social report...product sustainability, as well as protecting the environment and climate...

soCialreport

2018/2019

inde

xINdex

soCial report 02 soCial report 03

01

04 07

03

06

02

05

sustainability is an integral part of JaCK WolfsKin‘s dna

from page 8

soCial responsibility is highly prioritised

•Responsibleprocurementandproductionplanning

• Transparent,long-termbusinessrelationshipswith

ourmanufacturingpartners

•CommitmenttoLivingWages

from page 12

JaCK WolfsKin‘s Commitment beyond its CommerCial operations

• JACKWOLFSKINtransparentlydisclosesitssupply

chain

•Wheredoesmyproductoriginate?

• Proactiveandopendialoguewithourstakeholders

•Commitmenttosocialresponsibilityat

JACKWOLFSKINheadquarters

from page 60

eduCational measures to improve soCial sustainability in the supply Chain

• Effectivetrainingon-siteatmanufacturingfacilities

•Continuouslyraisingawarenessamongourown

employees

from page 46

established system to seCure so-Cial standards in manufaCturing faCilities

• Annualauditstoeffectivelyestablishhigher

socialstandards

• Straightforwardandsystematicassessment

aswellasindividualimprovementmeasures

•Ratingresultsfor2018/2019inoverview

•Manufacturingfacilitiesinfiscalyear2018/2019-

Overview

from page 30

goals for

from page 64

JaCK WolfsKin responds to Complaints Coming from manufaCturing faCilities

• Themechanisminthecomplaintsprocedure:

opendialoguewithallstakeholders

•Overviewofcomplaintcasesinfiscalyear2018/2019

from page 52

2020

THIS ISW H ATWE‘REDOING

DearReader,

Sinceourbeginningsin1981,sustainabilityhasbeenfunda-mental toourcompany’sendeavours.Back then-whenwewere just an ambitious, small Outdoor company - it was agiven thatwewanted tomanufactureproducts thatmet thehighesttechnicalandqualitystandards.Rightfromthestart,productsweredesignedtobedurableandsustainable.There-fore,asearlyas1981,weestablishedtherepairserviceandsince2015ourwaterproofingservicetoextendthelife-spanofJACKWOLFSKINproducts.

Over time,we as a company have continuously evolved ourcommitment tosustainability.Weare longstandingmembersoftheGloballyrecognizedSustainableorganisations:theFairWearFoundation(FWF)andbluesignandgladlycommittothewidespreadmeasures.We are quite proud that last year the FWF has recognized us as a LEADER for the 5th time in a row. This isnotamatterofcourse,asFWF’srequirementsareenhancedeachyearaccordingtothedevelopmentsintheGlobalenvironment.WestronglyidentifywithFWF’sambitiousobjectives–tojoinforceswithourmanufacturingpartners–toestablishfairandsafeworkingconditionsattheirfacilities.

Weareparticularlyproudofourcommitmenttoinnovateintermsofproductsustainability.Ourprioritieswillbetherecyclingofplastics,activelyreducingwasteandasignificantreductionofwaterconsumptioninthemanufacturingprocess.Wehavein-troducedthefirstfullyrecycled,highlyfunctionalandwaterproofmembranetothemarketin2017.Furthermore,weusedyeingandfinishingtechnologiesthatrequiresignificantly lesswaterandchemicalsascomparedtoconventionalmethods.Inthefu-ture,wewillcontinuetosubstantiallyinvestinresource-savingproducts, technologies as well as manufacturing processes.

THERE IS ONLY ONE EARTH - LET’S DO OUR PART TOPRESERVEANDPROTECTIT!

