Fairtrade Foundation on BBC Panorama, Monday 23 June 2008
The Fairtrade Foundation welcomes the BBC Panorama investigation into exploitation of children and other workers in the low-cost clothing industry. The issues raised by the programme are very serious, and ensuring that those working in international supply chains are treated fairly and paid properly is at the heart of the vision of the Fairtrade Foundation. Whilst our own current involvement in this industry focuses on those at the very end of the chain – the farmers who grow the cotton – we do also require complete transparency of supply chains on goods made with Fairtrade certified cotton. In this way, our work also seeks to reinforce programmes working to improve labour conditions at the garment manufacture stage.
The FAIRTRADE Mark is an independent product certification label which guarantees that disadvantaged cotton farmers in the developing world at the very bottom of the supply chain, are getting a better deal - recognizing that they are at the sharp end of exploitation and injustice in international trade. Fairtrade works to ensure these farmers are receiving a fair and stable Fairtrade price and Fairtrade premium, receiving pre-financing where requested and benefiting from long-term, direct trading relationships.
Fairtrade certified cotton is sourced from smallholder cooperatives in countries such as India, Mali, Senegal and Cameroon that are independently certified by our international body, Fairtrade Labelling Organisations International (FLO).
Fairtrade minimum prices are set at the farm gate level and based on costs of sustainable production. If the local market price is higher than the minimum price, then the market price applies. An additional payment of a Fairtrade premium is paid to farmers’ organisations to spend on social and environmental projects or in strengthening their businesses. This additional money provides communities with more power and resources to invest in long-term improvements. Elected farmer committees decide democratically how premiums are spent.
Due to the length, complexity and known concerns about exploitative working conditions in garment/ textile supply chains all the registered traders of Fairtrade certified cotton are also required to demonstrate efforts to comply with recognized international labour standards as defined by the ILO conventions to improve working conditions – from ginner to spinner, knitter, weaver, dyer, garment factory, and including any subcontractors.
We recognize that there are many more disadvantaged people in cotton supply chains who could benefit from Fairtrade certification. That is why we are currently exploring whether and how we can develop a standard which would extend the benefits of Fairtrade further along the supply chain to those involved in cotton garment and textile manufacturing. This process is underway but is complex and requires much time and resources. In the meantime, there is an urgent need to tackle the injustices affecting cotton farmers and to improve their economic position.
In the meantime, we commend those companies who apply fair trade principles across their whole business, such as People Tree, Gossypium, Bishopston Trading, Traidcraft, Hug and others. These organisations’ lead the way in the industry by building up long term relationships with their suppliers, providing fair prices, stable contracts and longer lead times to ensure that workers are well treated, better paid and are able to invest in a better future for their children.
It is time for such principles and practices to be adopted as the norm by companies on the high street so we see an end to scenes of exploitation in fields and factories across the developing world. Companies should stop talking about their codes of practice and start actually practicing better, fairer trade.
For more information on the ETI visit http://www.ethicaltrade.org/
Click here for the cotton Q&A