Living Wages for banana workers: when will workers see the difference?

By Wilbert Flinterman, Senior Advisor, Workers’ Rights and Trade Union Relations, Fairtrade International

Ten years ago, I would advocate for Living Wages in meetings with companies sourcing from producers in the Global South and hear back that the concept was too confusing and complicated to put into practice. The main argument in those days was that setting an ambition around Living Wages made little sense without a common definition and methodology. That was the main reason for the Global Living Wage Coalition to adopt and promote the Anker Living Wage Methodology, i.e. to defeat the argument that given the lack of a universally recognized method it was better for companies to stay put than to act.

Fast forward to March 2024. At the 4th Global Conference of the World Banana Forum that took place at the FAO in Rome, the president of a Latin American association of banana producers stated that no one at the conference was contesting the need for Living Wages. Despite a few remaining objections to Living Wage benchmarking, mostly on principle, the majority in the global banana industry have accepted the validity of Anker Methodology Benchmarks set for banana producing countries exporting into North American and European markets. Most of those Living Wage estimations were produced with financial and operational support from Fairtrade International, which was not by chance.

In the earliest discussions on Living Wages in the World Banana Forum, many moons ago, producer groups made clear that before moving towards Living Wages they required Living Wage benchmarks for all banana origins, to avoid that only a few countries with Living Wage benchmarks would be singled out thereby creating a competitive disadvantage. That brought Fairtrade to make sure all major banana exporting countries had Living Wage benchmarks. Obviously having Living Wage benchmarks for all banana producing countries is not completely levelling the field. Living Wages are set in local currency. On the other hand, banana is traded around the world in dollars and euros, and the costs of paying a Living Wage in dollars or euros greatly vary between countries because of differences in exchange rates. However, so do other costs, for instance regarding climate, productivity, and trade regulations.

“There was a general understanding at the recent meetings in Rome that Living Wages for workers on banana plantations must be realized based on shared responsibility in the supply chain.”

Nonetheless, there was a general understanding at the recent meetings in Rome that Living Wages for workers on banana plantations must be realized based on shared responsibility in the supply chain. Besides effective wage setting based on collective bargaining and adequate minimum wages, and in addition to managing productivity, payment of Living Wages at the bottom of supply chains relies on sustainable purchasing practices to manage costs of production. Many producers and retailers agreed that in that regard Fairtrade’s method of setting minimum prices based on costs of sustainable production should become mainstreamed in the industry. Several speakers also referred to Fairtrade’s new Living Wage Reference Prices as an opportunity for business to contribute to a Living Wage price differential that can be passed on to workers.

However, if I would describe all these efforts to someone not familiar with this work, they might wonder. Take Alessandro the hard-working pizza maker who sells his delicious product from a small shop across from the FAO building. He might say so what? Tell me, what has happened due to all that work? Has the financial situation for workers and their families improved in the meantime? When will workers who don’t earn a Living Wage see more money on their pay checks? I would probably tell him about the collective bargaining agreements in Colombia and Ghana, the income effect of Fairtrade Premium and bonus payments from pilots undertaken by retailers. Nevertheless, it is important to realize that it is not our activities that matter but their impact. I believe that after so many years, also thanks to the work of the Anker Research Institute, the global banana industry has all the tools and mechanisms it needs to bring about Living Wages for all in the banana sector. 

Wilbert with pizza maker Alessandro in Rome

“it is important to realize that it is not our activities that matter but their impact.”

Wilbert talking at the 4th Global Conference of the World Banana Forum, FAO in Rome 2024

“I believe that after so many years, also thanks to the work of the Anker Research Institute, the global banana industry has all the tools and mechanisms it needs to bring about Living Wages for all in the banana sector. “

Wlbert and Martha Anker at the 4th Global Conference of the World Banana Forum, FAO in Rome 2024