Myanmar Complaint Jack Wolfskin Salewa November 2016

Final report of complaint involving Jack Wolfskin and Salewa in Myanmar

In September 2015, the Worker Rights Consortium contacted Jack Wolfskin to report that a factory where the company has production had, without notice, dismissed 204 of its 1332 workers, including the union leadership, at the beginning of the month and without previous notice. This was derived from a report by CTUM, the Confederation of Trade Unions of Myanmar.

Jack Wolfskin and Salewa & Dynafit immediately contacted the supplier and asked for a response. Factory Management indicated that, in order to keep the factory in business, rather than shutting down altogether and having to lay off all 1,400 workers, the factory has no alternative than down-sizing the factory by dismissing 203 poor-performance workers. This was done after consultation with several local agencies, and severance compensation was provided.

Most of the dismissed workers (161) accepted to collect severance pay. Only 43 workers did not agree to receive this compensation as they believed that it was not fair to them and they wanted to be reinstated.

The case was brought to the Labor Department and Arbitration Court to judge, and the Arbitration Court ruled on the matter. Nevertheless 24 workers still appealed the dismissal and wanted to be reinstated. The factory refused citing reputation reasons.

In April 2016, after a call facilitated by FWF, the 24 workers were allowed to return to work at the factory, under a number of conditions.

CTUM confirmed, on behalf of the factory union, that the case of the 24 workers was resolved satisfactorily. CTUM, however, maintained that it is still seeking a solution for the second group of 104 workers that were dismissed. Again, for the sake of clarify, this will be reported upon in a separate complaints report.

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