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Disadvantages Of Fair Trade

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Searching the web for "fair trade jewelry" will pull up a number of companies. Fair Trade Jewelry, as certified by the International Fair Trade Labeling Organization, (FLO) does not exist. Yet fair trade, as a concept to the general public, basically translates to a livable wage, fair working conditions and environmental safe guards for the production in cooperatives in the developing world. How much FLO owns the concept of fair trade, which they have certainly developed, is an open question.



In labeling their products as fair trade, jewelry producers are expanding or exploiting the concept to the public. Depending upon your perspective, you could view these companies as "fair washing" or as working within the spirit of the fair trade movement. The ambiguity of the current state of this movement will be addressed in a meeting sponsored by the Earthworks Action this upcoming October, 2007. Earthworks Action, which started the "No Dirty Gold Campaign," has laid the ground work for this meeting which will being key players together, through the Madison dialogues.

A few small companies are producing artisan or ethnic "fair trade" jewelry in village settings, which come closer to the fair trade concept. These companies who would be considered "fair trade" only discount the environmental effects of where they source their metal and gems. Organic certification is tied to the fair trade concept and jewelry involves practices which inherently are destructive to the environment.

These small niche companies actually represent a negligible share of the main stream jewelry sector, where the ethically sourced issue gained a little prominence partly as a result of the film, Blood Diamonds, released in December, 2006. Diamond business comprises over fifty percent of all jewelry business in the US.

The first certification from FLO international has focused on the artisan mining efforts of ARM. A contract between FLO and ARM was signed in July, 2007. TransFair USA, the American certifying agent for the fair trade label, is not in agreement with FLO International, though at the JCK Fair Trade Meeting, they expressed an interest in pursuing large scale mining as a potential area for certification. This whole process is going to take several years.

The current number of people in the jewelry industry involved in fair trade is quite small at this point. Eric Brauwart, founder and President of Columbia Gem House, has created a solid system for fair trade gemstones. Martin Rapaport, one of the key players in the diamond trade and Kimberly Certification, has been solidly behind fair trade, raising the profile of the movement as a whole.

Many other smaller players are attempting to produce ethically sourced jewelry, but they are limited because neither the market nor the supply chain for production is there. A small manufacturing company can have thousands of inventory pieces from all over the world. Very few precious and semi-precious stones are even claimed to be fair trade produced. Though not technically fair trade, one positive recent development is that Hoover and Strong is now offering recycled precious metal at competitive prices for jewelers who are interested in environmentally friendly sourcing.

Outside of sourcing, the manufacturing of jewelry is going to be extremely difficult to mold into the fair trade cooperative model. I am most familiar with work out of Bali. Their hand silver work is arguably the finest in the world, and it is steeped in tradition. To manufacture on a large scale, many companies operating out of Bali will take an item and distribute it to the local villages. Each artisan will purchase the silver in its raw form which they will refine in order to create their own sterling, which is .925 percent fine. The product that comes back is often inconsistent and often is not sterling silver, as hallmarked. This type of system does not work well when there are exacting quality control issues and a strict on time delivery.

Jewelry manufacturing on a large scale therefore, does not easily fit the small village model as textiles or some agricultural product might for other reasons as well. There is the initial investment of expensive equipment and the cost of silver and gold just to produce an order...

One of the most significant recent developments in fair trade manufacturing is an effort out of South Africa, (LINK) where villagers have been trained into the jewelry trade. African countries rich in raw materials for jewelry want to be more involved in jewelry production to increase their manufacturing base. Eventually, with supervision and much support, cooperatives are formed. This model is heavily subsidized by NGOs and private corporations, which means it will be difficult to duplicate in other countries that might not have that kind of resource base.

Despite the challenges, there is strong support among a small group of people in the jewelry trade to address these issues. Many in the forefront of this movement believe it is only a matter of time before those who purchase their jewelry strongly connect to the manufacturing process as well. Jewelry is usually purchased to mark an occasion or a commitment. For others, it is about having something beautiful. How would the customer feel knowing that the gem they purchased funded a civil war or that the ring they bought for their mother was made in toxic working conditions in a third world sweat shop? What man would ever knowingly purchase a conflict diamond to complete an engagement ring?

Yet that is exactly what has happened in the past, and the movement in fair trade shows that at least some segments of the jewelry industry are determined to change the way business is being done. The percentage of people who are concerned enough about corporate social responsibility is the same demographic that supports the organic movement-it is a strong and growing segment of the population. How fast the fair trade movement takes hold also depends to a large degree upon how much pressure the public exerts.
Disadvantages Of Fair Trade
We brought this practical experience with us when we toured two large jewelry factories in Bali. My company wants to do business only with ethical international partners.

Though I was not acting in any official capacity, I am on the Madison Dialogue Steering Committee for Manufacturing Standards.

In this cross sector initiative, we are in the process of nailing down what exactly constitutes "fair trade" jewelry production.

I started one tour of a factory that employed a few hundred people by meeting with the factory owner.



He showed me an evaluation from an international factory certification agency hired by a large American based customer. They had visited only weeks before and conducted extensive private interviews with employees throughout the plant.

