Research on Living Wage and the WFTO Fair Payment Process
The World Fair Trade Organization (WFTO) and the mission-led enterprises that make up its membership have embarked on a new stage in their commitment to delivering a Living Wage and a Fair Price to workers and producers around the world. WFTO Members have developed a calculation tool for determining a Local Living Wage, which can be applied in every country, for every product and in every sector. This tool is part of WFTO’s Fair Payment Process, which is used by WFTO members to ensure accurate and reliable Living Wages for producers, workers and artisans within poor and marginalised communities working for or with them.
The Fair Payment Process is key in the WFTO model of Fair Trade for helping poor and marginalised communities towards sustainable development in accordance with our vision for an economy that works for people and planet, rather than for profit. We have commissioned a research for looking into the way in which the Fair Payment Process contributes to the United Nations’ Sustainable Development Goals (SDGs) for Agenda 2030. The main findings have been that the Fair Payment Process contributes primarily to SDG #8 (decent working conditions and economic growth) but also significantly to SDGs #1 (end poverty) and #12 (responsible consumption and production patterns). Above you will see a brief animation laying out the Fair Payment Process and how it works in a simple manner. Below you will see a link to the full report with the findings of the research.