Takko Holding GmbH, Complaint 537

CONCERNING LABOUR STANDARDS
Payment of a living wage Legally binding employment relationship
STATUS
Closed
DATE
2018-11-15

A worker form the cutting section complained that:
1) factory subcontracts big quantities of the cutting work to other factories and as a result, they do not have enough work to do and less income.
2) the cutting unit price is not transparent, therefore, they never know how much they will earn per month.

Findings and conclusions

On the 15th of November FWF received a complaint from a cutting worker that complained that
1) factory subcontracts big quantities of the cutting work to other factories and as a result, they do not have enough work to do and less income.
2) The complainant stated that the cutting unit price is not transparent, therefore, they never know how much they will earn per month.
A similar complaint was mentioned in the FWF verification audit of 17-18 September 2018: 3 cutting workers complained the piece price for some specific orders were not announced until the order was finished.

On 15 November 2018, FWF informed Takko, the FWF brand sourcing at this factory. Takko reached out to the factory and received the following response:
1.The factory mentioned that they seldom subcontract the cutting process. Since last month the factory had some small quantity orders (500-1000 pcs) that were complicated to do and the cutting workers were unwilling to cut these. The factory manager tried to persuade the workers, but they still refused. The refusal is against factory regulations. The factory manager said in this case they will subcontract some orders to another factory. After a few days this issue was discussed again with the cutting workers and they agreed to cut all kind of fabrics. In future the factory will discuss all matters with workers to avoid any misunderstanding.
2. Factory has a standard price for all different styles. All the workers are aware of this standard. Because some kind of garments are very special, the exact price is discussed with the workers after the production is finished, on the basis of the standard. The price may be adjusted accordingly. In future the factory will calculate the price more exactly before the production and reduce or avoid the adjustment after production.

FWF contacted the complainant who
1) confirmed that they now have orders with big quantity to cut.
2) Nevertheless they are still not completely informed of the cutting price before production. The complainant informed Fair Wear that he/she will send a message if he factory is able to announce the prices before productions for the next orders.

After approximately one month FWF will contact the complainant to see if factory is able to announce the prices before productions for the next orders.

In January 2019 Takko provided FWF with documents which they mentioned were training documents on piece price and a payroll from November 2018 for cutting workers.
The first document was the proof that the factory provided training to the cutting workers on 22 Jan 2019, nevertheless it didn't consist of concrete information to clarify how much the piece price for different styles was.
The second document is a payroll of November 2018 for 6 cutting workers, from this payroll, these 6 cutting workers were paid 6,010 to 6,956 RMB per month.

FWF reached out to the complainant who informed us that the meeting indeed happened on the 22 Jan 2019 and they signed on the meeting minutes. They were informed of that from 2019 on, factory plans to announce a basic piece price and the piece price will be adjusted (reduced/increased) per different styles depending on the complexity, difficulty etc.
Regarding the payroll journal, the complainant said they were never distributed such a payroll before, but the wage on the payroll could be correct. The complainant hoped they are able to receive such a pay slip from Jan 2019.

FWF tried to reach out to the complainant, but could not reach him/her anymore. Especially after Chinese New Year FWF tried a few more times, but the complainant was unresponsive.

FWF decided to close this case because of a new complaint that was received in July 2019 and another complainant confirmed that in October 2019 the in advance announced piece prices published in the workshop are basically consistent with the final ones, even though they are not 100% matching with each other, the deviations are still acceptable.
Nevertheless since this is a structural problem, a similar complaint was already mentioned in the FWF verification audit of September 2018: "3 cutting workers complained the piece price for some specific orders were not announced until the order was finished", FWF requests Takko to keep monitoring and following up with the factory to push for a complete transparent piece price before production. FWF suggest to do another audit or visit to verify this issue in 2020.

Overview of the complaint investigation

2019-10-06 Closed

FWF decided to close this case because of a new complaint that was received in July 2019 and another complainant confirmed that in October 2019 the in advance announced piece prices published in the workshop are basically consistent with the final ones, even though they are not 100% matching with each other, the deviations are still acceptable.
Nevertheless since this is a structural problem, a similar complaint was already mentioned in the FWF verification audit of September 2018, which is why FWF requests Takko to keep monitoring and following up with the factory to push for a complete transparent piece price before production. FWF suggest to do another audit or visit to verify this issue in 2020.