Is Fair Trade a good fit for the garment industry? September 2006 • Maquila Solidarity Network 1

A sweatfree marketplace, collectively and This publication is the first in a Until recently series of MSN Discussion Papers consciously constructed as part of a collaboration between the anti- exploring critical issues, challenges movement strategy, can help advance sweatshop and fair trade movements and debates in the labour rights consumer and worker organizing in the about labour practices in the garment movement as we enter our second apparel industry. It can help sweatfree decade of activism against industry has been surprisingly limited. campaigns involve new activists, mobilize sweatshop abuses in the garment For most of the past ten years, these two allies, establish credibility, and build the power and sportswear industries. We movements have coexisted with limited welcome your comments. necessary to create sweatfree communities. interaction or conflict, as if within In addition to the Discussion Bjorn Skorpen Claeson, parallel universes, while arguably the Papers, MSN continues to publish Sweatfree Communities, USA1 subtleties and intricacies of their periodic Codes Memos profiling recent developments and trends in respective approaches have been lost on ‘Workers who produced this product have voluntary codes of conduct and most consumers. not been exploited in any way – 110% public policy. Both publications are There has been considerably more available on our website: guaranteed.’ It is easy to understand why interaction between the fair trade www.maquilasolidarity.org consumers would prefer products to be movement and trade unions and labour labelled in this way. Yet ETI has deliberately rights NGOs concerning workers’ rights steered clear of supporting or promoting an in agricultural export product industries, ‘ethical label’. In our view, labelling carries particularly in the banana and coffee its own risks. sectors. However, even in those sectors, Ethical Trading Initiative, collaboration has been inconsistent and United Kingdom2 often difficult.3 The fair trade movement has put some attention to environmental, as well as health and safety, concerns related to 2 notes Contents X continued from page 1 the raw materials used in the production Ethical Trade & Fair Trade ...... 2 of apparel products, particularly in the fair trade certification of cotton. Resistance to Fair Trade However, it has generally avoided the certification ...... 4 more challenging question of whether MSIs shun labelling ...... 4 and how to certify that labour practices Arrival of Fair Trade clothes ...... 6 in the manufacture of a particular apparel product are in compliance with Certifying cotton...... 6 minimum labour standards. ‘Sweatfree’ companies ...... 9 With the exception of a few American Apparel ...... 9 alternative trading companies that

No Sweat Apparel ...... 9 market clothing manufactured in worker-owned cooperatives or Blackspot Shoes ...... 11 unionized factories as ‘sweatfree’ or Making Fair Trade accountable ...... 12 ‘Union Made’, to date there have been CCC ‘Alternative’ or ‘Ethical only minimal efforts to create alternative Trade’ guide ...... 12 niche markets for fair trade apparel products. (Another possible exception to Go with the FLO? ...... 13 this rule is the certification of products US Fair Trade supporters ...... 15 as child labour-free, though these Creating a parallel market ...... 16 initiatives have usually focused on soccer balls and rugs, rather than on Does Union-Made equal clothing.) Sweatfree? ...... 17 All of that could change with the The CCC perspective ...... 18 emergence of a number of new WRC Designated Supplier Program ... 19 initiatives in North America and Europe in which fair trade and/or labour rights Conclusion ...... 21 organizations are moving toward the Endnotes ...... 26 certification of apparel products as ‘fair trade’ or ‘sweatfree’. Ethical Trade & Fair Trade Over the past ten or more years, the anti-sweatshop movement has focused most of its energies and attention on pressuring giant apparel and sports shoe brands to take responsibility for the working conditions and labour practices in their global supply chains, and on supporting garment workers’ efforts to organize to win improved wages and working conditions at the factory level. By mobilizing consumer pressure on the most high-profile, brand-sensitive 3 retailers and brand merchandisers, the result of the decision from the Swiss anti-sweatshop movement has retailers Migros and Co-op (which attempted to achieve improvements in together represent 75% of the Swiss food labour practices and greater respect for retail market) to promote fair trade workers’ rights in existing supply chains. bananas.7 This approach is often referred to as Better public recognition of fair trade ‘ethical trade.’ labelling may also help fair trade reach a In contrast, the ‘fair trade’ movement wider and more mainstream consumer has concentrated on creating alternative group. In France where, according to niche markets for small producers in the opinion polls, only 9% of the population global South, usually organized as knew about fair trade in 2000, the number producer co-operatives, in order that they of people that are aware of fair trade has can obtain a fair price for their products. jumped to 56% in June 2004 and 74% in During these years, while the anti- June 2005.8 sweatshop activists’ focus on the The distinction between the fair trade garment sector had its share of successes and ethical trade approaches is often in mobilizing consumer pressure on lost on consumers however. By targeting mainstream brands and in influencing a few high-profile companies and raising notes the policies and practices of those consumer awareness of the conditions companies, the fair trade movement has under which brand-name apparel moved beyond the marginal market products are made, the anti-sweatshop niche of its beginnings. movement has raised expectations that Europe “is the biggest market for fair it could direct consumers to alternative trade products, with an estimated 60% sources of apparel and sports shoe to 70% of global sales [of fair trade products made under better working products] and potential for further conditions, if not ‘sweatfree’ conditions. growth” according to a resolution From the movement’s inception, adopted on July 6 by the European anti-sweatshop activists have been Union Parliament calling for increased caught in a fundamental dilemma – support for fair trade from the European while they are encouraging consumers Commission.4 to pressure brand name companies to For example, according to a 2005 take positive action, most consumers are report published by the Fair Trade more interested in knowing where they Advocacy Office, fair trade labelled can buy ‘clean clothes’. coffee now holds a 20% share of the roast In his August 2004 discussion paper and ground coffee market in the UK, “Sweatfree Marketplace: A Movement compared with 1.5% only five years ago.5 Perspective,” Bjorn Skorpen Claeson, (It should be noted, however, that the Executive Director of the US network roast and ground coffee market is less Sweatfree Communities, argued that the than half of the overall coffee market in lack of a list of “sweatfree suppliers” has the UK and fair trade coffee represents been “a significant hurdle for local less than 1% of the larger instant coffee organizing, diminishing [local anti- market, making fair trade’s overall sweatshop activists’] capacity to involve market share much smaller.)6 new activists and allies.”9 Fair Trade bananas now represent 47% In the paper, Claeson pointed to the of the Swiss banana market, largely as a following experience of an activist with 4

