ODLO Performance Check 2017

ODLO Performance Check 2017

ODLO has shown advanced results on performance indicators and has made exceptional progress. With 90% of its own production under monitoring ODLO meets the monitoring threshold required for members beyond their third year of membership. With a benchmarking score of 82 ODLO has again achieved leader status.

FWF audit teams have monitored 65% of production while external parties or audit teams from other FWF member that meet quality standards monitored 14%. Another 11% is sourced from low risk countries where ODLO fulfilled monitoring requirements although monitoring requirements for some smaller low-risk suppliers, accounting for 2% of overall FOB, were not met.

ODLO has long-term relationships with most suppliers and owns two production sites in Romania and Portugal. This, as well as a high leverage at most suppliers, allows effective work on implementing FWF’s Code of Labour Practices. During ODLO’s last financial year the company further strengthened its monitoring system and due diligence process. Country risk assessment sheets were improved and include preventive actions. Development staff now conducts social standards assessments of suppliers during factory visits. ODLO’s production
planning system supports reasonable hours of work. Several suppliers presented root cause analysis of excessive overtime hours and are implementing steps to gradually reduce excessive hours.

At its Romanian production site ODLO commissioned a report including a worker survey to define a living wage benchmark. FWF encourages ODLO to implement recommendations of the report to raise wage levels. With production sites that are not owned by ODLO, the company has not yet started to systematically agree with suppliers to work towards higher wage benchmarks.

ODLO received four worker complaints during its last financial year and worked actively on remediation. FWF recommends ODLO to ensure that structural issues raised in the complaints are improved to prevent future complaints

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