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The Fairtrade Foundation has strongly denied accusations in The Times newspaper that its system is failing many tea workers in the Indian sub-continent.

The Times claimed that the premium paid by supermarket customers often did not reach the plantation workers, as stipulated by the Fairtrade organization.

Tom Heinemann, a Danish film-maker, was also quoted as saying that Fairtrade inspections can be manipulated because they are announced beforehand. Workers are warned not to be critical on pain of losing their jobs, he said.

Paola Ghillani, former chief executive of the Max Havelaar Foundation, the Swiss version of Fairtrade, and a former board member of the Fairtrade Labelling Organization, additionally claimed that attempts were made to produce false inspection reports.

The foundation, however, has retaliated by saying that inspections meet the standards of international certification bodies and maintains workers benefit from the premiums paid.

A Fairtrade spokeswoman said: ‘Before becoming Fairtrade-certified, estates need to demonstrate that they meet Fairtrade standards to pay decent wages, guarantee the right to join a trade union, ensure health and safety standards, and provide adequate housing and other social provision where relevant.

‘Educating workers about Fairtrade and the premium is an ongoing process. It is incumbent on management to make sure staff are aware of Fairtrade. However, where Fairtrade sales are low, management and the joint body [the group of employers and workers that determines the share-out] can feel it is not fair to raise too much expectation of the Fairtrade premium.’

She added: ‘There is ample evidence of the positive way in which both small farmers and workers… in the tea industry in India and Sri Lanka have used the benefits of increased Fairtrade sales to begin to improve the lives in their communities.’