Fairtrade and living wages for workers
Fairtrade’s ambition is that workers have the power to improve their own livelihoods and negotiate their wages and terms of work. That’s why living wages are a fundamental aspect of our strategy.
Workers at farms, factories and plantations are among the most vulnerable people in global trade. Without access to land or unable to make a living from it, they often have few options for a sustainable livelihood. These workers often lack formal contracts, freedom of association, basic health and safety assurances, and adequate wages, among other challenges. And often do not earn a living wage.
What is a living wage? It is a wage that covers the basic needs of workers and their families, including food, clothing, shelter, healthcare, education, transport to work and a little extra for unforeseen circumstances.
At Fairtrade we work to address this gap, going beyond our standards.
Fairtrade's approach to achieving living wages
-
Better prices
-
Setting floor wages
-
Value addition
-
Efficiency and productivity
-
Market access
-
Fairtrade Premium investments
-
Advocacy and policy change
-
Collaboration
-
Consumer awareness
“For Fairtrade it is essential that living wages are recognised as a human right and a normal cost of doing business.
Fairtrade urges retailers and traders to commit to fair prices, to ensure consistency between their sustainability pledges and sourcing practices.”
Wilbert Flinterman
Senior Advisor Workers’ Rights and Trade Union Relations at Fairtrade International.
The Anker Methodology to estimate living wages
Fairtrade uses the Anker Methodology to calculate living wages based on regional living costs, taking into account essential goods and services required to maintain a decent standard of living. The methodology ensures precise and context-specific wage benchmarks, allowing workers to afford necessities like food, housing, education, healthcare, transportation, clothing and savings for unforeseen circumstances.
Find out more
Choosing Fairtrade means supporting workers’ rights to a decent income, and putting more money directly in the hands of workers themselves.