Takko Holding GmbH, Complaint 714

Payment of a living wage Safe and healthy working conditions Legally binding employment relationship

The complainant reported that the production manager has started collecting monetary fines from workers. The complainant stated that TAKKO orders in particular require a very high production target compared to other orders; 90-95 pieces per hour (or 950 pieces per day) from each line. However, the workers can produce only 80 pieces at their highest efficiency. Due to the target pressure, the quality of the product is highly affected.

This is also where the monetary fines come in. When a product is affected by the high production target and requires to be repaired, the worker who made it is fined 50-100 MMK per piece. The complainant added that most of the workers were fined 500 MMK per person everyday. This has been going on for more than 2 weeks now. Furthermore, the person who is responsible for the end of the line quality control has to pay 3000 MMK if they make mistake. According to the complainant, even when workers have no money with them, they are asked to borrow money from other workers in order to pay the monetary fine.

This morning, it was announced that the line supervisors have to pay 5000-10000 MMK if the buyer's Quality Control finds any defects on the products. The production supervisor said that the workers could call anyone and report this case because she practices this monetary fine with the approval from the chairman.

Moreover, workers' mobile phones are being kept by HR.

However, when the complaint handler checked with her if the abusive language was ongoing, she said that the production manager has been receiving training on leadership and communication so, she does not curse at workers anymore but she still shouts at everyone and threatens that they would lose their job if they don’t work hard enough. Nevertheless, supervisors still curse at workers due to production pressure despite the training they received.

The complainant would like the monetary fines to stop, and the factory to set the production target properly for the sake of quality.

Overview of the complaint investigation

2019-06-06 Investigation

The brand called the factory owner to investigate the situation and received the following response from the factory:
1. The monetary fine is an agreement between the Quality Control supervisors and the line Quality Controls.
2. Line Quality Controls pay the fines (as opposed to sewing machine operators), because the line Quality Controls did not do their job properly.
3. All the fines are paid into the Quality Controls team's fund.
4. The factory management is not involved in this process.

The brand asked for advice from Fair Wear since their audit team was preparing to visit the factory for further investigation of the complaint.