ALBIRO AG, Haglofs AB, Jack Wolfskin, Schoffel Sportbekleidung GmbH, VAUDE Sport GmbH & Co. KG, Complaint 72

Legally binding employment relationship

FWF received several messages from workers who shared similar grievances. Workers indicated the payments for overtime hours and working on Saturdays were not correct. According to the workers, overtime premiums were calculated on the minimum hourly wage instead of the actual wages earned by the workers. In addition, one worker indicated the paid annual leave benefit has been cancelled, which workers find unfair. Moreover, all workers complained they did not receive social security benefits. Throughout the process more messages came in where workers stated the wage payments had been delayed. Half May 2014, the wages of March 2014 were not yet transferred.

Overview of the complaint investigation

2014-04-30 Conclusion of the investigation

The complaint was found to be grounded.

2014-07-01 Remediation

Factory manager and affiliates came to the following remediation plan during the meeting in July 2014:

1. Most issues are related to improving communication and dialogue with workers. Workers usually go straight to the general manager instead of using the committee or other internal channels. The suggestion is to train worker representatives on a monthly basis to get the existing committees functioning and make the committee aware of their roles and workers aware of what the committees are for. Topics raised during complaints can be discussed during the meetings.

2. Per request of the workers, management agreed to pay salaries on a regular basis. This will start in August 2014. FWF will verify in October/November. Communication to workers should be in written, publicly on the black board.The law stipulates salary should be paid in full on time every 30 days. If the payday is a non-working day, salary shall be paid the day in advance. Exact payment date could differ per province.

3. Individual labour contracts should reflect the actual wage of workers. The overtime premiums must be recalculated based on the wage as stipulated in the contract. Overtime surcharges and surcharges for Saturday and Sunday work have to be calculated based on the monthly wage of each individual worker instead of based on local minimum wage.

4. Management’s goal is to have at least 90% of workers covered under social security by end of 2014. Approx. 250 workers have now joined, approx. 100 missing. So far many of the 100 missingdeny social security because they do not want to pay their sharefor social securities. Those workers are the younger migrants.

2014-12-01 Closed

The complaint was closed