Payment of a living wage Archives — Page 4 of 12 — Fair Wear Foundation Fair Wear Foundation

India Complaint Takko October 2016

Final report of a complaint at a factory in India supplying Takko

On 31 October 2016, Fair Wear Foundation received a complaint from an employee who left the factory one month ago. When (s)he visited the factory to collect his/her bonus payment, (s)he together with 50 other previous workers, was asked to wait and then to return the next day. Then again, she was asked to return another day. So far, the complainant has not received his/her pending bonus payment.

FWF informed Takko about the case and a local audit team from Takko visited the factory and conducted interviews with the general manager as well as two HR staff. According to management, all bonuses were prepared and scheduled to be paid to all employees who had left the factory on 7 November. FWF called the complainant, who confirmed that (s)he now received the bonus, but (s)he did not comment further on the discrepancies between his/her complaint and the version from the management.

FWF recommends that the factory communicate clearly and well in advance about exactly when (former) employees can expect to receive their bonus payments.

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India Complaint Takko December 2016

Final report of a complaint at a factory in India supplying Takko

On 29 November 2016, Fair Wear Foundation (FWF) received a complaint from an individual currently employed by the factory. The complainant claimed that (s)he and other workers had not received their salary for the last three weeks. The salary for one week has been deposited in the bank, but the complainant was unable to withdraw it. The Indian government recently, and with a notice period of four hours, announced that 500 and 1000 INR currency notes would no longer be a valid tender. Due to demonetization, every bank restricts the account holder to withdraw a minimum amount. The worker is aware about the restrictions (also to the factory), but stated that other factories in the area have been able to settle salary payment.

FWF informed Takko about the case on 1 December 2016 and Takko’s local audit team conducted an investigation the next day. The findings of the investigation were discussed with the complainant by FWF. The investigation by Takko concluded that salary payments were indeed delayed due to the unexpected demonetization situation. As a reaction, management proceeded to open salary bank accounts for all workers and ordered ATM cards. This process was taking longer than usual given the recent high demand. In the future, management plans to install an ATM machine at the factory.

The FWF verification in February 2017 audit confirmed the findings of the Takko audit team. All workers now receive their salary in their bank account by the 5th of each month.

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India complaint Nudie Jeans Oct. 2016

FINAL REPORT OF COMPLAINT AT A FACTORY IN India SUPPLYING Nudie jeans

On 27 and 28 October 2016, Fair Wear Foundation (FWF) received separate complaints from three workers currently employed by the factory. The complainants claimed that all employees had to work overtime. However, overtime payments were delayed for a month and sometimes up to three or four months. Other complaints were that bonus payments were also often delayed and that the bathrooms were normally dirty, and that having migrant workers in the factory meant that a language barrier prevented many workers from expressing grievances.

Nudie Jeans asked their supplier about a response to the complaint, which was forwarded to FWF. As a FWF audit had already been planned an audit for 24th and 25th November, the audit was used as an opportunity to investigate further. After this, FWF called the complaints to confirm whether they had received all pending payments.

FWF confirmed that all payments had been settled at the time of the audit. The audit could not confirm excessive overtime hours or forced overtime. While toilet facilities were clean during the audit, interviewed workers confirmed that they are generally not well kept. FWF was unable to verify whether the complainants resigned (as documents by the factory suggest) or whether they were dismissed and forced to sign a resignation letter (as claimed by the complainants).

In terms of remediation, the factory needs to ensure that policies for all relevant procedures like bonus calculation, leave resignation etc. are clearly documented, communicated to workers in a language they can understand and applied by staff according to Indian legislation. All payments must be paid on time at all times. The brand should clarify continuously whether the factory is able to do this. The factory should also set up functioning communication and grievance channels that are also accessible to migrant workers.

FWF verified that the individual complainants had received their pending payments and that all pending payments for other workers had been settled. Nudie Jeans asked FWF to facilitate mediation meetings between the workers and management. As a result of this process, management agreed to pay additional compensation to the workers in June 2017. FWF verified the receipt of this payment as well.

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Vietnam complaint Vaude August 2016

FINAL REPORT OF a COMPLAINT AT A FACTORY IN VIETNAM SUPPLYING VAUDE

On 29 July 2016, Fair Wear Foundation received a complaint from a worker who is currently employed by the factory. The complainant claimed working hours in July were until 8 or 9 pm two or three times a week. According to the complainant workers were requested to leave the factory after 5 pm, check out with their fingerprint and return to work without registration. During those hours, overtime premium would not be paid. In addition, the complainant stated the high production targets lead to high pressure. As a result, workers shorten their lunch time and continue their work.

