Complaints > Myanmar > Vaude Sport GmbH & Co. KG, Complaint 532

Myanmar - Vaude Sport GmbH & Co. KG, Complaint 532

Status
Resolved
Country
Myanmar
Date
10/08/2018
Complaint ID
532
Member involved
Vaude Sport GmbH &; Co KG
Filing party
Worker
Filed against
Factory management
Grounded
Yes

Concerning labour standards:

The case

The complainant reported that on 8/10/2018 the general supervisor made an order to collect 3000 MMK donation money from all workers at the factory to pay homage and respect towards the Chinese supervisor for Thadingyut festival (Burmese Buddhists usually pay respect towards elders or superiors during Thadingyut but offerings such as money or presents are optional). In his/her request, he/she mentioned that those who could not pay on that date could pay on the 15th of the month, but that the amount was fixed. Although the offering amount was quite a lot for the workers and most did not wish to pay, many ended up paying since they were afraid to decline the request of the all-supervisor. The money is collected by one worker for each production line and later brought to the general supervisor. Workers who did not pay the money, including the complainant, were threatened by the general supervisor saying "those who did not contribute with the donation, should be prepared to work OT during their lunch time. If you keep ignoring what I said, I am going to report you to the Chinese supervisor." On 9 October 2018, the general supervisor made another order to collect 1000 MMK from the workers to donate to the general and the line supervisor 500 MMK each, but the date to collect had not been set up yet.

A fixed donation of 3000 MMK was requested every year for Thadingyut. For Kahtain festival, workers were requested to donate as much as they wanted. The complainant thought 3000 MMK was already quite a lot if they were also asked to pay 1000 MMK in addition, and that he/she would not mind if he/she had to pay 1000 MMK only. He/she would like to have the right to donate as much as workers want without any threats and not by the fixed amount for Thadingyut donation in the future.

Findings and conclusions

On 8 October 2018, FWF received a call to the complaint helpline in Myanmar. The complainant reported that the general supervisor ordered workers to collect 3000 MMK as a donation to pay homage and respect to the Chinese supervisor for Thadingyut festival. Although the amount is quite high for most workers and do not wish to pay, they end up paying as they are afraid to refuse. Workers who did not want to make a donation, including the complainant, were threatened by the general supervisor who said that "those who did not want to pay, should be prepared to work overtime during their lunch time. If you keep ignoring what I say, I am going to report you to Chinese supervisor."

FWF declared this complaint admissible and informed Vaude, the FWF member sourcing at this factory. Vaude immediately contacted the factory management, reiterating FWF’s point of view that donating money should be voluntary. Vaude stressed that threatening workers with overtime during lunch time is unacceptable. Vaude asked the management to investigate on this complaint. Vaude also stressed that management must make a public announcement explaining that donations are not compulsory. Also, supervisors should be instructed that they are not allowed to threaten their workers.

Factory management agreed that all kinds of donation should be voluntary and without threats. The management investigated but no supervisor admitted the case. As requested by the brand, the factory, made an announcement to all workers and supervisors. The annoucement was also shared with Vaude. The factory furthermore indicated that it will encourage workers to report all cases of threats and forced donations directly to the factory management.

The complainant called FWF again indicating that the supervisor was very angry, using cursing words, and saying that he/she would find the complainant. The complainantwasscared and asked FWF not to call him/her and said that if there was any problem he/she would contact FWF. Also, the complainant indicated that he/she did not want FWF to inform the factory about this.

Vaude contacted the factory management again and asked to explain what they did after they received the complaint. Factory management responded that they had a meeting with all the supervisors where it was stressed that such behaviour was unacceptable and that donations should only be voluntary. Following this meeting, the supervisors informed all workers the following morning. Factory management also made a public announcement about it and posted it on the notice board. Vaude and the factory management agreed that the factory would include this in their factory rules and also into the orientation training for new workers. Vaude stressed that it is important that in general all supervisors and workers are aware that donations are voluntary and that it is not about blaming one person in particular. Furthermore, the factory management indicated that they want to encourage workers to solve such complaints internally but they feel that workers do not dare to do so. Therefore, Vaude and factory management agreed that it would be important to do something to strengthen the dialogue structure in the factory. FWF tried several times and through various ways to contact the complainant, but was not successful. Based on the information provided, FWF considered the case resolved. Vaude indicated that it would explore options to improve the internal communications between workers and management, e.g. through the SMART programme or through FWF's Worker Education Programme. This complaint is resolved.
See details

Overview of the complaint investigation

11/07/2018 Investigation

FWF member brand Vaude, sourcing at the factory, immediately contacted the factory management, reiterating FWF’s point of view that donating money should not be a requirement. It should be something decided upon voluntarily by the workers and not requested or required by elders/supervisors. Vaude stressed that especially the threatening of workers with OT during lunch time is not acceptable at all. Vaude asked the management to investigate this complaint. Vaude also stressed that that it is necessary to make a public announcement that money donations are not a requirement. Also, supervisors should be instructed that they are not allowed to threaten their workers.

11/09/2018 Remediation

Factory management responded to Vaude that they agree that all kinds of donation have to be voluntary and without threatening the workers. The management investigated amongst their supervisor but none of them admitted the case. As requested by the brand, the factory subsequently made an announcement to all workers and the Supervisors. The annoucement was also shared with Vaude. The factory furthermore indicated that it will encourage workers to report all cases of threats and forced donations directly to the factory management.

11/09/2018 Investigation

Both the complainant and the accused supervisor contacted FWF's complaints handler seperately.

The supervisor called FWF in the morning several times to explain that he/she made it clear to the workers that the donation was voluntary. From the conversation it became clear that he/she was the only supervisor who collected the highest amount because there are fewer workers in his/her building compared to others and he/she wanted to make sure that their Chinese supervisor was well respected. He/she denied the fact that he/she threatened the workers into paying for the donation. He/she just told them to pay the fixed amount if possible. If not, the workers could pay as much as they wanted. At the end of the conversation, he/she asked FWF the name of the complainant and how he/she contacted FWF. FWF explained that it is FWF policy to protect the identity of the complainant.

In the evening, the complainant called FWF indicating that the supervisor was so angry and cursing all over the place, looking for the complainant. According to the complainant, the supervisor suspected a few workers in his/her mind and announced that he/she will definitely find out the complainant and do something horrible to him/her. The complainant is now scared and asked FWF not to call him/her and said that if there’s anything, he/she would contact FWF. Also, the complainant indicated that he/she does not want FWF to inform this to the factory as he/she does not want to make things worse.

FWF informed Vaude of the above and suggested Vaude conveys the following to factory management:

1. The policy should be made crystal clear to workers and supervisors: donation are 100% voluntary and will be made anonymously by workers in the future.
2. Supervisor are under pressure to show their respect by giving a high donation. Management should reassure all supervisors that they will not be judged/blamed based on the amount received from workers.
3. Based on the above, supervisors should be urged not to make any investigation/enquiry into the identity of the possible complainant(s). Workers who complained should have their identity protected.
It is suggested that this message is brought in a subtle way and as part of an overall approach. In order not to fuel the emotions further, it is advised that the management does not inform the supervisor in question about the fact that the complainant contacted FWF saying that the supervisor threatened to find out the identity of the complainant and retaliate against him/her. It is important that the supervisor is calmed down and encouraged to cease his/her pursuit.
4. Internal grievance system should be clearly announced to all workers. If any workers is pressured to give a high donation, workers should be able to raise their objections anonymously.
5. Furthermore, as the accused supervisor became so emotional, FWF suggested that the accused supervisor needs comfort from the management who blamed him/her personally, and be convinced not to cause any retaliation. Proper training regarding wages and benefit for all supervisors would help him/her understand better. FWF suggested that it is important to make him/her feel he/she is not the only one who is warned on this; it is just a factory policy that everyone should be aware of.

