India Complaint Takko December 2016

Final report of a complaint at a factory in India supplying Takko

On 29 November 2016, Fair Wear Foundation (FWF) received a complaint from an individual currently employed by the factory. The complainant claimed that (s)he and other workers had not received their salary for the last three weeks. The salary for one week has been deposited in the bank, but the complainant was unable to withdraw it. The Indian government recently, and with a notice period of four hours, announced that 500 and 1000 INR currency notes would no longer be a valid tender. Due to demonetization, every bank restricts the account holder to withdraw a minimum amount. The worker is aware about the restrictions (also to the factory), but stated that other factories in the area have been able to settle salary payment.

FWF informed Takko about the case on 1 December 2016 and Takko’s local audit team conducted an investigation the next day. The findings of the investigation were discussed with the complainant by FWF. The investigation by Takko concluded that salary payments were indeed delayed due to the unexpected demonetization situation. As a reaction, management proceeded to open salary bank accounts for all workers and ordered ATM cards. This process was taking longer than usual given the recent high demand. In the future, management plans to install an ATM machine at the factory.

The FWF verification in February 2017 audit confirmed the findings of the Takko audit team. All workers now receive their salary in their bank account by the 5th of each month.

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