I have been buying goods for Java Gifts, from a reputable supplier who has been importing handicrafts from Bali since 1989. Back then a popular slogan was 'trade not aid' which suggested that trading with developing countries was an attractive alternative to aid in that it would help their economy to grow, generating wealth that would, in time, filter through to the whole population and avoids the need for aid whilst allowing its population to retain their pride and give them hope for the future. Whilst sounding a little idealistic I believe that the handicraft industry in Bali has helped greatly to improve the living standards of all on the Island and fulfill this sentiment. In the neighboring island of Java and most developing countries in the world, this has often not been the case. Large companies have used their power (as the only employer in a particular area) to take advantage of the local workforce with no (or ineffective) legislation to stop them. In many cases, this has meant the workforce being paid unlivable low wages and working in dangerous or unhealthy environments with the widespread use of child labor. The above has not occurred in Bali probably because of the lack of any large scale industry.
The trade in Bali is generally small scale cottage industries (often family-based) selling to Western individuals or small companies based in the West. Typically an importer will buy off of many suppliers negotiating a price with them using the traditional system of barter or he will be quoted a business price which the supplier may or may not be prepared to reduce. Any importer will know the 'right price' for the goods he is buying and that is the price he will agree to pay. A supplier will have THE premises (usually a retail shop) where he will get to meet importers. His workshop will usually be on separate premises but may be at the rear of the shop. The wages the supplier will pay to his workers will be the accepted 'going rate' in force for that kind of work. If the importer will not agree to pay the correct price then the supplier will not be able to supply the goods or will supply goods of a lower quality that can be made more cheaply. Child labor is not involved in the actual manufacture of handicrafts. Probably this is due to the high level of skill required but mainly due to the fact that the population is sufficiently wealthy to send their children to school where, it is acknowledged, they belong. Occasionally children get involved in non-skilled tasks such as polishing wood carvings but this is generally done outside school hours with no effect on their schooling. Working conditions are always good being in a workshop as opposed to a factory environment and often in the open air (weather permitting). Balinese people have a very placid and courteous nature and this is reflected in the way they treat their workers.
The hours worked in a week are not long (workers always finish in the late afternoon). Sundays and numerous days are taken off each year for the many ceremonies associated with their religion. There are some importers of Balinese goods who claim that the workers who manufacture their goods receive better pay than others implying (or saying) that they have their own workshops. This is very unlikely to be true. Due to the highly specialized nature of the skills involved a small importer with a product range of say 500 different lines would need a factory/workshops employing upwards of 1,000 workers. The same company would be employing a workforce of say only 5 employees in his own country! If they were to pay more to their suppliers to pass on to the workers they would have no way ensuring that was being done and would have to be extremely naive to believe it would