Both FLO and the WFTO acknowledge different types of disadvantaged producers. The World Fair Trade Organization sets standards to smallholders that are working together in co-operatives or other organizations within a democratic structure. FLO applies standards to workers, whose employers pay decent wages, guarantee the right to join trade unions, ensure health and safety standards and provide adequate housing where relevant.
Fair Trade standards also cover terms of trade. Most products have a Fair Trade price, which is the minimum that must be paid to the producers. In addition producers get an additional sum, the Fair Trade premium, to invest in their communities.
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