11/15/2018 Investigation

Vaude contacted the factory management again and asked it to explain what they did after they received the complaint. Factory management responded that they had a meeting with all the supervisors in which they stressed that such behaviour is unacceptable and that workers can only donate voluntary if they want. Following this meeting, the supervisors informed all workers about this in the morning meeting. Factory management also made a public announcement about it and posted it on the notice board.

Vaude and the factory management agreed that the factory will include this in their factory rules and also in the orientation training for new workers.

Vaude stressed that it is important that in general all supervisors and workers are aware that donations are voluntary and that it is not about blaming one person in particular.

Furthermore, the factory management indicated that they want to encourage workers to solve such complaints internally but feels that workers do not dare to do so. Therefore, Vaude and factory management agreed that it will be important to do something to strengthen the dialogue structure in the factory.

06/06/2019 Resolved

FWF tried several times and through various ways to contact the complainant, but was not successful. Based on the information provided, FWF decided to consider the case resolved. Vaude indicated that it will explore options to improve the internal communications between workers and management, e.g. through the SMART programme or through FWF's Worker Education Programme.

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Complaints > Bangladesh > The Cotton Group S.A. (B&C), Stanley and Stella S.A., Complaint 605

Bangladesh - The Cotton Group S.A. (B&C), Stanley and Stella S.A., Complaint 605

Status
Resolved
Country
Bangladesh
Date
01/01/2019
Complaint ID
605
Members involved
The Cotton Group and Stanley and Stella S.A.
Filing party
Worker
Filed against
Factory management
Grounded
Yes

The case

The complainant, who is a member of the Anti-Harassment Committee (AHC), indicated that workers of the factory protested against the factory management on 26 December 2018 about the increase in basic minimum wage (which was lower than expected) and the termination of the previous CEO. When the new CEO was appointed, different kinds of problems arose, which were considered negative for workers (e.g. delayed wage payments). The situation escalated with workers even attacking the new CEO who managed to escape.

To control the situation, the local chairman of the area told the protesters that their demands will be considered, while at the same time threatening the protesters to rejoin work in the factory, indicating that he will personally see each and every one who did not join the factory again. He declared that the factory will remain closed from 27-31 December and asked all the workers to rejoin work on 1 January 2019. He also promised that he will sit with the management to discuss their demands.

On 1 January 2019, all the workers re-joined work, as per the chairman’s request. However, on that day the chairman appeared accompanied with some powerful people of that area, police officers and people who are related to the defence forces. He selected some 100+ workers who were considered to be directly or indirectly involved in the turmoil. He subsequently threw them out of the factory without further discussion. During this process, they seized the cell phones from the workers who were dismissed and broke their sim cards, so that affected workers could not contact anyone immediately.

The complainants want justice for all the affected workers, i.e. reinstatement in the job or at least payment of entitled legal benefits, provident fund, severance pay according to years of service, earned leave compensations, etc. The complainants mentioned that if they are proven guilty, factory management can take disciplinary action.

Findings and conclusions

On 1 January 2019, FWF received a call to the complaints helpline in Bangladesh. The complainant, who is a member of the Anti-Harassment Committee (AHC), indicated that workers of the factory protested against the factory management on 26 December 2018 about the increase in basic minimum wage (which was lower than expected). To control the situation the local chairman of that area told the protesters that their demands would be considered, while at the same time threatening the protesters to rejoin work in the factory. He declared that the factory would remain closed from 2 -31 December and asked all the workers to rejoin work on 1 January 2019. On 1 January 2019 all the workers re-joined work, as per the chairman’s request. However, on that day the chairman appeared accompanied with some powerful people of that area, police officers and people who are related to the defence forces. He selected some 100+ workers who were considered to be directly or indirectly involved in the turmoil. He subsequently threw them out of the factory without further discussion. The complainants wanted justice for all the affected workers, i.e. reinstatement in the job or at least payment of entitled legal benefits, provident fund, severance pay according to years of service, earned leave compensations, etc. The complainants mentioned that if they were proven guilty, factory management could take disciplinary action.

FWF immediately contacted Stanley & Stella, the FWF brand sourcing at the factory. A joint meeting was held on 26 February 2019 in the factory with the participation of the brand, factory management and FWF. The purpose of the joint meeting was to discuss, verify and solve the forceful resignations that occurred in the factory on 1 January 2019. During the meeting, the General Manager of the factory gave his account of what happened from 23 December 2018 to 1 January 2019. The factory management acknowledged that there was worker unrest following a meeting that was arranged by management to explain about the new minimum wage. This misunderstanding led to workers laying down their work, which led to the factory closing down between 27 and 31 December 2018. Subsequently, on 1 January, when workers returned to the factory to resume work, the management made a declaration to all the workers stating that every worker that felt unsatisfied with the salary increase, could leave the factory by voluntary resignation. Management found there were more than 100 workers who did not want to continue and who willingly resigned. Management subsequently prepared a salary sheet of 111 workers who were willing to resign. According to the management, out of 111 workers, final settlement was arranged only for 84 workers. Out of the 27 remaining workers, 14 reported to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the factory therefore had to settle through BGMEA. Factory management shared the list of 111 workers with the FWF team.

FWF found chronological similarities between the manager’s statement and FWF offsite investigation report up until the moment of when the forceful resignations happened. Considering the statements of the complainants, as well as the management, and observing the discrepancies between the management statements and the findings of the document inspection, FWF concluded that the process was in fact pre-planned. However, FWF could not find solid proof on whether the resignation process was forceful or voluntary when the signature of workers matched the resignation letter.

FWF verified whether the resigned workers were paid their legal dues. In this regard, it is important to note that workers had in fact received their legal dues like salary, overtime, service benefit (if entitled) , earned leave (if entitled) provident fund (if entitled). Based on the complaints received, FWF made a list of 31 workers and reviewed the personal files of those workers. Among these 31 workers, it was confirmed that 24 were paid as per law and the amount was similar to the amount confirmed by the complainants during the offsite investigation. Management also shared photographic evidence of those payments. Out of 31 complainants, 7 were yet to receive their payments.

FWF verified that the final settlement of the remaining 27 workers (14 settled through BGMEA + 13 who were yet to receive their dues from the factory) was completed. From FWF’s list, out of 31 workers, 24 workers received their final settlement before the meeting of 26 February, while the remaining 7 workers received their final settlement amount gradually untill March 27. FWF coordinated with the factory management and the complainants and advised them on when they could go to the factory to receive their payment. FWF consequently followed up with all the workers and confirmed that they had all received their due payments. All complainants expressed that they were satisfied with with the outcome.
See details

Overview of the complaint investigation

02/26/2019 Investigation

A joint meeting had been held on 26 February 2019 in the factory with the participation of the brand (Stanley & Stella), factory management and FWF. The purpose of the joint meeting was to discuss, verify and solve the forceful resignations that occurred in the factory on 1 January 2019. The Country Manager of Stanley & Stella made certain that the management would cooperate and provide full support. The following emerged from the meeting.

