Dear Friends,

Greetings from CORR-The Jute Works!

CJW has opted to embrace a challange, but for a better cause. In the last Board meeting of CORR-The Jute Works held on 25 April 2008, it has been decided to enhance the hourly wage of the CORR producers from previously 9 Taka per hour to 13 Taka per hour, which will come into effect from 1 July 2008. In US$ it is Taka 13 x 8 hours = Tk. 104 per day means US$. 1.53 per day. Previously it was US$. 1.06 per day (in both terms calculated on 8 hours a day basis). This is substantial (almost 45%) in our terms and also in comparison with our national wage (although there is no official national wage guide for crafts or similar sectors).
It was a desperate move from our part and thanks to our Board for moving the resolution. Bangladesh economy is hard hit by inflation and soaring price of every single commodity. From previous year point to point general inflation is over 13% and inflation on food price stands over 15% compared to the price index of the same commodity at this period last year. The situation has worsened after two consecutive floods last year followed by super cyclone SIDR. The country is yet to come in terms after such magnitude of catasthrope. But as usual, Bangladeshi people are always resiliant and has a tremendous fighting spirit with the hope that things will come better one day.
In spite of all odds, we wanted to give the maximum to our producers as they are the most hard hit. As a Fair Trade Organizaiton, we need to strech our efforts to do something tangible, no matter how small and big it is. We have also been hard hit by the surging price of all the raw materials over the last few years, but we took tremendous effort by hugely improving our Internal Control System(s) to be able to keep the FOB at the same level. But this year only such efforts won't suffice, and we anticipate increase of FOB of all the products of CJW from July 2008 onwards. We know that by substantially raising the wages of our producers, we have taken a big challange. But we have done it willingly and we will do everything possible to stream up our efforts. Many of you are trading with CORR-The Jute Works for years and decades. We value such partnerships and we have very much complemented each others effort in bringing about change in the life of the producers and I must admit we also have wonderful and inspiring stories. We have stared working on revising our FOB that will come into effect from 1 July 2008. However, we assure you that we will try to be as prudent as possible as we are also aware of 'market pressure'. Those who already ordered goods to be shipped beyond July 2008 and received proforma invoice from us, won't have to be worried for "goods already ordered". But if you are working on new orders, we kindly request you to check the new FOB before placing your orders.Dear friends, we have so little difference and too many commonalities - our dream and aspirations travel on the same wave length and we work on common causes. We all want to profit from our work but such profit is the logical sequence of our work - not the sole intention.
I stand available for any clarificaitons and/or suggestions if there is any.
Rest assured that we will continue to do our best to satisfy the needs of the buyer's. We will accept appreciation with deep heart and correct/change ourselves from the mistakes.

Michael B. Gomes
Director CORR-The Jute Works
Bangladesh