Celebrating Fair Trade Month and the Opportunities Ahead

People working in apparel factories are among the lowest paid laborers in the world.??

That’s why Patagonia became a founding member of the Fair Labor Association (FLA) 25 years ago and joined Fair Trade USA 10 years ago. We’ve made strides in caring for the people who make our products, partnering with remarkable NGOs, governments, academia and other likeminded brands. The problem is that we still stand out as outliers in an industry where, despite demand from millennials and Gen Z for ethical brands, only a handful are genuinely committed to fair labor practices.??

Patagonia co-founded the FLA in 1999 to promote human and labor rights and create programs to better protect workers throughout the supply chain. This year marks a quarter-century of the FLA advancing labor standards around the world through advocacy, education and deep engagement with private, public and nonprofit sectors. Since becoming a founding and accredited member, we’ve used the insights to foster partnership, transparency and continuous improvement with suppliers, and to direct our responsible purchasing efforts. The strength of the FLA lies in their inclusion of not only businesses but also civil society and academic representatives as their members and board of directors. Together, we collaborate on developing robust standards and innovative programs to protect workers around the world, and foster accountability and transparency.??

In particular, FLA has played a crucial role in key initiatives such as our Responsible Purchasing Practices program. In this work, we examine the impacts of our business decisions on everything from product design choices to costing practices. Those everyday decisions have a direct impact on our suppliers, and consequently their workers, so we study the effects of our actions and work to mitigate harm. Similarly, the FLA has been central in our work to improve the protection of migrant workers in our supply chain by collaborating with suppliers, government officials and other apparel brands to drive industry-wide progress. This work is essential in supporting the fundamental rights of workers seeking jobs outside their home countries.?A recent achievement was an industry letter to the Taiwanese government advocating for improved legislation on responsible recruitment. While much work remains, we are making strides toward scalable change.???

In 2014, we furthered our commitment to improving workers’ livelihoods through our partnership with Fair Trade USA. This was our first step toward living wages, and today, more than 90% of Patagonia’s clothing is made in Fair Trade Certified factories. The premiums we pay for these items have improved working conditions and livelihoods for more than 85,000 workers.?But this represents a small portion of the 75 million apparel workers worldwide, so our industry still has a long way to go.??

This October is Fair Trade Month, and we invite fellow businesses and the global community to join us. Like most apparel companies, Patagonia doesn’t own factories or directly employ the workers who create our products, which makes Fair Trade an essential tool for delivering tangible benefits that enhance workers’ lives. At Fair Trade Certified factories, we pay a premium on each item produced in our name. Workers in these factories elect committees to decide how to distribute the money. Some opt for bonuses, while others invest in initiatives like childcare, medical care and food baskets.??

We have worked with many factories in several countries to become Fair Trade Certified, including some that make our most technical products, such as wetsuits, waterproof shells and mountain biking clothing. Over the last 10 years, Patagonia has contributed more than $31 million directly to workers in our supply chain via Fair Trade USA.???

However, because the workers in these factories also produce clothing for many other brands, they stand to gain much more. They’re missing out, despite the fact that Patagonia has made it as easy as possible for other companies to opt into the Fair Trade system. Because we have already invested the time, expertise and money to get the factories Fair Trade certified, other brands that contract with these factories can simply pay the Fair Trade premium to raise the overall benefit to workers. Sure, these companies will incur a small cost increase for each unit produced, but the impact on individual workers’ lives would be profound. Then, these companies can proudly market their products as Fair Trade Certified, potentially boosting sales and fostering customer loyalty. This creates a win-win scenario embodying the spirit of fair trade.??

In the 10 years since we’ve implemented the Fair Trade program, only a handful of brands have joined the movement. I’m surprised and disappointed that more of our peers in the apparel industry haven’t taken advantage of this. ?

But we’re fortunate to have outstanding leaders in this movement, particularly Paul Rice, the founder of Fair Trade USA. After 26 years of dedicated leadership, he has stepped down as CEO this year but will continue to support the organization as an advisory council member. Paul will also focus on telling the Fair Trade story through his upcoming book, Every Purchase Matters: How Fair Trade Farmers, Companies, and Consumers Are Changing the World.??

I encourage everyone in the business community to learn from Paul and the other visionaries at Fair Trade USA and the Fair Labor Association. For the benefit of workers worldwide, it’s essential that this movement continues to grow.??

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