DW-Shop Performance Check 2016

DW-Shop (hereafter DWS) has shown sufficient progress in implementing FWF’s management system requirements. It has monitored 91% of its purchasing volume, which is as required considering their years of FWF membership. A large percentage (around 20%) of its production comes from homeworker suppliers, for which FWF adopted a monitoring policy which DWS followed up upon well.

Historically, DWS has had long-term relationships with many suppliers, or has purchased a large percentage of a supplier’s production, leading to significant influence at the factory. However, DWS has been changing its supplier base to meet changing market demands. DW-Shop also has many small suppliers where it buys small quantities, and operates in countries and areas with specific risks on social compliance issues. Risks related to home workers as well as Syrian refugees have been integrated well into the monitoring system. Risks such as gender-based violence especially in India where DWS sources most have not yet been sufficiently addressed.
DWS has changed its production planning system to improve processes. FWF recommends DWS to actively discuss the updated system with suppliers to limit excessive overtime. Root causes of excessive overtime should also be discussed and remediated, especially where DWS has high leverage.

DWS visited suppliers more frequently and pro-actively discussed social standard issues with them. Issues such as payment of a living wage (at least the legal minimum wage) and subcontracting of which DW-Shop is not always informed about need to be emphasized. More emphasis should be placed on making both suppliers’ management and workers aware of the FWF CoLP basic requirements and to seek commitment of suppliers to step by step improvements. DWS has encouraged its suppliers to participate in the Workplace Education Programme. More action however is needed in India. For this, among others, increased capacity is needed for traveling staff, local staff and agents, to actively liaise with suppliers.

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