From the movement’s inception, notes the New York Labor-Religion Coalition as an example of the dilemma facing the anti-sweatshop activists have been anti-sweatshop movement on how to caught in a fundamental dilemma respond to consumers’ questions about ethical purchasing options: – while they are encouraging consumers to pressure brand name Last month I was invited to New York City companies to take positive action, to speak to the Executive Committee of the most consumers are more interested United Federation of Teachers, School Secretaries Chapter… As I completed my in knowing where they can buy presentation the first question was, “Do you ‘clean clothes’. have a list of who we can buy from?” As soon as I began explaining why there is no list, I lost the group. There is no question in my mind that that answer discredited me, my organization, and our movement….10 campaigns in Europe since 1990, some of the organizations that have joined the Bama Athreya of the International CCC are also involved in the fair trade Labor Rights Fund (ILRF) agrees with movement. “One of the reasons they Claeson on the need to offer consumers became involved in the CCC was because positive alternatives. “There is no of the difficulties they have faced in trying question that there is consumer interest to apply the fair trade model to the in ethically made clothes,” says garment sector,” says Zeldenrust.12 Athreya.11 “It is a common refrain from While acknowledging the importance the audience in every single talk we give. of creating markets for democratic We need to acknowledge that the public worker cooperatives, which are often wants answers.” initiated by workers who were locked Athreya notes that we are also seeing out, fired for union activity, or laid-off the emergence of companies that are because of factory closures, Zeldenrust marketing themselves as ‘sweatfree’. points out that the vast majority of “What do we do about that?” she asks. garment workers worldwide are “We need to engage with these initiatives employees, not owner-producers. to ensure that they are credible examples “Paying a better price to an employer for the rest of the industry.” of a garment factory does not guarantee any improvement in working Resistance to fair conditions,” she says. “Fair trade is based trade certification on the relationship between the Despite consumer demand for ‘fair Northern consumer and the Southern trade’ or ‘sweatfree’ alternatives, many producer, our focus is on the worker/ long-time activists in the anti- employer relationship.” sweatshop movement are skeptical Zeldenrust also points to the complex about the applicability of the fair trade nature of the garment production chain model to the garment sector. and the difficulty of certifying that According to Ineke Zeldenrust of the labour practices meet international European Clean Clothes Campaign standards at every stage of that chain – (CCC), which has coordinated anti-sweat from cotton growing, to yarn and textile 5 manufacturing, to cutting, sewing, to effect change; action from finishing, and packaging. governments, statutory and other “From a labour rights activist’s point bodies is also required; of view, fair trade is a difficult and • In seeking to ‘get labelled’, expensive strategy,” says Zeldenrust. companies might avoid buying “Campaigning targeting big brands and from countries with structural retailers can have a bigger impact with problems, thus putting suppliers fewer resources.” out of business and workers out of MSIs shun labelling a job; • Labelling would reward Despite considerable evidence that companies and suppliers who are consumers are looking for ‘fair trade’ or going for a quick fix to labour ‘sweatfree’ alternatives for the clothes problems and penalize those who they buy and wear,13 multi-stakeholder aim for longer-term but more initiatives (MSIs) involved in the sustainable solutions. monitoring and verification of labour standards compliance in global apparel “We would hope that one day all goods supply chains have also generally shied sold in UK shops could be safely labelled notes away from product certification and/or as ‘ethical’,” says the ETI’s 2001/02 annual labelling. report. “But to push now for companies Although a number of competing to sell ethically-labelled products will MSIs, which include labour and non- simply lull consumers into a false sense governmental organizations and of security. What companies need to be companies in their governance assessed against is their commitment to structures, have been created to verify stay with suppliers and work with them compliance with minimum labour over time to achieve continuous 15 standards in individual garment factories improvements to labour conditions.” or in global supply chains, to date not one The original intention of the US- of these MSIs has developed a labelling based Fair Labor Association (FLA) was scheme to certify apparel products or to certify brands as being in compliance brands as being ‘sweatfree’. with its code of conduct, based on The Ethical Trading Initiative (ETI) in external audits of a percentage of the UK has explicitly ruled out the factories in the Participating Company’s possibility of certifying products, global supply chain. However, the FLA brands, or factories as being sweatfree later abandoned the idea as for the following reasons:14 unachievable, at least in the short term, and now only accredits companies as • Given the thousands of supply having an adequate labour standards factories used by large retailers compliance program in place.16 and brands, few companies can The Dutch Fair Wear Foundation truthfully assert how all their (FWF) has also rejected the idea of goods are produced; labelling apparel products as meeting the • Because poor labour conditions provisions of its code of conduct, arguing, are interconnected with local “A quality mark implies that the standards economic, social, and political set, in this case the International Labour conditions, a sourcing company Organization (ILO) labour standards, are on its own may not be in a position 6 notes entirely met. In many countries and Certifying cotton factories, there is still a long way to go. Because of the complexity of the FWF guarantees that member companies textile and garment industry, the Fair audit their suppliers’ factories, Trade Labelling Organizations implement improvements, and work International (FLO) has taken a two- 17 towards the standards.” staged approach to textile labelling. Not Social Accountability International surprisingly, the first product (SAI) is the only MSI that currently certification initiative has focused not certifies garment and sports shoe on the manufacturing step in the factories, as well as other facilities, as production chain, but on the agricultural being in compliance with a set of step, where the fair trade movement minimum labour standards, in this case, already has considerable experience. the SA8000 Standard, which is based on In order to minimize the possibility the Conventions of the ILO. However, that fair trade certified cotton apparel like the other MSIs, SAI does not provide products would be made in sweatshops, a ‘sweatfree’ label for products made in FLO also requires that “each link in the those factories. garment chain after the cotton-growing A proposal to allow SAI-certified (including any subcontractors) must factories to attach an SAI label to their demonstrate efforts to comply with products is currently under discussion, international labour standards [ILO but there is no consensus on the proposal Conventions]...”19 within the SAI Advisory Board, even Efforts toward compliance can though such a label would not explicitly include one or more of the following: state that the factory was ‘sweatfree’.18 • An International Fair Trade Association (IFAT) membership Arrival of fair trade certificate;

clothes • An SA8000 certificate; Despite the many challenges in attempting to apply the fair trade model • Documentary proof of to the garment sector, we are currently participation in the ETI, FWF, FLA, witnessing a proliferation of new or WRC; initiatives promoting ‘fair trade’ or • A letter of endorsement of “a ‘sweatfree’ apparel products or aiming union accredited by the ICFTU”; to certify apparel products as being • A report of an external audit of its made under decent working conditions. company against the FLO Base In general, these initiatives come Code on Trade or consistent with from three different sources: the fair that code; or trade movement; sectors of the anti- sweatshop movement, particularly in • Evidence that the workplace is a the US; and both alternative and worker-owned co-operative.20 branded apparel companies. Textile products bearing the Fairtrade The emergence of these new certified cotton label are now being initiatives is provoking considerable marketed by major retailers in discussion, debate, and, occasionally, Switzerland, France, Belgium and the UK. hostility within and between the anti- According to the UK Fairtrade sweatshop and fair trade movements. Foundation, the Fairtrade Mark 7

