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Supply Chain Innovation

Compensation

Ensuring Proper Benefits for Workers in India

Issues: A 2009 follow-up visit by FLA assessor revealed that a factory producing sports shoes for Nike in India had set an annual limit for bonus qualification at Rs. 3,500. This was well below the legal amount of Rs. 10,000. The factory employed 1,563 people.

Solutions: FLA assessors verified that the bonus qualification was raised to Rs. 10,000 (approximately $200), and a notice was posted to inform workers of the change.

Associated organization: 

Discussing Fair Wages in China

Thursday, February 2, 2012

Representatives of major brands, the Chinese Government, and the Fair Labor Association (FLA) gathered in Beijing on January 8 to discuss a new book examining wage trends at the global level. The book, Fair Wages – Strengthening Corporate Social Responsibility, sheds light on wage inequalities and unfairness facing workers around the world. It was authored by Dr. Daniel Vaughan-Whitehead, professor of corporate social responsibility at Sciences Po in Paris, who is responsible for wage practices at the International Labour Organization (ILO).

FLA Hosts Training on Wage Issues in China

Wednesday, January 11, 2012

On January 3 and 4, 2012, FLA hosted a training session in Shenzhen, China, for accredited monitoring organizations and others wishing to learn more about the Fair Wage Approach developed by Daniel Vaughn-Whitehead of the ILO. During the training, attendees debated the piece rate payment system that is widely used in Chinese factories. This system pays employees per garment produced and is often implemented because it seems transparent and easily understood by both workers and managers.

Back-Pay for Owed Overtime Wages in El Salvador

Issues: During a 2004 factory visit, FLA assessors learned that a facility producing t-shirts and performance apparel for VF Corporation was not accurately compensating all workers for overtime work. Workers were paid $0.63 per hour and, according to law, regular overtime (not on a rest day or weekend) should be paid double ($1.26 per hour). When asked, factory management said they were not aware of the law. The factory employed 1,329 people.

Investigation Report Published on Labor Rights Allegations at Style Avenue Factory

Wednesday, December 14, 2011

On October 12, 2011, the Institute for Global Labour & Human Rights released a report alleging a number of noncompliances at the Style Avenue factory in El Salvador, including harassment or abuse and forced overtime. Two collegiate licensees registered with FLA – Outerstuff and College Kids – were sourcing from the factory at the time of this report. Outerstuff and College Kids commissioned FLA-accredited monitoring organization, GMIES, to investigate the allegations.

China Answers Global Crisis with New Labor Market Policies

Wednesday, May 20, 2009

Many countries have adopted plans designed to help their economies recover from the global financial crisis. Unfortunately, those have mostly concentrated on saving banks and companies on the one hand, and on stimulating consumption on the other. Amazingly, there has been relatively little emphasis on the labor market policies needed to save jobs and protect wages. One wonders who is meant to do all the consuming if unemployment keeps rising and wages keep falling (at least in real terms)?

Minimum wage a sensitive issue for Hong Kong workers, companies and consumers

Monday, May 2, 2011

A recent survey by Oxfam Hong Kong showed that more than 81 percent of Hong Kong residents would be “less inclined to patronise a company that violated the rights and interests of its employees.” The survey comes just weeks before the statutory minimum wage goes into effect May 1. According to Oxfam, some companies may cancel paid meal breaks and eliminate rest days to counter the cost of paying the minimum wage.

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