Alta Gracia Apparel: Making Ethical Apparel Production Real
Worker Rights Consortium (WRC) February 4, 2011
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Alta Gracia Apparel: Making History A garment factory in Villa
Alta Gracia in the Dominican Republic. A garment factory in Villa
Alta Gracia in the Dominican Republic. The first ever union, living
wage export apparel factory in the Global South. The first ever
union, living wage export apparel factory in the Global South. The
sole supplier of Alta Gracia-branded clothing to leading collegiate
apparel maker Knights Apparel. The sole supplier of Alta
Gracia-branded clothing to leading collegiate apparel maker Knights
Apparel. The worlds only garment factory with working conditions
and living wages publicly verified by an independent labor rights
monitor the WRC. The worlds only garment factory with working
conditions and living wages publicly verified by an independent
labor rights monitor the WRC. A producer of high-quality
competitively-priced t-shirts and hoodies for the collegiate,
promotional and non- profit market. A producer of high-quality
competitively-priced t-shirts and hoodies for the collegiate,
promotional and non- profit market.
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The WRC and its Role at Alta Gracia Worked closely with Knights
Apparel and Dominican unions and NGOs on project concept and
startup. Worked closely with Knights Apparel and Dominican unions
and NGOs on project concept and startup. Calculated a living wage
for garment workers in the Dominican Republic using market basket
research. Calculated a living wage for garment workers in the
Dominican Republic using market basket research. Conducts ongoing
monitoring of Alta Gracias labor compliance in consultation with
local stakeholders. Conducts ongoing monitoring of Alta Gracias
labor compliance in consultation with local stakeholders.
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The Alta Gracia Commitment: Above and Beyond Knights Apparel
commits to: Knights Apparel commits to: Year-round employment of
workers at a living wage and factory compliance with all applicable
labor standards. Year-round employment of workers at a living wage
and factory compliance with all applicable labor standards.
Respecting the right to unionize and bargain collectively.
Respecting the right to unionize and bargain collectively.
Maintaining world-class health and safety standards. Maintaining
world-class health and safety standards. Providing full access to
factory by the union and the WRC. Providing full access to factory
by the union and the WRC. WRC commits to monitor and verify
factorys labor compliance for universities and students. WRC
commits to monitor and verify factorys labor compliance for
universities and students. Dominican Free Trade Zone Workers Union
commits to help provide labor rights training to workers and
respect their decision on unionization of factory. Dominican Free
Trade Zone Workers Union commits to help provide labor rights
training to workers and respect their decision on unionization of
factory.
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The Living Wage Commitment All Alta Gracia workers receive
Living Wage as minimum pay for regular working hours. All Alta
Gracia workers receive Living Wage as minimum pay for regular
working hours. Alta Gracia Living Wage: Alta Gracia Living
Wage:US$759/month. Prevailing wages in Dominican free trade zones:
US$216/month. Prevailing wages in Dominican free trade zones:
US$216/month. AFW Cambodia AFW Cambodia US$ 274/ month US$ 274/
month (36% of the Alta Gracia (36% of the Alta Gracia Living wage)
Living wage) Living Wage is calculated using market basket of
goods: Living Wage is calculated using market basket of goods: Food
and water Food and water Transportation Transportation Childcare
Childcare Housing Housing Clothing Clothing Healthcare Healthcare
Education Education Savings and discretionary spending Savings and
discretionary spending
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What Living Wage Means for Alta Gracia Workers
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Alta Gracia Apparel: Making History Before Alta Gracia I worked
to be tired, without accomplishing anything. Work only allowed the
workers to live a day longer in the same conditions, without any
hope for improvement. Before Alta Gracia I worked to be tired,
without accomplishing anything. Work only allowed the workers to
live a day longer in the same conditions, without any hope for
improvement. Alta Gracias policies empower workers to have dreams,
set goals and make choices, providing a pathway out of poverty.
Alta Gracias policies empower workers to have dreams, set goals and
make choices, providing a pathway out of poverty.
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World Class Health and Safety Alta Gracia health and safety
program developed in cooperation with Berkeley-based Maquiladora
Health and Safety Support Network (MHSSN). Alta Gracia health and
safety program developed in cooperation with Berkeley-based
Maquiladora Health and Safety Support Network (MHSSN). MHSSN
consulted on Alta Gracias initial workplace design and has
conducted health and safety trainings for workers and managers.
MHSSN consulted on Alta Gracias initial workplace design and has
conducted health and safety trainings for workers and
managers.
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Business Model Produce premium garments and distribute through
a high value channel: University bookstores. Produce premium
garments and distribute through a high value channel: University
bookstores. Alta Gracia sell as similar price as competitors, like
Nike. Alta Gracia sell as similar price as competitors, like Nike.
It sells, but is it sustainable? It sells, but is it sustainable?
Based on Alta Gracia: Working with a Salario Digno. Georgetown
University research progress report
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Business Model - Benefits Employer of first resort, can attract
highly productive workforce. Employer of first resort, can attract
highly productive workforce. Reduced need for supervisors. Instead
of hovering over the workers, supervisors are problem solvers.
Reduced need for supervisors. Instead of hovering over the workers,
supervisors are problem solvers. Happy (and well-fed) workforce
make fewer mistakes cutting material waste Happy (and well-fed)
workforce make fewer mistakes cutting material waste
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Business Model - Challenges The productivity gains cannot
overcome the fact that the workers are paid three times the minimum
wage. The productivity gains cannot overcome the fact that the
workers are paid three times the minimum wage. Have not fully
penetrated the university bookstore market yet, and is still rely
on Knight's Apparel willingness to fill up with other orders with
smaller profit margins, bearing the losses. Have not fully
penetrated the university bookstore market yet, and is still rely
on Knight's Apparel willingness to fill up with other orders with
smaller profit margins, bearing the losses. Costs per minute is 14
US cents, compared to Sri Lankas 5 US cent per minute. Costs per
minute is 14 US cents, compared to Sri Lankas 5 US cent per minute.
High non-payroll costs (electricity) compared to neighboring
countries High non-payroll costs (electricity) compared to
neighboring countries Dominican Republic is isolated from other
countries in the supply chain Dominican Republic is isolated from
other countries in the supply chain
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Business Model - Potential When Alta Gracia is able to produce
and sell at full capacity through university bookstores, it will be
profitable for Knights Apparel despite they are paying a living
wage of 759 US$ per month. When Alta Gracia is able to produce and
sell at full capacity through university bookstores, it will be
profitable for Knights Apparel despite they are paying a living
wage of 759 US$ per month. The average price of Alta Gracia apparel
is US$ 25. The average price of Alta Gracia apparel is US$ 25.
Imagine what would be possible with the Cambodian Asian Floor Wage
of US$ 274 Imagine what would be possible with the Cambodian Asian
Floor Wage of US$ 274
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Alta Gracia Is Making Ethical Apparel Production Real Alta
Gracia shows ethical apparel manufacturing can change garment
workers lives. Like Knights Apparel, brands must make a real
commitment to lead no business as usual. Label but verify. The
place to measure the real impact is at the factory and in workers
lives. When buying t-shirts and hoodies, one choice makes a real
difference Alta Gracia.