Brief from Factory management:
The General Manager of the factory gave his account of what happened from 23 December 2018 to 1 January 2019. According to him, on 23 December a Worker Participatory Committee meeting was called and in that meeting workers representatives requested the management to share information with workers about the new minimum wage increase, as workers did not understand how the new wage structure would be implemented at the factory.

Considering the concern from the workers representatives, management organised a presentation on 24 December in the training centres of each of the two production facilities for some 100 worker representatives and senior workers. During the presentation, the factory management indicated that the salary of each worker will increase with not less than BDT 1,200. Through that presentation, senior workers misunderstood that, even though their total salary will increase, the basic salary would remain the same. They subsequently expressed their dissatisfaction and management tried to make them understand that it is the government declaration and management cannot increase wages beyond the government declared wage.

The problem started from there and on 25 December workers decided to slow down the work. Eventually, workers left the factory floor, and without conducting any vandalism, started to chant a slogan demanding a proper wage increase. On 26 December, workers again slowed down the work. Management tried to convince workers to resume work by talking to individual workers and explaining about their salary increase and calculation. However, management failed to make them understand and, as a result, workers left the factory and blocked the road in front of the factory. Because thousands of workers blocked the road, the traffic jam reached the nearby area. The local chairman therefore came to calm down the situation, but he did not succeed in calming down workers. At one point, the local chairman decided to declare that the factory should close until 1 January. However, this was not properly discussed with factory management and because of some important shipment planned, the factory management sent text messages to all workers requesting them to return to work on 27 December.

On 27 December, when workers arrived at the factory, they did not go to the work floor, rather they started protesting again. Considering the situation, including pressure from the local police station and the upcoming national election on 30 December, the factory management had no other choice than to close the factory until 1 January 2019.

Subsequently, on 1 January the management made a declaration to all the workers stating that every worker that felt unsatisfied with the salary increase, could leave the factory by voluntary resignation. Management found there were more than 100 workers who did not want to continue and who willingly resigned. Management subsequently prepared a salary sheet of 111 workers who were willing to resign.

According to the management, out of 111 resigned workers, the final settlement was done only for 84 workers. Out of the 27 remaining, 14 reported to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the factory therefore had to settle through BGMEA. Factory management shared the list of the 111 workers with the FWF team. After the resignations, management paid the salary to those 111 workers and indicated to them that if there were other legal dues (like service benefit, provident fund, etc) management would calculate that and pay with the final settlement at a later time. Factory management denied all the claims of workers about broken mobile phones, taking of SIM + memory cards, beating.

FWF investigation:
FWF found chronological similarities between the manager’s statement and FWF offsite investigation report up until the moment of when the forceful resignations happened. Inconsistencies observed include the following:

1. In the workers' personal files there were no records of the date of payment.
2. All the resignations had been taken on 1 January 2019, except for one worker for which the date was 8 January 2019.
3. Seven files indicated a resignation date 01/11/2018, which appeared to have been done intentionally to cover the notice period as per law. To clarify, there is a legal provision that states that if workers would like to give a willing resignation then it should be given 2 months before leaving the job. FWF assumed that for this reason management (falsely) back-dated some (7) resignation letter, but failed to maintain the process for all the workers concerned, which would explain why only seven files indicate the resignation dated on 01/11/2018.
4. Some resignation letters had the same the handwriting.
5. Normally the factory management would disburse the salary during the second week of every month. Surprisingly, however, the management provided FWF a list of 111 workers for with the salary sheet was dated on 1 January 2019.
6. The General Manager told FWF team separately that if they could have given the workers their pay-slip on 25/26 December instead of 1 January, then the unrest might not have happened. So, the manager’s statement is a kind of indirect confession of their mismanagement.

Additionally, management indicated that the local chairman went to the factory in order to calm down workers following the blockage on road. According to the complainants, this is simply not true. According to the workers, the Chairman and police officer from local police station are always called by factory management to settle down whenever there is an issue with workers. Furthermore, on 1 January the local chairman, together with police officers, came to the factory in the morning for settling the resignations with the listed 111 worker.

02/26/2019 Conclusion of the investigation

Conclusions:
1. Considering the statements of the complainants, as well as the management, and observing the discrepancies between the management statements and the findings of the document inspection, FWF concluded that the process was in fact pre-planned.

2. However, FWF could not find solid proof whether the resignation process was forceful or voluntary when the signature of workers match the resignation letter.

3. FWF verified whether the resigned workers are paid their legal dues. In this regard, it is important to note that workers have in fact received their legal dues like salary, overtime, service benefit (if entitled) , earned leave (if entitled) provident fund (if entitled). Based on the complaints from workers received, FWF made a list of 31 workers and reviewed the personal files of those workers. Among the 31 workers, it was confirmed that 24 were paid as per law and the mentioned amount is similar to the amount that was confirmed by the complainants during offsite investigation. Management also shared photo evidence of those payments. Out of 31 complainants, 7 had yet to receive their payments. Management committed that they will settle the matter within the first week of March. The workers who were interviewed by FWF indicated that they were satisfied with this outcome.

4. Factory management committed to follow the same procedure for all resigned workers and would call them to pay their dues amount through final settlement in accordance with the law. In this regard, out of 111 workers, 27 had yet to receive their final settlement. Out of these 27, 14 had to be settled through BGMEA.

5. The factory management is facing pressure from different corners, including from some other buyers. During the exit meeting, in which both the Executive Director and CEO participated, the Executive Director expressed its commitment to do better in future.

Recommendations / Follow-up:
FWF will follow up the final settlement of the remaining 27 workers (BGMEA 14 + 13 who yet to receive their dues). From FWF’s list, out of 31 workers, 24 workers already received final settlement amount and they were happy with the outcome. FWF will follow up to ensure the remaining 7 will also receive the correct final settlement.

Furthermore, follow up is needed by brands to ensure factory management constructively considers the lessons learnt from this experience and invests in improving communication between management and workers. FWF suggests that management could have made workers understand about increased minimum wage in groups like other factories did. Generally speaking, the lack of communication between management and workers creates the potential for unrest and, unfortunately, such kind of disasters. Management should work on raising awareness among the workers and develop stronger communication between both parties. Brands are suggested to follow up to ensure the factory will invest in strengthening the internal communication channel like AHC and WPC.

Finally, the country manager of Stanley & Stella told the management that when complaints are reported to FWF, management needs to take the complaint positively and handle it with importance so that the issue can be stopped before it escalates. Stanley&Stella adequately explained to management the supportive role of FWF in resolving the issue. He added that both brand and management need to be more careful when handling complaints and follow up timely and diligently. FWF was very appreciative of the very positive role played by Stanley&Stella, which was instrumental in solving the complaint.

03/27/2019 Resolved

FWF verified that the final settlement of the remaining 27 workers (14 settled through BGMEA + 13 who were yet to receive their dues from the factory) was completed. From FWF’s list, out of 31 workers, 24 workers received their final settlement amount before the meeting of 26 February, while the remaining 7 workers received their final settlement amount gradually untill March 27.

FWF coordinated with the factory management and the complainants and advised them when they could go to the factory to receive their payment. FWF consequently followed up with all of the workers and confirmed that they had all received their due payments.

All complainants expressed that they were satisfied with with the outcome.

