Indonesia Complaint Jack Wolfskin March 2016

final REPORT COMPLAINT IN Indonesia AT FACTORY SUPPLYING jack wolfskin

FWF received a complaint 16th November 2015. The complainant union stated that because of the bankruptcy of the factory, the workers have not received their due wages and any of the severance payments and fringe benefits still owed to them according to Indonesia law. The factory was an active supplier to FWF member Jack Wolfskin.

FWF concluded that the claim of the union is justified. The workers’ claim is supported by the Ministry of Labor and the curator. It looks extremely unlikely that workers receive payment of funds owed to them through pursuing their claim through the bankruptcy process.

FWF looked into the sourcing and business practices of FWF member Jack Wolfskin. FWF concludes that Jack Wolfskin meets the requirements of FWF. It has taken its responsibility to conduct business with the supplier concerned in a responsible way, according to FWF standards and expectations. It has monitored labour conditions at the factory and subsequently motivated the supplier to improve the labour conditions at the factory. FWF cannot find reason to believe that its sourcing practices may have caused or contributed to the bankruptcy. Furthermore, Jack Wolfskin tried to mitigate the harm of the bankruptcy to the workers.

Even though FWF does not require this and there is also no legal obligation for Jack Wolfskin to pay outstanding wages and other outstanding payments to workers, Jack Wolfskin is willing, on a voluntary basis, to support the former workers of the factory in Cikupa, Tangerang, with a financial payment, which reflects Jack Wolfskins share at the factory. This payment was distributed to the employees through the collaboration of several parties, which FWF can confirm based on its own involvement. The workers were pleased by the compensation, but also felt it was small in comparison to the amount owed to them by the factory.

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