China Complaint KJus November 2013

Final REPORT OF COMPLAINT IN China AT FACTORY THAT SUPPLIES kjus

On 24 November FWF received a complaint through it’s local complaints handler in China from a worker working for a factory supplying LK International AG, hereafter Kjus. The complaint related to the labour standard ‘Payment of a living wage’ which is part of FWF’s Code of Labour Practices.

The plaintiff informed FWF that the contract fulfilment bonus of 20% had been cancelled. The suppliers confirmed they cancelled the year-end bonus because the employee breached the contract. The contract fulfilment bonus is not mandatory by law. Management indicated the bonus is only paid in case workers complete their one year labour contract; this internal bonus system is accepted as it is no law violation. Given that there is no legal ground for requiring a bonus payment, remediation is not applicable in this context. Kjus will work with the factory on improving its payment system, starting with improving the labour contracts to reflect the actual wage of workers. A training as part of FWF’s Workplace Education Programme took place on 14 March 2014.

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