Through Fairtrade, people in developing countries get a better chance at competing on the international markets, with better conditions and long term commercial agreements. International Fairtrade criteria ensures that employees receive contractual wages and improved work environments.
Employees also receive a Fairtrade premium. It is used to develop local communities both socially and economically, for example by investing in a new school, a project for cleaner water or better health care. The employees and factory management make a mutual and democratic decision about what the Fairtrade premium is to be used for, and it cannot be used for things that the factory is supposed to fund related to the production.
But Fairtrade is not only about improving the workers’ economical situations. The criteria also oppose child labor and discrimination, while promoting democracy, the right to organize and environmental considerations in production.