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Complaints > Vietnam > Vaude Sport GmbH & Co. KG, Complaint 679

Vietnam - Vaude Sport GmbH & Co. KG, Complaint 679

Status
Resolved
Country
Vietnam
Date
12/20/2018
Complaint ID
679
Member involved
Vaude Sport GmbH &; Co KG
Filing party
Group of factory workers
Filed against
Supervisor, Factory management
Grounded
Yes

The case

A factory worker called FWF's helpline to complain about his/her termination not being approved in December 2018. He/she said that he/she had handed his/her termination letter to the line leader about two months before but the factory did not approve his/her termination. He/she has worked at the factory for more than seven years. The complainant wanted FWF to help him/her terminate his/her contract legally. He/she said that he/she could submit a new termination letter, but expected the factory to approve it this time and provide a copy of the approval. The complaints handler advised him/her to submit a new termination letter directly to HR as well as by post. Around 23 December 2018, the complainant resubmitted his/her termination letter as advised by FWF. After receiving his/her request for termination, the supervisor and HR met with the complainant to know the date he/she wished to quit. He/she expressed the intention to terminate his/her contract legally with 45 days of notice as required by law. This meant that the contract would be terminated around 10 February. As of 1 January 2019, the complainant did not know whether his/her request had been approved. Three other workers shared the same issue but said they would contact the FWF's helpline after Tet (Vietnamese New Year) as they were afraid of losing their end-of-year bonus.

Findings and conclusions

On 20 December 2018, a factory worker called FWF's helpline to complain about his/her termination not being approved. He/she said that he/she had handed his/her termination letter to the line leader about two months before but the factory did not approve his/her termination. The complainant wanted FWF to help him/her terminate his/her contract legally. He/she said that he/she could submit a new termination letter, but expected the factory to approve it this time and provide a copy of the approval. FWF complaint handler advised him/her to submit a new termination letter directly to HR as well as by post. Around 23 December 2018, the complainant resubmitted his/her termination letter as advised by FWF. After receiving his/her request for termination, the supervisor and HR met with the complainant to know the date he/she wished to quit. He/she expressed the intention to terminate his/her contract legally with 45 days of notice as required by law. This meant that the contract would be terminated around 10 February. As of 1 January 2019, the complainant did not know whether his/her request had been approved. Three other workers shared the same issue but said they would contact the FWF's helpline after Tet (Vietnamese New Year) as they were afraid of losing their end-of-year bonus. On 14 January 2019, Vaude contacted and informed the factory about the complaint. Management replied that this case was unknown to them and that workers were able to resign within the legally allowed notice period. The brand told the factory that they should inform all relevant managers/supervisors that workers are free to leave the company if they give the legally required notice. The complainant resigned on 15 March 2019 and as of 17 April had yet not received his/her dues (the remaining salary and social insurance book). The HR officer let him/her know that the remaining salary will be paid in April and the social insurance book will be returned about 1.5 months later. The factory paid the remaining dues on 25 April, except for unused annual leave. However, the complainant was happy with the outcome and thus decided not to pursue and ask for those remaining dues. The worker said that, without FWF, he/she would not have been able to reach a legal employment termination and receive his/her social and insurance book. This complaint is resolved.
See details

Overview of the complaint investigation

01/14/2019 Investigation

On 14 January 2019, Vaude contacted and informed the factory about the complaint. Management replied that this case was unknown to them and that workers were able to resign within the legally allowed notice period. The brand told the factory that they should inform all relevant managers/supervisors that workers are free to leave the company if they give the legally required notice.

04/17/2019 Investigation

He/She has resigned on 15 March 2019 and had not yet received his/her dues (the remaining salary and social insurance book). The HR officer let him/her know that the remaining salary will be paid in April and the social insurance book will be returned about 1.5 months later.

05/01/2019 Verification

The complainant confirmed that the factory paid his/her remaining salary (for March 2019) and he/she received the social insurance book on 25 April 2019.

05/08/2019 Evaluation of the complaint

She/he had not yet received the payment for unused annual leave and also had no severance allowance for working time served when he/she did not pay unemployment insurance contributions as prescribed by law (she took maternity leave 2 times, in 2016 and 2017). However, the complainant felt happy and lucky and she want to stop the complaint.

The worker said that, without FWF, he/she would not have been able to get a legal employment termination and receive his/her social and insurance book. She wishes the factory would have a clear resignation process so that workers could resign legally and could get their social insurance books.

He/she thanked to FWF and Vaude for helping him/her.

05/08/2019 Resolved

The case is resolved.

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Complaints > Vietnam > Vaude Sport GmbH & Co. KG, Complaint 635

Vietnam - Vaude Sport GmbH & Co. KG, Complaint 635

Status
Resolved
Country
Vietnam
Date
03/24/2019
Complaint ID
635
Member involved
Vaude Sport GmbH &; Co KG
Filing party
Filed against
Grounded

The case

The worker who called the helpline had worked at the factory for more than one year in the cutting department. His/her labour contract expired on 1 February 2019. On 16 February 2019, he/she submitted a resignation letter and HR replied that he/she must continue to work for another 30 days before ending the contract. He/she replied that the contract had expired and did not need to give any advanced notice. Subsequently, the complainant left the factory on 18 February 2019.
H/she complained that the factory did not return his/her social insurance book and asked him/her a compensation on the ground that he/she terminated the labour contract unlawfully.

Findings and conclusions

On 24 March 2019, FWF's complaints handler in Vietnam received a complaint from a factory worker who claimed that his/her labour contract had expired on 1 February 2019. However, on 16 February 2019 when the complainant submitted his/her resignation letter, HR informed him/her that he/she must continue to work for another 30 days before ending the contract. The complainant replied that the contract had expired and did not need to give any advanced notice. He/she stopped working at the factory on 18 February 2019.
He/she complained that the factory did not return his/her social insurance book and asked him/her a compensation on the ground that he/she terminated the contract unlawfully. On 20 April 2019, due to a delay from FWF, the brand informed the factory about the complaint. The factory then replied that all dues were paid to the complainant, and this was verified by FWF's complaints handler. According to the complainant, the process was a bit long but it was effective. He/she said that if he/she had not called the FWF helpline, he/she would have not received his/her due payments and social insurance book. This case was resolved on 2 May 2019.
See details

Overview of the complaint investigation

04/20/2019 Investigation

The brand informed the factory about the complaint.

04/29/2019 Remediation

Factory informed the brand that the complainant had received all due payments and all documents.

05/02/2019 Verification

The complainant confirmed that he/she received all his/her due payments and the social insurance book on 26 April 2019. He/she thanked FWF and Vaude for helping him/her.

05/02/2019 Evaluation of the complaint

According to the complainant, the process was a bit long but it was effective. He/she said that if he/she had not called the FWF helpline, he/she would have not received his/her due payments and social insurance book.

05/02/2019 Resolved

This complaint is resolved.

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Complaints > India > Social Fashion Company GmbH (ARMEDANGELS), Complaint 692

India - Social Fashion Company GmbH (ARMEDANGELS), Complaint 692

Status
Investigation
Country
India
Date
05/11/2019
Complaint ID
692
Member involved
Social Fashion Company GmbH (ARMEDANGELS)
Filing party
Former worker, Group of factory workers
Filed against
Factory management
Grounded

The case

Migrant workers are not granted leave to return home. When they submit their leave application, they are told that their leave cannot be sanctioned as the work would be affected. Also, they frequently must work double shifts. In general, workers do not have any problems with over time (OT), but sometimes they do not want to do it and they are forced to.