guarantees that cotton farmers in the leaf” to cover up worker rights issues in global South receive “a fair and stable other stages of the supply chain. Fairtrade price and Fairtrade premium, The letter calls on M&S to include a receiving pre-financing where requested statement on all certified products and benefiting from long-term, more “making explicit the limitations of the direct trading relationships.”21 Fairtrade cotton mark, along the lines of And in spite of the rather critical view ‘Fairtrade cotton guarantees working of the Ethical Trading Initiative (ETI) conditions in the cotton growing stage toward the certification of apparel of the production chain only, and not the products, one prominent ETI member subsequent manufacturing stages’….”24 company, Marks and Spencer (M&S), is According to Hearson, the Fairtrade now selling a line of T-shirts and socks cotton label is confusing to consumers made from “100% fair trade cotton” and and the media. “In our discussions with soon will be introducing additional lines the media, it is perfectly clear that the of clothes made from Fairtrade-certified distinction is not getting through,” said cotton.22 Hearson in a telephone interview. M&S is marketing its package of “There is a huge misunderstanding social and environmental initiatives about whether the fair trade certification notes under the slogan ‘Look Behind the applies to labour practices in production Label’,23 a phrase suspiciously similar to facilities.”25 ‘Labour Behind the Label’, the name of In a Q&A page on its website, the the UK chapter of the Clean Clothes Fairtrade Foundation attempts to clarify Campaign. the scope of its Fairtrade cotton In a May 22, 2006 open letter to certification, stating, “We also recognize Marks and Spencer, Labour Behind the that there are other vulnerable people Label coordinator Martin Hearson further down the supply chain that states that while LBL regards Fairtrade could, in theory, benefit from Fairtrade cotton as “a positive development – certification… however, this work is long overdue – for the farmers complex and time-consuming and in the involved,” it should not be used as a “fig meantime there is an urgent need to tackle injustices affecting cotton farmers.”26 Where the Foundation and Labour Behind the Label appear to disagree is “We would hope that one day all goods on the question of whether Fairtrade sold in UK shops could be safely cotton certified products are less likely labelled as ‘ethical’. But to push now to be made in sweatshops. According to the Foundation, the fact for companies to sell ethically-labelled that a fair price has been paid for the raw products will simply lull consumers cotton “reduces the likelihood that that into a false sense of security. What it will be used by the worst sweatshop manufacturers who use cheap, usually companies need to be assessed against is manmade fibres and fabrics.”27 It also their commitment to stay with notes that each processor of Fairtrade suppliers and work with them over time cotton will be required to “submit to achieve continuous improvements to documentation regarding efforts they labour conditions.” 8 notes are making to comply with recognized According to a posting on the LBL labour standards” in other steps in the website, “Topshop has an impressive production chain, and that they must code of conduct, but we know little submit updated evidence every two about how it ensures that the claims years. about working conditions made within Labour Behind the Label counters it are implemented and verified: our that the monitoring and verification assumption is that the answer is weakly, tools companies are currently using to if at all.”31 measure supplier compliance with An equally contentious issue is the labour standards are “far from perfect, lack of transparency in the Fairtrade and it is here that the difficulty lies.”28 certification process. Hearson notes that Despite its concerns about the FLO certifies that there are fair trade possible misuse of the FairTrade Mark practices in the production of the label by Marks & Spencer, Labour cotton, but it accepts evidence provided Behind the Label acknowledges that by the companies that there are decent M&S “has gone further than many high labour practices in the manufacturing street clothing retailers” to address facilities. labour rights issues in its global supply “FLO will accept SA8000 factory chain, “though there is much more that certifications as sufficient evidence of M&S could do….”29 labour standards compliance, despite The fact that other major UK retailers the fact that the credibility of many that have done little or nothing to SA8000 certifications has been called improve labour practices in their supply into question by recent studies,” says chains are now jumping on the fair trade Hearson. “Nor is information on the bandwagon is of greater concern to LBL. factory locations publicly available,”32 he In February 2006, the UK retail giant adds. Topshop agreed to provide space for According to Hearson, when Topshop booths of alternative trading companies, publicly announced its agreement to sell including People Tree, Hug and Fairtrade certified cotton clothes, Gossypium, to sell Fairtrade cotton Labour Behind the Label was working apparel products. According to Hearson, privately on a case concerning the while the contract between the Fair persecution of workers trying to Trade Foundation and the companies organize a union in a Cambodian factory was for only a couple months, Topshop producing clothes for Topshop. Had LBL is reportedly pleased with the results and been involved in a public campaign is interested in repeating the against Topshop at that time, the experiment. surprise announcement of the fair trade The problem with this arrangement, deal could have undercut the says Hearson, is that Topshop, a effectiveness of the campaign. company that has so far displayed very Asked what positive lessons the anti- little willingness to engage with unions sweatshop movement might learn from or labour rights NGOs about labour the fair trade movement, Hearson practices in its global supply chain, is answered the following: now gaining credit for selling a small number of Fairtrade cotton clothes.30 Fair trade is very good at generating interest by companies, consumers and the media. It 9 offers something positive for consumers clothing companies from independently and companies. As fair trade gets bigger marketing their products as ‘fair trade’ and more established, however, it will open and/or ‘sweatfree’. itself up to criticism. One of the positive things about fair trade is that it’s a bottom- American Apparel up approach, but when you get big The largest and most successful companies involved, it becomes a top-down North American company attempting to approach. To access the volume of fair trade occupy this emerging niche market is products they need, big companies will American Apparel, a Los Angeles-based inevitably make demands upon the manufacturer of stylish T-shirts, producer that will distort the fair trade underwear, and other basics that has relationship. recently moved into the retail business. Although American Apparel One of Hearson’s biggest concerns originally marketed its products as the about applying the fair trade model to “sweatshop free T-shirt anti-brand,”33 it the garment sector is that it could has since encourage consumer passivity. “We’ve dropped been trying to challenge the attitude of the phrase from its advertising, instead notes many consumers who want us to tell describing itself as a “vertically them where they can shop without integrated manufacturer and retailer.”34 feeling guilty,” he explains. “Giving them According to the company’s website, a simple answer to that question could all stages of the production of American encourage them to be passive rather Apparel products, “from the cutting and than active.” sewing, right through to the Hearson concludes, “The fair trade photography and marketing,”35 have model might offer something to the been consolidated under one roof, “the small group of workers who will be largest garment factory in the United making fair trade certified products, but States, employing over 3,000 people at it doesn’t benefit the vast majority of one location.”36 garment workers who are making The company claims that its sewing products for the big brands and machine operators make on average supermarkets.” over $12.50 an hour, rarely work over 8- 10 hours a day, and have access to health ‘Sweatfree’ insurance.37 companies However, American Apparel’s carefully cultivated worker-friendly The lack of consensus on whether the image has been challenged by the North fair trade model is appropriate for the American garment workers’ union, garment sector or whether it can deliver UNITE HERE, which has charged the improvements in wages and working company’s controversial founder and conditions for a significant number of CEO, Dov Charney, with unlawfully workers and the lack of agreement at the interfering with his employees’ right to international level regarding the organize to improve their working appropriate standards, criteria, or conditions.38 methods for certifying apparel products In an apparent jab at its smaller as ‘fair trade’ has not prevented a competitors, American Apparel now growing number of small alternative 10 notes describes itself as “more than just a some manufacturing facilities (between sweatshop-free charity” and a company 50% and 70%) in model factories in free that is “pioneering industry standards of trade zones in the developing world.”44 social responsibility in the workplace.”39 The company pledges, “Workers who However, American Apparel appears make our clothes will have living wages not to have made any explicit and decent working conditions; they will commitment to comply with the have unions.”45 The company minimum international labour determines whether unions are standards of the International Labour independent, based on whether they Organization (ILO) or the United have “regular elections by secret ballot Nations (UN). Nor is there any evidence without coercion.”46 of the company cooperating with an However, the company provides very external labour standards monitoring or little information on how it selects verification program. factories, what specific labour standards need to be complied with, or how No Sweat Apparel compliance with those standards is Bienestar International Inc., the verified. Nor does there appear to be a owner of the No Sweat Apparel brand, formal complaint process for workers could be the company Charney had in and third parties to register complaints mind when he made his disparaging with No Sweat Apparel when workers’ remark about “sweatshop free charities.” rights are violated. Launched by a small group of US social According to Jeff Ballinger, the movement activists, the for-profit company’s vice-president for Sourcing & company markets itself as “100% union- Policy and a veteran Nike critic and anti- made, sweatfree shopping”40 and the sweatshop campaigner, “In most cases, “world’s first open sourcing apparel we have multiple sources of information manufacturer”41 selling “fair trade on the factories we use, including a fashion at a fair price.”42 factory visit by our staff, often after an Unlike American Apparel, Bienestar initial vetting by local activists.”47 International does not own its In response to concerns raised by manufacturing facilities. It sources a labour rights organizations, in January variety of apparel products exclusively 2005 a from unionized factories and worker- third-party owned cooperatives, which are sold audit was through its website and at small carried out alternative clothing stores in North at the PT Sepatu Bata factory in America and Europe. Indonesia where all No Sweat Apparel’s Of the 13 factories the company was sport shoes are made. The audit team, using in June 2006, nine were located in which included labour rights advocates the US, one in Canada, two in Central from Indonesia and North America, America, and one in Indonesia. found that while “PT Bata is no worse, According to the company’s website, and is probably better, than many other No Sweat Apparel hopes to continue to factories in the footwear industry in source at least 30% of its products from Indonesia,” there were serious questions factories in the US.43 A long-term goal of about the democratic nature of the the company is “to own and operate union at the factory.48 11

The team also found some violations decent working conditions” and of Indonesian law, including that independent union representation. “workers who do not achieve production Although the PT Bata audit report targets are paid less than the legally found some areas in which the employer mandated regional minimum wage,” as provided benefits superior to those well as discrimination against women offered in many other factories in workers in terms of rice allowance, Indonesia, such as the company’s health retirement age, and health benefits. plan, holiday pay and other benefits,50 it According to the audit report, PT Bata certainly did not certify that the factory’s management refused to provide the products are ‘sweatfree’. audit team with factory records on piece “It has been slow going, but we remain rates, wages, production targets, optimistic,” says Ballinger. “We feel overtime hours, and the pension confident that the follow-up research at program. As well, information on pay Bata Jakarta will demonstrate that the slips was unclear concerning workers’ ‘sweatfree’ designation is fully justified.” earnings and deductions. Whether or not Ballinger’s prediction To its credit, No Sweat Apparel posted proves to be true, No Sweat Apparel’s the audit report on its website, together promotion of Canadian shoe notes with its response and PT Bata’s response manufacturer Bata International as a to the audit findings. It is also worth union-friendly “social enterprise before noting that No Sweat Apparel discloses the word was coined”51 is unlikely to win far more information than do most other points with Bata workers in Sri Lanka apparel companies concerning the who experienced first hand the suppliers they use, factory locations, and company’s attempts to bust their union. wages and working conditions. In January 2005, the International According to Ballinger, one of the Textile, Garment and Leather Workers reasons for having a volunteer team of Federation (ITGLWF) and the labour rights advocates carry out the Commercial and Industrial Workers’ factory audit was “a strong feeling that I Union of Sri Lanka (CIWU) filed an had that paid-for audits had provided an OECD complaint against Bata, charging ‘avenue of escape’ for the big brands.” the company with terminating the He goes on to say, “I had 15 years of employment of 600 workers to punish experience (including three years living them for taking collective action in in Indonesia) that showed without a support of their unfairly dismissed doubt that abuses which were common union president.52 in the Korean- and Taiwanese-run Asked whether No Sweat Apparel has factories were nonexistent at Bata – a instituted some form of external factory operating since the 1930s.”49 verification process for other factories However, both the PT Bata audit since the Bata audit, Ballinger answered, findings and factory management’s “We have drafted guidelines for the initial unwillingness to cooperate with certification of auditors so that the audit team raised serious concerns independence may be assured. Further, about No Sweat Apparel’s lack of a we have participated in efforts to assess minimum labour standards policy or the feasibility of certifying garment formal procedures for verifying the production as ‘fair trade’. We strongly feel company’s claims of “living wages and that the surest guarantee of ‘worker voice’ is a union contract.”53 12 notes Ballinger also notes, “Ever since I saw reward companies in the Third World. the film The Take, I have been interesting They need the money, they need the in sourcing from a sports shoe factory in jobs, they need the work.”58 Argentina that used to produce for However, Lasn eventually decided on adidas and other big brands, but has a factory in rural Portugal. Apparently he now been taken over by the workers.” was unable to find a factory in China or Indonesia that met his company’s Blackspot Shoes standards. Another North American competitor According to the Adbusters website, for the title ‘sweatfree’ is Blackspot the Blackspot sneaker is made in a union Shoes, a project of the Vancouver-based shop. However, a closer look at the Adbusters Media Foundation. factory profile indicates that only 40% of In 2003, Kalle Lasn, publisher of the workers are union members. “Not Adbusters magazine and promoter of everyone chooses to belong to the Buy Nothing Day, union, as they don’t see any need for it,” decided to take says the Blackspot webpage.59 on Nike on its The company waxes eloquent about own turf with the factory’s idyllic rural setting, stating: what he calls “the “Although many of the employees in the world’s first factory have cars, others are often seen global anti- walking home through the vineyards brand.”54 His and olive groves, waving to bosses and “Classic Blackspot Sneaker,” which looks neighbors as they pass.”60 a lot like a Converse All-Stars knockoff However, the website provides no with a ragged white spot attached to the information on the minimum labour side, is being marketed as “earth- standards the supplier must comply friendly, anti-sweatshop, cruelty free, with, or the company’s methods of and pro-grass roots.”55 verifying and ensuring that those “Our mission is to establish a standards are being met, other than worldwide consumer cooperative and to through factory visits by company staff.61 reassert consumer sovereignty over capitalism,” proclaims Lasn on his for- Making fair trade profit company’s website.56 “Together accountable we’ll unswoosh Nike’s tired old swoosh Faced with the growing number of and give birth to a new kind of cool in alternative clothing companies the sneaker industry.”57 marketing ‘fair trade’ or ‘sweatfree’ But what’s behind all the anti-corporate clothes and other apparel and footwear hype? What does Lasn tell us about the products directly to consumers and/or labour behind the anti-Nike label? through larger retailers, the Clean In an August 20, 2003 article in Clothes Campaign and its UK chapter Canada’s Globe and Mail, Lasn described Labour Behind the Label have both his global search for a sweatfree factory posted on their websites a guide to in the following words: “We’re “alternative” or “ethical” clothing negotiating with some people in China, companies.62 we’re looking at Indonesia, and we’re The guide, which CCC admits needs looking at doing it right here in North updating, profiles and evaluates the America… I think it’s wonderful to 13

