What Does Fair Trade Really Mean? Benefits to Workers

December 28, 2017

Fair trade, in its direct meaning and value, is about adhering to fair labour standards in the manufacturing supply chain (in our case, for garments).  It protects workers' rights in terms of pay, working conditions, discrimination.  It is important in supply chains which are dependent on marginalized workers.  It provides a safety for workers, but also promotes much deeper humanitarian values that go beyond benchmarks and ethical compliance to the core of what 'trade' is meant to signify.

The direct benefits of fair trade are a list of required compliances.  They are:

• no discrimination
• no forced labour
• payment of a living wage, all staff are full-time salaried employees
• on time payments to staff and suppliers
• clean and safe working conditions
• no excessive working hours
• no forced overtime
• no child labour 
• pension funds for all staff
• working in a supportive, transparent way throughout the supply chain. 

Mehera Shaw goes several steps beyond compliance to also offer employee benefits such as:

• all staff are hired as full-time, permanent employees
• living wages paid on time to each and every person on our staff
• staff bonuses paid 3 times annually (1/3 monthly salary)
• full medical care benefits to all our stitchers and their family members through a Government of India incentive program
• emergency loans for education, illness and family concerns to all staff members. 
• Government of India supported pension funds for all staff 
• paid holiday leaves
• clean drinking water, chai and lunch breaks
• overtime pay for voluntary overtime work
• non-discriminatory working conditions and right of expression, clear advocacy and work policies
• safe, clean, well-ventilated working conditions
• ongoing skills training for all staff and support for ongoing learning, believing that learning through doing is equally as important as formal education. 

The direct benefits to employees are clear: within this system, it means people are safe, earn a living wage, can take care of their families.  This should really be considered the base line of being human--for everyone involved in the supply chain--rather than being applauded.  It is the first step to bringing a system back into balance and remembering our own humanity.

The indirect long term benefits are profound.  When people have the opportunity to be themselves.  But they often do take a generation.

Long-term, Indirect Benefits for Employees 

• Developing self-discipline and self-reliance.
• Being able to plan more effectively for one’s own and one’s family’s future.
• Having a secure, reliable source of income has proven benefits for the next generation in terms of employees providing improved educational opportunities, safer living conditions and healthier environment for their children.
• Decrease in child marriage for the next generation.
• Gradually helps to remove caste/class based discrimination and provides greater opportunities for social and economic upward mobility.
• Learning teamwork and clear, open communication helps each individual to see themselves as a valuable person—both within a team and in life. 

We believe the message behind fair trade is passed on to the next generation when people work together and see each other as human beings first.  We believe this is the most important type of understanding which will create long-term positive change for humanity.  We believe an environment of empathy and respect is key to our whole future; together we all benefit.  We believe the benefits of simply treating each other as human beings are there for all of us who are willing to join hands and see ourselves as part of this ‘trade’.

Next post: Brand and Customer Roles in the Fair Trade Supply Chain: Long Term Benefits to Our Global Community.

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