Payment of OT is not paid timely. Salary is paid on time, but there is no fixed time for payment of OT, it is always delayed. For example, some workers received their salary on 11 May but OT was not paid. One complainant claimed that his/her OT amounts to be about 80 hours which is around Rs 3000.

Management communicated that OT would be paid on the 15 May. However, workers did not believe it as management regularly delays payments. This is not the case with all workers. Some workers receive their OT payment with the salary but others do not.

See the current status

Overview of the complaint investigation

05/31/2019 Investigation

ArmedAngels contacted the factory for feedback. On 24 May 2019, the factory replied the following:

Regarding leave - they do allow migrant workers to take leave but they cannot grant it to too many workers at once as the factory runs continuously. They have a system based on priority and importance. They provided the list of migrant workers to whom they had granted leave.

Regarding overtime work (OT) - they do not force workers to do OT. They have employed more workers and multi-skilled people to solve the problem. When OT is unavoidable, employees can voluntary decide whether to do it or not.

Regarding payment of OT - regularly they pay OT on time with wages, but they will take more care in the future.

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Complaints > India > MADNESS THE NATURE TEXTILE COMPANY GmbH, Complaint 612

India - MADNESS THE NATURE TEXTILE COMPANY GmbH, Complaint 612

Status
Closed
Country
India
Date
01/18/2019
Complaint ID
612
Member involved
MADNESS The Nature Textile Company GmbH
Filing party
Former worker
Filed against
Factory management
Grounded
Yes

The case

The complainant worked in the factory for about four years. He/she joined the factory in October 2014. He/she was working as sampling tailor, and his/her salary was INR 11,000. On 9 May 2018, he/she went on leave for one week and the leave was duly sanctioned to visit his/her family. When he/she was returning on 16, May he/she fell down on the train platform and was seriously injured. He/she returned home and could not resume work. He/she communicated about this incident to his/her master from the sampling department and informed that as soon as he/she recovered from injuries he/she will be back to work and the master also agreed to it. It took three months for him/her to recover and when he/she returned to work in August he/she was informed that someone else had already been recruited for his/her position. Management suggested him/her to resign and take his/her full and final payment. After some fruitless calls with management, he/she signed the resignation letter on 10 January 2019 in order to receive his/her full and final payment and also to file the Provident Fund (PF) withdrawal form. The complainant mentioned that he/she had taken a loan of INR 20000 from the management and that needed to be adjusted with his/her final payment too.

On his/her resignation, the HR manager informed him/her that they would call in a few days to collect his/her dues. Since he/she did not receive a call from the factory after a week he/she decided to call the FWF's complaint number, as he/she also wanted to know about his/her eligibility for various benefits. FWF's complaint handler explained that he/she was not eligible for notice pay and gratuity as his/her service was less than five years. It was suggested that he/she may be eligible only for earned leave and bonus in his/her full and final payment. The complaint handler told the complainant to make some more calls to management to solve it amicably. On 19 January, the complainant spoke to the HR manager who informed him/her that they were still looking at his/her details and they will call him/her in a few days.

On 25 January, the worker informed FWF that he/she was still waiting for a call from HR .

Findings and conclusions

On 18 January 2019, FWF's complaint handler in India received a call from a worker who had worked at a factory for about four years. He/she joined the factory in October 2014. He/she was working as sampling tailor, and his/her salary was INR 11,000.
On 9 May 2019, he/she went on leave for one week and the leave was duly sanctioned. On 16 May when he/she was returning, he/she fell and was seriously injured. He/she communicated this incident to the factory and agreed to resume work once he/she had recovered. It took three months for him/her to recover and when he/she returned to work in August he/she had already been replaced. Management suggested him/her to resign and take his/her full and final payment. After some discussions with management, he/she signed the resignation letter on 10 January 2019 in order to receive his/her full and final payment and also to file the Provident Fund (PF) withdrawal form. On his/her resignation, the HR manager informed him/her that they would call in a few days to collect his/her dues. Since he/she did not receive a call from the factory after a week, he/she decided to call the FWF's complaint number. The complaint was shared with the brand and they in turn shared it with the factory. On 8 March 2019, the brand informed that the factory management had paid all the dues to the complainant and the factory's consultant contacted the complainant to check whether he/she would be willing to return to the factory for his/her old salary, but he/she declined. it was informed that during this period he/she found another employer to work for and he/she was happy to receive his/her final payments. The full and final payment along with the supporting documents were sent for verification purpose. On 23 March 2019, the complaint handler spoke to the complainant to verify if he/she had received his/her dues. He/she confirmed that two payments had been transferred to his/her account. However, He/she did not clearly understand what was included in the payment as he/she was not provided with a copy with the details. On 15 July 2019, the brand informed that the factory had sent the a copy of the full and final statement to the complainant but the address was found to be incorrect. FWF's complaint handler called the complainant and asked him/her to send the correct address. The complainant refused to send the address saying he/she would meet the management in person when upon his/her return. Also, the complainant said he/she no longer wanted to proceed with this complaint. Therefore, the case is closed.



See details

Overview of the complaint investigation

02/25/2019 Investigation

FWF informed the brand about this complaint and sought the response of the factory management. The brand in turn asked for the details of the complainant which were shared with them.

02/25/2019 Conclusion of the investigation

Upon investigation of the complaint, it is concluded that the worker's dues have not been cleared by the factory. The factory claimed that there has been a recent change in the HR manager of the factory and the new manager was not fully aware of the complainant's case.

02/25/2019 Remediation

Factory management is obliged to make the full and final settlement of the complainant at the earliest.

03/01/2019 Remediation

The complainant was called to the factory for settlement. The factory agreed to pay the following through bank transfer the very next day:
a) Payment for earned leave
b) Bonus
c) Notice pay
The complainant also clarified that the loan amount due with the factory is INR 3000 and not INR 20000 as stated in the first complaint report.

03/08/2019 Remediation

The brand informed that the factory management paid all the dues to the complainant and the factory's consultant contacted the complainant to check whether he/she would be willing to return to the factory for his/her old salary, but he/she declined. During this period he/she found another employer to work for. He/she added that he/she was happy to receive his/her final payments. The full and final payment along with the supporting documents were sent for verification purpose.

03/23/2019 Verification

The complaint handler spoke to the complainant to verify if he/she had received his/her dues.
He/she confirmed that two payments were transferred to his/her account.

2. He/she does not clearly understand what is paid for what because he/she was not provided with copy of full and final receipt which mentions these details.

The amount transferred in his/her account is 18290+1950=20240. The worker does not know the details of how 20240 has arrived.
Further, complainant also wanted to know if he would be paid for the days he/she was sick.

03/29/2019 Remediation

Factory management is obliged to provide a copy of full and final settlement to the complainant with details and also explain its stand on the payment of sick leave.

04/18/2019 Verification

The brand contacted the factory to know their policy on sick leave payment and to know if the factory had helped the complainant to understand how his/her full and final payment was made.
Factory management explained that the complainant was not eligible for any sick leave payment because his/her Employees' State Insurance (ESI) was getting deducted. To avail the medical treatment from ESI, and leave payment (period when employee is absent from work) from ESI one has to go there and get the treatment done, then they suggest the medical treatment as per the employee condition and will pay for the medical leave .