CCC “Alternative” or “Ethical Trade” Guide

Brand: Ethical Threads (UK) Non-profit organization set up by the Battersea and Wandsworth TUC (Trades Union Congress) and the GMB London Region (general union). Activity: Wholesale distribution of T-shirts for music and concert merchandising Standards: Provides description of factory conditions Monitoring and Verification: No information available Comments and Questions: How does Ethical Threads propose to check if the standards described above are actually being met? It would be useful to know more about the extent to which labour standards other than the ones mentioned are respected by suppliers.

Brand: KUYICHI (The Netherlands) Initiative of Solidaridad, a Dutch church-based development organization Activity: Designing, importing and wholesale distribution of clothes and textiles made in Latin America and Asia notes Standards: SA8000 Standard; Cotton growers and garment producers receive fair price Monitoring and Verification: Internal monitoring program; BVQI external audits Comments and Questions: CCC is critical of SA8000 for reliance on commercial auditing firms and lack of direct involvement of local stakeholders and workers in the process.

Brand: MADE IN DIGNITY (Belgium, France, Italy) Owned by Magasins du Monde-OXFAM, a Belgian non-profit, fair-trade and development organization with 100 world shops Activity: Importing and distributing handicrafts and textile products in world shops and through large retailers and to institutional buyers Standards: CCC Code of Conduct; long-term relationships with suppliers; 50% advance on orders Monitoring and Verification: Dutch Fair Wear Foundation criteria and policies Comments and Questions: Transparency provisions of Fair Wear Foundation are weak and need developing. Will Maasins du Monde publicly report on progress made in implementing standards?