MelodyHarris-JensbachCEOJACKWOLFSKIN


EDITORIAL

EDITORIAL

EMPLOYEESNo. of JACK WoLfSKIN

in GErManY:

545MELODY HarriS-JEnSBaCH (CEo)MarKUS BÖTSCH (CSo)anTE FraniCEViC(Cfo)aLEXanDEr HaUSEr(Coo)

Executive directors are:

733 STOrES4000

JACK WoLfSKIN

und more than

SaLES POinTSworldwide

products are available in

1981JaCK WOLFSKinWaS FOUnDED in

68PrODUCTiOnFaCiLiTiESthroughout the world

(Apparel, footwear, Equipment)collaborating with

PrODUCT DiViSiOnS

3There is

inDiViDUaLS

arE WOMEn

122,483

77 %work in the production facilities manufacturing JaCK WOLFSKin products. of those,

Since its foundation in 1981, JaCK WOLFSKin has offered a rEPair SErViCE to extend the lifespan of JACK WoLfSKIN products for as long as possible. In 2015, this service was complemented by a professional WaSHinG anD rE-iMPrEGnaTiOn SErViCE.

SuSTAINAbIlITy IS AN INTEGRAl pART Of JACK WOlfSKIN’S DNA

We’reathomeoutdoors.Forus,there’snobetterplace.We’redrawntowideopenspacesandwedrawstrengthfromslowingdown.Weseekexperiencesratherthantopperformance.Wearedrivenbyfreshideasandthepassiontodesignoutstandingproducts.Wearecommittedtofunctionality.Ourproductsshallofferprotection,keepwarmanddry,andbecomfortableatthesametime.Reliableformanyyears.Node-tailistooinsignificantfornottobeimprovedupon.Werespectnature’sdiversityandalllivingthings.Ourearthissimplythemostbeautifulplaceintheuniverseandit’stheonlyonewehave.Wedoeverythingwecantoprotectitandwishtoexperienceandshareitwitheveryone.


01

Actively assuming social responsibility is a vital part of ourself-conceptaswellasourcorporateculture-eversinceourcompanywasfoundedin1981.Wefirmlybelievethatfairnessaswellasenvironmentalandsocialresponsibilitydonotcon-flictwithourcompany’ssuccess.We regardsustainabilityasbeingself-evident.Therefore,weemphasizefunctionalityandlongevityaswellascontemporarydesigns.Thesecriteriaapplytoourthreebusinesssegmentsapparel,equipmentandfoot-wear.Wearecommittedtoreducingourproducts’andmanu-facturingprocesses’ ecological footprints.Equallydedicated,weassumesocialresponsibilityinregardtoourmanufacturingpartnersworldwide.

In 2015, the United Nations passed its Agenda 2030. Thisagendasets17goalsforsustainabledevelopmentonaglobalscale-aptlycalled“SustainableDevelopmentGoals”.Theyfol-lowtheguidingprincipleofgloballyestablishinghumanelivingconditions.Itconcernsallofus-henceweareallcalledupontocontributetoanenvironmentworthlivingin.Also,toasocietyinwhicheveryonecanleadafulfilledandself-determinedlife.WeatJACKWOLFSKINfullyembracethevisionbehindtheseSustainableDevelopmentGoals.

JACK WOlfSKIN - HIGH-quAlITy OuTDOOR pRODuCTS Of TImElESS AppEAl

OuR COmmITmENT TO uN’S SuSTAINAblE DEvElOpmENT GOAlS

SUSTAINABIL ITY IS AN INTEGRALPARTOFJACKWOLFSKIN’SDNA


Accordingly,weconstantlyimproveandenhanceourcommit-menttotheenvironment-oneverylevel.Anincreasingnum-berofourproductsismanufacturedfromrecycledmaterials.CompletelyeliminatingPFCinourproductsisatangibleob-jective- infact, inourdepartmentsApparelandEquipment,this has alreadybeen accomplished.Already today,we usecertified organic cotton only and our down is sourced fromspecies-appropriate animal husbandry, certified accordingto the “Responsible Down Standard”. Also, we advocate aresponsiblechemicalandenvironmentalmanagement inoursupply chain, in compliancewith the bluesign® system.Wehave been a partner of this system since 2011, so by nowthemajorityofourmaterialscomplywithbluesign®system’s

pRODuCT SuSTAINAbIlITy, AS WEll AS pROTECTING THE ENvIRONmENT AND ClImATE

Responsiblerelationshipswithoursuppliersandmanufacturingfacilitiesfurthermoreconstituteoneofthemostimportantfoun-dationsofourcorporateoperations.Wearecommitted to fairworkingconditions,reasonableworkinghours,safeworkplacesandfairwages.Transparently,wediscloseoursupplychainsandopenlyreport,forinstance,thelatestprogressinlocallyimple-mentingsocialstandardsinspecificmanufacturingfacilities.Ourmanufacturingpartnersmustcommit toourCodeofConduct.We in turnoffer support, so theycan implement improvementmeasuresandthusmeetourstrictstandards.Jointly,wehavealreadyachievedconsiderableprogress-andtogetherwewillcontinuealong thispath.TheFWFprovidessupport for theseefforts.

