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I agree that it is great to provide meaningful work and competitive to local norms salaries.

re: client trust: compare to systems like Mechanical Turk. An established data labeling company can monitor what employees are doing, provide ethics training/warnings, etc.

The question though is - do they get compensated appropriately for their efforts?

A lot of the times you end up using client end tools which does not require sharing data with these companies. You log into the clients system and do annotation or labelling on it without downloading the data.