compliance programs of European and For example, the guide gives the Japanese fair trade companies, US following assessment of the UK and companies promoting “Union Made” Japanese fair trade fashion label, People products, and a worker cooperative in Tree: “Standards regarding working Thailand. It includes information on conditions are limited to health and safety, their suppliers, standards, monitoring working hours and child labour. It would and verification systems (if any), and a be useful to know what IFAT’s critical assessment of each initiative.63 (International Federation for Alternative 14 notes Trade) policies are regarding other • Can a Fair Trade standard commonly accepted international labour strengthen the ongoing efforts to rights (wages, trade union rights, improve working conditions in employment relationship, discrimina- garment supply chains? If so, how? tion). If would be useful to know how • How far down the supply chain is People Tree and IFAT involve local trade it feasible to apply such standards? unions and other workers’ rights organizations in their monitoring • Should a Fair Trade standard apply activities.” to cooperatives, small producers, According to Zeldenrust of the CCC, and large cut & sew factories? “companies that promote themselves as What are the opportunities, ‘fair trade’ or ‘sweatfree’ must be held to challenges, and limitations to this? at least the same standards as the big According to Chris Himes of brands.”64 TransFair USA, responses to the question of whether the fair trade model Go with the FLO? should be extended to the apparel sector In response to the concerns of the were more positive than negative, European anti-sweatshop movement, however, some of the organizations Fair Trade Labelling Organizations consulted were extremely negative 68 International (FLO) has taken a go-slow toward the idea. approach to developing an international “Some of those interviewed were certification and product-labelling ideologically opposed to market-based program for clothes. TransFair Canada, approaches to addressing the sweatshop the Canadian affiliate of FLO, has taken a issue, such as fair trade labelling,” said similarly cautious approach. In contrast, Himes in a telephone interview. TransFair USA appeared to be moving As a result of the mixed response, more quickly toward “extending the Fair TransFair USA is “highly uncertain Trade certification system beyond its whether to proceed,” says Himes. He current products to the garment sector.”65 notes that FLO is beginning to study the In February 2006, TransFair USA same question, and that its study should launched a six-month Garment be completed by the end of the year. Research Study, which was funded by According to Himes, Transfair USA will the Levi’s Foundation, to “identify the share its findings and recommendations key concerns and issues regarding the with FLO. possibility of applying Fair Trade In a cover letter accompanying the standards to garment production.”66 The Feasibility Study report, Himes notes study involved consultation with 61 “there is no clear indication that unions, NGOs, manufacturers, brands, TransFair USA should enter this market and anti-sweatshop campaign groups in in the near term.” The letter goes on to North America and Southern say, “Rather we need to consider the countries.67 possibility of engaging in one or more Key issues being studied included: experimental projects to determine whether Fair Trade can realistically meet • What does it mean for a garment the high expectations stakeholders have to be sweatfree or Fair Trade? What established as the conditions for their are the critical elements of this? support.”69 15 “The picture on the label is of a cotton Asked for his assessment of the farmer, not a sewer. If consumers are European experience with Fair Trade confused, they are not complaining about certified cotton apparel, Himes said the market feedback has been extremely it. Do our friends in Europe need to stop positive. “Fair trade cotton certified doing good because they’re not yet ready to products are selling out at the stores, and tackle the whole supply chain?” the producers are having a hard time meeting the demand.” However, Himes acknowledges that there has been some negative feedback standards should include a living wage from anti-sweatshop campaign groups requirement or just payment of the local that believe the fair trade label is minimum wage. confusing consumers and could be “Many people we interviewed in the misused by retailers. South said compliance with minimum “We care about the clarity of labeling wage laws would be a huge step as well; we don’t want to be associated forward,” says Himes. with a ‘fair wash’ or ‘green wash’ in which He suggests that one option might be retailers get something for nothing,” says to require payment of the minimum notes Himes. wage as the first step, and then At the same time, he believes the Fair encourage movement toward a living Trade Cotton label is clear and wage over time. understandable. “The picture on the Whether union representation and a label is of a cotton farmer, not a sewer,” collective bargaining agreement would he says. “If consumers are confused, they be required for certification is also an are not complaining about it. Do our outstanding issue, says Himes. friends in Europe need to stop doing According to Himes, the Transfair good because they’re not yet ready to USA study confirms that sustainable tackle the whole supply chain?” labour standards compliance remains As noted above, the UK’s Labour the most difficult issue in the garment Behind the Label coalition and other sector. “There would have to be full members of the European Clean Clothes transparency and respect for freedom of Campaign disagree with Himes’ association,” says Himes. “Solid assessment, arguing that the Fair Trade enforcement could not be done without Cotton label should include a disclaimer partners on the ground,” he adds. indicating that certification does not cover to all stages in the production US Fair Trade process. supporters In order for fair trade certification of While the Transfair USA study shows apparel products to be viable, Himes that some sectors of the US anti- believes it must at minimum cover the sweatshop movement strongly oppose fair labour intensive steps in the production trade certification of apparel products, chain – farming, cut and sew and other long-time activists in the movement embellishment, and that the minimum are beginning to see the fair trade model labour standards must be based on ILO as offering useful lessons that could be Conventions. applied to the garment sector. He notes, however, that there is still no consensus as to whether the 16 notes One reason that some US anti- While the Worker Rights sweatshop activists are turning to the Consortium (WRC) has proved to be an fair trade model is their general lack of effective and transparent alternative to faith in voluntary codes of conduct or the FLA, its scope, at least until the efforts of individual companies or recently, has been limited to multi-stakeholder initiatives (MSIs) to university-licensed suppliers.71 effectively implement those codes. Although a few Canadian companies Whatever their criticisms of have joined the FLA and a number of voluntary codes and the commercial Canadian universities have joined the social auditing model, most European WRC and/or the FLA, the debate anti-sweatshop organizations have concerning the merits of the FLA versus adopted a dual strategy of working the WRC has, to date, been less intense within multi-stakeholder initiatives in Canada than in the US, possibly such as the ETI and FWF, where they because Canadian organizations were push for more worker and local civil not involved in the acrimonious split society involvement in labour standards within the Apparel Industry Partnership compliance programs, while continuing prior to the launching of the FLA.72 There to mobilize pressure on apparel is currently no Canadian multi- companies to respect workers’ rights. stakeholder initiative focussing on the In contrast, US anti-sweatshop apparel or related consumer products activists have generally dismissed the sectors. major multi-stakeholder initiative in their A second reason for this renewed country, the Fair Labor Association (FLA), interest in the fair trade model in the US as corporate-controlled, and have put is the fragility of worker organizing their faith instead in the Worker Rights victories after 10 or more years of anti- Consortium (WRC), a complaint based sweatshop campaigning, the adoption civil society initiative that explicitly of ethical purchasing policies by excludes company participation in its hundreds of US universities and other governance structures.70 public institutions, and numerous investigations and remediation efforts by at factories producing university licensed apparel products. While some sectors of the US With demise of the import quota anti-sweatshop movement system and the resulting restructuring of strongly oppose fair trade the industry at the global level, the movement faces the prospect that many certification of apparel products, of the worker-organizing victories other long-time activists in the achieved at least partially through these movement are beginning to see efforts could be lost as manufacturers and brands shift production and orders the fair trade model as offering to other factories and countries. useful lessons that could be According to Bjorn Claeson of applied to the garment sector. Sweatfree Communities, “years of engagement on worker and third party complaints has yielded a dozen victories, all of which could be easily 17 eroded if there are not enough orders or the anti-sweatshop movement: “Given a sufficient price to allow workers to current market dynamics in this negotiate improvements in wages and industry, even if workers successfully benefits.”73 organize, they cannot negotiate A recent WRC update to its Advisory substantial improvements without Council and organizational partners rendering their company less provides dramatic evidence that these competitive, so that it fails to get new concerns are well justified. According to contracts.”76 the report, worker organizing victories They call for the creation of “a parallel at seven of the 12 factories profiled in the market comprised of conscientious report, in which the WRC had invested consumers…, a protected zone in which considerable time and resources to this dynamic does not prevail.”77 achieve remediation, are now The paper goes on to describe the threatened by a significant decline in objectives they hope to achieve through orders from brand buyers and/or the creation of such a parallel market management decisions to close the and protected zone: factories. The report also expresses concerns about the future survival of Within this zone, democratic unions can notes most of the remaining factories.74 negotiate substantial gains for their Some of the lessons Claeson believes members, and worker-owned co-ops can could be learned from the fair trade pay themselves better wages, without movement include the need for undermining their long-term survival relationship building between buyers prospects. The existence of such a zone and producers, fair prices and a fair matters not only to unions, and to workers volume of orders, and long-term considering whether they should form relationships with suppliers, which unions, but also to employers considering could potentially result in greater job whether they should fight employee efforts security for workers. to form unions or close down plants that Himes agrees, arguing that fair trade have been organized.78 certification could result in more money going into the supply chain. “Higher Although the authors of the paper prices for fair trade certified products advocate the creation of a separate would allow retailers to pay more to the parallel market, they do not exclude the suppliers,” he says.75 possible participation of major brands or even discount chains from marketing Creating a parallel products made in the factories. market “Brands such as The Gap or Nike can opt to sell one or a few items produced In a background paper prepared for in plants that meet fair trade criteria, an April 2005 conference in Ann Arbor, chosen from a list of plants that we Michigan, entitled “Constructing certify… [and] a large retailer such as Markets for Conscientious Consumers,” Costco or Target might decide to allocate Bama Athreya of the International Labor some of its floor space to fair trade Rights Fund (ILRF) and Ian Robinson of apparel,” they state.79 the University of Michigan’s Institute of One key difference between Labor and Industrial Relations (ILIR) Robinson and Athreya’s proposal and the point to the “profound dilemma” facing 18 notes traditional fair trade model is that it individual consumers, for lists of extends the definition of fair trade ‘sweatfree’ apparel suppliers. beyond the payment of a fair price to the As noted previously, they are also primary producer, and makes concerned about the growing number of democratic union representation for the large and small clothing companies that workers who manufacture the product are beginning to market themselves as the primary criteria for certification. ‘sweatshop free’ without any formal While most participants in the Ann commitment to respect the right of Arbor conference were generally workers to freely associate and bargain supportive of the idea of “connecting collectively. conscientious consumers with In his August 16, 2004 discussion producers”80 through some kind of paper, “Sweatfree Marketplace: A certification program or list of sweatfree Movement Perspective,” Claeson called suppliers, others like Chantal Duval of for the creation of a sweatfree supplier the European Clean Clothes Campaign list as a movement tool to “build worker raised questions about the difficulties in power in support of worker rights.”81 implementing such an initiative, given He argued that a sweatfree the long and complex nature of garment marketplace “can play a significant supply chains. “What stages in the chain positive role for newly unionized will be certified, and how will such a workplaces, worker-owned cooperatives, complex system be monitored worker-occupied factories, and other effectively?” she asked. places of struggle where workers have As Duval pointed out, any new obtained the power to protect worker initiative to certify clothing as being rights.” He added that a sweatfree ‘sweatfree’ is likely to face many of the supplier list would also allow local anti- same challenges and dilemmas that the sweatshop activists to “promote local and various multi-stakeholder initiatives regional sweatfree suppliers” and have faced and continue to face. therefore create “local ties of solidarity between sweatshop activists and rank Does ‘Union Made’ and file workers.”82 equal ‘Sweatfree’? In November 2004, a number of US anti-sweatshop groups, including Recognizing all the problems Sweatfree Communities, ILRF, involved in attempting to certify one or Sweatshop Watch, United Students more steps in the garment supply chain Against Sweatshops (USAS), and Peace as ‘fair trade’ or ‘sweatfree’, a number of through Interamerican Community US anti-sweatshop activists, including Action (PICA), launched the “Shop with Athreya and Claeson, have advocated a Conscience” sweatfree purchasing focussing on worker empowerment as guide, which included a list of eight the most important criteria for alternative online retailers marketing designating a product ‘sweatfree’. clothes made by workers represented by These activists, many of whom have democratic unions or involved in been involved in campaigns for the worker-owned cooperatives.83 adoption of ethical purchasing policies A variety of apparel products made in by public institutions, are also union shops in the US and worker responding to the requests they receive cooperatives in Latin America are from those institutions, as well as from 19 available for purchase through the democratic unions from company- websites of the participating controlled unions, she adds. organizations. A smaller number of the She also notes that in the European products that can be purchased were context where a significant percentage made in unionized factories in Southern of workers are represented by unions, countries. equating union representation with The guide also includes disclaimers ‘sweatfree’ could be viewed as about No Sweat running shoes made in protectionist, since it would inevitably the PT Bata factory in Indonesia where result in the promotion of European- the democratic nature of the union is made products over those made in other still in question, and about a Global countries. Exchange T-shirt made in the American “The designation of unionized Apparel factory in Los Angeles where factories as ‘sweatfree’ also risks there have been allegations of anti- negating the responsibility of the buyer union discrimination. to continue to ensure that the trade union, once in the factory, is allowed to The CCC do its job over a period of time,” says perspective Zeldenrust. “Most of the appeals we notes receive come from workplaces where While Zeldenrust agrees with her US there are emerging unions whose allies on the need to defend the survival survival will require continuing support of unionized factories and worker from the anti-sweatshop movement and cooperatives, she argues that ‘Union continuing pressure on the employer Made’ does not necessarily equal from the buyers,” she notes. ‘Sweatfree’. “Brands or retailers that claim to be “We fully agree with the emphasis of ‘sweatfree’ or ‘fair trade’ will require many US anti-sweatshop groups on credible monitoring and verification of rewarding workplaces where workers their claims just as mainstream have achieved union representation and companies do,” says Zeldenrust. a signed collective agreement, but we This attempt to equate ‘Union Made’ also believe that the presence of a union with ‘sweatfree’ also begs the question of in a factory is not a guarantee that the whether it might not be simpler and more employer is respecting freedom of appropriate to focus on reviving the old association or other fundamental “Buy the Union Label” campaign, which worker rights.”84 has a clear, understandable message and According to Zeldenrust, by attempting a simple, enforceable labelling to identify the concept of ‘sweatfree’ mechanism – the union negotiates with exclusively with union representation and the employer for the inclusion of a ‘Union the existence of a factory-specific Made’ label on every piece of clothing collective agreement, US anti-sweatshop produced in the factory.85 groups are ignoring other forms of worker Athreya acknowledges that the representation less common to North concept of ‘sweatfree’ is a marriage of the America, such as sectoral labour- ‘Buy the Union Label’ tradition of the management negotiations at the national North American labour movement and level and community-based organization. the tradition of alternative trading CCC is also concerned about the capacity companies supporting worker co- of ethical buyers to distinguish genuine 20 notes operatives. She notes, however, that ‘sweatfree’ labelling, and does not ‘sweatfree’ includes unionized factories depend on persuading brands that there in the global South, while the union label is strong consumer demand for campaign was for North American ‘sweatfree’ goods.87 garments only.86 At the same time, university logo According to Athreya, there is not yet products are sold in the broader solid consensus in the US anti-sweatshop marketplace – university-licensed movement on the definition of products are a $2.5 billion business in ‘sweatfree’, the criteria suppliers would the US – and the fact that they will be have to meet, nor the steps in the made in WRC-certified factories could production chain that would be assessed. have a demonstration effect for “At minimum, it would have to apply companies marketing similar products. to the garment manufacturing process, If the DSP is successful, universities though I would be interested in the participating in the program will source standard being extended upstream to their licensed apparel products from cotton,” says Athreya. factories designated by the WRC as “I am not advocating that the existing having “affirmatively demonstrated a multi-stakeholder initiatives be high level of respect for worker rights.”88 disbanded and replaced by a ‘sweatfree’ According to the WRC, in order to product certification program,” says qualify as a designated supplier, a Athreya, “but we need to tackle the factory would have to meet the following question of how to keep production in criteria: unionized facilities and how to • Demonstrate full compliance with affirmatively reward collective internationally recognized labour bargaining agreements.” standards, as embodied in university codes of conduct;

