1 / 20

Fair Prices, Fair Wages: Key Research Findings and Recommendations

Explore the significance of fair prices and wages in Fair Trade. Learn about EFTA's assessments, challenges, and implementation strategies. Discover ways for buyers and suppliers to support fair wages and the resolution for future actions. Contact EFTA for more information.

whatfield
Download Presentation

Fair Prices, Fair Wages: Key Research Findings and Recommendations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FAIR PRICES FAIR WAGES PLENARY SESSION FOR WFTO EUROPE JUNE 24, 2014

  2. My contribution • Quick summary of research • What has EFTA done so far • Relation EFTA - WFTO

  3. WHY RESEARCH ON FAIR PRICES FAIR WAGES? • Crucial to fight poverty • Key principle of Fair Trade • Consumer expectations are living wages • Outcome EFTA assessments • Lack of clear definition • Credibility of Fair Trade

  4. CONCLUSIONS DEFINITION LIVING / FAIR WAGE • Not re-invent the wheel • There is no single definition or benchmark • Use other benchmarks • Workers, artisans and farmers must be consulted • Step by step approach

  5. WHAT DO ARTISANS RECEIVE CURRENTLY? • At or around local statutory minimum wage • Several sources of income needed • Regular orders needed

  6. IMPACT OF FAIR WAGE ON PRICES • Lower than expected • Avoid escalation of price up value chain • Improve efficiency • Improve productivity • Transparent costing and pricing

  7. CHALLENGES TO IMPLEMENTATION • Impact on prices • Commercial sustainability • How to avoid excluding poor informal workers

  8. HOW TO IMPLEMENT FAIR WAGES? • Formalise policies • Commitment • Transparent and objective price-setting • Consultation artisans • Regular monitoring • Agreed plan for improvement

  9. WHAT CAN BUYERS IN THE NORTH DO? • Capacity building • Control internal costs • Reduce value chain costs • Minimize price escalation from VAT and other • Increase efficiency • Identify mainstream markets

  10. WHAT CAN SUPPLIERS IN THE SOUTH DO? • Recognize importance • Adopt recommendations of research • Consult artisans

  11. RESOLUTION FOR AGM • Priority for coming years • Set up working group • Priority for regional bodies and conferences • Report to next biennial conference

  12. WHAT HAVE EFTA AND ITS MEMBERS DONE SO FAR

  13. EFTA ASSESSMENT ‘TRAFFIC LIGHTS” CLARIFIED Green – the organisation meets the standard = pays a living wage to all producers for all products they make Yellow – the organisation largely meets the standard - there are some minor gaps = minimum wage Orange - there are some major gaps = below minimum wage Red - the organisation does not meet the standard and has no willingness to change

  14. EFTA’s TOOL ON LIVING WAGE • Used tool based on SA 8000 • Adopted simplified tool of DAWS • EFTA would prefer target of 2.300 calories instead of 2.100 calories

  15. EFTA’s TOOL ON COST CALCULATION • EFTA usescostcalculation sheet forsuppliers to calculatewhat producers earn • Workingon questionnaire re extra paymentslike pension, transport allowanceetc

  16. EFTA MEMBER’s WORK • Various EFTA members do survey (Gepa, EZA, Tc) • Members share experiences • Consultant was invited • Managers and buyers of members are encouraged

  17. EFTA’s POLICY • Living wage is the aim • Step by step approach • Focus on how to support producers and exporters to achieve living wages • Temporary until WFTO has clear tools

  18. RELATION EFTA – WFTO ON FAIR PRICES FAIR WAGES • Welcomes WFTO WG • Member of EFTA Monitoring Group is in WFTO Group • Willing to share all experience, expertise, tools • Intends to adopt WFTO System when ready

  19. EXPECTATIONS RE WFTO • Clear definition • Common tools • Database minimum wages and living wages

  20. Thank you for your attention! EFTA efta@antenna.nl Tel: 0031 43 4591504

More Related