Forget the free trade agreement. Assiniboine Credit Union wants a fair trade pact to be signed with producers of coffee, tea and chocolate in underprivileged countries.
The Winnipeg-based credit union was one of the host organizations of Fair Trade Manitoba’s just completed, month-long campaign aimed at encouraging the employees of participating organizations to purchase the fair trade versions of these staples. Under fair trade, purchasers pay a price for goods that recognizes the true cost of production. It’s in stark contrast to free trade, in which the intent is to negotiate the lowest price possible, regardless of how it is achieved.
Paying farmers in developing countries a fair price for their sweat equity encourages a greater good, says Duane Nicol, ACU’s manager of corporate social responsibility. Fair trade allows them to take better care of their families and send their children to school. More than two million workers and their families in more than 57 countries benefit from fair trade each year.
Fair trade products usually cost about 10% more at the retail level.
The concept of fair trade goods is still in its infancy in Canada, with industry statistics showing that fair trade coffee represents about 1% of total sales.
Nicol estimates about 10% of ACU’s 550 employees participated in the second annual campaign, which was “far more” than he had initially anticipated.
“Even those who didn’t sign up learned about fair trade,” he says. “If they didn’t feel proper about committing to drinking fair trade coffee [all the time], they tried to make some changes, such as drinking it at work. Between 30% and 40% of our employees changed their behaviour in some way, shape or form to participate to some degree.”
Nicol says there are environmental benefits to fair trade, too: “Farmers are able to use less harmful harvesting practices. They don’t need to douse [their crops] with chemicals to create the kind of yield they need to get some kind of profit.”
Overall, more than 50 businesses, community groups and churches in Manitoba participated in the campaign.
ACU didn’t actively encourage its 107,000 members to participate in the campaign, Nicol says, although it did have in-branch signage and a link to it on its Web site. Many ACU members inquired about the campaign and took part, he says, which bodes well for next year’s efforts.
Nicol is also hoping that ACU members will incorporate fair trade purchases into their weekly grocery budgets.
He realizes ACU isn’t without fault, but says the key is that the credit union, its employees and its members are making progress and implementing improvements where they can.
“The challenge encouraged people to find solutions for themselves,” Nicol says. “We didn’t force people to participate. We said, ‘This is something we believe in and we hope you do, too’.”
As the second-largest credit union in Manitoba, ACU likes to throw its weight behind worthwhile initiatives. For example, it does its best to purchase services from organizations with good employment practices and that conduct their businesses in an environmentally friendly manner. Such suppliers include: Neechi Foods Co-operative, an aboriginal organization in Winnipeg’s North End, which supplies ACU’s catering needs; Northern Star Worker Co-op, which produces hand-made traditional aboriginal gifts for in-kind charitable donations; Inner City Renovation, a local construction firm that trains and employs people who live in and around downtown Winnipeg; and Enviro-Safe Cleaning, a workers’ co-op that uses all-natural cleaning products and methods.
“We recognize that by supporting organizations that work toward building sustainable communities,” he says, “it’s not just about doing good; it’s about doing what’s right for Winnipeg and elsewhere.” IE
Lending a helping hand: Paying more for sweat
Employees of Assiniboine Credit Union show strong support for fair trade practices
- By: Geoff Kirbyson
- April 28, 2008 April 28, 2008
- 14:11