WRC Designated • Employees must be represented Supplier Program by a legitimate, representative Possibly the most ambitious initiative labour union or other to create a sweatfree marketplace is representative employee body; being launched by the Worker Rights • Demonstrate that its employees Consortium (WRC). While not strictly are paid a living wage, once the speaking a fair trade initiative, the WRC’s factory is receiving prices for its Designated Supplier Program (DSP) products sufficient to make this intends to create a network of unionized feasible; and factories, producing primarily for the university market and receiving prices • Produce primarily or exclusively for their university licensed products for the university logo goods that are sufficient to pay their workers a market, or for other buyers living wage. committed to equivalent As WRC Executive Director Scott standards (including payment of a Nova points out, the DSP is restricted to living wage). university licensees (companies that Under the DSP, “factories may be produce apparel that bears a university nominated by either the WRC or by name and logo), does not involve licensees themselves.”89 The WRC will do 21

an initial assessment of the factory “in of orders from licensees under the order to determine whether the factory program and there has been sufficient is likely to achieve designated supplier time for wage negotiations to take status.” In consultation with the place.” It goes on to explain, “The data licensee, the WRC will then develop a generated through this research will corrective action plan to achieve full provide guidance to factories as they compliance with the university code of begin to enter wage negotiations with conduct. worker representatives. Once this After a six-month period, the WRC research is complete, living wage will verify whether full compliance has calculations will be conducted only been achieved, including whether where disputes arise.”91 workers have achieved “collective According to the WRC’s Scott Nova, representation.” According to the WRC, the concern that workers will not be able factories will also need to receive to freely negotiate wage rates under the increased prices before they will be able DSP is unfounded, since the rate to comply with the living wage standard. established as a living wage in each The Fair Labor Association has argued country will become the floor for future that the DSP approach to determining a contract negotiations, much as the legal notes living wage through research carried out minimum wage currently functions.92 by WRC appointed local experts The fact that a number of US labour “fundamentally disempowers workers organizations, including UNITE HERE and the labor relations process.” It goes on and the AFL-CIO, have endorsed the to say, “The WRC as the arbiter of living DSP would seem to indicate that the US wages would have none of the legitimizing labour movement doesn’t share the FLA’s features of a national mechanism fear that the WRC determining living mandated by law or established through wage levels would interfere with collective bargaining.”90 workers’ right to bargain collectively.93 The WRC counters that “enforcement It is worth noting, however, that the of the living wage standard will not occur International Textile, Garment and until designated factories are in receipt Leather Workers’ Federation (ITGLWF), the Global Union for the garment sector, has made its endorsement of the DSP contingent on it showing full respect for the principle of freedom of association In theory, the Designated Supplier and the right to bargain collectively. Program could have definite The ITGLWF says that while the goals advantages over ‘fair trade’ and of the DSP are in line with its policy and ‘sweatfree’ initiatives. At the same practice, its concern is that the proposed mechanism could run counter to ILO time, the DSP is an extremely standards on collective bargaining, ambitious and still untested program which are based on the principle of the that will stretch the capacity of a independence and autonomy of the small US-based non-profit parties and the free and voluntary nature of the negotiations. It says there is a organization to enforce danger that the process could the program’s numerous disempower workers, by requiring requirements. 22 notes unions to negotiate collectively yet At the same time, the DSP is an having wage levels determined by a extremely ambitious and still untested committee of experts on which the program that will stretch the capacity of union has no voice. a small US-based non-profit The ITGLWF has also queried the role organization to enforce the program’s of the WRC in verifying that the numerous requirements. Under the DSP, workforce is represented by a the WRC will have to assess the “legitimate, representative labor union representivity of worker organizations, or other representative employee body.” whether wages meet basic needs, That, says the Global Union, is whether prices paid to suppliers are something which workers themselves sufficient to pay a living wage by local must determine.94 standards, and whether licensees are In addition to providing prices that sourcing a progressively increasing allow for payment of a living wage, under percentage of their factories from the DSP, university licensees will also designated supply factories. have to demonstrate that they are The program also goes beyond other increasing their percentage of similar initiatives in requiring not only university-licenses products sourced that suppliers respect workers’ right to from WRC designated suppliers to 25% freely associate and to bargain in the first year the university is involved collectively without employer in the program, to 50% in the second interference, but also that workers year, and to 75% in the third year. actually be represented by a democratic According to the WRC, “at that point, the union or other authentic worker universities will make a determination organization. as to whether it is desirable to move to a Correctly or incorrectly, the program 100% requirement.”95 assumes that, given the opportunity, In theory at least, the WRC’s workers will choose to form or join a Designated Supplier Program could trade union within a six-month period. have definite advantages over the ‘fair It also assumes that the North American trade’ and ‘sweatfree’ initiatives factory-based union certification model described above. It includes minimum is the norm worldwide, and appears not labour standards that are based on ILO to accommodate other industrial Conventions, criteria for certifying relations models, such as those common factories, a method of verifying to many European countries in which compliance, and a certification body more than one union might co-exist in with experience carrying out factory the same factory while most collective investigations. bargaining takes place at a national, sectoral level. 23

The program also assumes that cotton growing – rather than on the factories can survive financially by garment manufacturing stage. producing almost exclusively for the US Recent initiatives by fair trade university market, and that if requested organizations in Europe to market fair by WRC-member universities, licensees trade certified cotton apparel products will be willing and able to shift 75% of through alternative and mainstream their production to factories designated retail outlets have raised concerns by an external body within a three-year within the anti-sweatshop movement period. about the danger of consumers being And despite its ambitious scope, the misled about the scope of the WRC Designated Supplier Program only certification. Concerns have also been certifies compliance at one stage in the raised about the transparency and apparel production chain, the garment credibility of the certification process, manufacturing stage, and does not particularly concerning reporting by address labour or environmental companies on labour standards practices or fair prices at other stages of compliance in the garment the chain. manufacturing stage. According to Claeson, the Sweatfree Meanwhile, the fair trade movement notes Communities network sees the WRC’s is cautiously exploring whether and how Designated Supplier program as a model it might broaden the certification and that could be adopted by the growing labelling process beyond the first step in number of municipal and state the production chain. governments that have ethical While the anti-sweatshop movement purchasing policies.96 The DSP could recognizes the desire of consumers to therefore potentially have a broader have ‘sweatfree’ alternatives and the impact beyond the US university potential demonstration effect such market. alternatives could have for the industry as a whole, there are differing views Conclusions and within the movement as to the viability Recommendations and value of such parallel markets designed for conscientious consumers. Until recently, the fair trade In recent years, interest in the fair movement has focussed most of its trade model has grown within the US attention on achieving fair prices for anti-sweatshop movement, at the same small- and medium-size primary time as their European and Canadian producers and on creating a fair trade counterparts have become more niche market for consumers, while the cautious about its application to the anti-sweatshop movement has focussed garment industry. on pressuring giant apparel retailers and In Europe, the commercial success of brands to improve labour practices in fair trade products in other areas, which their existing global supply chains. could signal the potential for a Not surprisingly, the initial attempts significant market for labelled fair-trade by fair trade organizations to extend or sweat-free garments, is clearly having their reach to include the garment sector an impact on the debate. As shown for have concentrated on the agricultural instance by the large media coverage of step in the apparel production chain – an ethical fashion show organized in 24 notes Paris last year, and the appearance freedom of association is being throughout Europe of numerous new respected. Although the industrial brands making often unsubstantiated relations model in Canada is more ethical claims, the trend is likely to similar to that in the US than in Europe, attract even more entrepreneurs. the Canadian anti-sweatshop In the US anti-sweatshop activists’ movement has generally placed less lack of trust in existing company and emphasis on the creation and multi-stakeholder code monitoring promotion of ‘sweatfree’ alternatives initiatives and their concern about than has the US movement. current and potential reversals of worker The Designated Suppliers Program organizing victories due to the (DSP), initiated by the Worker Rights restructuring of the industry in the wake Consortium (WRC), is to date the most of the quota phase-out account in large ambitious initiative attempting to certify part for the growing interest in the fair garment factories as sweatfree and to trade model. create a parallel university market for However, a recent study by TransFair sweatfree products. USA confirms that there are major While the DSP is not strictly speaking differences of opinion within the US a fair trade initiative, if implemented on anti-sweatshop movement about a pilot project or permanent basis, it whether the fair trade model should be could provide useful lessons on the extended to the garment sector. As a issues and challenges involved in result, any plans to launch a fair trade attempting to certify apparel products as apparel certification program in the US ‘fair trade’ and/or ‘sweatfree’. In will likely be delayed, and further study particular, the DSP could test whether it and consultation on the issue will shift is possible in the apparel sector to link back to the international level. increased prices paid to suppliers to the Meanwhile, a number of alternative payment of decent wages to workers. clothing retailers and manufacturers At the same time, the DSP will also have begun to market their products as test the capacity of the WRC to ‘sweatfree’. In most cases, these effectively assess the various obligations initiatives lack clear and credible labour of licensees and supply factories under standards, certification criteria or the program. As well, in order to monitoring and verification programs. establish the credibility of the DSP, the In an attempt to make fair trade a WRC will need to demonstrate in useful tool for workers, some anti- practice that it is able to facilitate sweatshop activists in the US have democratic worker representation and attempted to gain consensus on a set living wage standards as the floor for definition of ‘sweatfree’ that emphasizes collective bargaining without interfering worker empowerment, and in particular, with workers’ right to organize and representation by independent unions negotiate appropriate wage levels. or participation in worker-controlled If fair trade organizations do move cooperatives. ahead toward certifying and labelling Many of their European counterparts apparel products as fair trade, they will question this approach, arguing that have to seriously address a number of union representation does not, in and of concerns of the anti-sweatshop itself, guarantee that workers’ right to movement, such as: 25

