U.S. Organic Company's Sewing Cooperative Affiliate Forms World's 1st Worker-Owned Free T

U.S. Organic Company's Nicaraguan Sewing Cooperative Affiliate Forms World's First Worker-Owned Free Trade Zone; Deal Paves Way for Spike in Jobs and Sales in U.S. and Nicaragua

12/21/2004 10:20:00 AM

To: National and International Desks, Business Reporter

Contact: Sandra Marquardt, 202-478-6311 or smarquardt [at] mrss.com, for Maggies Organics

YPSILANTI, Mich., Dec. 21 /U.S. Newswire/ -- Maggie's Organics today announced that the Nicaraguan government recently granted free trade zone status to the Nicaraguan cooperative that sews its organic cotton apparel. The cooperative, Cooperativa Maquiladora Mujeres ("Women's Sewing Shop"), is the first worker-owned business in the world to receive this classification.

This new free trade zone status enables the sewing cooperative to compete on equal footing with traditional "sweatshops." As a result, the cooperative will receive the same tax breaks, duty- free import status, and reduced utility rates as their foreign- owned sewing plant competitors. To operate more effectively in the free trade zone, the cooperative has formed a new company, the "Fair Trade Zone/Zona de Comercio Justo," which is wholly owned and operated by the co-op's members.

"This designation paves the way for the cooperative to grow dramatically with both Maggie's Organics and other companies, and also be a more efficient operation," said Bena Burda, President of Maggie's Organics. "It will dramatically increase our access to both raw materials and finished garments, enabling us to double our sales of current items and develop an entirely new line of organic cotton products."

"The free trade zone designation should triple the cooperative's sales and the number of its worker-owners," said Yadira Vallejos, President, Cooperativa Maquiladora Mujeres, whose members earn more than three times the annual per capital income in Nicaragua.

The sewing cooperative is unique because it provides fair compensation for all workers and safe working conditions. In addition, it allows its 47 worker/owners to run their own business and share its profits. Traditional Nicaraguan sewing shops, like many other sewing shops in developing countries, have long been accused of inadequate labor conditions, excessive hours and low pay.

After losing several U.S. suppliers to bankruptcy in the 1990's, Ms. Burda was forced to look offshore for sewing contractors. Seeking a production facility that was not a sweatshop, she chose to invest in a long-term solution with a group of women who had been displaced by Hurricane Mitch. Ms. Burda partnered with the Jubilee House, a non-profit organization based in Nueva Vida, Nicaragua, and the Cooperativa Maquiladora Mujeres was created in 1999. The cooperative has been sewing for Maggie's Organics since 2000.

Cooperativa Maquiladora Mujeres now sews all of Maggie's Organics organic cotton apparel (camisoles, T-shirts and criss- cross tops), made exclusively from certified organic cotton. Organic cotton is cotton grown without the use of toxic and persistent pesticides and synthetic fertilizers.

In addition to its apparel lines, Maggie's Organics makes organic cotton socks (U.S.) and tights (Peru). Maggie's uses organic cotton, organic wool, hemp and linen. All workers are fairly compensated.

See http://www.maggiesorganics.com or http://www.fairtradezone.jhc-cdca.org.

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/© 2004 U.S. Newswire 202-347-2770/