"Fair Trade - Shopping with your Eyes Open"
Mindy Ahler-Olmstead
Sunday, October 13th, 2002

Good Morning!

I’m very excited to talk to you today about Fair Trade, a very important social justice issue. I want to tell you a little bit about my journey, share some stories with you about the problems of conventional trade and the solutions that Fair Trade offers, and offer a number of ideas on what you can do to be part of the solution.

I worked for a large management consulting firm for 8 years. During this time, I slowly became involved in our Sister Parish committee here at Saint Joan of Arc. I traveled on my first delegation to Tierra Nueva Dos in 1996. While in Guatemala, I came face to face with the reality of how the US economic system impacts other countries and how the people who live in those countries are exploited by the system that keeps the products we buy very cheap. I was profoundly changed by the experience and by the caring relationships I have formed through repeat visits to our Sister Parish. My eyes were opened to the suffering of my Christian brothers and sisters in the name of US interests. I shared in this suffering in a small way while staying in their humble homes. I understood that our Sister Parish relationship called me to be in solidarity with these brothers and sisters. As Elena Ixcot pointed out in the reading today, to be in solidarity I needed to share not only in their suffering, but also in their hope for resurrection. To do this, I needed to help change the system of oppression that causes this suffering.

I became aware that my work as a consultant was part of the system that I wanted to see changed. I was working for large corporations that were part of the problem. I quit my job, not knowing what I was looking for.

Perhaps through divine intervention, I stumbled upon a job that tied together many of the things I cared about. I began working at a Fair Trade store called Ten Thousand Villages, awakening my passion for Fair Trade.

Now I want to make sure from the start that there is no confusion between Fair Trade and Free Trade. They are not the same thing at all. Free trade is strictly concerned with tariffs, but is not at all concerned about the producers.

The focus of conventional trade is to maximize the return to stockholders. The primary way to do this is to find the least expensive way to produce goods. Another way is lowering or eliminating tariffs between countries (this is the Free Trade part of it). The search for the least expensive way to produce goods has led to a system where companies search for the lowest paid workers and the loosest environmental regulations. This has caused unsafe and unjust working conditions and the exploitation of people and environments. In addition, companies can easily close a factory and move somewhere else where the conditions are more favorable to them.

In contrast, the Fair Trade Federation states that: “Fair Trade, or alternative trade, refers to the exchange of goods based on principles of economic and social justice. The key objectives of Fair Trade are to empower low-income artisans and farmers around the globe to better their conditions, and to promote understanding between them and people of developed regions. Alternative traders who are members of the Fair Trade Federation pledge to:

• Pay a fair wage in the local context
• Provide equal opportunities for all people
• Engage in environmentally sustainable practices
• Build long-term relationships
• Provide healthy and safe working conditions
• Provide financial and technical assistance to workers whenever possible”

I want to talk about three areas of focus in the Fair Trade movement: (1) sweatshops; (2) commodities; and (3) handicrafts.

Most of the examples that I will present are from Guatemala - that’s because these are the people I know the best. But similar stories can be repeated from many parts of the world. This is a global issue.

First, let’s talk about sweatshops. Virtually any type of item can be made in a sweatshop, but most often this refers to the manufacture of clothing, textiles, and shoes. When I say sweatshop, I mean a factory where workers do not have the right to organize and form unions, receive low pay (usually too little to support themselves), have unsafe working conditions, work long hours, etc.

One of our delegates visiting Tierra Nueva Dos in July, inquired of her host, Maria, what her work was like in one of these factories, known as maquilas. Maria works 9 hours a day, 5 days a week and takes home about 30 US dollars per week. Since her husband is currently unemployed, this must cover all of the family’s expenses. Maria earns this much only when she is able to meet the factory’s quota. She explained that the quota meant stitching 90 units per hour. A unit is a part such as a pocket, a zipper, a long double side seam on a pair of pants, or some other part of a garment. That means stitching one unit every 40 seconds. How could she keep that up all day? She admitted it is difficult, but she tries, because the bonus is a big help. What brands does she make? Names like Oshkosh, Banana Republic and Levis. The sister parish staff told us that this was one of the better factories in Guatemala.

An important thing to remember about sweatshops is that people, like those in Tierra Nueva Dos, depend on these jobs to support their families. Attempting to close down these factories will not help them make a better living. The system needs to change, not go away. The work in this area is focused on improving the conditions and holding companies accountable, but keeping the factories and jobs where they are.

The second focus area is the commodity market or the trade of agricultural products such as coffee, cocoa, bananas, and rice. The best-known example in this area is coffee. Traditionally the price paid to farmers is highly variable and completely dependent on the price of coffee as it is traded on the commodity exchange in New York. As with other fairly traded agricultural products, Fair trade coffee establishes a guaranteed minimum price that covers the cost of production and pays a fair wage no matter what the commodity market price is. If the commodity price goes up, the farmers will get paid even more.

The minimum price was particularly important in the last year when the coffee market was flooded with a cheaper, lower quality bean, which caused the price of coffee to drop dramatically. In Guatemala, for example, the price dropped so low that many coffee growers chose not to harvest the beans and left them to rot on the bushes. As a result many agricultural workers did not have the jobs that they count on to buy food for their families.

