Vietnam Complaint Outdoor & Sports Company Nov. 2016 Final Report

Final REPORT OF A COMPLAINT AT A FACTORY IN VIETNAM SUPPLYING OUTDOOR & SPORTS COMPANY

On 4 November 2016, a worker made a complaint that she had been working at the factory for about a year without a signed labour contract, or an employee card or health insurance card. The complainant claimed having been fired on 4 November, without advance notice, and that on 5 November the worker had been told that the factory would pay the salary for October, if she agreed to work 3 days without payment.

FWF decided this complaint was admissible on 5 November 2016 and informed OSC about the case. FWFs complaint handler obtained evidence that the worker was in fact employed by the factory and then called one of the complainant’s coworkers who claimed she was under the impression the plaintiff was fired because she was absent for two days without permission (29 & 31 Oct). On 14 November, another employee from the same company called FWF’s complaints handler, stating she would like to receive her social insurance book.

FWF scheduled an audit at this supplier on behalf of Outdoor & Sports. The investigation revealed that the worker was working without a labour contract, and that the dismissal did not comply with the legal procedure. The factory paid the complainant her October salary and informed her that the November salary would be paid on 25 December. The factory did not inform the other complainant of when she can get her insurance book, since it is late in paying social insurance.

With regard to remediation, FWF has made recommendations regarding proper attention to labour contracts, the payment of insurances, and the compensation of due wages within seven days of the termination of a labour contract. The factory must pay severance allowance to the two complainants for the working time served when employees did not pay unemployment insurance contributions as prescribed by law. The labour discipline (such as dismissal) or termination should be in compliance with local laws requirements. A long-term recommendation is to investigate ways of reducing worker turnover through better job security.

On 2nd of January 2017, FWFs complaint handler confirmed both employees were paid their due salaries of November and December 2016. However, social insurance and severance compensation were not paid. Remediation and follow up by OSC will be verified during next Brand Performance Check. On 22 March 2017 FWF received news that the complainant was reinstated by the company and is working in the finishing department.

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