Verification by the FWF

Modest need for improvement in China

We maintain long-term and cooperative relationships with our producers. Still, we have no direct influence on their employment policies. We attach great importance to ensuring that our products are manufactured under humane conditions. For the production of high quality products, we also need qualified and well-experienced staff.

We rely on the Fair Wear Foundation’s (FWF) monitoring system to determine and to avoid cases where the working conditions do not meet international labor standards or national labor laws.

Evaluation of legally binding employment relations

There were no complaints at the audited production facilities in Vietnam; at the factories in China, there were a total of nine complaints:

At seven facilities, not all employees were insured under the statutory provisions.

Insurance must be paid 100 percent by the employee.

Employees did not receive a copy of the employment contract.

There is a need for more education among employees regarding insurance. In some facilities, educational talks have already been introduced.

GRI:

LA1

Rate of return after holidays checked

A high employee turnover rate can be a sign of employee dissatisfaction. This figure is not covered by the FWF audits. During visits by the production manager, the rate of employee return after major holidays is one of the issues noted.

A labor shortage prevails in the Chinese textile industry. This poses the risk that producers try to keep workers by illegitimate means. Sometimes, the last month’s wages are not paid when an employee leaves the company, or wages are only paid upon return from holidays. Facilities are checked in the FWF audits regarding this point - see also "Good working conditions for employees"