ThaiNGO

Terms of Reference

The Cost-Benefit Analysis of the FAIR Fish Responsible Recruitment Model and the Development of a Business Case for the Model

1. About Plan International

We strive to advance children’s rights and equality for girls all over the world. As an independent development and humanitarian organisation, we work alongside children, young people, our supporters and partners to tackle the root causes of the challenges facing girls and all vulnerable children. We support children’s rights from birth until they reach adulthood and enable children to prepare for and respond to crises and adversity. We drive changes in practice and policy at local, national and global levels using our reach, experience and knowledge. For over 80 years we have been building powerful partnerships for children, and we are active in over 75 countries.

The Fostering Accountability in Recruitment for Fishery Workers Project (FAIR Fish) is an effort to reduce forced labor and human trafficking in the seafood processing sectors of Thailand. The project is supported by the Office of Child Labor, Forced Labor and Human Trafficking (OCFT) at the Bureau of International Labor Affairs (ILAB), United States Department of Labor (USDOL). The FAIR Fish project is led by Plan International, an NGO with expertise in addressing forced labor (FL), human trafficking (HT) and child labor (CL) among fishers and seafood processors in Thailand, Cambodia, Indonesia, and the Philippines. Project implementation started in January 2019 and will end in December 2022.

The project’s theory of change is as follows: Forced labor and human trafficking in the Thai fishing and seafood processing sectors will be reduced when: (1) all stakeholders understand the nature of forced labor and human trafficking in the recruitment of workers; (2) companies act in good faith to root out exploitive practices in their own recruitment processes; (3) recruiters comply with anti-FL/TIP regulations and policies; and, (4) companies, consumers, buyers, government, workers, CSOs, and the media promote responsible and transparent recruitment policies and practices.

Activities in this project are expected to lead to four Outcomes:

1. Improved understanding of the nature of forced labor and human trafficking in the recruitment of workers.

2. Improved company-led approaches to address forced labor and human trafficking in the recruitment process.

3. Improved compliance with recruitment policies and procedures by third-party recruiters.

4. Increased action on promoting responsible recruitment policies and practices among private sector actors.

2. Background on the topic/ issue

As part of the FAIR Fish project a Responsible Recruitment Model (RRM) has been developed for small and medium-sized seafood processing companies (SMEs) in cooperation with two pilot companies. The model uses a supply chain approach in which pilot companies are expected to cascade their anti-human trafficking and no-forced labor policies down the recruitment supply chain to recruitment agencies that supply migrant workers to them.

The premise of the RRM is that it provides migrant workers with increased legal protection, benefits, and stability which, in turn, generates savings and benefits for the employer due to increased productivity, decreased absenteeism/turnover, and increased efficiency from responsible recruitment practices. In order to demonstrate this the project will provide evidence-based information on the costs and benefits of the RRM so that seafood processing SMEs in Thailand can make data-driven decisions about the model. To accomplish this, the project will carry out a cost-benefit analysis (CBA) of the RRM. A business case will also be developed based on the findings of the CBA. The analysis and the business case are expected to contribute to Outcome 4 of the project.

The FAIR Fish project, in cooperation with external experts, has already developed the methodology and tools necessary to perform the CBA. The analysis will look at the overall cost of implementing the RRM versus current recruitment practices, potential savings to companies resulting from a reduction in absenteeism and staff turnover with the RRM, potential savings and/or increased profit for companies due to increased productivity of workers as well as potential intangible benefits to companies and their workers.

3. Research focus

3.1 Research Purpose

The project plans to carry out a cost-benefit analysis (CBA) of the RRM in order to offer evidence-based information on the costs and benefits of the RRM to seafood processing SMEs in Thailand, so that they can make data-driven decisions about the model. A business case will also be developed based on the findings of the CBA. The business case will inform seafood processing SMEs further how the RRM model is a possible solution to their business risks. Hence, the FAIR Fish Project is looking for a consultant or a team of consultants well-versed in research methodology and CBA to:

1) Collect data from a pilot company and relevant stakeholders using the methodology and tools provided.

2) Carry out a CBA of the company’s RRM implementation.

3) Develop a business case based on the findings of the CBA.

3.2 Research Questions

The primary research question that the CBA aims to address is if the benefits of the initiative outweigh its costs for seafood processing companies.

Secondary research questions concern workers and ask:

1. Under a responsible recruitment model, do workers pay less for recruitment-related costs?

2. Do responsible recruitment policies and practices have any notable gendered impacts?

In addressing these questions through the research, the selected consultant or consultant team will need to compare the CBA findings of the proposed initiative (the FAIR Fish RRM) against the CBA of current practice.

The business case will address the following:

• Reasons why the FAIR Fish RRM is or isn’t the best possible solution to the problem and recommendations if necessary.

• From the CBA results, determine if responsible recruitment is the best way for SME seafood processors in Thailand to mitigate forced labor and human trafficking risks in their supply chains, and why they should try to mitigate those risks.

4. Users of the Research

The primary users of the CBA and business case are management of small and medium sized seafood processing companies in Thailand. They are expected to refer to evidence and information from the CBA report and the business case to make a decision about the project’s RRM and its implementation in their plant.

The secondary users are the project’s internal and external stakeholders. Internal stakeholders are the FAIR Fish project staff, staff in Plan International Thailand, Plan International USA, and the US Department of Labor. External stakeholders include members of seafood-related trade association, members of Thai government agencies related to labor rights and migrant workers, international traders that are implementing human rights due diligence in their supply chains, and members of civil society organisations working on issues about labor rights and migrant workers.

