SOLO INVEST S.A.S, Complaint 797

CONCERNING LABOUR STANDARDS
Employment is freely chosen Payment of a living wage Legally binding employment relationship
STATUS
Resolved
DATE
2019-10-03

The complainant is a regular worker who reported that the factory has been hiring daily workers for several months, paying 75% of the minimum wage. According to the complainant, there are around 70 daily workers who are hired as 'helper' in the finishing and sewing departments. They are paid at 3600 MMK per day and 900 MMK per OT hour (75% of the minimum wage). The payment is made daily. Their original ID cards are being kept by the factory HR before the work start and returned at the end of the day.

Although they have been working in the factory continuously for more than 5 months, they do not have any contract and are not entitled to the benefits as per the law. The complainant is friends with more than 10 daily workers and he/she learnt from them that being promoted to be a regular worker is their ultimate goal but if it is not feasible, they expect to be paid at 4800 MMK like other workers.

Findings and conclusions

On 3 October, FWF’s complaints handler in Myanmar received a complaint from a regular worker, who claimed that the factory has been hiring daily workers for several months, paying 75% of the minimum wage. According to the complainant, there are around 70 daily workers who are hired as “Helper” in finishing and sewing departments. They are paid at 3,600 MMK per day and 900 MMK per OT hour (75% of the minimum wage). The payment is made daily. Their original ID cards are being kept by the factory HR before the work start and returned at the end of the day.

Although they have been working in the factory continuously for more than 5 months, they do not have any contract and are not entitled to the benefits as per the law. The complainant is friends with more than 10 daily workers and she learnt from them that being promoted to be a regular worker is their ultimate goal but if it is not feasible, they expect to be paid at 4,800 MMK like other workers.

FWF declared this complaint admissible and informed Solo Investment S.A.S, the FWF member sourcing at this factory. Solo Investment S.A.S reached out to the factory management who acknowledged the complaint and committed to make corrective action. After the discussion with the factory, the factory agreed to compensate the workers who have worked more than 3 months at 4,800 MMK/day as of the fourth month and promote the workers as regular workers under employment contract.

FWF called the complainant to verify the situation. The complaint replied that she wanted to check in the factory first before confirming that it had been resolved. The complainant confirmed after 2 weeks that the complaint has been resolved as informed by the factory. The complaint is considered resolved.

Overview of the complaint investigation

2019-10-04 Investigation

FWF informed the FWF member company, Solo Investment S.A.S, sourcing at the factory. The brand immediately reached out to the factory management about the complaint.

2019-10-05 Investigation

The brand representative personally investigated the complaint through payroll evidence during his visit with the cooperation from the factory management.

2019-10-08 Remediation

The factory management confirmed the issue and agreed to take corrective action on it by compensating the workers who have worked for 3 months to meet 4,800 MMK/day for example, worker A has been working here for 5 months, she will be compensated for the past 2 months at 4,800 MMK/day. Moreover, the factory bounds to implement this for all workers in the future regardless of their employment status.

2019-11-01 Remediation

After the discussion with the factory, the brand suggested to employ the workers who have worked above 3 months as regular workers. The contracts of 32 workers were sent to FWF for verification. The payment proof of 8 workers were also attached.

2019-11-02 Evaluation of the complaint

The complaint handler called the complainant to verify the corrective action by the factory. The complainant said she would check in the factory and reply to FWF.

2019-11-28 Resolved

FWF was informed by the complainant that the workers had been compensated and most of them have been hired as regular workers.The complaint is considered resolved hereby.