It's About More Than Fair Wages

Often when people ask me about Fair Trade I tell them that in simple terms it means that the artisan or producer who makes a good is paid a fair wage for his or her work. Like most things in life, however, it is not that simple. Fair Trade means a lot more than just fair wages and can include such factors as paying 50% upfront when placing an order, engaging in long term relationships, ensuring the health and safety of the workers, preserving or even improving the environment, and the like. (See the Fair Trade Federation for more specific information.)

This is an important distinction because when you speak only about wages, people start asking questions like: "How much to the artisans or producers get?" or "What percentage of the sale price do they get?" This is not at all where the focus should be. If I import a product for $5 and sell it wholesale for $15 then I could say that the artisan got it 1/3 and you might think that doesn't sound fair because I got 2/3. What this doesn't tell you though is anything about the additional costs to get the item here like shipping, duties/fees, etc. or anything about the relative amount the artisan got based on her cost of living or market conditions. Five dollars in a village in Africa is no doubt more valuable than $10 (less shipping, duties etc.) in New York City. Further, this number can also be misleading because I might sell the item at retail for $30 in which case I would get 5/6 and the artisan would get only 1/6 or I might not be able to sell it at all in which case the artisan got 100%! The bottom line is that it's not about what percentage the artisan gets, it's about the relationship between the artisan and the buyer and whether the terms of that relationship are fair and respectful.

Next time you see something with a fair trade logo think about the fact that the person was paid upfront, that they likely have a long term relationship with the buyer, that their working conditions are safe and don't exploit children, that production was not damaging to the environment, and feel good about supporting both that artisan and the company that is taking the time--and spending the extra money--to source goods in a way that truly is fair to all.