Acne Studios, Complaint 25

CONCERNING LABOUR STANDARDS
Payment of a living wage Reasonable hours of work
STATUS
Closed
DATE
2012-11-30

The filing party claimed that the workers at the sewing department at this factory did not receive the promised rate per produced piece for the last four years. Moreover their overtime on Saturdays and Sundays were not paid the overtime rate, but just the regular rate.

Findings and conclusions

In November 2012 FWF received a complaint from a worker from a factory supplying ACNE Studios. The complaint related to FWF’s labour standard ‘Living Wage’.

The filing party claimed that the workers at the sewing department at this factory did not receive the promised rate per produced piece for the last four years. Moreover their overtime on Saturdays and Sundays were not paid the overtime rate, but just the regular rate.

The plaintiff, who was a representative of all piece rate workers at that department, raised the issue to his supervisor. His supervisor refused to confront the management with the issue.

An FWF auditor visited the factory in January to investigate the complaint. The complaint was considered valid, and together with the member company FWF urged the factory to solve the problem. Now, the workers get a higher income. However there is still room for improvement, as overtime work is still not paid for accordingly. This corrective action is monitored by the affiliate and will be verified by FWF.

Acne Studio doesn't source from this factory anymore and thus this complaint is closed.

Overview of the complaint investigation

2018-04-18 Investigation

An auditor of FWF in Turkey visited factory for the investigation of the claims on 16 January, 2013. Auditor interviewed with management and workers, and did the related documents check.

2018-04-18 Conclusion of the investigation

The overtime payments are duly paid for those who work on a base of a monthly salary but there is a different and very complicated bonus system for piece rate workers. Piece rate workers have a minimum salary, which was increased 33 per cent at the beginning of 2013. However, this minimum wage is only due in situations where workers would be paid less than this, according to the number of produced pieces by them in the given month. They are also paid monthly bonuses calculated on different percentages according to the number of produced items.
The bonus system substitutes overtime payment and investigation of FWF showed that workers are even paid a little more with this system than they would be with the overtime payment system however; workers were not aware of this since the system and its calculation systematic was not communicated to the workers. In addition, implementation of a bonus system instead of overtime payment system is not fulfilling
the legal obligations.
The factory increased the minimum wage for piece rate workers at the beginning of 2013; however investigation proved that the piece rates were not increased for the duration plaintiff claimed. The payment increase has been done on the bases of percentage of bonuses, instead of payment for per piece. This has the potential to make
overtime work obligation for workers since they have to produce more to be able to benefit from the raise in percentage of bonuses.

2018-04-18 Remediation

Action requires is to make factory raise the piece rate and establish a system that harmonises both the overtime payment system and factory’s own bonus system, and to communicate this system to the workers.

2018-04-18 Verification

Affiliate communicated the corrective action plan to the factory involved. Implementation of the corrective action will be monitored by the affiliate and verification will be done by FWF.

2018-04-18 Evaluation of the complaint

Plaintiff mentioned several mobbing from supervisors and managers because of his communication with FWF, and decided to terminate his work contract. Seniority payment for the plaintiff was provided by the factory.

2018-04-18 Closed

This complaint is closed.