5. Methods for Data Collection and Analysis

The CBA Research Team using the FAIR Fish CBA methodology will need to

1. Adopt a mixed-methods approach, which is used for investigating models and complex theories with limited knowledge.

2. Collect and analyze both qualitative and quantitative data to produce insights about a wide range of potential costs and benefits, and to have a better understanding of the initiatives introduced by a participating company.

While the cost-benefit analysis must be executed with the methodology provided by the project, the business case contents should include a discussion about:

3. Problem identification, and alternative solutions.

4. Reasons why the FAIR Fish RRM is or isn’t the best possible solution to the problem and recommendations for a preferred solution if necessary.

5. From the CBA results, determine if responsible recruitment is the best way for SME seafood processors in Thailand to mitigate forced labor and human trafficking risks in their supply chains, and why they should try to mitigate those risks.

The business case is expected to portray an overview of how responsible recruitment practice will benefit Thai seafood processors and aligns with those processors’ business objectives. The project has planned to use the business case to prove to Thai seafood processors and employers that responsible recruitment practice is a worthwhile investment.

The data collection methods include survey, data questionnaires and interviews.

Tasks: To carry out this assignment, the selected consultant or consultant team is also expected to:

1) Participate in an initial virtual meeting with the FAIR Fish team-members to finalise the work plan and timeline for completing the assignment. FAIR Fish project staff will present the CBA methodology and tools developed to the consultant team as well as expectations on the deliverables.

2) Complete a desk review.

3) Participate in a second meeting with FAIR Fish team members to discuss the plan to apply the methodology and tools for the field work, including any adjustments as necessary. All the tools have been designed in accordance with Plan International’s gender equality and inclusion policy and safeguarding policy. They are also approved by Plan International’s ethical research committee. Only minor adjustment of the tools is expected.

4) Submit (a) an inception report, (b) tools for data collection, (c) outline of the CBA report, (d) outline of the business case report, and (e) the final work plan, RACI, timeline for data collection, CBA execution, CBA report drafting, and a business case report drafting.

5) Undertake employer key informant interviews, worker surveys (using stratified random sampling), worker individual interviews (using simple random sampling), and recruitment agency key informant interviews on cost data.

6) Analyse and validate the data.

7) Submit the first draft of the CBA report and business case report which will be followed up by feedback from the FAIR Fish Project and Plan International USA

8) Present findings from the CBA to Plan International and the pilot company, and incorporate Plan’s and the pilot company’s inputs into the second draft of the reports.

9) Submit the second draft of the CBA report and the draft business case report which will be followed up by feedback from the FAIR Fish Project and Plan International USA.

10) Submit the cleaned final CBA report and the business case report upon receiving the second draft approval from Plan International USA.

5.1 Sample

The project’s pilot company currently employs between 50 and 60 migrant workers. The designed methodology suggests the following sample sizes:

• Up to 30 migrant workers for survey and individual interviews (please also note that most migrant workers in our project site cannot read or write in their own native languages or Thai).

• Up to 10 representatives of the pilot company’s management, selected by purposive sampling method. Internal data questionnaires and key informant interview tools for company management representatives have been developed.

5.2 Participant Selection and Recruitment

Participants are:

1. Migrant workers employed by the project’s pilot company

2. Representatives of the pilot company’s management

3. Representatives of recruitment agencies that have received capacity building from the project

Selection: Purposive sampling method

Recruitment: Participants will be recruited by the FAIR Fish Project to take part in field-based data collection process remotely.

6. Ethics and Child Protection

Plan International is committed to ensuring that the rights of those participating in data collection or analysis are respected and protected, in accordance with Ethical MERL Framework and our Child and Youth Safeguarding Policy. All applicants should include details in their proposal on how they will ensure ethics and child protection in the data collection process. Specifically, the consultant(s) shall explain how appropriate, safe, non-discriminatory participation of all stakeholders will be ensured and how special attention will be paid to the needs of children and other vulnerable groups. The consultant(s) shall also explain how confidentiality and anonymity of participants will be guaranteed.

All the CBA tools for this assignment have been designed in accordance with Plan International’s gender equality and inclusion policy and safeguarding policy. They are also approved by Plan International’s ethical research committee. Only minor adjustment of the tools is expected.

7. Key Deliverables

8. Timeline

Activities under this TOR, after the tendering period, are expected to span over 87 days, approximately from 1 October 2021 to 27 December 2021

9. Payment Term

10. Expected Qualifications

• Knowledge and experience in economics and CBA methodologies.

• Experience in performing CBA on social development projects.

• Experience in conducting field-based data collection with migrant populations in Thailand (especially those who migrated from Myanmar and Cambodia) is a plus.

• Experience/training asking sensitive questions during interviews (such as those related to workplace violence or sexual harassment) is an advantage.

• Good understanding of gender equity issues.

• Familiarity with forced labor and human trafficking issues related to migrant workers in Thailand’s seafood processing sector is an advantage.

• Familiarity with human rights due diligence, social compliance, social audit and responsible recruitment practices in producers’ supply chains is an advantage.

• Proficient in English verbal communication and report writing.

• Excellent interpersonal communication skills with the ability to demonstrate respect for people with diverse ethnicities, socio-economic backgrounds and beliefs.

Team members