• Scope: How many steps in the verification processes, it could undercut production chain will be certified? the work of these organizations. Failure to take a careful and • Standards: Will factories producing thoughtful approach to certification of Fairtrade certified apparel be apparel products could also put the fair required to pay a living wage or just trade movement’s own image and the local minimum wage? reputation at risk. With an increased • Worker Empowerment: Will union public visibility and the successful representation and the existence branding of fair trade labels, fair trade of a signed collective agreement organizations now have to concern be required as a condition of themselves with many of the same brand certification? reputation issues that have plagued • Fair Price: What will be the criteria mainstream brands and retailers. Only for determining whether the in their case, the stakes are considerably prices paid to suppliers are fair, higher: a public campaign or media and how will that relate to exposé on worker rights abuses in a payment of a living wage? factory producing fair trade certified products could lead to consumer notes • Certification: Who will monitor cynicism, not only about fair trade and verify compliance, and how apparel, but also about the fair trade will workers and local civil society movement as a whole. organizations be involved in the It would therefore be wise for the fair process? trade movement to learn from the • Transparency: How much experiences of the MSIs, the WRC and information will be provided to the CCC and to fully consult with them the public on the certification prior to launching any new initiative. process, findings of factory audits The emergence of one or more fair and investigations, and factory trade clothing initiatives that fails to take locations? into account the complexities of the global garment industry could serve to • Marketing: What rules or guidelines confuse and demobilize consumers, will be established to prevent a while offering little benefit to the vast retailer that is not seriously majority of garment workers. Moreover, addressing labour practices in its a fair trade apparel initiative that fails to whole supply chain from marketing seriously address the concerns of the itself as ‘fair trade’ on the basis of the anti-sweatshop movement could sale of a few lines of fair trade jeopardize the potential success of any certified apparel products? more thoughtful and serious initiative in The existing multi-stakeholder the future. initiatives, as well as the Worker Rights If properly designed and carefully Consortium and the Clean Clothes implemented, however, a fair trade Campaign, are currently struggling with apparel certification program could many of these same issues. If a fair trade build on the successes of the anti- apparel certification initiative were sweatshop movement and the launched that included weaker or less reputation of the fair trade movement to transparent standards, criteria and/or create a niche market for conscientious 26 notes consumers and increased democratic But no matter what answers are space for workers producing for that found to these open questions, parallel market. Provided the standards conditions must be set to ensure that required for fair trade products are at mainstream retailers and brands cannot least as stringent as those expected from exploit the fair trade label attached to a the brands that have been targeted by limited number of products in order to the anti-sweatshop activists, it could wash their hands of persistent worker also provide a positive example of how rights abuses in their broader supply clothes can be made under decent chains. We cannot allow the fair trade working conditions, thereby increasing label to be used by giant retailers and pressure on the giant retailers and brands to pacify consumers with easy brands to adopt similar practices. answers to the question, “Where can I A key issue to consider then – and an buy clean clothes?” issue that the fair trade movement is The anti-sweatshop movement should currently struggling with – is whether the therefore avoid putting all its eggs in the marketing of such products by large fair trade shopping basket. Both the fair brands and giant retailers should be trade and anti-sweatshop movements encouraged or not. In other words, would be wise to proceed with caution should the fair trade model aim at before launching or endorsing any new building an alternative form of fair trade apparel initiatives. commerce with its own set of rules or Before ‘fair trade’ or ‘sweatfree’ can fair trade products be apparel products appear on the shelves commercialized by mainstream retailers of local retail outlets, the anti-sweatshop and brands that have shown little movement must take steps to ensure concern for fairness to the producers or that any new certification or labelling workers making the vast majority of their initiative is credible, fully transparent, products? Is the sale of fair trade and accountable on labour standards, products by a mainstream retailer a “sell- certification criteria, monitoring and out” or is it a golden opportunity to reach verification processes, and that there is more customers, and, as a result, allow active participation of workers and local more producers and workers to enjoy labour and other civil society improved wages and working conditions organizations in those processes. and to benefit from an improved market Whether or not ‘fair trade’ and/or share for fair trade products? Could such ‘sweatfree’ initiatives are successful in an alliance with major brands and creating a niche market for retailers ever allow fair trade garment to conscientious consumers, or even in replicate the successes of fair trade broadening the demand for such coffee in the UK or fair trade bananas in products to include mainstream Switzerland? consumers, the anti-sweatshop Within the fair trade movement this movement will need to continue to issue is far from being settled. It could focus most of its energies and limited also become a major issue of debate resources on defending workers’ rights within the anti-sweatshop movement as in the global supply chains of the it increasingly takes into account the major retailers and brands and impact on workers conditions of price pressuring and engaging with those competition and overall purchasing companies to tackle systemic issues in practices of the giant retailers. the industry as a whole. 27

Endnotes

1 Claeson, Bjorn Skorpen, ”Sweatfree 17 Fair Wear Foundation, “FAQ,” 35 Ibid. Marketplace: A Movement Perspective,” August http://en.fairwear.nl/?p=297 36 American Apparel, “Facts About American 2004, p. 1 (on file). 18 The proposal under discussion is whether Apparel,” www.americanapparel.net/mission/ 2 Ethical Trading Initiative, “Ethical Labels: More products made in a SA8000 certified factory facts.html Risks than Gains?” could bear a label indicating that they were 37 made in such a factory. MSN, whose coordinator American Apparel, “What Does AA Do for Its 3 The main areas of contention have been when currently sits on the SAI Advisory Board, is Workers?” www.americanapparel.net/mission/ fair trade organizations begin to certify concerned that such a label might give workers.html products made in plantations where workers consumers the false impression that the 38 Maquila Solidarity Network, “Clean Clothes: are employees rather than co-owners or when product was made under ‘sweatfree ’ Making a list, checking it twice,” Maquila agricultural co-ops producing fair trade certified conditions. Network Update, Vol. 9 No. 4, December 2004, p. products begin to hire agricultural labourers. 19 Appendix 5: FLO’s Phased Approach to 5, www.maquilasolidarity.org/resources/ 4 EU Committee on Development, “Report on Labelling Fair Trade Cotton Products,” Fair Trade update/Vol904.pdf Fair Trade and Development,” 6 June 2006, Garment Standards: Feasibility Study, July 2006, 39 American Apparel, “Why American Apparel?” www.europarl.europa.eu/registre/ www.transfairusa.org/pdfs/FT%20Garment%20 www.americanapparel.net/mission/whyaa.html seance_pleniere/textes_deposes/rapports/ Standards%20Feasibility%20Study.pdf 2006/0207/P6_A(2006)0207_EN.doc. 40 No Sweat Apparel, “Homepage,” 20 Ibid. www.nosweatapparel.com/index.html 5 Krier, Jean Marie, Fair Trade in Europe, Facts and Figures on Fair Trade in 25 European Countries, 21 Fair Trade Foundation, “Questions and 41 No Sweat Apparel, “Open Sources,” Fair Trade Advocacy Office, June 2005, p. 30. Answers about Fairtrade certified cotton,” http:/ www.nosweatapparel.com/sources/index.htmlnotes www.ifat.org/downloads/marketing/ /www.fairtrade.org.uk/downloads/pdf/ FairTradeinEurope2005.pdf cotton_qanda.pdf 42 No Sweat Apparel, “Retailer Info,” www.nosweatapparel.com/products/retailer- 6 Ibid, page 31, footnote 29. 22 Marks and Spencer, “Marks & Spencer extends info.html Fairtrade cotton range with launch of jeans and 7 Ibid, p. 65. underwear,” 23 May 2006, http:// 43 No Sweat Apparel, “Question 5,” www2.marksandspencer.com/thecompany/ www.nosweatapparel.com/faqs/question5.html 8 Ibid, p. 44. mediacentre/pressreleases/2006/com2006-05- 44 9 Claseson,”Sweatfree Marketplace,” p. 5. 23-01.shtml No Sweat Apparel, “Question 16,” www.nosweatapparel.com/faqs/ 23 10 Ibid. Ibid. question16.html

