Fair Trade Wages in a Local Context
Often wonder what actually constitutes a 'fair trade' wage? So do I , and I have been following well abive minum 'fair trade' standards since 1996. Shortly after I started I watched a acquaintence turn her company website into a quasi-fair trade site virtually overnight.
What was missing and what is usually missing from the majority of 'fair trade' sites, is any reference to the wage paid. The easy response to any reference to wages paid is that they are 'fair' in the local context. That could mean that if everyone else receives poor wages, you can bet that 'fair trade' wages will be close to the prevailing 'poor' wage.
This approach does not project or empower the workers. In a sense it is like wages are locked down, and as in a prison, have little room to move. Shouldn't the 'fair trade' marketing angle allow for a better return to the workers than the prevailing poverty wage? And If the wages were posted, wouldn't that be an easy way to really empower the workers by giving the consumers the ability to compare wages when they buy?
The 'Local Context' Wage
This oft abused term claims that there is an equivalent wage relative to the US dollar and US living standards. I just saw an article claim on Wikipedia that $.15 has $3 buying power in Guatamala!! I would be willing to wager anyone that this is not true. The same thing is said in Cambodia- It basically works like this- If you prefer sitting on the sidewalk eating cheap food out of a baggie, sharing a wood hut with scores of others, not being even acknowledged when you go to the hospital for treatment - then compare that to living in a 3 bedroom insulated house with running water and electricity, driving down to get the morning latte, .....you fill in the blanks. Simply put , the situations are not the same. You have the option of drinking out of the tap water- for them it is a very real risk.
So when you shop for 'fair trade' items, if you are satisfied with this term 'local context', you are basically disempowering those on the ground doing the work who have no real say in how their wages are set. That is because this term can be grossly misinterpreted. If 'fair trade' producers listed wages in actual dollar amounts, it would easy to compare, then at the very least the workers would be fairly represented and those who wanted the most of the purchase returned to the workers, would be able to do this. (Price of living differences between 'poor' countries could be factored if the difference is appreciable.) If 'fair trade' is going to be marketed as any commodity, then this information (like wages) must also be fairly traded.
A very average 900 SF 2 bedrm duplex with parking next to me in Cambodia rents for $1600. No you don't have to pay this much, but the less you pay, the less you get - A low rent $600-$750 apartment is about the same as in the Seattle area. The point is- there is no 'local context' . If they want a life anywhere close to ours, they have to pay for it- no matter where they are.
A Potential Solution? Wages should have an upward bias - above any preceived 'local context' arguments. Our goal should not be the norm.
TY
What was missing and what is usually missing from the majority of 'fair trade' sites, is any reference to the wage paid. The easy response to any reference to wages paid is that they are 'fair' in the local context. That could mean that if everyone else receives poor wages, you can bet that 'fair trade' wages will be close to the prevailing 'poor' wage.
This approach does not project or empower the workers. In a sense it is like wages are locked down, and as in a prison, have little room to move. Shouldn't the 'fair trade' marketing angle allow for a better return to the workers than the prevailing poverty wage? And If the wages were posted, wouldn't that be an easy way to really empower the workers by giving the consumers the ability to compare wages when they buy?
The 'Local Context' Wage
This oft abused term claims that there is an equivalent wage relative to the US dollar and US living standards. I just saw an article claim on Wikipedia that $.15 has $3 buying power in Guatamala!! I would be willing to wager anyone that this is not true. The same thing is said in Cambodia- It basically works like this- If you prefer sitting on the sidewalk eating cheap food out of a baggie, sharing a wood hut with scores of others, not being even acknowledged when you go to the hospital for treatment - then compare that to living in a 3 bedroom insulated house with running water and electricity, driving down to get the morning latte, .....you fill in the blanks. Simply put , the situations are not the same. You have the option of drinking out of the tap water- for them it is a very real risk.
So when you shop for 'fair trade' items, if you are satisfied with this term 'local context', you are basically disempowering those on the ground doing the work who have no real say in how their wages are set. That is because this term can be grossly misinterpreted. If 'fair trade' producers listed wages in actual dollar amounts, it would easy to compare, then at the very least the workers would be fairly represented and those who wanted the most of the purchase returned to the workers, would be able to do this. (Price of living differences between 'poor' countries could be factored if the difference is appreciable.) If 'fair trade' is going to be marketed as any commodity, then this information (like wages) must also be fairly traded.
A very average 900 SF 2 bedrm duplex with parking next to me in Cambodia rents for $1600. No you don't have to pay this much, but the less you pay, the less you get - A low rent $600-$750 apartment is about the same as in the Seattle area. The point is- there is no 'local context' . If they want a life anywhere close to ours, they have to pay for it- no matter where they are.
A Potential Solution? Wages should have an upward bias - above any preceived 'local context' arguments. Our goal should not be the norm.
TY
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