VAUDE contacted the supplier, who insisted that workers normally are not requested to work overtime without payment, but a couple line leaders did not follow the regulation. Between 13 and 16 November, the FWF complaints handler visited the factory to conduct on-site and off-site interviews, and to check the records. The investigation concluded that overtime hours worked in case of repairing a defect was not paid correctly. The factory did announce to all workers they can approach HR department to request the overtime reimbursement. The complainant confirmed the overtime hours are now paid correctly, while other workers interviewed stated recent improvements have been noticeable regarding hours of work. The factory stopped extending working hours and power is shut off after 20 minutes after regular working time ends. During lunch power and light is now shut off as well and workers take a rest during lunch.

In terms of remediation, factory management must continue to ensure line leaders do not request the workers to stay longer to repair the defected garment without payment. All hours should be registered. In cooperation with VAUDE, the factory is requested to set up an action plan to reduce excessive overtime in upcoming peak seasons. A solution must be found for the high production targets that pressure workers. It is suggested to conduct a Workplace Education Programme session to raise awareness of labour rights and as a first step for dialogue between workers and management on the issue of working hours.

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Vietnam Complaint Outdoor & Sports Company Nov. 2016 Final Report

Final REPORT OF A COMPLAINT AT A FACTORY IN VIETNAM SUPPLYING OUTDOOR & SPORTS COMPANY

On 4 November 2016, a worker made a complaint that she had been working at the factory for about a year without a signed labour contract, or an employee card or health insurance card. The complainant claimed having been fired on 4 November, without advance notice, and that on 5 November the worker had been told that the factory would pay the salary for October, if she agreed to work 3 days without payment.

FWF decided this complaint was admissible on 5 November 2016 and informed OSC about the case. FWFs complaint handler obtained evidence that the worker was in fact employed by the factory and then called one of the complainant’s coworkers who claimed she was under the impression the plaintiff was fired because she was absent for two days without permission (29 & 31 Oct). On 14 November, another employee from the same company called FWF’s complaints handler, stating she would like to receive her social insurance book.

FWF scheduled an audit at this supplier on behalf of Outdoor & Sports. The investigation revealed that the worker was working without a labour contract, and that the dismissal did not comply with the legal procedure. The factory paid the complainant her October salary and informed her that the November salary would be paid on 25 December. The factory did not inform the other complainant of when she can get her insurance book, since it is late in paying social insurance.

With regard to remediation, FWF has made recommendations regarding proper attention to labour contracts, the payment of insurances, and the compensation of due wages within seven days of the termination of a labour contract. The factory must pay severance allowance to the two complainants for the working time served when employees did not pay unemployment insurance contributions as prescribed by law. The labour discipline (such as dismissal) or termination should be in compliance with local laws requirements. A long-term recommendation is to investigate ways of reducing worker turnover through better job security.

On 2nd of January 2017, FWFs complaint handler confirmed both employees were paid their due salaries of November and December 2016. However, social insurance and severance compensation were not paid. Remediation and follow up by OSC will be verified during next Brand Performance Check. On 22 March 2017 FWF received news that the complainant was reinstated by the company and is working in the finishing department.

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China Complaint Salewa December 2016

Final report of a complaint at a factory in China that supplies Salewa – December 2016

On 6 December 2016, Fair Wear Foundation received a complaint from a worker at a factory in China that supplies FWF member Salewa. According to the complainant, he asked for personal leave from 24 -28 November for personal affairs. Factory management refused his leave application, but the complainant did take the leave. After he returned to work, factory management informed him he was fired due to absenteeism without permission. During the complainant’s leave, the factory hired a temporary worker and requested the complainant to pay his replacement from his wages. The complainant also says he is owed outstanding wages from September through November.

FWF informed Salewa about the case and Salewa contacted the supplier about it. The complainant has supposedly made an agreement with the management and is still working in the factory. In February, the factory sent pay slips showing that they have paid the complainant his outstanding wages. Unfortunately, despite several efforts, the FWF complaint handler could not connect with the complainant to verify this.

FWF advises Salewa to talk with their supplier about devising a fair resignation and dismissal policy and communicating this to all workers.

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Roundtable Turkey: integrating Syrian refugee workers

Garment brands, factories, unions, the Turkish government, international organisations and other stakeholders gathered in Istanbul on Monday to discuss challenges and possible solutions for integrating Syrian refugee workers. The roundtable was organised by Fair Wear Foundation.

“The turnout was quite high”, said FWF’s Andriëtte Nommensen, who organised the meeting. “The participants covered the whole spectrum that is needed to address the issue of Syrian refugees in Turkish garment factories.”

Tackling child labour
In his opening speech, Dutch ambassador Cornelis van Rij praised Turkey for taking up so many refugees, and FWF for actively trying to tackle child labour in the country. He said he hoped that the organisations that were present would be able to work together on possible solutions.