TheFWFisanindependent,non-profitorganisationworkingonmanylevelstoimproveworkingconditionsinthetextileindus-try.To thisend, theFWFsetsstrictstandards.Furthermore, it

SOCIAl RESpONSIbIlITy

requirements. Furthermore,we strictlymonitor harmful sub-stancess,not just inourproducts,butalsoon-siteinmanu-facturingfacilities.Thisisaccomplishedthroughcomprehen-sive listsofhazardoussubstances,whicharebanned inourfinishedproductsaswellas inallmanufacturingprocesses.Furthermore, sewage is routinely monitored in all facilities.Our sustainability goals motivate us to continue along thispathanddevelopenvironmentallyfriendlyaswellasinnova-tivematerialsinthefuture.

We continuously post details on the latest status on our website: https://www.jack-wolfskin.com/corporate-responsibility/.

develops sensible and fitting strategies for manufacturing fa-cilitiesworldwide, collaboratingwith all stakeholders involved.ThosestakeholdersareFWFmembercompanies,suchasJackWolfskin, but also non-profit, non-governmental organisations(NGOs),employers’andemployees’associationsinAsiaandEu-rope,aswellasgovernmentrepresentatives.JACKWOLFSKINhasbeenFWFmembersince2010-alogicalstepafterhavingestablishedourownindependentprogrammeformanagingso-cialsustainabilityinoursupplychainsasearlyas2007.Inthisreportwepresentourcommitment tosocial responsibilityandprovideadetailedaccountregardingfinancialyear2018/2019.

Status updates are continuously provided via our website: https://www.jack-wolfskin.com/corporate-responsibility/.


SOCIAl RESpONSIbIlITy IS HIGHly pRIORITISED

Wedonotoperateourownproductionfacilities;instead,wecollaboratewithcom-paniesmanufacturingourproductsundercontract.Thefundamentalprerequisitefor collaboratingwith anymanufacturing partner is their commitment to complywithoursocialguidelinesaswellasFWFrequirements.

02

As we do not operate our own production facilities, we rely on manufacturing partners. These are our primary business partners where we commission our products’ final manufacture. Some of our partners operate in several locations; therefore, we generally establish immediate communication with individual manufacturing sites. This way we optimise the individual collaboration according to local conditions and circumstances.

Infiscalyear2018/2019,ourproductsweremanufacturedin12countries; themajorityof thesecountriesare located inAsia.ThelargestpartofourproductionvolumeoriginatesfromViet-nam,followedbyBangladesh,ChinaandCambodia.Asmallerpart of our production volume is sourced from manufactur-ingpartnersinafewEuropeancountries.Manyofourclassicfleeceproducts,forinstance,aremanufacturedbyalong-termpartnerinTurkey.

In the year under review, we maintained active ties to 68manufacturing facilities. This number includes our immedi-atemanufacturing partners aswell as subcontractors com-missionedbyourpartners.Ourpartnersdonotonlyworkforus, but also for other client companies.We therefore sharetheproductioncapacityavailableatindividualmanufacturingfacilities.Withinthescopeofourcollaboration,weaspiretooccupyaconsiderablevolumeoftherespectivecapacityofamanufacturingfacility,though.Thisallowsourordervolumestobeofgreatersignificancetotherespectivepartner.Subse-quently,wemaymoreemphaticallydemand implementationofoursocialstandardsandthusparticipatemoreeffectivelyinpositivechanges.

