Coffee workers wages often match the minimum paid to any unskilled local worker. Generally unrelated to market prices, skillset, coffee volume or quality. Rarely enjoying a share profit, bonuses nor any business participation.
For several years I have worked alongside smallholder coffee farmers and I feel confident about the skills, knowledge, technology and marketing techniques they need to master in order to succeed. However recently I had the opportunity to spend several weeks in a washing station. Exclusively among coffee workers. I was amazed about how different both groups are.
Coffee labor vs smallholder farmers
Although coffee workers are sometimes smallholder farmers and vice versa. Often, sharing same skillset and working side by side at farms and washing stations. Smallholder farmers regardless all their struggles enjoy opportunities otherwise nonexistent for regular coffee workers.
Higher coffee prices only benefit smallholder farmers
While producers immediately perceive and welcome higher coffee prices. Coffee workers rarely notice any difference in their labor conditions. Their jobs are just a consequence of an unbalance between local offer and demand of unqualified labor.
Often workers get into coffee by accident, without previous experience, training or knowledge. Becoming eligible only due to their lack of skills, basic education and no better work alternatives.
Areas of widespread unemployment, need and scarcity are perfect grounds for coffee processing businesses to flourish. Due to a fixed global coffee market price, producers and processors have no way to transfer extra production cost to the final consumer. To keep prices low they usually sacrifice the weakest link in the supply chain. Coffee labor.
In contrast, areas and countries where social conditions, wages, labor law, technology and access to education are improving, the coffee industry struggles. Coffee workers have already migrated to main cities, or they are reluctant to keep working in coffee related businesses. This type of labor crisis is currently affecting Colombia, Brazil and some other Latin American countries.
SEE ALSO: The coffee price crisis explained in 5 minutes.
Slavery is relative
Modern slavery doesn’t affect smallholder farmers as much as it does to coffee workers. Recently Reuters foundation and Danwatch documented cases of modern slavery in Brazil at several Minas Gerais coffee farms.
Interestingly, some of the victims’ testimonies included the wages paid by the farms. One man said he use to make R$14= U$2.67 for picking a volume of coffee equivalent to almost a day of work. While a woman earned R$672=U$128.39 for 43 days (U$2.98/day), both salaries are equivalent to about U$3/day. At the end, the farm was indicted for slavery. For paying wages below the minimum by Brazilian law R$998 = U$190.67/month or U$6/day. However, if we compare those wages with the ones paid in Africa and Asia nowadays, suddenly, a slavery wage becomes competitive. Several countries, including DRC, Ethiopia, Burundi and Uganda, workers don’t make more than U$1/day while in South East Asia, it is about $3/day.
Surprisingly, under their law and social reality those salaries are just average, probably low but by no means slavery wages.
Bad job vs no job dilemma
The article also included testimonies of coffee workers who advocated in favor of the coffee farm. Rejecting legal intervention and arguing that besides the indicted coffee farms there were no other jobs available in the area. Some of the workers refused to identify themselves or cooperate with authorities to avoid rejection from potential jobs.
At the end, all major companies involved in the incident, including Starbucks, Illy, Dunking Donuts, Jacobs Douwe Egberts, McDonalds and Nestle, immediately stopped commercial relationships with the participating coffee farms.
Depending on how you see it. The case helped by freeing people from slavery or simply left behind thousands of unemployed coffee workers, in an are where there are no other job prospects and with low probabilities for that to change in the near future.
A better skillset does not necessarily improve coffee workers’ lives
While smallholder coffee farmers benefit greatly from education and skill development which translates into yield, quality and profit. Coffee workers, nonetheless receive nothing but a fixed daily salary. They rarely receive incentives to improve their work. Such low wages are a good excuse to leve the industry as soon as a better alternative comes along.
Although, coffee is more popular than ever and for many of us it is trendy and cool. The reality for most coffee workers around the world. Coffee still represents an undignifying way of life, they would rather avoid or escape from.
If we don’t find ways to make the industry more appealing to potential workers. Sharing some of the production and profits. Labor issues and slavery are just going to get worse.
SEE ALSO: How can we help smallholder coffee farmers?
How can we help coffee workers?
Buy coffees where technical skills and complexity were necessary, for instance coffees from specific coffee varieties, micro-lots, distinctive processing methods. (honey, naturals, carbonic, anaerobic, etc.)
Technical coffee farming and processing are key to allow coffee workers and producers the opportunity to add value. Workers with the necessary skillset will be more competitive, enjoying better and new opportunities. A better income will dignify coffee jobs and incentivize more people to participate and learn about the industry.