What is Fair Trade Principle 4? Fair Payment
A fair price is one that has been mutually agreed by all through dialogue and participation which provides fair pay to the producers and can also be sustained by the market, taking into account equal pay for men and women and a Local Living Wage.
How do you know what is a Fair Price?
Fair Trade businesses work with their local Fair Trade organisation or the World Fair Trade Organisation, to help them determine what a fair price and living wage is in their market.
A fair price must adequately compensate the maker for the work they are doing, taking into account not just time, but the skill required to make the item. It should also take into account the cost of procuring supplies and any other costs involved in making the item, such as a premises to work or travel costs to deliver the item.
The price should also be fair in regards to what the product can reasonably be sold for. This is not about falsely inflating prices. It is about finding a fair price, that works for both the maker and the seller.
What is a Living Wage?
A living wage is a suitable amount of payment for work, that enables a worker to maintain a decent standard of living where they live.
Note that a living wage is often more than what may be described as a minimum wage. A minimum wage is usually the minimum amount an employer can legally pay someone for their work, usually stipulated by the government of that place. Minimum wages are not guaranteed to keep pace with the cost of living.
A living wage takes into account the basic costs of living in the place where the worker lives, such as food, clothing and shelter. The living wage aims to ensure they can adequately support themselves on that wage as a full-time worker.
All of the Good Things Supports Fair Trade
Our philosophy is first and foremost, to do no harm to people or the planet. Then we choose to do what we can to have a positive impact. That’s when we get the really good feels. Then we know we are nudging the dial towards a world full of optimism, joy and fun for everyone.
Our first choice is to source from Fair Trade suppliers wherever possible.