I viewed a spreadsheet with their areas of concern and suggestions for improvements which had already been implemented. Red arrows on the floor of work rooms now pointed toward doorways. Exit signs had been added and there were new male and female designations on bathroom doors.

To me, these purported areas of critical risk, which would hold relevance in a large factory elsewhere, were not that meaningful here. Each room where the manufacturing was taking place was less than 600 square feet.

No worker was more than twenty-five feet from a direct outside exit. Signs designating gender on bathroom doors, important in some cultures, are routinely ignored in Bali.

Astonishingly, the audit conducted by this international certification agency did not raise the issue of ventilation, which in my mind is a far more serious problem than many of the issues they did raise.

The factory would have gained certification

easily, were it not for one point: piece worker schedules.

Though the wages and over-time conditions for administrative workers were completely in compliance, the bench jewelers who were piece workers worked straight, three weeks on, one week off.

"Why don't they have time off?" I asked the factory owner.

"They are from Java," I was told. "Their preference is to work straight for three weeks and then take a week off to go home -- like people who work on oil rigs or cruise ships. They live here and are offered free housing, lunch and purified water."

I learned that it takes many of these people twenty-four hours traveling time to reach their families. Taking a full week off allows them quality family time.

Many have left their wives and children behind and have come to work voluntarily so far from home, motivated by the opportunity to earn good money.

We brainstormed about possible solutions.

Yet, if the workers were required to take a day off, they would quit. To pay the workers not to work one day a week was not economically viable, either.

This case clearly illustrates the difference between principles and standards.

I would most likely agree with the principles held by the other official organization that came to inspect this factory in Bali. However, standards must have some flexibility that takes into account the actual cultural context.

More insight in regard to creating a check list of clear standards became evident as I started walking the factory floor.

The workers had been using a borax flux which is relatively safe. However, two months before our visit, a local salesman had come by and convinced the production managers to try out a new flux, which worked far better.

We walked by the desks of the workers, seeing the green fluid in small cans. The new flux contained metals which release toxic fumes when heated with a torch.

Though there was some ventilation, I recommended that the factory switch to a different flux which was not nearly as dangerous. Upon my return to the US, we were able to provide the information on this product, which is not readily available in Bali.

There are immediate plans in place to use this safer flux.

Walking further, I found one room using glue compounds which are dangerously toxic. When this was pointed out, immediate plans were made to improve ventilation.

This led to a discussion about how toxic the local environment was. Denpasar, where the plant is located, is smoggy from leaded gasoline that many employees breathe every day on their motorbike commutes to and from the factory.

On another day, I visited a different factory which manufactures product for export. The rooms there were air conditioned, but without ventilation.

Paste solders were being used, as well as an odorless oxidation agent. These were being applied in an enclosed space without ventilation.

As we asked questions about their fluxes, solder and oxidation agents, the woman giving us the tour kept on asking us, "Is this dangerous for long life health?" Apparently, no one had ever raised the issues we pointed out.

After the tour, I was able to meet with the upper level management of the plant. I was encouraged. On the drawing board were plans for an entirely new

ventilation system to be installed later this year.

These kinds of oversights occur primarily, because people in management positions are often business oriented and not experts in jewelry production.



Production managers who work on the floor are often local hires and used to working with compounds that may well be dangerous.

Often, they consider it part of the accepted way of doing things because that has been their own experience. Their main concern is whether the product makes the job easier. This is one reason why continuing to educate them is so very important.

It is not unusual for people in developing countries to be ignorant of the dangers in the chemical compounds they use. In the Indonesian language, there is only one word for acid.

No distinction is made for hydrochloric acid, sulfuric acid, or citric acid.



What works best for production and what is cheapest to use, trumps all.

The issue of safety for bench jewelers is difficult in any plant. Many bench jewelers have set ups in the US without any ventilation at all, even though they know better.

Their excuse is, "I don't do much soldering. I mostly work in wax." In my company, we invested heavily in safety.

But over the years we still have to come down hard on our employees to make sure that they are wearing masks and eye protection.



Larger factories exporting heavily to western customers are often able to deal with these issues far better than smaller, home grown industries that might qualify as "fair trade" producers.

Worker safety for those cottage industries producing "fair trade jewelry" certainly is important. At the very least, it would be helpful if workers in the smaller plants using dangerous materials could be supported with information that could improve their chance o "long life health."

Even a small change, like moving from a room with four walls to a space that has more cross ventilation, can make a huge difference.
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About Author
Both Marc Choyt & Circlemanifesto are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Marc Choyt has sinced written about articles on various topics from The Ocean Beach, Engagement Rings and Jewelry. Marc Choyt is President of Reflective Images, , a jewelry company that practices socially responsible business.Marc authors. Marc Choyt's top article generates over 8100 views. to your Favourites.

Circlemanifesto has sinced written about articles on various topics from Jewelry, Diamonds. Marc Choyt is President of Reflective Images, an fair trade jewelry manufacturing company, that sells diamond wedding rings online at. Circlemanifesto's top article generates over 590 views. to your Favourites.
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