In2018/2019,87%ofourproductionvolumeoriginated frommanufacturing facilities inwhich our orders accounted for atleast 10% of the respective revenue. That part of our ordervolume originated from facilities in which our order volumeoccupied a relatively small share of production capacity, islargelyduetoourbroadproductrange.Weofferourcustom-ersanabundanceofoutdoorproducts:anextensiverangeoffunctionalapparel;manydifferentbags,backpacks,tentsandsleepingbags,drinkingbottles,mats,uptofootwearforvari-ouspurposes.Consequently, ourmanufacturingpartners arehighly specialised in terms of the respective machinery andhavespecific,long-standingexperienceinthemanufactureofspecialisedproducts.

pROCuREmENT COuNTRIES AND mANufACTuRING pARTNERS

Ourproductrangeishighlydiversified;therefore,wecollaboratewith various specialisedmanufacturing partners.However,weintendtoconsolidatethenumberofmanufacturingpartnersasmuchaspossible.Thisallowsustobuild individualaswellaslong-lasting relationshipswithourmanufacturingpartners andjointlyestablishasociallyresponsibleprocurement.

responsible proCurement and produCtion planning


SOCIALRESPONSIBIL ITY IS HIGHLYPRIORIT ISED

Thoughwealwaysaspiretomaintainlong-termrelationshipswithourmanufacturingpartners,fromtimetotimewearerequiredtoestablishnewpartnerships.Thisisduetovariousreasons:

Expansionofourproductrangewithaproductcategory thatnoneofourcurrentpartnersiscapableof manufacturing.

Insufficientlong-termproductioncapacitiesand,asa result,overloadingoftherespectivemanufacturing facilities.

Establishmentofanewmanufacturingfacilitybyan existingpartner,whoasksustosupportthesetup oftherespectivefacility.

Integrationofasubcontractorintoanexisting manufacturingprocessinordertocompensateproduction peaks.

Terminationofacollaborationbyamanufacturingpartner, forinstanceifthepartnerwishestochangehisstrategic focus.

Non-compliancewithourstrictsocialand/orhigh-quality standardsbyamanufacturingpartner

Ifanyoneofthesescenariosbecomesareality,wethoroughlyevaluatethepotentialnewmanufacturingpartnerbeforeestab-lishinganew,potentiallylong-termcollaboration.

NEW mANufACTuRING pARTNERS

Basisofanycollaborationiscompliancewithourcodeofcon-duct.However,furthercriteriasuchasqualityordeliverytimesandcostsmustalsomeetourexpectations.Priortoacollabo-ration,wethoroughlyassesspotentialmanufacturingpartnersaccordingly.Tothisend,weemployapre-definedassessmentmethoddesigned toprovideaconsistentand fairevaluation.On initialcontact,wegatherall relevantdetails regarding themanufacturingfacility.Then,oursourcingteamconductsafirston-site inspection to evaluate the manufacturing process. Ifthisevaluationaswellasasubsequentinternalmeetinghaveapositiveoutcome,wewillprovideourrequirementsspecifica-tioninthenextstep.Thesespecificationsreflectourstandardsin termsofquality aswell aspackaging, logistics and trans-port.Furthermore,thespecificationscontainourrequirementsregardingmanagement of hazardous substances andchemi-calsaswellasthecodeofconductdefiningtherequiredsocialstandards.Toestablishabindingcollaboration,thefuturepart-nermustsignawrittenconfirmationthatthecodeofconductwillbecompliedwith.Simultaneously,wewillplaceatrialordertoevaluatetheinteractionwiththemanufacturingfacility.With-inthreemonths,weconductaninitialsocialauditonsite;thisallowsustoassessatanearlystagetowhatextentourCodeofConductrequirementshavealreadybeenimplemented.Thefindingsof this initialauditwilldecisively influencewhetheralong-termcollaborationisdesirable.Formoredetailsonsocialaudits,pleaserefertopage30etseqq.

OurCodeofConductisbasedontheHumanRightsCharteroftheUnitedNationsaswellastheconventionsoftheInternationalLabourOrganisation(ILO).Itisabindingelementofeverycon-tractualrelationshipwithourmanufacturingpartners.OurCodeofConductincludesthefollowingrequirements,whichmustbecompliedwithbyeachindividualmanufacturingfacility:

ThecompleteCodeofConductmayalsobefoundonourwebsite:https://www.jack-wolfskin.com/on/demandware.static/-/Library-Sites-JackWolfskin_SharedContentLib/default/dw5ad3c4c4/PDFs/Code_of_Conduct_English_Stand_01-2011_new.pdf

SElECTION pROCESS AND ASSESSmENT Of NEW mANufACTuRING pARTNERS


Discriminationintheworkplaceisstrictlyprohibited.

