Since the introduction of Fairtrade certified cotton in 2005, Fairtrade has been facing the question and challenge of how to extend the Fairtrade approach to the entire value supply chain for textiles. Responding to the need, and after much deliberation, Fairtrade has recently launched the ‘Fairtrade Textile Standard’ and the textile programme, with the goal of improving the living and working conditions of textile workers throughout the supply chain and strengthen their rights. Though the effort is noteworthy, the move has been criticized by Clean Clothes Campaign (CCC), which raised concerns, saying that it will not benefit garment workers. However, the Fairtrade doesn’t think the points raised by the CCC are justified as its new approach is innovative and different in a number of ways. As of now there are 65 certified Fairtrade companies in India and the organization is enthusiastic about its new standard, confident that more and more companies will go for it in future.
Over the time there have been many attempts to tackle the entire value chain for ethical practices and benchmarks, without much success. The difference between the new Fairtrade approach, vis-à-vis other existing standards, is the fact that new Fairtrade standard is viewing the entire parts/segments of the supply chain coherently, as against the current approach to observe each separately; right from the crop to the production, into the factory; it is an improved version. It also tells you how to do it, not just what to do. It makes people understand the critical ‘why’s and how’s’ and gives the factory time and information regarding the right resources in order to make them understand how to achieve the goals. It’s not a check list or corrective action plan programme, but it is much more evolved and coherent process.
In fact, Fairtrade’s new Textile Standard and Programme are designed to tackle challenging working conditions by extending the Fairtrade approach to the entire textile supply chain. “By committing to Fairtrade, companies can now help improve the social and economic well-being of workers across the entire production chain,” says Martin Hill, Interim CEO at Fairtrade International. The new standard (applicable from 1st June 2016) is based on Fairtrade’s existing Hired Labour Standard and focuses on working conditions, living wages and workers’ rights, and is open to other sustainable fibres as well as cotton. It is being claimed that it’s the first standard to require living wages to be paid within a set time period – six years – and brand owners will also be contractually responsible for fair and long-term purchasing practices – essential for implementing wage increases. Overall, the standard aims to empower factory workers and enable them to negotiate labour conditions independently.
Till now none of the brands have come forward for this new standard which is applicable from June 2016 onwards. Fairtrade is currently in conversation with businesses in several countries and hopes to announce first partnerships soon. A critical question that arises is – When already plenty of compliance/certifications are available for garment manufacturing, what is the requirement for one more… “We are going beyond certification,” says Abhishek Jani, Chief Executive Officer, Fairtrade India. He adds, “Now Fairtrade has developed its own social and environment parameters/standard for entire supply chain and it is the only standard in the textile industry worldwide which covers the entire chain from cotton to garmenting in one cohesive programme, has a time bound target for implementing living wage, is supporting the process by training management as well as workers and is also standing-by for further capacity building.”
Though many industry-informed have appreciated the move, Clean Clothes Campaign (CCC) has raised 4 points of concern – product label approach is not the right tool for this industry; the standard diverts responsibility away from brands; a standard relying on inspections and certification is dangerous; and fourthly, marking garments as ‘fairtrade’ without paying a living wage, is unacceptable and only misleads consumers. An official statement from CCC says, “These standards allow an implementation period of six years for a living wage. The standard foresees that the factory management has to sign an implementation plan with workers representatives, but the factory has no guarantee that the buyers stay as prices go up. If the burden of implementing a living wage lies entirely on the supplier, CCC fears that no factory management will commit to such a plan. Brands need to play a central role in reaching a living wage. Marking garments as ‘fairtrade’ before a living wage was actually being paid to the workers, is unacceptable for CCC. It is misleading for consumers and allows for disproportionate marketing benefits for brands.”
The CCC objections also points out that the standard includes complex and costly requirements for factories, but does not require brands to commit to real change in terms of their purchasing and operating practices. Further, the standard does not sufficiently address the challenges in the garment industry and even risks slowing down progress made in the last few years.
However, the Fairtrade International does not agree with the objections raised and on being questioned by Apparel Online its response was comprehensive and confident. “No other standard or approach covers the entire production chain; goes beyond compliance with core labour rights (ILO Labour Standards) to strengthen workers’ position to be able to collectively protect their rights (through training, support for workers to form or strengthen a union or other workers’ organization); requires a living wage; or offers a comprehensive on-site support programme,” says an e-mail from the organisation. It further added that Fairtrade approach goes beyond auditing; it does not just rely on audits, but will provide comprehensive on-site training to help companies and workers achieve and maintain certification.
In a further clarification, Fairtrade highlights that the new approach also focuses on transparent communication for consumers and long-term commitment and rules for brands. “We whole-heartedly agree that responsibility can’t only be demanded from factories but also, and most importantly, from brands. It is thus important for ordering companies to act responsibly by means of fair and responsible purchasing practices and long-term contractual partnerships, which are essential for living wages to be reached and maintained in the long-term. The standard therefore includes recommended purchasing practices for brands to make partnerships with providers possible,” says the email from Fairtrade.
Bharat Tex Special Report 2026 
