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How Fair Trade works
Excerpts from www.transfair.ca (http://www.transfair.ca/en/fairtrade/standards/), Jan 2005
Standards for Producer Organizations
The following Fair Trade Certification criteria are shared by both cooperatives and plantations:
• Transparency
• Non-discrimination
• Export Capability
• Environmental Protection
• Community Development
The following Fair Trade Certification criteria are specific to plantations only:
• Management of the fair-trade bonus
An advisory committee should be formed and include workers, advisors and a management team
responsible for the Fair Trade bonus. The bonus should not be used to cover ongoing operating
expenses, but rather to improve working conditions.
• Forced labour & child labour
Forced labour and child labour of children of 15 years and under is prohibited. Child labour of
children over 15 should not prevent their having an education. They should not be doing work that
could risk their health.
• Freedom of association & collective agreements
Workers have a right to establish or join an independent union, elect their advisors and design their
own programs.
• Working conditions
Working conditions are equitable for all workers. Salaries should be equal or higher than the
regional average or than the minimum wage in effect. Health and safety measures should be
established in order to avoid work-related injuries.
The following Fair Trade Certified criteria are specific to cooperatives only:
• Democracy
Profits should be equally distributed among the groups of cultivators. All workers have a voice in
the decision-making process and in the group
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For more detailed information on small producer and hired labour standards specific to each product visit the international Fairtrade Label Organisation (FLO) at www.fairtrade.net (click on the logo).
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