Patagonia recently announced that Apparel workers who make Patagonia clothing earned an additional $430,000 from fall 2014 to May 2016 through their participation in the Fair Trade program.
“Employees at Nature USA in Los Angeles voted to take their share of the money, which equaled up to six days pay, as a cash bonus to pay for such things as healthcare and college tuition for their children. At Hirdaramani in Sri Lanka, workers chose to use theirs to open a daycare center that provides factory workers with free child care, implement a health and sanitation program and pay for sanitary napkins and undergarments to improve individual hygiene. And workers at MAS Leisureline, also in Sri Lanka, chose store vouchers to buy food, medicine, toiletries and other personal items. (These indirect benefits amounted to two weeks pay.)”
Thuy Nguyen, Patagonia’s manager of social and environmental responsibility, who works on the Fair Trade program told Sourcing Journal that the benefits of the program have exceeded their expectations.
“In addition to the premiums raising wages, our factories have reported improved worker morale and engagement. Since workers actively participate in the program, they understand and appreciate what Fair Trade can do. Few social programs have such a sweeping impact,” Nguyen told Sourcing Journal.
Patagonia writes on their site that Fair Trade is one of the first tools they’re using at Patagonia to raise workers’ wages, improve their standard of living and move them closer to earning a living wage.
“This is how it works. We pay a premium for every Fair Trade Certified item that carries our label. That extra money goes directly to the workers at the factory, and they decide how to spend it. But that’s not all. The program also promotes worker health and safety and social and environmental compliance, and encourages dialog between workers and management. As of May 2016, more than 7,000 people working in factories that make Patagonia clothing benefit from the program.”
Patagonia is one of more than 1,000 companies representing 30 product categories that sell Fair Trade Certified™ products. Since the program began in 1998, farmers and factory workers have earned some $350 million in premiums.