JournalTimes.com

Shiny and new in gem industry: Fair-trade jewels

BY MICHAEL BURKE
Journal Times | Posted: Saturday, May 10, 2008 12:00 am

RACINE - Last week's devastating cyclone in Burma was a natural catastrophe, but long before it struck, the Burmese government was delivering its own grim brand of reality.

Burma, also known as Myanmar, produces some of the world's most beautiful rubies, but human rights advocates know the human misery surrounding Burmese gems. They are trying to steer the world's gem buyers elsewhere, until Burma's military government changes its ways.

It is this type of situation that makes the concept of fair trade gems appealing to anyone who wants to shop ethically. Although there is not yet an accepted definition or certification for fair trade gems, the concept of fair trade gems is beginning to emerge. And one company is way out in front on the issue: Columbia Gem House and its subsidiary Trigem Designs.

"They're leader of the pack, the things they're doing and have done to put in place environmental and social standards, then require suppliers to abide by them," said Stephen D'Esposito, president of Earthworks.

Washington, D.C.-based Earthworks is an environmental, nongovernmental organization which focuses on the extractive sector. It also has social and human rights objectives.

In the absence of an official fair-trade certification for gems, Vancouver, Wash.-based Columbia Gem House has developed its own set of protocols.

"It's a self initiative," D'Esposito said. "And that's commendable."

There are many emerging efforts on both a large and small scale in the jewelry industry, such as the "No Dirty Gold" campaign which Earthworks is leading. The industry has traditionally been surrounded by sundry, sordid aspects, including repression, environmental contamination and degradation and inhumane working conditions.

Burma is a good example of the latter. According to Human Rights Watch, that government is notorious for decades of abuse.

Human Rights Watch reports on its Web site, "Burma's gem mines are ruled with an iron hand by military authorities and mining companies. Conditions are reported to be deplorable. Access to the mining tracks is strictly limited, especially to foreigners, but reports from nongovernmental groups suggest that land confiscation, extortion, forced labor, child labor, environmental pollution and unsafe working conditions for miners are rampant.

"The absence of health care and HIV prevention information and services has accelerated the spread of HIV/AIDS and drug resistant malaria and tuberculosis in mining areas."

'Mine to market'

Even the well-intentioned jeweler does not have an easy time finding gems that are unequivocally mined, cut and manufactured in ethical ways.

To accomplish that goal, Columbia Gem House is a vertically integrated company; it buys directly from the mine, controls the manufacturing and distribution all the way through.

Trigem Designs is Columbia's jewelry-manufacturing subsidiary.

The company calls it "mine to market" monitoring and/or control, said Judy Olsen, owner of Plumb Gold Ltd. The jewelry shop at 322 Main St. in Downtown is the only one in the area that carries Trigem's fair-trade gems.

So far, Olsen - whose other store is in Oconomowoc - only carries about 20 percent fair-trade gems from Trigem. However, she wants to expand that percentage.

"The more I read about it, the more (Store Manager Kathi Villarreal) and I have decided we want to do more with this," Olsen said.

Recently, she said, she informed a woman shopper that the tourmaline ring she was looking at had a fair-trade stone.

"She said, 'Is that like fair-trade coffee?' " Olsen said.

When told that it was, "She was thrilled, and she bought the ring."

Through Trigem, Plumb Gold also carries the Polar Bear Diamond which is mined, cut and polished in Canada and certified by its government. It's the polar opposite of blood diamonds, which support paramilitary groups. "There's absolutely no doubt this is a fair-trade diamond," Olsen said.

Villarreal added, "We have had people who would only buy those and felt relieved, actually."

Chilly reception

The driving force behind Columbia Gem House's fair-trade efforts has been company owner Eric Braunwart.

Trigem Design Sales Manager Patti Studer said Braunwart got a cold reception when he addressed an American Gem Trade Association conference about fair trade.

"When my boss stood up and talked about this, he didn't get cheers - he got a lot jeers," she said.

Studer explained, "I think there was just a lot of moans and groans due to the fact that it's a lot of work."

She added, "We're doing it because it's the right thing to do."

For all the extra effort and attention that fair-trade gems require, Studer and Olsen said they don't fetch much of a premium price - perhaps 1 to 2 percent extra.

But she acknowledged that fair trade can be a good way to distinguish their gems from the rest. Trigem is beginning to support stores like Plumb Gold with promotional materials.

Another benefit to the company, Studer said, is that fair treatment of workers earns loyalty. "That's the reason that we don't have theft and turnover" at Columbia Gem House's gem-cutting plant in China. "People will tell you that's a coveted job there."

"Fair-trade gems is a work in progress," Studer said. "Not everything we have is 100 percent fair trade." About 75 percent would be a good estimate. It's very difficult to trace (gems) back and have a full chain of custody in your grips."

Fair-trade gems

Here are some examples of gems that Columbia Gem House sells in its quest for fair trade principles.

Complete fair trade - These can be traced back to the mine where the company has a large impact on the mining itself:

* Malawi sapphire and ruby.

* Oregon opal.

* Mexican Fire Opal.

* Australian sapphire.

* Cortez pearl.

Protocols in place - These can be followed back to the rough broker who works with Columbia to try to ensure the company's fair trade principles are in place:

* Madeira (Brazilian) citrine.

* Grape garnet, India.

* Raja garnet, India and Africa.

* Mesa Verde peridot, Arizona.

Factory onward - no raw-materials agreement in place:

* Cambodia zircon.

* Russian diopside.

* African iolite.