Freedomofassociationandtherighttocollectivebargainingisgranted.

Workplaceenvironmentsmustbesafeandhealth-compatible.

Wagesshallbesufficienttosecurelivelihoods.

Eachemployeemusthavealegallybindingemploymentcontract.

Workinghoursmustbefair.

Environmentalprotectionmustberespected.

Childlabourisstrictlyprohibited.

Forcedlabourisstrictlyprohibited

OuR CODE Of CONDuCT

Weauditourmanufacturingpartnersnotjustattheverybegin-ning of a collaboration. Throughout the further course of ourpartnership,wecontinuetoassesstwiceayear,whethermanu-facturingpartners continue tomeet required social aswell asquality standards. This assessment is conducted interdiscipli-nary,involvingourdepartmentsProcurement,Technical&Qual-ityAssurance,LogisticsandVendorControl-ourteamrespon-sible forsustainability.Weauditeach individualmanufacturingfacility,applyingacomprehensivecatalogueofcriteriaaswellasastandardisedevaluationmatrix.Thisprovidesallparticipatingdepartmentswithaccurate informationoneachmanufacturingfacility‘sstrengthsandshortcomings,aswellasonitsprogress.Wetransparentlyshareallauditresultswiththerespectiveman-

Long-termcollaborationwithamanufacturingpartnermaynotbepossibleatalltimes.Terminationofacollaborationmaybeinitiatedfrombothpartiesinvolved.Usually,thisdecisionispre-cededbya lengthyprocess inwhich improvementmeasureshad been jointly devised, alsowe usually had offered activesupportineliminatingdeficiencies.Irrelevanttothiscontextisthe type of any shortcomings. Thesemight be quality prob-lems,difficultiesinmeetingsocialorenvironmentalstandards,consistentlypoordeliveryperformance,aswellasmanyotheraspects.Weintendtoterminateacollaborationjustasrespon-siblyasithadbeeninitiated.Thus,wenotifyourmanufacturingpartner well in advance, and only then gradually reduce ourordervolume.Thisallowsthemanufacturingpartnertoadapttothechangesandadjustproductionplanning.

fREquENT ASSESSmENT Of mANufACTuRING pARTNERS

TERmINATION Of COllAbORATION

ufacturingpartner,anddevisean individualplan forcorrectiveaction. This plan is to be carefully implemented via improve-mentmeasures by both ourmanufacturing partner aswell asus. Hence, we establish a continuous improvement process,individual toeachmanufacturing facility.Thefindingsof thesefrequentaudits,aswellastheimplementationoftherespectiveimprovementmeasures, directly influence future collaboration:Upon positive assessment aswell as successful implementa-tionofimprovementmeasures,weaspiretograduallyincreaseourordervolume,providedfreeproductioncapacityisavailable.Uponnegativeassessment, or if improvementmeasureswerefailedtobeimplemented,weintendtograduallyreduceouror-dervolume.


https://www.jack-wolfskin.com/on/demandware.static/-/Library-Sites-JackWolfskin_SharedContentLib/default/dw5ad3c4c4/PDFs/Code_of_Conduct_English_Stand_01-2011_new.pdf

Wehighlyvalue -andcultivate - stable, long-termandclosebusiness relationships with our manufacturing partners. In2018/2019,56%ofourproductionvolumewereorderedfrompartnersthatwehavebeencollaboratingwithforaminimumof5years.Someofthesepartnershipsreachbackmorethantenyears,inoneparticularcaseeven26years.Thislong-termap-proachisofutmostimportancebothtousaswellasourmanu-facturers.Itallowsourpartnerstoexpectsoundaswellasreli-ableorders.We,inturn,benefitastherespectivemanufacturingfacilityisyetveryfamiliarwithourrequirementsregardingcom-

lONG-TERm NATuRE Of OuR buSINESS RElATIONSHIpS

In fiscal year 2018/2019,we collaboratedwith 68manufacturing fa-cilitiesin12countries,ourhighestproductionvolumeoriginatingfromVietnam,Bangladesh,ChinaandCambodia.Asclientofourmanufac-turing partners, long-term relationships, transparent pricing and fairproductionplanningareofutmostimportancetous.

