Complaints > China > Haglofs AB, Mammut Sports Group AG, Complaint 468

China - Haglofs AB, Mammut Sports Group AG, Complaint 468

Status
Resolved
Country
China
Date
08/08/2018
Complaint ID
468
Members involved
Haglöfs AB and Mammut Sports Group AG
Filing party
Worker
Filed against
Factory management
Grounded
Yes

The case

A sewing worker claimed that the factory illegally deducted his/her piece rate bonus and meal subsidy for a total of approximately 600 RMB, because s/he was late for work. In June 2018, his/her accumulated time for being late for work was 38 minutes, which is 8 minutes more than factory's regulation. The complainant stated that, according to the policy, s/he was entitled to 12 RMB/day as a meal subsidy and that his/her attendance days in June 2018 were 25.5 days, thus bringing his/her accumulated meal subsidy to 306 RMB (25.5*12). However, s/he did not receive this money. Moreover, because s/he was late for work, s/he also did not receive the piece rate bonus which was supposed to be 289.6 RMB, 20% of his/her piece wage (1448.14 RMB) in June 2018. In addition, the sewing worker complained that their wages for June 2018 were delayed and not paid to workers and factory had also stopped paying social security.

Findings and conclusions

On 8 August 2018, FWF's complaints handler in China received a complaint from a worker, who claimed that the factory illegally deducted his/her piece rate bonus and meal subsidy of approximately 600 RMB because s/he exceeded the late starts allowed by factory's policy. FWF declared this complaint admissible and informed Haglofs, the FWF member brand sourcing at this factory. Haglofs contacted the factory, who stated that this complaint was about bonus and not basic salary. FWF mentioned that the factory did not have to pay bonuses if workers had an accumulated late starts of 30 minutes per month. However, FWF told the factory that workers should be clearly informed about this policy as part of their working conditions. The factory claimed that this policy was on the notice board. FWF's complaints handler contacted the complainant who claimed that s/he had never seen this policy. S/he was aware of not being entitled to the 5 RMB attendance/piece rate bonus, but not about the other two deductions. FWF asked the factory to make sure all workers signed a document confirming they had read and understood the late start policy. Also, for future contracts, workers would need to sign this policy.
Factory sent the following:
1) Meeting minutes and worker attendance list of production line leaders, supervisors and department heads.
2) A letter from the finance department, meeting details, salary and social insurance pay date.
3) A notice published on the announcement board for all workers to check.
These documents sent by the factory looked fine and FWF's complaints handler re-contacted the complainant on 18 February 2018, who confirmed that workers were fully informed about the factory's late start policy.
This complaint is resolved, however, FWF highly recommended Haglofs and Mammut to work together and take further action to address the structural problems of delayed payments and social security payments.
See details

Overview of the complaint investigation

08/15/2018 Investigation

Haglofs contacted the factory and requested to provide feedback on this complaint. In addition, Haglofs reminded the factory that they should not delay wage payments and pay social security.

08/21/2018 Investigation

Management responded that the factory's policy states that if worker attendance is good, and the late starts are not over 30 minutes, they will receive extra benefits as follows:
(1) RMB 7/day for lunch subsidy +
(2) RMB 5/day for attendance bonus +
(3) 20% yearly bonus.
The RMB 7 + RMB 5 = RMB 12 bonus is added on top of workers' basic salaries. If workers are late for more than an accumulated 30 minutes per month they will not receive the bonus.
Also, the factory stated that the salaries of June were paid and social insurance would be paid the following week.

The complaints handler reached out to the complainant:
1. The complainant informed s/he had served the factory for more than 10 years and the total late starts allowed by the factory had always been 90 minutes per month. However, since the new plant manager took office, the policy was changed to 30 minutes. S/he confirmed s/he was aware that a policy came into effect in June 2018.
2. Nevertheless, the only consequence s/he knew of for being late for more than 30 minutes/month was a deduction of 5 RMB/day, which was approximately 130 RMB for his/her days of attendance in the month of June. S/he was not aware that 20% would be deducted from the yearly bonus and 7 RMB from the meal subsidy.
In addition, the complainant stated that they still did excessive overtime hours and that in recent months they worked 11.5 to 12 hours/day for 6/7 days a week.

08/27/2018 Conclusion of the investigation

Since this complaint was about a bonus, the factory must ensure that all workers are clearly informed that if their accumulated late starts exceed 30 minutes/month: (1) their piece rate/attendance bonus, (2) meal subsidy and (3) 20% yearly bonus will not be granted to them. Were this policy known by all employees, then the deductions of the piece bonus and meal subsidy would be legal.
Delayed wage payments and unpaid social security are not individual cases and must to be monitored further.

08/27/2018 Remediation

FWF requested whether the factory had such deduction policy in place and whether they had clearly informed their workers about it in detail. Also, FWF checked whether the complainant had received his/her June salary and social security. Meanwhile, FWF reminded the factory that they should not delay wage payments and pay social security.

08/30/2018 Verification

The factory sent a photo with their policy being published on a notice board and claimed that all workers knew about it. The complainant claimed s/he had not seen this policy. The complainant confirmed on 20 August that s/he had received his/her outstanding wages, minus the deducted bonus.

09/02/2018 Evaluation of the complaint

The complainant received the photo of the policy from FWF, but again said s/he had never seen it and was not informed of the policy on deduction of yearly bonus and piece rate bonus.
S/he insisted s/he only knew that if workers were late for more than 30 minutes in a month, they would be deducted the attendance/piece rate bonus of 5 RMB/day. S/he was not aware that this policy about being late affected the yearly bonus or any other bonuses.

09/20/2018 Evaluation of the complaint

Unfortunately, we could not reach the complainant again.

10/12/2018 Remediation

To remediate the issue, FWF requested the factory to ensure that all workers signed the bonus policy acknowledging that they would not receive the three different bonuses when late for more than an accumulated 30 minutes per month. For future new contracts, workers would also need to sign to have read and understood this policy. Moreover, the factory must to ensure timely wage payment and social security payment.

01/21/2019 Verification

The factory sent:
1) Meeting minutes and worker attendance list of production line leaders, supervisors and department heads.
2) A letter from the finance department, meeting details, salary and social insurance pay date.
3) A notice published on the announcement board for all workers to check.

02/18/2019 Evaluation of the complaint

FWF's complaints handler managed to reach the complainant again, who confirmed that workers were fully informed about the factory's policies.

02/18/2019 Resolved

Based on the above, this complaint is resolved. However, FWF highly recommended Haglofs and Mammut to work together and take further action to address the structural problems of delayed payment and social security payment.

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