Mammut Sports Group AG, Schoffel Sportbekleidung GmbH, Complaint 520

CONCERNING LABOUR STANDARDS
Payment of a living wage Reasonable hours of work Safe and healthy working conditions
STATUS
Remediation
DATE
2018-09-20

A complaint was received 20 September 2018. The worker complained they worked excessive overtime hours. They were required to work 11.5 hours a day for 6 days a week; sometimes they were also required to work on Sundays (but this seldom happened).
Secondly, they were paid by piece rate and the complainant complained about the low piece price as well. He said he could only make 3000 or more RMB working for 66 to 70 hours a week.
Last, the complainant complained about the food quality at the factory canteen to be very bad. There were hierarchies within the canteen with different meals for managers, group leaders and normal workers.

Overview of the complaint investigation

2018-09-24 Investigation

Mammut reached out to the factory and requested to respond to the three complaints on excessive overtime, incorrect salary payment and quality of food.

2018-10-03 Investigation

Factory came back and mentioned that regarding overtime the factory indeed in their peak months, Monday to Friday 8 hours during the day, 3.5 hours at night; 8 hours on Saturday, occasionally overtime at night,which means they make 65.5 to 69 hours per week.
Secondly regarding salary payment the labor contract signed by the staff of the piece-rate system, the form of wages for labor compensation is: “The method of payroll is based on hourly wage, supplemented by piece-rate counting. The wage is not lower than the minimum wage standard of Qianjiang City.” The conversion is in the wages, and there is no separate overtime pay. However, the wages of employees are definitely higher than the amount of overtime paid calculated according to the minimum wage. The average salary of factory employees is about RMB 4,000.
Regarding the quality of food, the factory can guarantee that the ingredients and cooking methods used in the canteen meet food safety standards. The factory management will go to the canteen twice a week to check the quality of the food. It is true that some employees report that the food in the canteen is not appetizing, but it is difficult to adjust, and the canteen tries to meet the requirements of most people

2018-10-08 Conclusion of the investigation

1) Factory admits that especially during peak season to much overtime is made. Requested is that the factory tries to minimise overtime. in addition Mammut will discuss to see if they can spread their orders over a longer time to help the factory with peak season demand. 2) Currently workers do not understand the comparison between piece-rate premiums and hourly wage. Workers claim that wages are not paid correctly, but the factory say they pay well over minimum wage.
3) Workers complain of food quality and hierarchies in the canteen with different meals for managers, group leaders and normal workers. Factory say they guarantee that the ingredients and cooking methods used in the canteen meet food safety standards. The factory management will go to the canteen twice a week to check the quality of the food. It is true that some employees report that the food in the canteen is not appetising, but they find it difficult to adjust, and claim the canteen tries to meet the requirements of most people.

2018-10-17 Remediation

As a further remediation FWF suggests:
1) Regarding Overtime: first requesting the factory to ensure at least every Sunday or at least one day off every week. Than they can gradually bring the working hours back to 60 hours/week.
2) Salary: During the last audit, the audit team did not have finding on insufficient OT payment from analysis of the available payroll journals. So suggested is as remediation to request the factory to provide more training on the wage structure and calculation to his employees. Currently the workers thought they are paid piece rate without extra Overtime compensation. They didn’t understand how to measure the gap between their gross piece wage with the hourly wage required by law.
3) Food quality: Could the factory give a cost breakdown for the food provided to workers as well as a picture of what the food looks like, based on the cost and food image, in this way we try to get a better idea of the quality of the meals. The factory can also collect workers foods/tastes preference together with the workers committee and let them make a decision on what to eat. If they can document this, we have a proof that the factory took action on this.