Takko Holding GmbH, Complaint 48

CONCERNING LABOUR STANDARDS
Legally binding employment relationship
STATUS
Closed
DATE
2013-10-22

The trade union claimed that the factory fired 16 workers without compensation.

Findings and conclusions

On 22 October 2013 FWF received a complaint through its liaison officer in Bangladesh, filed by a local trade union. The complaint related to the labour standard ‘legally binding employment relationship’ that is part of FWF’s Code of Labour Practices.

The trade union claimed that the factory fired 16 workers without compensation. Takko Fashion contacted the agent about the supplier, who responded that the supplier was not producing for Takko, however Takko was willing to follow up and use its leverage whenever possible. The factory refused to participate in this process and issued a letter to Takko that they prefer to handle the case with BGMEA and local government. Since there is no production going on in the factory, both FWF and Takko could not interfere in the case. Takko had decided not to start business relationship with this factory while they are not willing to dialogue with the union.

Since there is no production going on in the factory, both FWF and Takko could not interfere in the case. Takko had decided not to start business relationship with this factory while they are not willing to dialogue with the union.

Overview of the complaint investigation

2013-10-24 Investigation

FWF informs Takko Fashion regarding the case. Takko Fashion contacted the agent about the supplier. The agent responded that the supplier was not producing for Takko. It was listed as projected supplier for the next financial year. However Takko was willing to follow up and use its leverage whenever possible.
FWF interviewed the fired workers with the assistance of NGWF. According to the workers, the factory terminated their employment relationships because they started a collective negotiation regarding their wage payment irregularities during the first week of August. Workers claimed that factory did not pay them within legally stipulated time. One week after the negotiation, 17 workers who had worked for the factory for 5-13 years
respectively were asked to leave on 15 August. Factory did not follow any procedure of termination or retrenchment. The management asked the workers to resign, which was refused by the workers. Eventually, workers had to leave the factory, as management did not allow them to do any work. A complaint was then filed to NGWF by this group of workers.
During the interview, the workers told FWF investigation team that the factory management circulated names and photographs of terminated workers in its neighbourhood in order to make it difficult for workers to find new employment. The workers also informed FWF that BGMEA did not respond to this case.
Takko local office had made an effort to invite the factory management to dialogue with NGWF. The factory refused to participate in this process. The factory issued a letter to Takko that they prefer to handle the case with BGMEA and local government.
Since there is no production going on in the factory, both FWF and Takko could not interfere in the case. Takko had decided not to start business relationship with this factory while they are not willing to dialogue with the union.

2013-10-24 Conclusion of the investigation

The case cannot be followed up since the FWF affiliate has no leverage at the factory.

2013-10-24 Closed

This complaint is closed.