I have heard coffee farmers from Tanzania who spoke about the positive impact that Fair Trade is having for them. When the other coffee traders come to their village and offer them a given price for their entire crop of coffee, they can say that they are already guaranteed a higher price for a portion of their crop by the Fair Trade buyers. This gives them bargaining power and drives up the price of coffee to a more fair level.

Another important difference of Fair Trade coffee is that it is purchased from small farmers and cooperatives, not from large plantations. More of the money goes directly to the ones who produce the coffee. Fair Trade coffee companies are more involved at the farm level and teach more sustainable farming practices to encourage coffee grown organically and in the shade. In this way the environment benefits too.

The final area I want to talk about is handicrafts. By handicrafts, I mean things such as jewelry, home furnishings, gift items, etc. that are hand-made. These are the type of products that are made by cooperatives that I have met in Guatemala.

On the outskirts of Guatemala City there is a community named La Esperanza, which means “hope”. In this community stands a symbol of hope for a group of women. This is a cooperative named UPAVIM, which stands for Unidos para Vivir Mejor - united to live better. Through their work of making and selling handicrafts, these women are able to fund other programs they have started including a Montessori school, a medical and dental clinic, a well baby program, and a scholarship program. They are now trying to raise enough money to complete a new building that will have a school, bakery, and soy project. Most of the women still live in impoverished situations and many are in abusive and alcoholic relationships. However, they tell many stories of how the cooperative has improved their lives. Now they have money to feed their families, their children are in school, and they have a safe place to go with other women to support them and build their self-esteem.

Working with cooperatives like UPAVIM, organizations like Ten Thousand Villages are helping to create a new model for trade. They are developing respectful, long-term relationships with artisans to provide them with a steady income, and a reliable market for their products. They are putting producers first.

In our reading from James, we are reminded that faith without action is dead. Here are some ideas on what you can do to be part of the Fair Trade movement.

First and foremost, start asking questions. Ask where your clothes were made and under what conditions. Ask how your food was produced. Start talking about Fair Trade with others. To change the current system, we need to talk about the alternatives that Fair Trade offers. David Ransom in his book The No-Nonsense Guide to Fair Trade says “You may not be able to change the world as much as you would like by shopping with your eyes open - but keeping them closed makes absolutely certain that it stays the same.” Open your eyes and help open the eyes of others.

A key thing you can do is vote with your dollars. Buy fairly traded items. Look for Fair Trade Certified and union made items. Try shifting just 5% of your spending on food, clothing, and home furnishings to a Fair Trade alternative. If you are a coffee drinker, Fair Trade coffee can easily be found at the natural food co-ops, many coffee shops and an increasing number of grocery stores. You can look for the Fair Trade symbol on the label.

There are fair trade products available at Ten Thousand Villages, the Resource Center of the Americas, the natural food co-ops, the semi-annual Third World Jubilee Sale, as well as other smaller retailers around town. There are also many choices available on the internet. There are many options out there and more are available every day.

Mindy suggests the following resources for increasing your knowledge of and ability to participate in fair trade. Click on this link to open a printable copy.

Some of the youth that traveled to Guatemala last summer were surprised to find out that many of their peers in Tierra Nueva Dos work in sweatshops making clothing for US companies. Motivated by this, some Saint Joan of Arc youth have chosen an anti-sweatshop campaign as their service project for this year. They are teaming with a program of the Resource Center of the Americas called YO! which stands for Youth Organizing on Sweatshops and Child Labor. YO! has organized campaigns targeting Minneapolis schools and the city of Minneapolis to adopt a code of conduct to be followed by the manufacturers of all uniforms purchased by these organizations.

On November 3rd the Saint Joan of Arc anti-sweatshop group will be holding a tag drive. They will be requesting that parishioners cut the tags from their clothing. These tags will be sent with letters to the manufacturers to demand that they work to create more just working conditions in the factories that make their products. The youth will be providing more information on sweatshops and what you can do to change things.

As individuals you can write letters to the companies whose products you buy or in which you own stock to let them know your expectations of how you want workers treated. Encourage companies to adopt a code of conduct, provide full public disclosure on how and where products were made, employ independent monitoring organizations to ensure that they are meeting their goals, and make a commitment to address violations in ways that benefit workers.

Another important action you can take is to let your legislators know how you feel about the trade agreements that our country enters into. Encourage them to oppose free trade agreements unless they have provisions for labor rights and responsibilities. We should be including clauses that stress the fair treatment of workers as a requirement in our trading agreements. This is a political as well as a justice issue.

I also want you to know that thanks to the concerns of parishioners and staff at Saint Joan of Arc, the coffee being served here on Sundays is now all Fair Trade. So enjoy a cup of justice after the service today.

If you would like more information, you can find resource materials on many of these options on the table in the main entrance to the gym.

In closing, I want to look at the gospel for today. An important thing to understand is that the wedding garments that the one man failed to wear would have been provided for him when he arrived. We are reminded in the story that many are invited to share in the feast. We are given what we need to be ready for the feast; we just need to work with what is given to us. We know what Fair Trade is and how to support it. Shop with your eyes open and help create a more just system for workers everywhere.

Thank you!