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FAIR PRICES FAIR WAGES

FAIR PRICES FAIR WAGES. PLENARY SESSION FOR WFTO EUROPE JUNE 24, 2014. My contribution. Quick summary of research What has EFTA done so far Relation EFTA - WFTO. WHY RESEARCH ON FAIR PRICES FAIR WAGES?. Crucial to fight poverty Key principle of Fair Trade

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FAIR PRICES FAIR WAGES

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  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

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