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Abstract:

This study evaluates the impact of implementing FAIRTRADE standards on the quality

of working life for workers in the banana sector. The research proposes strategies to

optimize the distribution of the FAIRTRADE premium among company employees. In-

depth interviews were conducted with a sample of 196 families in the province of Los

Ríos who participated in the pre-certification process and the subsequent

Although its scope remains limited compared to conventional trade, to optimize the fair

trade premium received by banana companies, strategies must be implemented to

reduce wage disparities between administrative staff and field workers.

Keywords: fair trade, quality of life, partners, bananas.

Fair trade is an alternative model of economic exchange designed to address

inequalities in global trade by promoting stable minimum prices, gender equality, non-

exploitation of labor, environmental responsibility, and democratic participation within

developing countries by guaranteeing fairer prices and improving the livelihoods of

farmers and workers in marginalized territories (Salim et al., 2025). It also facilitates

access to international markets, encourages sustainable practices, and supports fairer

conditions of exchange (Sarmiento et al., 2025).

For a company to be recognized as fair trade, it must comply with standards

among actors in agri-food chains and provide equitable trading conditions. However,

the cost and complexity of certification may become barriers when technical support is

insufficient (Armijos et al., 2022). In Latin America, fair trade has been associated with

equitable, transparent, and environmentally responsible relationships, although

structural constraints remain, including certification costs, limited participation of small

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growing number of export companies adopting fair trade certification reflects an

The standards governing certified production are defined by internationally recognized

(Jodrell & Kaoukji, 2020). Through these mechanisms, certified organizations can

access a social premium that may be invested in infrastructure, health, education, and

other collective improvements, thereby reinforcing local equity and promoting inclusive

sustainability. The success of these initiatives depends on government support,

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Banana (Musa spp.) is one of the most important agricultural commodities worldwide.

profitability, and quality of life, especially among organizations of small producers. A

positive association has been reported between fair trade certification and monthly

income, as well as a greater probability of reporting profits and satisfaction with income,

Given that a counterfactual is crucial for evaluating the impact of a project, the following

banana plantations after the implementation of the Fairtrade standard? The study

covers the period from 2018 to 2024 and is based on in-depth interviews conducted

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plantations. This form allowed the data from eight variables to be organized and

Table 1

The data obtained were tabulated and statistically analyzed using the mean grouping

procedure proposed by Scott-Knott (1974, as cited in Bhering et al., 2008).

Subsequently, the propensity score (Wooldridge, 2010) was estimated, which is the

probability that each contributor will benefit from the Fairtrade standard.

is the treatment group, which participates in fair trade; and

is

the control group, which does not participate in fair trade. To estimate PS, a probit

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model was used, with the set of covariates X, which explain, albeit partially, a possible

non-random distribution of banana workers who have Fairtrade certification:

indicator for the group of beneficiaries participating in Fairtrade and Y (0) refers to each

working conditions indicator for the group of beneficiaries not participating in Fairtrade.

To estimate the impact of Fairtrade on working conditions, Stata 15 statistical software

was used, employing the “teffects psmatch” command and nearest neighbor matching

as the matching estimator, without replacement. According to Caliendo and Kopeinig

(2008), this is the simplest estimator when comparing observations with the nearest

neighbor.

The distribution of plantation employees by gender shows a significant difference, as

the inclusion of the average number of women hired increases from 9.7 to 22.3.

Although this inclusion is favorable, it should be noted that work on banana plantations

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involves long hours, which during harvest and post-harvest periods can exceed twelve

The average level of education among employees increased from 5.7 to 5.8 following

through training courses and workshops on topics such as production, the

environment, organization, and occupational health and safety, among others (Solano

et al., 2023).

The average number of years of experience of the groups with and without fair trade

increase in the average from 43.6% to 71.8% with Fairtrade and without Fairtrade,

implementation of Fairtrade. This allows us to deduce that the degree of familiarity of

Overtime pay as an indicator of quality of working life showed a significant difference

between the two groups. Fair trade employees had an average result three times

higher, around 6.8 hours per month (Table 3). This result represents a labor

achievement, as studies such as those by Sánchez (2025) report that, despite its

economic importance, the banana sector in agriculture presents unequal conditions

and exposes workers to long hours, low wages, and risks. Women suffer a double

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burden of work and harassment, and attempts at unionization are suppressed,

Table 3

Table 3 shows a significant positive trend in scholarships and financial aid; in 2018, it

was sporadic, but since the implementation of the Fairtrade standard, it has reached

65.1% of beneficiary families. This company policy has an additional benefit, as

Cabrera and Jiménez (2025) found that scholarship recipients achieved better

Fairtrade, respectively. The rest of the average values of the wage covariates, as well

as the number of hours worked per week and the level of staff turnover, show positive

impacts but do not present statistically significant differences (Table 3).

Workers in the annual leave dimension indicator showed significant differences

between groups. For the group of employees with Fairtrade standards, the number of

vacation days almost tripled, reaching 14.9 days/year (Table 3). This result is

consistent with the Asamblea Nacional del Ecuador (2021), which establishes in the

Ecuadorian Labor Code that agricultural companies, like other companies, must grant

15 days of rest after one year of service, including non-working days. Workers who

have been employed for more than five years by the same company or employer are

entitled to an additional day of vacation for each additional year of service or to receive

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showed that Fairtrade implementation on banana farms had a positive impact with a

Table 4

scholarship programs promote interculturality and capacity building, but education

policies need to be strengthened to better adapt them to the cultural and linguistic

needs of rural students.

Of the five wage indicators, only those corresponding to administrative assistants, with

an average positive effect of $4,995 per year, and workers engaged in removing leaves

from banana plants, with $2,627 per year, were significant for the Fairtrade beneficiary

group (Table 4). This result should be extended to the rest of the field workers if banana

production per unit of labor is to be increased, considering the findings of Cock et al.

(2022) that agricultural labor productivity in low-income countries is lower than in high-

income countries. Most wage indicators (field supervisor, palletizer, bagger) and

los trabajadores bananeros, especialmente en beneficios educativos, participación

comunitaria, reducción de la jornada semanal, aumento de días de vacaciones y

mejoras salariales en determinados cargos. Este comportamiento coincide con Jodrell

& Kaoukji (2020), quienes sostienen que el comercio justo opera como un sistema de