Continental Clothing Performance Check 2015
Continental meets most of FWF’s management system requirements and goes beyond some of them. Continental has a relatively small number of suppliers.
It sources from five suppliers in India, Bangladesh and Turkey. Continental has monitored 90% of its 2014 purchasing volume and therefore meets FWF’s monitoring threshold required of brands in 3+ years of membership. This, in addition to high leverage at suppliers and the stable relationships with suppliers, gives the company a strong basis for effectively improving working conditions.
Continental systematically works towards resolution of corrective actions with all of its suppliers. After audits, remediation steps were taken and follow up is being closely monitored. Because of its open costing system, Continental is able to identify the cost of the cutmake (CM) process, which (among others) includes the labour costs. When Continental is able to investigate further and determine more precisely the labour minute costs for its products, it should have a better understanding whether its FOB prices support payment of living wages. This could then form the basis for discussion with management at suppliers where Continental has high leverage, to move towards payment of living wages.
Continental can take further steps towards analysing the root causes of excessive overtime, as well as living wages, and how this relates to its own buying practices. Furthermore, it can be more transparent in communicating about FWF and labour conditions at its suppliers publicly.
Read more about Continental Clothing Company’s efforts on its FWF page.
FWF’s BRAND PERFORMANCE CHECK SYSTEM
Read more about the Brand Performance Checks in our Brand Performance Guide 2015Download