Complaints > India > Odd Molly International AB, Complaint 334

India - Odd Molly International AB, Complaint 334

Status
Resolved
Country
India
Date
02/08/2018
Complaint ID
334
Member involved
Odd Molly International AB
Filing party
Worker
Filed against
Factory management
Grounded
Yes

The case

FWF's complaints handler in India received a call on 8 February 2018, one day after a FWF audit at the factory.
The complainant claimed the following:
1. About 60-70 tailors were asked by management to tell auditors that they received Rs16,000 per month, while in reality they received Rs.9,100. These workers are covered under Employees' State Insurance (ESI), but they are denied Provident Fund benefits.
2. The above-mentioned tailors had been working on a regular basis for the factory, but during the audit they were shown as trial workers. Most of these workers, if not all, are employed directly by the factory. Many of these workers have been dismissed and re-hired several times according to the complainant.
3. These workers do not receive paid leave. Any leave or absence means no payment for that day. Piece-rate workers do not receive any paid leave either and are not covered under social security.
4. Almost all production workers do overtime daily and many times they work on 'weekly off' days. However, overtime is not paid at a premium rate. For 2 hours of overtime they are paid the single rate of hourly wages for 2 and a half hours.
5. There are about 150 piece-rate workers (3 production lines) according to the complainant, but during the audit they were shown as new regular workers. Piece-rate workers are directly employed by the factory and not through contractors.
6. Workers are not provided formal contracts.

The complainant considers the lack of paid leave and payment of overtime at (a little above) the single rate the most pressing issues. (S)he asked FWF to support him/her in resolving these issues.

Findings and conclusions

FWF received a call on 8 February 2018, one day after a FWF audit at the factory. The complainant claimed that a group of workers was asked to lie about their salary and employment status during the audit. The complainant also raised that no paid leave was granted, overtime was common and paid only slightly above the regular rate and that no formal employment contracts were provided. FWF declared this complaint admissible and informed Odd Molly, the FWF member sourcing at this factory.

FWF reviewed the report of the FWF audit conducted on 7 February 2018 and found that all the points raised by the complainant were grounded. Management, however, denied recruiting piece-rate workers and dismissing and re-hiring workers frequently. A detailed corrective action plan (CAP) was drafted and provided to the factory together with the audit report. FWF required Odd Molly to work with the factory to remediate the findings.

FWF called the complainant by phone three times to verify progress, but the number had been disconnected. As the complainant was no longer reachable, FWF could not evaluate the complaint. FWF and Odd Molly still deemed necessary to verify the progress made on the CAP as the issues raised by the complainant concerned structural problems. As such, a meeting was planned with the factory's director, HR manager and compliance manager at the end of October 2018.

During the meeting, the factory's management confirmed that all workers had received their contracts and were granted paid leave, and that overtime hours were now within the limits and paid at double rate. Based on the outcome of the meeting and the commitment shown by the factory's management, the complaint was considered resolved. However, to ensure that the structural problems have been remediated, a verification audit will take place at the end of 2019.
See details

Overview of the complaint investigation

03/22/2018 Investigation

FWF reviewed the report of the FWF's audit conducted on 7 February 2018.

03/22/2018 Conclusion of the investigation

The audit confirmed that all the issues raised by the complainant were grounded. Management, however, denied recruiting piece-rate workers and dismissing and re-hiring workers frequently. Overall, FWF concluded that the complaint was grounded.

03/22/2018 Remediation

A detailed corrective action plan (CAP) was drafted and provided to the factory together with the audit report. FWF required Odd Molly to work with the factory to remediate the findings.

The corrective actions included:
1. Ensuring that all workers are registered as employees and receive a copy of their contract and social security. The contract should reflect their actual designation and the correct duration of the employment relation. If workers are dismissed or leave the company, proper procedures need to be followed.
2. Overtime hours should be non-excessive and paid at double rate.
3. Paid leave must be granted to all workers as required by law.
FWF agreed to verify the progress made on these points with the complainant in April 2018.

06/22/2018 Verification

FWF contacted the complainant by phone three times, but the number had been disconnected.

06/22/2018 Evaluation of the complaint

As the complainant was no longer reachable, FWF could not evaluate the complaint. FWF and Odd Molly still deemed necessary to verify the progress made on the CAP as the issues raised by the complainant concerned structural problems. As such, a meeting was planned with the factory's director, HR manager and compliance manager at the end of October 2018.

10/30/2018 Resolved

During the meeting, the factory's management confirmed the following:
- All workers had received their contracts;
- Overtime hours were within the limits and paid at double rate;
- All workers were granted paid leave.
The turnover of workers still remained an issue.

Based on the outcome of the meeting and the commitment shown by the factory's management, this complaint can now be considered resolved. However, to ensure that the structural problems raised in this complaint have been remediated, a verification audit will take place at the end of 2019.

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