transparent, long-term business relationships With our manufaCturing partners


Meetingwithourtentsupplier2011 Developingatentwithoursupplierin2013

ORDER vOlumE pER fACIlITy bASED ON A COllAbORATION TImE Of...

Ordervolumeinrelationtoyearsofcollaborationwithourpartners

morethan15years

14years

13years

12years

11years

10years

9years

8years

7years

6years

5years

4years

3years

2years

1years

lessthanoneyear

0% 5% 10% 15% 20% 25%

pliancewith social standards, aswell asour requirements intermsofquality,deliveryandtransparentcollaboration.Ononehand,apartnershipsuchasthismustcontinuouslybenurturedsoastoreaffirmmutual trust.Ontheotherhand,continuousefforts maintain mutual loyalty and willingness to implementchanges.Therefore,wedonotonly insistonadiligentselec-tionprocessinvolvingadetailedpriorassessmentofpotentialmanufacturingpartners,butfurthermoreontransparentpricingandanticipatoryproductionplanning throughout thedurationofacollaboration.

Anintegralpartofsustainableproductionplanningisarespon-sible procurement process. This involves, among other fac-tors,closelymonitoringamanufacturingfacility’scurrentpro-ductioncapacities.Onlywhenmanufacturingfacilitiesarenotoverloaded,excessiveovertimeanditsadverseeffectsmaybeavoidedbeforehand. In thiscontext, close ties to, aswell astransparent communication with our manufacturing partnersareofcrucial importance.Accordingly,wedetermineproduc-tionaswellasdeliveryschedulesinclosecoordinationwithourmanufacturingpartners.

Weproducetwocollectionseachyear-asummerandawintercollection-eachwithaleadtimeofappr.1.5years.Thisallowsus sufficient time for precise order forecasts. Themore accu-ratetheseforecastsare,theeasierourmanufacturingpartnersmayallocatetheircapacitiesinaccordancewithfurtherclients’orders.Thisappliesbothtoourpartnersforfinishingaswellas

lONG-TERm pRODuCTION plANNING

partners for intermediateproductsormaterial supplies. Thesepartnerssupply,forinstance,textilepanels,buttons,zippersorstrings.Consequently,wealsosubmitorderforecasts,includingproductionanddeliveryschedules, totheaccordingsuppliers.Thus,itiswarrantedthatallmaterialsrequiredforthefinalpro-ductionstagewillbeproducedanddeliveredtotherespectivemanufacturingfacilitiesforfinishingintime.Basedonourfore-casts,weorderseveralbatchesofacollection’sproductionrun,adjustedtoourcustomer’sactualordervolumes.

Shouldaproduction facilityunexpectedlyexperienceoverloadduringaproductionrun,wemayprioritizebasedontheordersand adjust delivery schedules or transportation modalities inconsultationwiththerespectivemanufacturingfacility.Forthispurpose,weemployourliveplanningsystem,whichpermanent-lymapsthestatusofallofourorders,andwhichallowsustocommunicatewithourmanufacturingpartnersatalltimes.


We firmly believe that all people deserve a wage adequatetoprovidealivelihood.Fromtheverybeginningofourcom-mitmenttoestablishfair,safeandsociallyresponsiblework-ingconditions,wehaveaskedourmanufacturingpartnerstopaylivingwages.In2007,thisdemandcertainlywasnotself-evident. Our membership with the FWF as of 2010 had usreassured,thatwewerededicatingourselvestoanimportant,vital cause. After all, gradually establishing living wages inmanufacturingcompaniesisoneofFWF‘sprimaryobjectives.

