Fair Trade

17 November, 2005

Dear Jessica:

Greetings from Threads of Yunnan. At the suggestion of the WFTO Membership Office, Mr. William Wainman of Ecoffins has asked me to write a letter of recommendation for him in his bid to join WFTO. In order to meet Mr. Wainman and to see the situation at the factory, Mr. Li Jianbo and I flew to Changsha and then drove to the area in which the factory is located.

We met with Mr. Wainman, the General Manager, Mr. Cheung, Vice President, and Mr. Yang, Operations Manager in the factory for about five hours. In addition, we talked with Mr. Wainman and Mr. Cheung during the 10 hours we spent traveling to and from the factory, and to and from the bamboo forest.

While in the factory we were able to talk freely with all staff and workers. We were readily furnished with all the documents for which we asked, and all company accounting records were made available to us, both in-office records and government audited records. The factory management openly answered all our questions and did not appear evasive or secretive in any way.

We found Mr. Wainman to be concerned with many of the issues concerned with Fair Trade. In fact, job creation and worker welfare were of particular concern. The factory was started, in part to provide steady employment for farmers in a remote area of China. We talked privately with most of the workers and found them to be very satisfied with their job, working conditions, treatment and pay/benefits. Craftsmen are paid for each article they make and their resulting monthly salary is significantly above similarly skilled craftsmen in the area. In addition, the work is steadier, and they have the option of taking time off to plant or harvest crops.

The non-skilled workers also said they were very satisfied with their pay and working conditions. They are paid more than the local non-skilled wage and their working month is not as long. Women, of whom there are five working in the factory, only work 16 to 17 days a month. Their pay is about 60% higher than the local wage for women in that area. The factory also employs women to prepare meals for the workers. The factory provides three meals a day to the workers at no charge and provides adequate dormitory facilities for those workers who wish to stay at the factory to extend their working day.

The factory was clean, well lit, had clean sanitary facilities, and safety equipment. The factory does not use any hazardous or caustic chemicals, so there are no safety or protection issues. The manager of the factory had set up a computer room for employees to use and provide some instruction and training for computer use. This was apparently an initiative of the manager. The workers seemed to enjoy playing Chinese mahjong more than using the computer, which fits in well with the overall cheery atmosphere in the factory. The manager also said that he had two meetings each month with all the workers to talk about the work and to get input from the workers.

In addition to the five women workers, the factory employs 25 men. Three of the workers are disabled, including one of the women who was deaf, a very unusual situation in my experience. Usually such people can not find a job in a factory in China. All the workers expressed that they were respected by Mr. Wainman and the factory management. In touring the factory with Mr. Wainman I noticed that he knew all the workers by name, various aspects of their lives, their work history, and appeared to be on a friendly basis with them. This gave an “extended family” feeling to the atmosphere of the factory.

Mr. Wainman also has a very strong environmental ethic. His factory makes its products either from bamboo or fast growing pine. We visited the bamboo forest and the conservation and sustainable management of the forest was very evident. The bamboo is selectively cut once every three years and the entire forest and harvesting system is regulated and watched over by the local forestry bureau. In addition, the factory manager is a retired official from the forestry bureau and is very knowledgeable about buying the bamboo from local suppliers. They buy from suppliers who buy from the farmers. They choose to work with suppliers who pay premium prices in order to get top quality raw materials.

Since this is the company’s beginning involvement in the more formal aspects of the fair trade movement, there is virtually no formal knowledge of principles of fair trade among the factory personnel below the management level. The management themselves are just learning about the movement. However, they are already practicing many of the principles that directly impact workers and the environment. Mr. Wainman, in particular, is very interested in learning and growing in fair trade issues and applying them to his factory. Even during our visit he thought my suggestion to do money management training and establish saving groups among the workers was a good idea that he would want to implement.

So based on our conversations and observations at the factory site, we believe that the company has good fundamental fair trade practices. They are creating an opportunity for local farmers to generate income in a good work environment that is unique for private companies operating in remote countryside areas. There are very few people in China who are willing to invest so much to help countryside people. We have no trouble recommending Ecoffins for membership of the WFTO.

If you have any questions or need further information please feel free to contact us. We are very happy to be a part of the development of Fair Trade in China.

Best Regards,

Don Lytton
Vice General Manager Danyun, Threads of Yunnan

Dear Sir or Madam:

I am Deputy Director of Tao Yuan County Chamber of Commerce in Hunan Province. I recently have been asked to visit Ecoffins in Tao Yuan County. Company is applying for membership of your World Fair Trade Organisation and asked me to supply a reference.

I visited the company for these two days on Tuesday 29th and Wednesday 30th November 2005, and I am glad to enlighten you the following:

1. The premises are in very good conditions. Every part of them are clean and tidy and in well ordering.
2. The company has been paying many attentions to safety. For examples, the electrical wires in the factory are all installed without any danger, there are many fire extinguisher appliances all around the buildings and the planing machine is full of safety features.
3. The company has all the correct Business Licenses which are needed by the Chinese Government and Bureaus. They are displayed on the wall of the office.
4. The coffins and funeral products (like urns and trestles) which the company makes are all made from bamboo except for a few which are made from fast growing pine. All the material is bought in local area and from Chinese Government Licensed croppers.
5. The company is respecting of the environment. Most of the work done by the craftsmen is done by their own hands. They use almost every part of the bamboo materials to make their products. There are only two parts which are unable to use on the coffins they manufacture. One of these (the inside part) is used for making woven boards which is sold locally. And the other is used for burning to heat the drying rooms.
6. The company has a computer room which everyone can use when they likes. The computer has links to Broadband.
7. The company had 25 men and 7 women working there when I visited. The Manager Mr Yang Xin Ping allowed me to talk freely to all these people and ask them whatever questions I wished. Most of the time I stayed at the company was with speaking to them.
8. All the craftsmen and others who work at the factory are very happy with their jobs. They can earn over 50% more than in other employments in the area and they are also allowed to take time away to look after their farms (planting and cutting crops), so they can gain some more incomes from those as well. If this factory was not there, the craftsmen told me they would have to either work at their farms or somewhere else, but not both. So their incomes are even higher this way.
9. I could see evidences that the craftsmen’s incomes are relatively high because they had motorbikes and mobile phones and quite high branded cigarettes.
10. None of the people working at the factory was a child. I estimate that every person was over twenty years old.
11. Some of the people working had some disabilities like hunching of back and deafness, but they are still able to work happily in their jobs. Everyone in the company respects and cares for them.
12. The company pays for health insurance for every person in the company.
13. The company supplies three meals every day for every person in the company.
14. Every person in the company is paid at least once a month. At the moment it is more often than this because they are paid every time a container leaves (every three weeks).
15. Most of the employees are paid by piece work for the amount of products they make for every container, but some like the cooks are paid for the hours they work. Everyone I spoke to said they were consulted about this system and are satisfied with it.
16. The company has a meeting every two weeks when all the employees can attend and say their ideas or points of view. They are listened to attentively and also told about the company plans for the future.
17. Mr Yang, the factory Manager allows the premises to be used by people in the local village for their own meetings after the working hours in evenings.
18. I spoke to some people outside the company and it seems a good reputation is known to all of them.

After finding out all these findings I am pleased to tell that Ecoffins is a very unique company in this area and recommend it for membership of your World Fair Trade Organisation. If you have any questions for me please contact me and I will try my best to help.

Yours Sincerely,

Mr Xiang Zhen Jin
Vice Director
Tao Yuan County Chamber of Commerce
Tao Yuan
Hunan Province
PR China