Regarding settlement copy, the factory sent the full and final settlement copy signed by him/her and assured that they have already made him/her understand his/her payment details.
The factory's consultant called the complainant and verified that he/she is happy and received the payment. Management added that they have already processed his/her records and made him/her exit from their PF Account, so that he/she can claim his/her PF.

04/22/2019 Verification

FWF spoke with the complainant and he/she stated that he/she did not receive any call from the factory for explaining the full and final payment neither was it explained when he/she signed the document. He/she was not even given a copy of the final settlement document after he/she signed the document.

Regarding ESI, the complainant stated that upon his/her return in August he/she took treatment from ESI but the staff there told him/her that his/her card is 'put on hold' by the company since June 2018 (remember that he/she went on leave in May and came back in August as he/she faced and accident) therefore they will provide the treatment but he/she cannot claim leave benefits from ESI.

04/22/2019 Evaluation of the complaint

According to FWF, the complaint at this point is word against word and it is difficult to ascertain the truth of the statement. FWF recommends the factory management to share a copy of the final settlement with the complainant.

05/03/2019 Evaluation of the complaint

The factory sent a mail to the brand explaining that the complainant's statement seems to be not true. He/she can avail the ESI benefit during his/her sick period from May until August since his/her ESI contribution was already paid in earlier months.

The factory sent the proof for the complainant's contribution paid from April 2017 until March 2018. It was added that with this contribution paid, he/she is eligible to avail the ESI benefit for the next year.

FWF will ask for the worker's response on this and also verify if he/she has received his/her copy of the final settlement.

06/27/2019 Evaluation of the complaint

Brand received some feedback from factory about this complaint and it was forwarded to FWF on 18 June 2019.

Factory management sent a copy of the letter with the explanation of the amount paid in complainant's account and also a copy of letter with his/her (complainant's) full and final signed earlier by him/her.

Factory said workers are trained regularly about ESI and they are availing these facilities and also they are sending formal letters now to all employees who do not inform or turn up after their leaves finishes.

Factory said that they did not want the complainant to resign but he/she resigned on his/her will. Management added that they had offered him the job when he/she returned and complainant demanded more salary. Since the matter could not be sorted out, he/she resigned on his/her own.

FWF has asked the complaint handler to check with the complainant on whether he/she has received all his/her dues and also to clarify if he/she has resigned on his/her own will.

07/01/2019 Evaluation of the complaint

The complainant was called to check about the factory's reply: According to him
1. He/she has not yet received the letter and copy of full and final statement sent by PF on his/her address.
2. He/she has not yet returned and therefore not yet filed application in ESI as he/she has not come back from his/her native place.
3. On the issue of whether management offered him his/her job back: When he/she came back and was fired by Parvati Fashion, for few days he/she worked as piece rate worker (not on rolls) in the same factory (Parvati); it was during this period the factory management asked him to rejoin, i.e., join as fresh worker on same wages but the complainant wanted to join on same wages only with his/her continuity of service. He/she added that if he/she joins as a fresh worker then he/she would do it at a higher wage (losing his/her length of service and related benefits) because he/she was an experienced worker.
The management was not ready to accept either of these two options and hence dialogue failed. (These facts were not reported by the complainant to FWF and revealed only when specifically asked with reference to what management is saying). Complainant reiterated that he/she did not want to resign, but when he/she lost hope for reinstatement he/she finally resigned so that he/she can get his/her final settlement cleared.

07/18/2019 Evaluation of the complaint

Brand reverted that their supplier confirmed that the courier service had informed them that complainant could not be reached at the address in his/her personal file. Brand/supplier are keen to have the current address where complainant can be reached or where he/she will be able to receive the full and final settlement letter.
Brand added that if the complainant needs any documents or data or information from their supplier to apply for his/her Provident Fund amount, he/she is free to contact the company.

Whether a worker is paid as unskilled or experienced depends on the mutual agreement between employee and employer.
To put on record the supplier has been supported by brand and their social compliance consultant LINK to focus on awareness training of their workers, which includes education on how to deal with social and health insurance.

The facts in this case prove that the supplier should not have dismissed the complainant but they did since they had not heard from their employee for a long time and therefore assumed that the employee would not return to work. Factory learnt from this that as a company it is important to inform its employees in the event of illness to comply with a notification obligation and, if this does not happen, to proactively ask them to do so (e.g. factory sends in such cases letters by courier in which the employee is made aware of his/her behaviour and is asked to report immediately to the factory management, because otherwise it must be assumed that the employee does not return to work and therefore appropriate labour law steps must be taken), as well as to investigate the whereabouts of the employee.
In this case, the supplier offered the complainant to resume his/her job at the old conditions and has agreed to pay all outstanding compensations which was rejected by the complainant.

FWF will check with the complainant whether the address he/she has provided is incorrect and ask him to contact the factory on this.


07/19/2019 Closed

Complaints handler spoke with the complainant on 18 July. He/she informed that he/she is still in the village and engaged in farming operations.
Complaints handler explained him that due to address problem the outstanding documents were not delivered to him, and that he/she can send his/her current address (also email id if he/she has) to the company then it may again be dispatched to his/her address. He/she replied that he/she would think and then inform FWF. He/she was informed that Buyer and company may like to know whether he/she will be sending his/her address or not.
It was suggested that he/she may even send the address to the FWF complaint number and then it can be forwarded to the buyer.
He/she said that he/she does not want to send the address. He/she added that he/she will go to company and meet the management personally when he/she returns. He/she also did not want to continue with the complaint.

The complaint is therefore considered closed.

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Complaints > China > Mini Rodini AB, Complaint 536

China - Mini Rodini AB, Complaint 536

Status
Remediation
Country
China
Date
11/14/2018
Complaint ID
536
Member involved
Mini Rodini
Filing party
Other
Filed against
Factory management
Grounded

The case

On 14 November 2018, a person close to a factory's finishing worker lodged a complaint regarding:
1. Unfair payment. Finishing workers are paid differently for the same type of work. Some are paid 7 RMB per hour, some 8 RMB and others 9 RMB.
2. Long working hours and no overtime (OT) premiums. The complainant informed that workers start working around 7:00 until 19:00 or later. However, after the eight regular working hours they are paid between 7 and 9 RMB per hour, with no OT premium. During peak season, they work for the entire month without a day off. Workers feel very fatigued by the long and excessive overtime hours.

See the current status

Overview of the complaint investigation

11/15/2018 Investigation

FWF reached out to Mini Rodini who informed us that they shared the complaint with the factory.

12/03/2018 Investigation

No response was received but in the meanwhile an audit was planned for the beginning of December. From the audit findings, it was verified that:
Regarding point 1: it was confirmed that the workers from the finishing workshops were indeed paid 6.5 to 8.5 RMB per hour without extra overtime premiums; and this is below the local minimum wage. However, regarding the unfair payments, the audit team thought this was not the case as management determined workers' wages by referring to their skills and efficiency; thus, lower efficiency was paid a lower wage, which cannot be categorised as unfair payment.
Regarding point 2: it was confirmed that workers did work excessive overtime hours as mentioned in the complaint.

