Takko Holding GmbH, Complaint 406

CONCERNING LABOUR STANDARDS
Payment of a living wage Legally binding employment relationship
STATUS
Resolved
DATE
2018-05-20

According to complainant, who is a former General Manager serving for the factory from January 2017, the factory does not pay salary in full to employees (workers + management). Due to irregular payment, several workers and staff felt compelled to resign. In addition to the complainant, another five workers (who called the helpline) resigned from the factory without received their due salary. Workers want to get their dues through the help of FWF.

Findings and conclusions

FWF received a call to the complaints helpline in Bangladesh. According to complainant, the factory does not pay salary in full to employees (workers + management). Due to irregular payment, several workers and staff felt compelled to resign. In addition to the complainant, another five workers (who called the helpline) resigned from the factory without receiving their due salary.

Takko immediately contacted the factory management and asked for its response. The factory management responded that the complaints raised regarding irregular salary is not fully correct. Factory management indicated that it pays the dues to the resigned workers within the seven working days along with the salary of regular workers. Due to fund crisis some of mid management staff’s salary may be delayed. The issue was discussed with top management and it was decided to pay salary and other dues to all workers and staff in time. The supplier checked the data for the last 3 months and found no discrepancies in payment, also for the workers who already left. Takko requested to receive the workers names or ID-card numbers so that Takko could check the same.

The names and designation of workers concerned were received and shared with Takko. It was suggested to convene a meeting at the factory to verify documents, calculation of dues and agree on next steps. On 7 August a joint meeting took place with Factory Management, Brand representative, FWF representative and legal advisors. Factory management was supportive. During the meeting the personal files of 14 complainants were checked.

FWF calculated the legal dues and found that 4 workers (cleaners) already received their legal dues from factory. The factory informed FWF that one of the complainant, the former commercial manager, has comitted fraud and the factory, together with a third party, has filed legal action against this individual. Documents to support the allegation of the factory management that fraudulent actions occurred were also shared. FWF is of the view that it cannot interfere with the ongoing legal process. For the remaining 9 complainants, factory management indicated that they were absent from work without prior notice during an urgent time for production and shipment. FWF observed, however, that some procedural mistakes were made with the resignations. FWF therefore recommended to the factory management to pay these 9 workers their legal dues. Factory management requested time to make a decision on the amounts calculated by FWF.

On 9 November 2018 another joint meeting took place with the factory management, Takko and FWF. FWF could verify that 2 workers already received their due payment. Of the remaining 9 workers, 3 of the workers were considered not to be entitled to receiving settlement for not respecting the notice period of 60 days to factory management after his resignation, in accordance of law. Payment to another 3 workers was scheduled for November and December 2018, while payment to the remaining 3 workers would be confirmed following discussion with the Managing Director of the factory.

Over a period of several months (November 2018 to July 2019), the remaining six workers received their due payment. On 5 July 2019 the last worker received its due payment. FWF verified whether the correct amounts were provided to all the workers concerned. Workers were satisfied with the outcome. The complaint is considered resolved herewith.

Overview of the complaint investigation

2019-07-05 Resolved

Over a period of several months (November 2018 to July 2019), the remaining six workers received their due payment. On 5 July 2019 the last worker received its due payment. FWF verified whether the correct amounts were provided to all the workers concerned. Workers were satisfied with the outcome. The complaint is considered resolved herewith.