24 11 Bama Athreya, telephone interview with the Hearson, Martin, “Fairtrade must not be a fig 45 No Sweat Apparel, “Question 5,” author, 28 June 2006. leaf: an open letter to Marks and Spencer,” 22 www.nosweatapparel.com/faqs/question5.html May 2006, www.labourbehindthelabel.org/ 12 Ineke Zeldenrust, telephone interview with content/view/111/57/ 46 No Sweat Apparel, “Question 16,” the author, 23 June 2006. www.nosweatapparel.com/faqs/ 25 Martin Hearson, telephone interview with the question16.html 13 Numerous studies on consumer preference for author, 30 June 2006. products made under decent working 47 Jeff Ballinger, e-mail response to interview 26 conditions have been conducted in North Ibid. questions, 6 July 2006 (on file). America and Europe. See: The Vector Poll on 27 Ibid. 48 “Final Report: PT Bata Audit,” 16 April 2005, Public Opinion in Canada, Vector Research + p.18, www.nosweatapparel.com/sources/PT- Development Inc., February 2002 (on file); 28 Labour Behind the Label, “Q&A: What’s all this Sepatu-Bata-DOCS/pt_bata_final_report.pdf January 2004 US national public opinion poll about Fairtrade cotton?” 16 November 2005, conducted for the Program on International http://www.labourbehindthelabel.org/content/ 49 Ballinger, e-mail response to interview Policy Attitudes, University of Maryland, survey view/34/57/ questions. results reported Kull, Steven, “Voices of the Superpower,” Foreign Policy (May/June 2004); 29 Hearson, “Fair trade must not be a fig leaf.” 50 “Final Report: PT Bata Audit,” p. 15. Prasad, Monica et al, “Consumers of the World 30 Unite: A Market-Based Response to Hearson, telephone interview. 51 No Sweat Apparel, “PT Sepatu Bata TBK,” Sweatshops,” Labor Studies Journal (Fall 2004), www.nosweatapparel.com/sources/PT-Sepatu- 31 Labour Behind the Label, “High street stores pp. 57-79. Bata.htm must go beyond Fairtrade cotton,” 9 February 14 Ethical Trading Initiative, “Ethical Labels: More 2006, http://www.labourbehindthelabel.org/ 52 ITGLWF, “Bata Sri Lanka Comes under OECD content/view/20/57/ Risks than Gains?” Scrutiny,” 25 March 2005, www.itglwf.org/ DisplayDocument.aspx?idarticle=1116&langue=2 32 Hearson, telephone interview. 15 Ibid. 53 Ballinger, e-mail response to interview 33 American Apparel advertisement, Vice 16 “Accreditation of FLA Participating questions. Magazine, August 2002 (on file). Companies,” Fair Labor Association, 12 May 2005, www.fairlabor.org/docs/accreditation- 54 Lasn, Kalle, “Philosophy Behind the Shoes,” 34 American Apparel, “Mission,” 2006, background-052005.pdf http://adbusters.org/metas/corpo/ www.americanapparel.net/mission/ blackspotshoes/aboutblackspot.php 55 Ibid. 71 The WRC will soon be carrying out a two-year 86 Athreya, telephone interview. pilot project monitoring uniform supply 56 87 Blackspot Anticorporation, “About the Shoes,” factories for nine Catholic school boards in Scott Nova, conference call between MSN and http://adbusters.org/metas/corpo/ Ontario. The WRC is also considering carrying WRC on DSP, 5 June 2006. blackspotshoes/info.php out monitoring for other public institutions on a 88 Worker Rights Consortium, “The Designated pilot project basis. 57 Lasn. Suppliers Program: An Outline of Operational 72 As of July 2006, Gildan Activewear and Structure and the Implementation Process,” p. 1, 58 Patriquin, Martin, “The running shoe fits for Mountain Equipment Co-op were the only www.workersrights.org/DSP/ AdBusters,” The Globe and Mail, 20 August Canadian companies with “Participating DSP%20Operational%20Structure%20and%20 2003. Company” status in the FLA. In addition, Roots Implementation%20Process.pdf 59 was in the process of applying to become a Blackspot Anticorporation. 89 Ibid, p. 4. “Category B” university licensee. There were also 60 Ibid. three Canadian universities affiliated with the 90 Fair Labor Association, “Issues and Comments WRC, one with the FLA, and two additional on the Designated Supplier Program (DSP) 61 Ibid. universities affiliated with both the WRC and Proposal,” 17 February 2006, 62 Clean Clothes Campaign, “ ‘Alternative’ or FLA. www.workersrights.org/dsp.asp ‘Ethical’ Clothes,” www.cleanclothes.org/ 73 Bjorn Claeson, telephone interview with 91 Worker Rights Consortium, “The Designated companies/04-04-alternative-ethical-clothes- author, 27 June 2006. Suppliers Program: An Outline of Operational review.htm Structure and the Implementation Process,” p. 7. 74 Nova, Scott, “Worker Rights Consortium 63 Zeldenrust. According to Zeldenrust, the CCC Update,” 16 March 2006 (on file). 92 Nova. welcomes all contributions and support in keeping the guide as up to date and relevant as 75 Himes. 93 USAS, “National List of Endorsing possible. Organizations,” The New Sweatfree Campus 76 Athreya, Bama and Robinson, Ian, Campaign packet, Fall 2005, p. 10. 64 Ibid. “Constructing Markets for Conscientious Consumers: Adapting the ‘Fair Trade’ Model to 94 Email from ITGLWF, 10 July 2006 (on file) 65 “TransFair USA Fair Trade Garment Research the Apparel Sector,” 19 March 2005, p 10, Project,” February-June, 2006, (on file). 95 www.ilir.umich.edu/lagn/ Workers Rights Consortium, p 6. 66 TransFair USA, letter to Maquila Solidarity ConstructingMarkets.pdf 96 Claeson, telephone interview. Network, 4 April 2006, (on file). 77 Ibid. 67 For a copy of the July 2006 report “Fair Trade 78 Ibid. Garment Standards: Feasibility Study,” visit: www.transfairusa.org /pdfs/FT%20Garment% 79 Ibid, p.11. 20Standards%20Feasibility %20Study.pdf 80 “Constructing Markets for Conscientious 68 Chris Himes, telephone interview with author, Consumers Conference, Ann Arbor, April 1-2, 30 June 2006. 2005, Summary Report,” www.ilir.umich.edu/ lagn/CCCsummay.pdf 69 Letter from TransFair USA, August 11, 2006, (on file). 81 Claeson, “Sweatfree Marketplace,” p. 11.

70 The dominant view of the FLA among US anti- 82 Ibid. sweatshop activists is expressed in the following quote from a recent statement posted 83 The list can be found on the websites of on the Campaign for Labor Rights website: Sweatfree Communities and other “Despite its name, the FLA has a long history in organizations: Sweatfree Communities, the anti-sweatshop movement of siding with “Shopping,” www.sweatfree.org/shopping.shtml the corporations and companies, rather than 84 Zeldenrust. with the workers. The FLA’s directing body includes representatives from the industry, 85 Initiated in the post World War II period, the meaning that its position in the face of labor “Buy the Union Label” campaign was a rights violations has too often been skewed by marketing effort of the US and Canadian labour the companies that are part of the multi- movements to convince consumers to look for stakeholder initiative.” See: CLR, “Statement in the union label when they shopped for apparel support of the USAS Sweat-Free Campus products. In more recent years, the campaign Campaign and the Designated Supplier has become a much less ambitious effort to Program,” undated, www.clrlabor.org/ encourage trade union organizations to make campaigns/SweatFree/CLRsupportUSAS.htm bulk purchases of ‘Union Made’ apparel products manufactured in North America.