Final report of complaint at a factory in India supplying madness
On 2 March FWF received a complaint from a worker working for a factory supplying Madness. The complaint related to the labour standards ‘Legally binding employment relation’ and ‘No excessive overtime’ which are part of FWF’s Code of Labour Practices.
The plaintiff claimed that the factory dismissed him/her without prior written notice and that (s)he did not receive an appointment letter at the beginning of the contract. Also, the plaintiff complained that (s)he had to work excessive overtime, which according to him/her also is common practice. Madness contacted the supplier immediately after receiving the complaint. Factory management stated that they did not dimiss any employees recently and that they had implemented legal binding contracts with their workers.
In May 2015, the worker accepted the settlement payment for one week salary and does not want to pursue his claims regarding further payments. The complaint regarding his case is therefore closed. However, FWF asks Madness to ensure, that the supplier implements legally binding contracts with the entire workforce, including current employees and newly hired employees. This will be verified in an audit later in 2015.
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Final REPORT COMPLAINT IN india AT FACTORY SUPPLYING Dw-Shop
In May 2015, FWF’s complaint handler in India received a complaint about a supplier to DW Shop concerning two employees who said they had been dismissed for refusing overtime. They claimed that their severance pay had been too low and that their salary was below the legal minimum wage.
During an earlier audit conducted by FWF in April 2015, the auditors had found that the workers they interviewed were heavily coached and many of the documents were forged.
Given the audit outcomes and additional information gathered during the investigation about the complaint, FWF concluded that the complaint was likely to be grounded, but it was not possible to prove this. Management of the factory denied all allegations.
FWF and its member company DW Shop outlined a proposal in which additional severance pay was to be made to the complainants. But when the complaints handler called them, they said they had been paid an additional amount by the factory and wanted to drop the complaint.
FWF will add the information collected to the audit outcomes. DW Shop is required to follow up on the ensuing corrective action plan (CAP). FWF will verify the corrective action in early 2016.
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intermediate REPORT COMPLAINT IN India AT FACTORY SUPPLYING Madness
In July, a (former) employee of a factory in India filed a complaint, claiming that he had been forced to resign when he refused to work (excessive) overtime. In addition, the wage he was paid didn’t cover the overtime he had already worked, and he did not receive full social security benefits.
The complaint was investigated, and on the basis of available documentation, the situation was mediated by FWF to the satisfaction of both parties. Nevertheless, the complainant filed a police report regarding alleged assault by a supervisor, and this is being pursued outside the FWF complaint mechanism.
As part of its remediation efforts MADNESS should continue to facilitate and support the application of legally binding employment documents and the provision of social security according to Indian law. It should also help ensure that wage structures are clearly communicated, and that the root causes of overtime are addressed.
These points under remediation will be verified during a verification audit in the first half of 2016, and during the 2016 Brand Performance Check.
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intermediate report of complaint in Bangladesh at factory that supplies Takko
On 31 July 2015 FWF received a complaint through the FWF helpline in Bangladesh. The complainant, a security guard, stated that security guards are required by the factory to work 12 hours per day, 4 hours more than stated in their contract, without overtime payments. Security guards are also required to work without compensation during festival (Eid) days.
On 6 August, the FWF local team, including a document inspector and a complaints handler, met with the factory management and the compliance manager of the Takko Fashion agent. Factory managers agreed that there was a discrepancy in terms of the hours of work, and said they change the guards’ schedules based on an 8-hour rotation. The issue of proper remuneration during festival days was not addressed.
The remediation plan includes follow up and monitoring of whether the 8-hour roster system is being used, and whether it will solve the underlying issue. The issue of remuneration during festival days should be addressed. A verification audit is siggested for early 2016.
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Final Report China Complaint Acne Studios, Jack Wolfskin, Kjus, Odlo, Schoeffel and Vaude 2015
On 25 March 2015 FWF received a complaint through it’s local complaints handler in China from a worker working for a factory supplying the above brands. The complaint related to the following labour standards, part of FWF’s Code of Labour Practices: ‘Employment is freely chosen’, ‘Reasonable hours of work’, ‘Payment of a living wage’
The complainants reported that workers were forced to do excessive overtime hours in case of tight delivery and that these overhours weren’t paid at all. Moreover, the complainant indicated workers are coached to give favourable answer to the audit team’s question during the interview process.
FWF informed the four affiliates about the case and requested the affiliates to contact the supplier and ask for a reply. FWF analysed the most recent audit that took place at this supplier in March 2014. The audit did not conclude excessive overtime for the packing department.
However, the complainants provided further details about their woking hours. The factory confirmed they cannot prevent overtime during peak season, particularly given the tight deadlines required by their clients. The factory argued that overtime is always voluntary, meets government requirements and is paid in compliance with government requirements. Complainants said they worked extra hours without recording them, so they are not checked and monitoring.
