"Fair Trade" and Unionized Bananas

In 2004, “fair trade” certitified bananas were introduced into the U.S. market. While most agricultural products certified as Fair Trade have traditionally been produced on small farms or cooperatives, the vast majority of bananas exported to the U.S. market come from plantations. The growth of Fair Trade bananas in the U.S. market requires sourcing from plantations.

In June 2005, Transfair USA and the Coordination of Latin American Banana Workers Unions (COSLBIA) signed an agreement under which union-backed bananas would be sold as Fair Trade bananas in the U.S. Transfair USA is the leading U.S. Fair Trade group and is the U.S. member of the primary international Fair Trade-certifying body, FLO (the Fair Labelling Organizations).

The alignment of COLSIBA with Transfair USA has led to some controversy among Fair Trade activists since union bananas come from plantations that produce for major transnational companies. The prospect of a Fair Trade label next to, say, the label of Chiquita, which has by far the most number of unionized banana workers, makes many traditional Fair Trade proponents uneasy.

COLSIBA, however, has welcomed the initiative that would allow union-backed bananas to qualify as Fair Trade. Unionized workers are generally paid far better wages and provided far better benefits than workers on non-union plantations (or even many workers employed at cooperatives). As long as bananas from plantations are eligible for Fair Trade certification, as they have been by FLO for several years, it is not only appropriate but necessary that unionized bananas be certified as Fair Trade. If the agreement between Transfair USA and COLISBA can be successfully implemented, the growth of Fair Trade-certified union bananas could be a critical development in the ability of banana unions to survive the continuing race to the bottom in the industry.

Important issues remain to be worked out and implementation has not yet taken place. See the USLEAP statement on Fair Trade and Ethical Purchasing.