Why Social Audits Matter and Why the Faber-Castell IFA Must Continue

In November 2010, a fire gutted the Faber-Castell production unit in Goa, India, putting workers and their families at risk of losing their livelihoods when the company decided to close the facility. The Goa Trade and Commercial Workers Union (GT&CWU) approached BWI, which took up the matter with Faber-Castell management in Germany through the International Framework Agreement (IFA). A social audit and a series of meetings followed in 2011 and 2012, bringing together workers, the union, Faber-Castell management, BWI and IG Metall in a structured dialogue. The process included direct discussions with workers and the Goa union, assessment of the closure’s social consequences, engagement with the monitoring committee and company representatives, and the development of an action plan.

Following the dialogue and subsequent meetings, Faber-Castell decided to rebuild the facility and restart production in Goa. It also reached an agreement with the union on wages, annual increments and seniority grading. Production resumed in the newly built facilities on 1 May 2014. BWI said the reopening was the result of the collective efforts of Faber-Castell management and unionists.

But the Goa experience did not end with the reopening of the factory. A follow-up Faber- Castell social audit covering Goa and Daman was conducted in June 2015, with participation from Faber-Castell headquarters, BWI and IG Metall. The audit recorded marked improvements in Goa.

The relationship between the company and the union also continued through collective bargaining, with a further agreement signed in 2017. Following prolonged negotiations, conciliation proceedings and a strike notice, the union and management reached another settlement in January 2022. Another social audit was conducted in Goa in 2024, involving BWI, IG Metall and Faber-Castell headquarters, with visits to the production facility and a supplier and discussions with regular and contractual workers. The social audit made recommendations for improvement to be followed up by the social audit team under the International Framework Agreement signed by Faber - Castell.

Goa experience: Key learnings

The journey from the 2010 fire to the resumption of production and continued engagement demonstrates the value of a functioning international mechanism for social dialogue. Social audits are most effective when embedded in genuine social dialogue, worker participation and follow-up, rather than treated as one-off exercises or crisis responses. The Goa experience shows clearly that the 2011 audit helped address a major crisis, the 2015 audit confirmed improvements, and the 2024 audit identified new areas requiring attention.

The issues may change. The need for dialogue does not, and so not the jointly agreed monitoring mechanism of social audits.

Social audits can bring workers, unions and management together when serious problems arise; give workers a meaningful voice in workplace discussions; identify social and workplace concerns; provide a basis for corrective action and follow-up; strengthen collective bargaining and worker representation; and connect local workplace issues with international trade union solidarity. The Faber-Castell IFA, first signed in 2000 and revised in 2008, provided the foundation for this sustained international social dialogue.

25 years of social dialogue must continue

The lesson is clear. The issues facing workers and companies may change over time. The need for a trusted mechanism to discuss those issues, monitor commitments and find solutions does not. When workers, unions and management have a trusted mechanism for dialogue, problems can be addressed through engagement and solutions can be found.

Social audits work. Social dialogue must continue.