FWF recommended a root cause analysis of excessive overtime and discussing with the factory how production planning can take pressure off the factory. However, the six FWF members have leverage of less than 6% at the factory. In the Corrective Action plan for a verification audit from November 2015, it was also stated that the Factory must adopt a system where all working hours are recorded and monitored via punchcards.
There was a verification audit in early November 2015, and it was seen that workers were no longer coached during the audit. There were no findings of excessive overtime, but then a third complaint about excessive overtime was received a few days after the verification audit.
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INITIAL REPORT COMPLAINT IN macedonia AT FACTORY SUPPLYING albiro
In May 2014, five workers from a factory in Macedonia supplying FWF member Albiro called FWF’s complaint helpline. They claimed that a new wage calculation method had pushed their wages down to below the legal minimum. They also complained about forced overtime and harassment. The investigation showed that wages had indeed dropped to below the legal minimum wage when the new wage calculation method was introduced. And while harassment and forced overtime couldn’t be proven, there were no systems in place to avoid forced overtime and the internal grievance mechanism was found wanting.
To remediate the wage issue, the factory should work with the worker committee to revise the wage calculation system. Overtime registration must be improved and a proper consent procedure implemented. The internal grievance mechanism will be improved. An audit to monitor the improvements is planned for the last quarter of 2015.
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Final REPORT COMPLAINT IN thailand AT FACTORY SUPPLYING jack wolfskin
On 1 April 2014 FWF was informed by local stakeholders that the local media reported a situation in a factory supplying Jack Wolfskin. The case related to the labour conditions ‘Payment of a living wage’ and ‘Reasonable hours of work’ which are part of FWF’s Code of Lavour Practices.
The complaint claimed that migrant workers from Myanmar (Burma) working at the factory had to work 14 hours a day and received less than minimum wages; were fined when they took sick leave or emergency leave; and were instructed to hide the information from external inspectors. Four NGOs, FWF and Jack Wolfskin discussed a plan to follow up on the corrective action plan for the factory. Jack Wolfskin informed FWF that it has been difficult to communicate with the factory since August 2014. The factory was not active in discussing the corrective action plan. Aside from the fact that the factory had paid minimum wages until September 2014 and no overtime was reported, thereare still some problems to be resolved.
The factory had decided to close down on 10 December 2014. FWF has required Jack Wolfskin to support and require the factory to pay dues and full compensation according to local law. FWF will verify the situation with workers in a later stage.
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Final REPORT OF COMPLAINT IN china AT FACTORY THAT SUPPLIES Mammut, Jack Wolfskin and Haglofs
On 17 June and 21 July FWF received a complaint through it’s local complaints handler in China two workers working for a factroy supplying above companies. The complaint related to the labour standard ‘Reasonable hours of work’, which is part of FWF’s Code of Labour Practices.
Both workers from this factory complained about excessive overtime hours. The two plaintiffs both indicated they work 6 days a week till 22:00 plus occasionally 8 overtime hours on Sundays. The plaintiffs also state in some cases they work 21 days consecutively. According to one of the workers, the time cards are falsified.
Based on investigation and the fact that the finding is corroborated by the audit, and similar findings were shared through earlier complaints, FWF finds the complaints regarding excessive overtime grounded. The supplier confirmed they had difficulties planning capacity during the peak season. The affiliates are expected to set up a plan to reduce excessive overtime, to support the supplier in efficient production planning and to avoid putting additional pressure on orders during peak season. The supplier is asked to have regular meetings with workers to provide them with a platform to discuss their grievances.
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INITIAL REPORT COMPLAINT IN India AT FACTORY SUPPLYING Odd molly
On 10 December FWF received complain from a worker, working for a factory supplying Odd Molly. The complaint related to the labour standards ‘Payment of living wage’, ‘Legally binding employment relationship’ and ‘No excessive working hours’, which are part of FWF’s Code of Lbaour Practices.
The complainant claimed that (s)he receives the legal minimum wage but that overtime hours (which are frequent) are not paid extra and that there are no paid leaves. The complainant stated that according to the factory management social security payments and taxes are paid. Workers do not receive any pay slip indicating proof for the amounts deducted which is why the complainant doubts the payments are made according to law.
FWF informs Odd Molly about the case. Odd Molly is expected to contact the supplier and ask for a reply within one week. The case is under investigation.
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final REPORT COMPLAINT IN china AT FACTORY SUPPLYING Acne Studios
On 20 June FWF received a complaint from a worker working for a factory supplying Acne Studios. The complaint related to the labour standard ‘Reasonable hours of work’ which is part of FWF’s Code of Labour Practices.
The plaintiff indicates the hours are too excessive to enjoy life after work. The factory was open and transparent in their reply, confirming they had to ask workers to work overtime in case of tight deliveries and require workers to stay the night shift until 22:00. They wish to avoid this and agreed to reduce the working hours to a limit of 60 hours per week. In cooperation with the affiliate and where possible other clients, the factory must implement a plan to reduce excessive overtime. An audit to verify improvements is scheduled for the end of 2015. The factory will participate in FWF’s Workplace Education Programme in May 2015.
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