12/04/2018 Conclusion of the investigation

During the audit it was verified that there was payment below the minimum wage and that workers did work excessive overtime

12/10/2018 Remediation

FWF requested Mini Rodini to discuss the complaint during the audit with the factory management since Mini Rodini was visiting the factory in December. FWF suggested the factory to start with the following remediation:
1. Ensure that all employees are paid at least the local minimum wage.
2. Monitor the working hours to be no more than 11 hours/day, in other words, no more than 3 overtime hours/day; and ensure at least one day off in a 7-day period.

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Complaints > India > Anna van Toor, JBC n.v., Modehuizen Claudia Strater B.V., Expresso Fashion B.V., Complaint 634

India - Anna van Toor, JBC n.v., Modehuizen Claudia Strater B.V., Expresso Fashion B.V., Complaint 634

Status
Closed
Country
India
Date
04/18/2019
Complaint ID
634
Members involved
Anna van Toor B.V., JBC n.v., Claudia Sträter and Expresso Fashion B.V.
Filing party
Worker
Filed against
Factory management
Grounded
No

The case

The complainant, together with other workers, have changed the phone number originally registered on their Provident Fund (PF) form. As a consequence, they are no longer receiving messages from the PF office when their PF amount is deposited in their accounts. They approached the PF office and were told that they need to ask their employer to register their new phone number with their PF account, and that the PF department cannot do this on its own. They approached the factory's HR department and requested the phone number update. However, the person responsible for this task demanded INR 400. The complainant called the FWF helpline to know whether there was a provision about the charge of a fee for updating phone numbers in the PF accounts. The complainant was informed that it is not right to demand money for updating the number. The complainant referred this information to the relevant HR person and was told that that some workers (4-5) had already paid the INR 400 fee. The complainant has requested FWF to help him/her solving this problem.

Findings and conclusions

On 18 April 2019, FWF's complaint handler in India received a complaint from a worker who, together with other workers, had changed their phone number originally registered on their Provident Fund (PF) form. As a consequence, they were no longer receiving messages from the PF office when their PF amount was deposited in their accounts. They approached the factory's HR department and requested for the phone number update. Workers claimed that the person responsible for this task demanded INR 400 each. Factory management explained that often workers change their mobile numbers multiple times but do not inform management which creates a problem when workers want to withdraw the amount because the PF department sends a “one time password” to their registered mobile number for authentication.

At the behest of the brand, FWF conducted an off-site investigation on 16 and 17 June 2019. Individual and group interviews were conducted. The investigation revealed that the factory was not directly involved in charging money for corrections to the workers' PF account details. The ESI-PF work of the company is handled by a consultant and therefore the allegations were against the consultant and not the factory. The complaint was therefore not grounded. However, FWF recommended the brand/factory to actively communicate with their workers on services they should expect from factory management (with regard to social security payments). This would help in managing workers’ expectations and avoid similar complaints in the future.
See details

Overview of the complaint investigation

04/30/2019 Investigation

FWF has shared the complaint with the brands and the brands in turn have asked the factory to give its perspective for the complaint that has been raised.

04/30/2019 Investigation

Factory management answered that they are aware of this issue of mobile number updating, but the fact that the HR department is asking for 400 rupees is not true. This is a rumour that has been spread among the employees due to the amount of time it had taken.

They have suggestion boxes and cameras in many locations in the factory and management is easily accessible in case there was a genuine complaint of taking money. Employees approach senior management for other day-to-day issues such as salary advances, discrepancies, colleague issues etc. but have not approached them for this at all.

They are doing their best to educate them and explain the issue as below.

Indian employees frequently change their mobile numbers looking for the cheapest possible payment plans. They may have a mobile number only for 8-9 months at a time.

The PF (Provident Fund) department links all PF accounts to mobile numbers. The issue is that few employees who changed their mobile numbers multiple times have not informed management.

When management approaches the PF department to withdraw workers accumulated amount or change their name or make any modification at all to their PF account, the PF department sends a “one time password” to their registered mobile number for authentication.

This registered mobile number is:
1. The original number at the time of opening (registered few years before) – which has been changed multiple times.
2.Employees are unable to read English text messages and get lost in the 100s of unread text messages that they have on their phones – employees are not as tech savvy as the government expects them to be.

They are doing their best to get all the numbers changed but it takes time as government agencies in India are heavily bureaucratic. Management is asked to submit only 3-4 files at a time to the PF office so that their table does not get too full with paperwork.

Management asserted that they are doing their best to resolve this issue and all workers will be satisfied very soon.

04/30/2019 Investigation

Brand wanted FWF to investigate on whether the complainant can prove that 4-5 workers already paid INR 400 and how they were asked to pay the money to the HR department.

05/10/2019 Investigation

FWF is trying to get response from the complainant for further investigation.

05/13/2019 Conclusion of the investigation

Complainant was contacted and he/she informed that there is a person in the HR department who handles the work of the Employees' State Insurance (ESI) and PF in the factory, and it is this person who demanded Rs 400 from many workers for resolving this problem. Some workers also argued against this, but he/she insisted that without this payment he/she may not help.

The complainant remembered the name of one employee who had paid and 3-4 women workers (he/she did not know their names), and also one cleaning worker who had paid INR 400 and their problem was probably resolved. Others who did not pay were still facing this problem and gradually many workers lost hope and started realising that without paying they could not get the problem resolved and so they started accepting and convincing those who were opposing to pay INR 400 rather than risking their PF money.

He/she added that workers may never go forward to tell about this problem fearing that they may be fired if they are identified by the management.
The complainant also feared that he/she would be fired if his/her name is disclosed.

05/13/2019 Remediation

FWF recommends the factory to help the workers on this by ensuring a proper grievance handling mechanism and also to make sure that they would never be retaliated if they make a complaint.

07/31/2019 Investigation

As a part of investigation , Workers interview was conducted on June 16th and 17th by the complaints investigator and these Interviews were conducted outside the factory premises after the working hours. Both individual, group interviews were done.A total of 15 workers interviewed out of which 7 were female workers.
Complaint investigation revealed that company has not involved in any way in charging any money from workers for corrections in their PF account details. The ESI-PF work of the company is handled by a consultant and therefore the allegations whatsoever were against the consultant and not the company. Consultant helps in correction of entries in Aadhar card/Pan card if there is any error in the spelling of names or date of birth.
Errors/mistakes in the PF account details arise because of either entries in PF accounts needed update/correction [ if mobile number is changed] or entries in Aadhar/Pan Card etc needed corrections before updating in PF account details.
50% workers responded that no money was demanded/charged for the correction of PF account details, but the rest 50% said that earlier Rs 400 was demanded (but no one said that it was charged from them) by the consultant.
Two workers explained that in cases where corrections in Aadhar and Pan Card were needed, the company consultant helped the workers in getting contact with some other specific consultants doing the work of Aadhar and Pan card corrections for speedy resolution of the problem. These consultants may have charged INR 400 for Pan card correction and issue of new Pan card and INR 60 for Aadhar card corrections and issue of new Aadhar card. There may be a possibility that they charged less and some commission was added by the company consultant for himself, but there is no evidence for this. The company has nothing to do in this issue, as it was workers’ own responsibility and not that of company.
Therefore, we can come to a conclusion that none from the HR department has demanded money.

07/31/2019 Conclusion of the investigation

Since it is clear through the offsite interviews that neither the workers have paid money to factory nor the HR department has demanded any, this case can be considered as not grounded.

