How Do The Women Get Paid?

One of the questions we get asked most often is, “How do the women get paid?” When we hear that over and over, we know that we have thoughtful, values-driven customers looking at us, people that care about people. Since October is Fair Trade month, we thought it would be a great time to answer this question on the blog. 

We began working with a group of Mam women in Cajolá, Guatemala in 2008 and started by organizing the cooperative. We recently wrote about the journey here. Rather than simply purchasing the products from the women to sell in North America, the long term plan was to help them create and run their own sustainable business. We have worked with them for the past 17 years on a wide range of skills that include literacy, weaving, sewing and business acumen in order to achieve that goal. Through education and training, the women have developed the ability to take on leadership roles.

Mayamam Weavers in the U.S. markets the products made by the Maya Mam Weaving Cooperative, on a business to business basis. Here in the U.S. we purchase and pay for the products we buy from the cooperative, then sell them to wholesalers and consumers in the U.S and Canada. In Guatemala, the cooperative has been working to develop that market, selling to wholesalers and consumers, as well as doing custom weaving for designers and other cooperatives.

Within the cooperative, the women pay themselves based on the work that they complete. The rate of pay is calculated based on the average productivity at an hourly rate. The rate is calculated based on Cajola’s wages, using construction labor as an “unskilled amount” and teachers wages as a “fully skilled” wage. The basic wage rate in the cooperative is about 60% higher than unskilled labor. The highest wage rate is about 90% higher than construction, and comparable to teacher salaries. When the women work as coordinators -- for quality control, production, or sales & marketing --  they earn at that higher hourly rate. The foot loom, backstrap weavers and the seamstresses are paid for the work that they complete. The cooperative has developed flexible work rules so that the women can fulfill their family responsibilities while maintaining a commitment to work. 

A few years ago, when some women with secondary education entered the cooperative, they were able to help the other members ask questions and understand the answers about how their pay was calculated. Then, they learned how to do time studies of their work and in turn have adjusted some of their rates. Of course along with adjusting the rates to be paid, they had to  understand how the cost of products impacts the pricing and the profit margin. 

We believe that part of the secret to their success lies in all of the members working together in one location. Many artisans in Guatemala work from their homes and the cooperatives they form allow them to market products together and purchase supplies. Because the Maya Mam Weavers cooperative started off all working in one location, they were able to develop and easily share their skills, creative ideas, and areas of expertise to form a team. And that's where the magic lies, in realizing that we are better together. 

At the heart of our business are the 9 Fair Trade principles that we have committed to follow which include paying promptly and fairly. Being a member of the Fair Trade Federation, our community can feel confident knowing that we are verified by a third party. Historically, “fair trade” has been when companies from the global north purchase crafts and products from producers in developing countries who are socially and economically marginalized for a fair price to sell in a market that can handle higher prices. In our case, we are providing the market but they are running their own business and setting their own prices. 

Being transparent about the business is also an important aspect of fair trade which includes relationships with producers as well as customers and that's why we are sharing how the women get paid. We get so excited to see people out there in the world shopping their values, purchasing with intention. That’s something to celebrate!