Commitment to living Wages


A livingwage allowsworkers to provide for their families aswell as themselves, to afford housing and furthermore coverday-to-daynecessitiessuchasclothingor transport.Moreo-ver, funds shouldbedisposable for children’s education and

Livingwagesareacrucialissuerequiringeveryone’sfullcommitmentandsupport.Establishingthoseintheglobalmarketplace,involvingnumerousstakeholders,ishugelycomplex,requiresacreativeapproach-andmaytakesometimeyettoberealized.

Food Housing Health Education Clothing Mobility Savings

WHAT ExACTly IS A lIvING WAGE?

$

healthcare.Also,itshouldbepossibletoaccumulatereservesfor unforeseenexpenditures. “Livingwage” refers exclusivelytothewagereceivedwithinregularworkinghours-excludinganyovertimepayorperformance-relatedbonuses.


Wedo not operate our ownmanufacturing facilities; hence,JACKWOLFSKIN does not directly employ or pay produc-tion workers. Consequently, establishing living wages fast,andaboveallonourownauthority, is ratherchallenging. In

WageladderexampleforadifferentproductionpartnerinVietnam

our collaborationwith ourmanufacturing partners, we havemadeitourobjectivetoactivelyconvincethem, inthespiritofpartnership,thatsecuringlivingwagesistherightandtheonlywaytobesuccessfulinthelongrun.

Employeesofproduct ionfaci l i ty



Wageladder

Factory: Factory 1Currency: VND

Cutting

StandardStandard +

benefits

Female workers: 33Male workers: 25Total workers: 58

9,000k

8,500k

8,000k

7,500k

7,000k

6,500k

6,000k

Max: 8,521,370 Mode: 7,883,471

Min: 6,856,535

Max: 8,795,770 Mode: 8,157,871

Min: 7,130,935

Sewing

StandardStandard +

benefits


9,000k

8,500k

8,000k

7,500k

7,000k

6,500k

6,000k

Max: 8,374,185 Mode: 6,930,555

Min: 6,468,843

Max: 8,648,585 Mode: 7,204,955

Min: 6,743,243

1)

2)

Asia Floor Wage 8,949,153 1)

Global Living Wage Coalition - region 1 6,435,864 2)



Living wage estimate as of 2015.

Zone 1 Urban Ho Chi Minh City - based on family of 4 with 1.78 workers (updated March 2016). Please note: the GLWC LWestimate for Region 1 (2016) is expected to be updated by end of 2019. Until then, it is advisable to use primarily AFW LWestimate for this region.

Wageladder

Factory: Factory 1Currency: VND

Finishing

StandardStandard +

benefits


10,500k

10,000k

9,500k

9,000k

8,500k

8,000k

7,500k

7,000k

6,500k

6,000k

Max: 9,775,526 Mode: 7,789,284

Min: 7,249,410

Max: 10,049,926 Mode: 8,063,684

Min: 7,523,810

Quality control

StandardStandard +

benefits


9,000k

8,500k

8,000k

7,500k

7,000k

6,500k

6,000k

Max: 8,222,930 Mode: 7,724,324

Min: 7,071,564

Max: 8,497,330 Mode: 7,998,724

Min: 7,345,964

1)

2)





Living wage estimate as of 2015.

Zone 1 Urban Ho Chi Minh City - based on family of 4 with 1.78 workers (updated March 2016). Please note: the GLWC LWestimate for Region 1 (2016) is expected to be updated by end of 2019. Until then, it is advisable to use primarily AFW LWestimate for this region.

There is no single one formally declared living wage. There-fore, depending on which stakeholder (local unions, interna-tionalNGOs, factory owners, employee representatives, etc.)commentsonlivingwages,varying-sometimesverydifferent-amountsarespecifiedasa livingwage.Therefore, theFWFemploys so-called “wage ladders”, indicating different salarybracketsaccordingtocountryandsometimesevenindividualprovinces.TheunderlyingdataappliedbytheFWFisgatheredfromofficialsourcesorstakeholdersurveys.Thesewageladdersreveal significant differences betweenmany countrieswhenestimatingthesalaryleveldefinedasalivingwage.