However the factory is recommended to actively communicate with their workers on what services they should expect from factory management (with regard to social security payments) and what they will have to avail outside. This would help in managing workers’ expectation and avoid any such complaints in future.

07/31/2019 Closed

Since it was established through workers interview that neither HR department demanded money for updating the phone number nor any of the interviewed workers have paid money to any person in HR department this complaint is not considered as grounded and hence it is closed.

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Complaints > Vietnam > Vaude Sport GmbH & Co. KG, Complaint 534

Vietnam - Vaude Sport GmbH & Co. KG, Complaint 534

Status
Resolved
Country
Vietnam
Date
11/12/2018
Complaint ID
534
Member involved
Vaude Sport GmbH &; Co KG
Filing party
Worker
Filed against
Supervisor, Factory management
Grounded
Yes

The case

On 8 September 2018, a worker called FWF's complaints helpline for information, explaining that he/she submitted his/her resignation in July but that it had not been taken into account by the factory. FWF's complaints handler advised him/her to resend the resignation by post. The complainant did as advised and also handed out his/her resignation to his/her supervisor.
On 26 September 2018, the complainant attended a meeting to resolve his/her termination of employment. The meeting included the complainant, the production manager, the supervisor and his/her line leader. As a result of the meeting, the factory agreed to resolve the worker's request to terminate his/her employment in December 2018 and asked him/her to sign the minutes of meeting. He/she signed the meeting minutes and wrote that she would resign from 15 November but did not receive a copy of the minutes.
On 30 October 2018, the complainant said that he/she met with the director who said that his/her termination would be resolved but no timeline was shared.
She also met with the union chairman but did not receive any support. He/she also met with HR but they said that they had not received his/her termination letter.
On 12 November 2018, the worker filed a complaint because he/she to terminate employment on 15 November 2018 as per his/her letter and for family matters. He/she wanted FWF to help with terminating his/her labour contract legally, as he/she wanted to receive his/her remaining salary and benefits including the insurance book.

Findings and conclusions

On 8 September 2018, FWF's complaints handler in Vietnam received a complaint from a worker who had requested to terminate his/her employment in July but was still awaiting approval from management. FWF declared this complaint admissible and informed Vaude, the FWF member sourcing at this factory. Vaude reached out to factory management, who acknowledged that the complainant had been in discussion with management about his/her termination since July. After a meeting on 14 November 2018 with the director and the union chairman, the complainant's request to resign was resolved. The complainant agreed to resign on 29 December 2018. Verification took place at the beginning of 2019 to ensure that the worker had received all his/her due salaries and benefits. The complainant confirmed that the factory had paid all his/her dues. He/she received the social insurance book on 19 March 2019. The worker felt happy and lucky and said that, without FWF, he/she would not have been able to get a legal employment termination and receive his/her social and insurance book. This complaint is resolved.
See details

Overview of the complaint investigation

11/14/2018 Investigation

On 14 November, Vaude informed the factory about the complaint. Vaude received feedback from the factory acknowledging that the worker had been in discussion with the factory management about the situation back since July. The factory shared that he/she told the line leader that he/she needed to stop working to take care for his/her parents in law who were over 90 years old. On the other hand, he/she said that he/she would like to stay in the factory.

The worker had worked for the factory for nine years and, from the factory's perspective, because of his/her experience they would prefer to keep him/her, but they agreed they cannot stop him/her from resigning.

In the Corrective Action Plan (CAP) of a recent FWF audit, it was stated that workers said that it usually took two to three months for management to agree on termination. Since the process is too long, they sometimes have to resign unilaterally, which means they do not receive all their due payments.

11/14/2018 Remediation

After a new meeting on 14 November at the factory with the director and the union chairman, the complainant's resignation was resolved. He/she had to fill in the factory's resignation form and he/she will be resigned from 29 December 2018. He/she agreed with the new date (29 December) because he/she wanted to resign legally.

Verification will take place at the end of the year, to make sure the worker will have received all his/her due salaries and benefits.

03/19/2019 Evaluation of the complaint

The complainant confirmed that the factory paid all his/her dues. He/she received the social insurance book on 19 March 2019. The worker felt happy and lucky and said that, without FWF, he/she would not have been able to get a legal employment termination and receive his/her social and insurance book.

04/23/2019 Resolved

This complaint is resolved.

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Complaints > Indonesia > LK International AG (Kjus), Complaint 322

Indonesia - LK International AG (Kjus), Complaint 322

Status
Resolved
Country
Indonesia
Date
01/10/2018
Complaint ID
322
Member involved
LK International AG
Filing party
Worker
Filed against
Factory management
Grounded
No conclusion possible

The case

The complainant started working at the factory in May 2017 as a Temporary Appointment Work (PKWT) employee in the role of HR manager for three months. The contract was extended for another three months. 9 November 2017 was the last day of the complainant's second contract. About 1-2 weeks before the contract ended, the complainant was told that he/she would be assigned as HR manager to another factory in Jakarta, owned by the same supplier.

However, two days before 9 November, the General Manager (GM) asked him/her not to work anymore without giving clear reasons. The complainant said to the GM that as HR manager he/she should be employed as a permanent worker, rather than a contract worker, as stipulated in Law No.13/2003 Article 59 (1) and 59 (2). He/she also said that his/her contract was not signed in front of the GM but only put on his/her desk.

The complainant claimed that the reason why his/her contract was not renewed was his/her alleged affiliation with a factory's trade union, a colleague told him/her. He/she indicated that he/she tried to resolve this problem in a bipartite manner but failed.

The complainant sent a letter to the labour inspectorate office of North Jakarta to try to resolve this case. In the letter, he/she claimed that factory management did not comply with Law No.13/2003.

The complainant further claimed that management offered compensation but he/she refused it, as he/she wanted to be rehired as a permanent worker (PKWTT). The complainant wanted to speak to top management and be rehired as PKWTT.

Findings and conclusions

On 10 January 2018, FWF's complaints handler in Indonesia received a complaint from a worker who had been employed as HR manager on a temporary contract. The complainant claimed that the factory had not followed the procedure on contract renewal properly. FWF declared this complaint admissible and informed Kjus, the FWF member sourcing at this factory. Kjus contacted factory management, who indicated that they had reached an agreement with the complainant through a third-party mediator and provided documentation. To avoid similar problems in the future, the factory was advised to review its HR policies to ensure they are in line with legal requirements. The complainant was satisfied with the agreement reached with the help of the third-party mediator. This case is resolved.
See details

Overview of the complaint investigation

02/21/2018 Investigation

Kjus forwarded the complaint to factory management. Factory management indicated that, in the meantime, it had reached an agreement with the complainant with a third-party mediator and provided documentation.

02/21/2018 Conclusion of the investigation

FWF's complaints handler in Indonesia confirmed with the complainant that an agreement had been reached.

03/29/2018 Remediation

Although the individual case has been resolved, remediation with regards to the implementation of laws related to HR issues needs to take place as it remains unclear if the proper procedures are being followed.

For this reason, FWF expects Kjus to indicate to the factory that it needs to review its HR policies to make sure they are in line with legal requirements and thus also avoids (potentially unnecessary) time delays and mediation.

02/21/2018 Evaluation of the complaint

The complainant is satisfied with the resolution of the complaint by way of the agreement reached with a third-party mediator.

03/29/2018 Resolved

The case was resolved as an agreement was reached that both parties found acceptable.

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