconomic, labor, health, and access to information conditions of workers in palm oil extracting plants and supplier farms in Colombia and Ecuador.
The results of the descriptive analysis of the more than 650 surveys carried out allowed Palma Futuro to identify the rapid adaptation of the sector to the shock derived from the pandemic. This is based on the high rate of workers who participated in hygiene and safety training at work, the perception of safety in the workplace, and the job stability observed in the respondents. However, the surveys reveal opportunities for improvement in terms of communications, where the critical aspect identified was the need to "generate greater access to information on labor rights and practices."
The webinar had the participation of 20 strategic actors for the sector, including extraction plants and farms, the Ministry of Labor of Colombia, Fedepalma, RSPO and other institutions such as BanEcuador and CNT-Ecuador.
Partners of the Americas and Fedepalma sign Memorandum of Understanding
Partners of the Americas and Fedepalma signed a Memorandum of Understanding to work together on the implementation of the Palma Futuro project, which includes the implementation of a social compliance system to promote sustainable labor practices. Palma Futuro complements the work currently being carried out with the Sustainable Palm Oil Program of Colombia, which seeks to consolidate the production of sustainable palm oil.
Palma Futuro shares a case study with Harvard University
On November 24 and 25 of the year 2019, the Palma Futuro project team visited Harvard University, within the framework of the “26th Group on Private, Public, Scientific, Academic and Consumer Food Policies” (PAPSAC1), organized by the John F. Kennedy School of Government at Harvard University in Cambridge, Massachusetts, United States.
For 26 years, Harvard professor emeritus, Dr. Ray A. Goldberg, has led a symposium that addresses global food security and public policy issues, and this year Partners of the Americas was invited to the event with our partner JE Austin Associates to share the main topics of the first draft of the case study on the experience and good labor practices in the Colombian palm oil company Palmas del Cesar.
Partners of the Americas and RSPO sign Memorandum of Understanding to promote Social Compliance Systems
As part of the implementation of the Palma Futuro project, a Memorandum of Understanding was signed between Partners of the Americas and the Roundtable on Sustainable Palm Oil (RSPO). The document establishes the bases for collaboration between Partners and RSPO for the promotion and dissemination of good practices resulting from the implementation of the Palma Futuro project, with the aim of preventing and reducing child labor, forced labor and promoting acceptable working conditions. The Memorandum of Understanding between the two organizations will also analyze the dissemination of a series of case studies that will be sent to Harvard University on good practices in Social Compliance Systems in other palm oil producing countries in Latin America, particularly Brazil and Peru.
Participation in the VIII Latam RSPO Conference in Campeche, Mexico
Palma Futuro's Project Director was a panelist on the conference "Working conditions in the palm oil industry in Colombia and Ecuador". During the conference, Palma Futuro's Project Director presented USDOL's Comply Chain approach, the practical implementation that Palma Futuro is undertaking through SAI's SA8000 standard, to finally highlight the importance of adopting higher standards to promote labor rights and take into account child labor and forced labor as key issues in the palm oil industry. Additionally, Palma Futuro's Project Director presented the primary results of the Palmas del Cesar case study, highlighting the best practices regarding labor issues and showing, based on this study, a real case where labor rights, private sector priorities and the interests of small producers can find a balance.
Case study: Palmas del Cesar
"Formalization and social dialogue as contributions to labor peace: case study in Palmas del Cesar"
By: Dr. Kenneth L. Hoadley, Associate, J. E. Austin, Associates, Inc. and Dr. John C. Ickis, Emeritus Professor INCAE Business School.
The Palmas del Cesar (Palcesar) case study was developed in late 2019, a time of rapidly changing forces in the global palm industry where palm oil consumption had increased by 60% between 2010 and 2019. Concerns over the vast deforestation of jungles in Malaysia and Indonesia, where 85% of the world’s palm oil was produced, as well as overly-abusive labor practices in those same countries, led to demands for the production and certification of “sustainable” palm oil, or palm oil meeting international standards regarding environmental and social practices, by international organizations such as the Roundtable on Sustainable Palm Oil (RSPO) and the Rainforest Alliance. At the same time, as palm oil production outpaced growing demand, prices plunged to record lows by September.
In Colombia, the palm oil industry faced these and other challenges. From 2012 to 2015, palm oil companies were adjusting to changes in legislation governing the use of subcontractors or labor outsourcing schemes to meet their needs for field labor while workers increasingly demanded an end to abusive practices related to the use of labor outsourcing.
At Palcesar, based in Bucaramanga with oil palm plantations in neighboring Cesar, these demands led to two prolonged strikes which came to an end in 2015 with the elimination of labor outsourcing and the formalization of direct contracts between the company and its workers. To Fabio González, Palcesar’s general manager, labor formalization was much more than a means of contracting: “Formalization brings new challenges, which need to be managed, but the first great outcome is social peace. It’s being able to look at one another with trust again. It’s being able to look at one another with respect again. It’s being able to feel that we’re in this together, to build a future together.”
Among the many benefits of the successful resolution of Palcesar’s labor issues was the certification of the palm oil produced on Palcesar’s own plantations as “sustainable palm oil”, in compliance with RSPO’s social and environmental standards. But while the palm fruit produced on the company´s own plantations was certified, only a third of the fruit received by its extractor mill came from these plantations; the remainder was sourced from over 300 associate producers, mostly smallholders unable to bear the cost of labor formalization without changing their practices and boosting their productivity levels.
Fabio understands that improved labor practices among his over 300 associate producers are necessary, not only to enable Palcesar to sell RSPO-certified palm oil, but also, and more importantly, as part of an integrated approach to improve rural incomes and the sustainability of smallholder oil palm production in Palcesar’s area of influence. Given the history of conflict in many parts of rural Colombia, he realizes that lasting peace and social stability can only be obtained through improved and stable incomes for both smallholder producers and rural labor, through greater productivity and improved labor practices.
Commemoration of The World Day Against Child Labor: June 2020
The Colombian Network against Child Labor, POA, and the International Labor Organization, with the special support of the ETI Network of Ecuador, organized the webinar titled “Pandemic COVID-19: Challenges for the fight against child labor in Colombia and Ecuador”. In this webinar, participants discussed the role of companies and the measures they can take to mitigate the effects of the COVID-19 crisis on children and adolescents, specifically in relation to the prevention and eradication of child labor. In addition, the progress and experiences of all participating organizations were shared to address, in a more diverse conversation, the initiatives to prevent and eliminate child labor in Colombia and Ecuador.
Labor rights and prevention of child labor during the Covid-19 pandemic
In September 2020, Palma Futuro concluded a communications initiative to promote acceptable working conditions and prevent child labor within medium and small palm oil producers during the sanitary emergency due to COVID-19. Palma Futuro developed the contents of a printed infographic piece that was distributed to the targeted palm oil producers in Magdalena and Cesar by Fedepalma. This printed material emphasized on the importance of labor rights and child labor prevention regarding the challenges the pandemic posed to the industry. 2,000 copies were printed and distributed.
Collaboration with Roundtable for Sustainable Oil (RSPO), PROAmazonía and Propalma
On March 26, 2021, Palma Futuro in collaboration with Roundtable for Sustainable Oil (RSPO), PROAmazonía and Propalma held the workshop on Social Compliance Systems, labor practices and risks in the palm oil supply chain with organizations in Ecuador, Colombia, Brazil and Peru. This first Annual Sector Workshop was carried out with the objective of understanding the role of companies, the challenges and the good practices implemented by the sector to face labor and social risks as a result of the COVID19 crisis. Likewise, advances and experiences from the sector were shared to address these realities.
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