The meeting resulted in an outline of next steps that the Dutch and Turkish governments, brands and factories, and civil society organisations can take. Possible solutions mentioned include improved labour inspections and an easier way to get work permits for Syrian refugees.

Remediation
The participants also emphasised the role of European brands. They can take responsibility by getting better insight into their supply chains, including subcontractors, put less pressure on the price and play an active role in remediation when children are found.

Fair Wear Foundation requires its members to ensure that all suppliers have a policy in place for registering Syrian refugee workers; see the FWF guidance for members sourcing in Turkey.

Read more about the difficulties of eradicating child labour in garment supply chains and possible solutions in this FWF article.
If you want to learn more about the Turkish garment industry, read FWF’s latest Turkey country study.

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China Complaint Outdoor and Sports June 2016

Final report of complaint at a factory in China that supplies Outdoor and Sports – June 2016

On 1 June 2016, Fair Wear Foundation received a complaint from a former worker at a factory in China supplying FWF member Outdoor and Sports. According to the complainant she asked for personal leave on 27 April, which was refused on 30 April. Nevertheless, the complainant took time off, without approval from the factory. Upon return on 10 May she was told her job had been terminated due to absenteeism. Finally, the complainant did not receive her wages for April and the first three days of May.

FWF informed Outdoor and Sports, which in turn informed FWF that a case had been started at the local arbitration committee. The FWF member brand stressed to the factory that the complainant would drop the complaint if the factory would pay the due wages for April. The factory decided to wait for the arbitration ruling.

The local arbitration body ruled in favour of the supplier. FWF advises Outdoor and Sports to continue its dialogue with the factory regarding dismissal policy and effective grievance systems.

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Romania Complaint Living Crafts, hessnatur November 2016

Intermediate report of complaint at a supplier in Romania for hessnatur and Living Crafts – November 2016

On 7 November 2016, a worker at a factory supplying hessnatur and Living Crafts stated that overtime and high production targets led to pressure and exhaustion among workers. Moreover, the overtime was not always reflected in their pay slips which made it unclear how their pay was structured. Finally, since the HR department was outsourced, there was no clear way to complain about working conditions.

An audit had already been planned by hessnatur on 23 and 24 November. Without letting the factory management know in advance of the complaint, it was decided to discuss the complaint at the time of the audit.

The audit conducted by a FWF team concluded that workers perform overtime hours on Saturdays and wage records do not present all overtime hours, annual leaves and bonuses. FWF’s complaints handler spoke to the complainant on 24 November. The wage record of the complainant showed normal working hours in spite of the fact that the employee was in medical leave; further, the employee performed overtime hours on Saturdays despite the medical recommendations. According to the worker interviews during the audit, more workers face work stress and exhaustion due to production pressure.

FWF recommends Living Crafts and Hess Natur, in cooperation with the mother company in Germany and the factory, to set up an action plan to reduce excessive overtime hours, work pressure and create openness about overtime hours on the wage records.In consultation with workers, a solution must be found for the high production targets that create pressure on workers and cause stress and exhaustion. It is highly recommended to have an integrated HR staff person within the factory.

Verification of the situation within the factory will be carried out by a verification audit in 2017.

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Morocco Complaint ALBIRO December 2016

Final report of a complaint in Morocco at a supplier for FWF member ALBIRO – December 2016

On 27 May 2016, a worker currently employed at a factory supplying ALBIRO claimed there were several violations, including: the employment of non-skilled workers at lower rates, not taking seniority into account for payments, lack of full payments to the Social Security Fund, deduction of transport costs from wages, and lack of holiday pay. Moreover, said the employee, these issues had not been disclosed during a BSCI audit.

The complaint was investigated in November 2016. It was found that some workers were indeed paid a lower rate, and that seniority was not reflected in the payments. Double pay slips were also found, and the payments toward the Social Security Fund were not done correctly for 14 workers. Moreover, workers were not given a permanent contract. While this is not contrary to law, FWF recommends that all workers have a written and signed contract. FWF could not establish violations regarding the deduction of transport costs, lack of holiday pay, non-payment of overtime or the employment of children.

Management at the factory indicated that currency changes, lower prices and bad investments left the factory unable to pay all necessary wages and social security costs. Therefore, FWF recommends ALBIRO to continue cooperation with the supplier, see how the supplier can be helped regarding the financial situation it is in and, most importantly investigate its own pricing policy to learn whether the prices paid support the payment of the legal minimum wages, seniority and social security.

The complainant was satisfied with the outcome of the complaints process and hopes that this process will help to bring improvements to the factory. The complainant hopes that the factory and ALBIRO will work together to uphold the law and ensure workers’ rights.

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