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Case Study

East Africa Flower Industry

The information contained in this case study has been supplied by Fairtrade International

Project Name

Living Wage for East African Flowers

Project Summary

This programme aims to promote Living Wages for workers in flowers and plants by producing research on living wage and wage setting in Ethiopia and Kenya. The programme aims to build awareness regarding wage issues, mutual trust required for collaboration and acceptance of the need for Living Wage among supply chain actors. As part of the programme new instruments have been created to drive change, including a Floor Wage for workers in floriculture.

Project Partners

  • Fairtrade International
  • HIVOS
  • Fair Flowers Fair Plants

Technical support

  • Martha and Richard Anker
  • Ergon Associates
  • True Price

Funding Support

  • IDH

Project Goal

To promote Living Wages in the production of East African flowers and plants.

Project Progress/Results

The initial outcome of the living wage benchmark studies were discussed with several local stakeholders and in roundtable discussions.

The wage structure analyses and Living Wage benchmarks will serve as a basis for further discussion on how to work towards improved wages for the workers in the horticulture sector.

In 2017 GLWC member Fairtrade International introduced in its standard a Floor Wage for floriculture that seeks to address wage levels set below international poverty lines due to the absence of a legal minimum wages and other factors. Fairtrade has applied the World Bank absolute poverty line of US$ 1.90 corrected for purchasing power parity, related to typical family size and number of wage earners to create a minimum requirement for base wages. The Floor Wage for floriculture is approximately 80% higher than current entry-level base wages in Ethiopia (1500 vs. 800 Birr). Fairtrade allows a transition period for already certified plantations of 2 years, whereby 85% of the floor needs to be reached after year 1. The Floor Wage is also meant to help level the playing field between Ethiopian and Kenyan producers, the latter having to comply with minimum wage laws and CBA rates.

Relevant Living Wage Benchmarks:

  • Living Wage for Mount Kenya, Kenya (Rural) UNDER REVIEW
  • Living Wage for Lake Naivasha, Kenya
  • Living Wage for Ziway Region, Ethiopia

Key Progress:

  • The initial outcome of the living wage benchmark studies were discussed with numerous local stakeholders and in roundtable discussions.
  • The Floor Wage for floriculture was discussed in a formal consultation process with producers, traders and retailers.
  • The wage structure analyses and wage benchmark will serve as a basis for further discussion on how to work towards improved wages for the workers in the horticulture sector.
  • Flower farms in 4 East African countries have agreed to raise wages (>40,000s of workers) when lower than the new Fairtrade Floor Wage.
  • Field research for 3 living wage benchmark studies took place (Ethiopia, Kenya – semi-urban and rural).
  • 1 publication in which the business case for a living wage and True Price rose is explored from the grower and retailer perspective.
  • 3 wage studies into wage setting processes, industry and employment contexts were conducted (Ethiopia, Kenya and Tanzania).
  • Meetings with certified producers and civil society organisations were organised in Ethiopia and Kenya. 2 Roundtables “Blooming Conversation on Responsible Business” organized in Kenya & Ethiopia.

For More Information:

  • Wilbert Flinterman, Fairtrade International

Related Resources

  • Living Wage

    Living Wage for Ziway Region, Ethiopia

    Region: Non-Metropolitan Urban Ethiopia
    Industry: Floriculture
  • Living Wage

    Living Wage for Lake Naivasha, Kenya

    Region: Non-Metropolitan Urban Kenya
    Industry: Floriculture
  • Living Wage

    Living Wage for Mount Kenya, Kenya (Rural) UNDER REVIEW

    Region: The values on this page and in the full benchmark report are under review.
    Industry: Floriculture
  • External Resource

    Attaining living wages in international supply chains Living wages in the cut-flower sector in East-Africa

    Country: Kenya
    Industry: Floriculture
  • External Resource

    Floriculture Sustainability Initiative Key Topic Paper: Living Wage

    Country: Ethiopia, Kenya
    Industry: Floriculture
  • External Resource

    Towards a Living Wage

    Country: Ethiopia, Kenya
    Industry: Floriculture

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