Takko Holding GmbH, Complaint 265

CONCERNING LABOUR STANDARDS
Payment of a living wage Reasonable hours of work
STATUS
Resolved
DATE
2017-10-03

There are two shifts for six security guards in the factory and one shift in the dormitories. Each shift takes 12 hours (from 6:00 to 18:00 and from 18:00 to 6:00). The security guards claimed that they were underpaid as they received 108,000 MMK, which is the legal minimum wage based on an eight-hour workday. Furthermore, they said that they were not paid double when working on public holidays. For instance, their work during Water Festival 2017 was not paid double. According to government regulation, factories should have three shifts of eight hours. The complainant asked that the factory either recruited more security guards to operate three shifts or paid overtime (OT) correctly.

Findings and conclusions

On 3 October 2017, FWF's complaints handler in Myanmar received a complaint from a factory's security guard who indicated that there were two shifts for six security guards in the factory. Each shift lasted 12 hours (from 6:00 to 18:00 and from 18:00 to 6:00). The security guards claimed that they were underpaid as they received 108,000 MMK, which is the legal minimum wage based on an eight-hour workday. Furthermore, they informed that they were not paid double when working on public holidays. For instance, the work they conducted during Water Festival 2017 was not paid double.

FWF declared this complaint admissible and informed Takko, the FWF member sourcing at this factory. Takko reached out to the factory management, who responded that they would employ new security guards and that the eight hour workday would be guaranteed to all guards.

FWF checked with the complainant, who indicated that the factory would start paying double for Public Holidays and Sundays from October. However, they were still working for 12 hours without OT fees, and no new guards had been recruited. Takko raised the issue again with the factory management and was informed that a new security guard would be employed. The complainant confirmed that a new guard joined and that eight guards operate three shifts of eight hours. This complaint is resolved.

Overview of the complaint investigation

2017-10-25 Investigation

FWF informed Takko, who immediately followed up with the factory management. Management responded that they would employ new security guards and that the eight-hour workday would be guaranteed to all guards.

2017-11-09 Investigation

FWF followed up with the complainant who reported that factory management had informed the security guards that they would be paid double for Public Holidays. However, no extra pay for OT had been arranged and no extra guards had been employed yet. Guards were still operating 12-hour shifts.

2017-11-17 Investigation

Takko again followed up with the factory management, who indicated that the working hours of security staff would be as follows:

1. Two security for each group, total three groups.
2. Each group would work 8 hours and the three groups would rotate.
3. Over 8 hours, overtime would be paid, as required by law.

2017-11-23 Conclusion of the investigation

FWF checked with the complainant, who indicated that the factory would start paying double for Public Holidays and Sundays from October. However, they were still working for 12 hours without OT fees, and no new guards had been recruited. The complainant added that the factory's translator asked the guards to tell the audit team that they worked 8 hours per day. The complainant shared the shift schedule with FWF.

One schedule indicated that they worked 12 hours, while the factory asked them to prepare a schedule for the audit indicating 8 hours. In addition, we asked why the night shift (18:00 to 6:00) was not recorded in the time sheet. The factory told them not to record it because 'it would be messy' on the paper. However, according to the guard, the actual payslip only mentioned 8 hours instead of 12.

2017-11-24 Remediation

Takko informed FWF that their Senior Director of Purchasing would meet both the supplier and the factory owner in December and discuss the situation again.

2017-11-25 Remediation

FWF received a call from the complainant that the factory management informed them in a meeting that they would recruit a new guard and their duty shift would be 8 hours per day starting from December 2017.

2017-11-30 Verification

Takko was informed by the factory management that a new security guard joined the factory on 27 November 2017.

2017-12-06 Evaluation of the complaint

The complainant confirmed that a new guard joined.

2017-12-06 Resolved

This complaint can be considered resolved, as the factory recruited one more guard and the guards confirmed to operate in eight-hour shifts.