THE CHAllENGES


Foreachindividualproductwedetermineandnegotiatepric-esdirectlywith the respectivemanufacturingpartner. In thisprocesswe follow theconceptof transparentpricecalcula-tion. Our purchasing price for any product is composed ofcostsformaterialandlabour,aswellasoperationalcostsandtheprofitmarginforthemanufacturingpartner.Materialcostsmaybedeterminedquiteaccurately.Westipu-latetherawmaterialstobeusedforeachproductinapartslist.Thisbillofmaterialdepictsallmaterialsrequiredtomanu-facturetheproduct;however,noquantitiesarespecified.Theactualquantityofmaterialsusedinproduction,isspecifiedbythemanufacturingpartner,ashecreatesthecuttingpatterns.Therefore,hemaycalculatetheexactmaterialconsumption.Combinedwithknownpricesforthematerials,we,incoordi-nationwithourproductionpartners,maycalculateunitcosts.Thus, quantities and costs ofmaterialsmay be determinedtransparentlyinthepricingnegotiations.Labour costs per product depend on the particular effortrequired for production as well as the respective degree ofcomplexity.Manufacturingpartnersderivetherequiredworkinputbasedon“sampling”,i.e.trialproduction.Furthermore,theefficiency rate, ameasureofproductivityof the respec-tivemanufacturingfacility,alsoentersintodetermininglabourcosts. Based on the effort required and the efficiency rate,labourcostsmaybedeterminedaccordingly.Inorder tocalculate thefinalpurchaseprice,manufacturingpartnersmustalsoconsideroperatingcostsandtheirintend-edprofitmargin.

TRANSpARENT pRICING

However,asourmanufacturingpartnersareindependententi-ties,whichdonotneedtodisclosetheircoststructure,fullytransparentpricingisnotfeasible.Still,westriveformaximumtransparencyandfaceourmanufacturingpartnersasequalswhennegotiating.Tothisend,wemonitorchangesregardingthe labour and cost structure in the respectivemanufactur-ingcountriesandprovincesandassesswhether theagreedpricesare realisticorwhether theyneedadjustment. In thiscontext,theteamresponsibleforpricingcanrelyonyearsofin-depthexperienceandinnumerabletripstoourmanufactur-ingcountries.

Itmustbenoted,however,thatwearenotanexclusiveclientinanyof themanufacturing facilities.Thus,wehave limitedleveragetoinfluencelabourstructuresatourpartners’facili-ties.Throughourapproachtopricingplusourcontinuousef-fortstoestablishfairwages,weattempttoconvinceourpart-ners,thatadequateemployeecompensationisaninvestmentinto thepartner’s future viability. Inmanycountries, there isevidencetoday,thatemployeesnotreceivingadequatecom-pensation,areturningtootherindustriesforwork.Asaresult,thesupplyofqualifiedemployeesissteadilydecreasing.

JACKWOLFSKINhasintegratedamonitoringsystemintothesocialaudits,whichisdesignedtoverifythatourmanufactur-ingpartners’workforcereceivesfairandcontractuallyagreedcompensation for their labour. The fundamental requirement,whichmustneverbecompromised,iscompliancewithstatu-toryorindustryminimumwages.Premiseis,thatwagescoverworkers’basicneedsand furthermoreprovideanamount forfreedisposal.Naturally,unlawfulandarbitrarywagereductionsorsanctionsarenotadmissibleandwillnotbetolerated.Also,allemployeesclearlymustbeawareofthedetailedbreakdownoftheirwagesatthetimeofsigningthecontract.

SAlARy ANAlySES AND DETERmINATION Of A TARGET WAGE

organisation responsible for analysis of/study on living wages in vietnam

Wageindicator.org–forasingleperson

Wageindicator.org-foratypicallocalfamily

GlobalLivingwageCoalitionhttps://www.globallivingwage.org/wp-content/up-loads/2018/04/living-wage-report-urban-vietnam.pdf

% Wage level above statutory minimum wage

47% (Wageindicator.orgestimaterangesbetween11%-82%)

146%(Estimaterangesbetween91%-196%)

72%

Duetooursocialaudits,wemayaccuratelyestimatetheactualsalarylevelsinfactories,aswellashowtheycomparetostatu-toryminimumwages.Aswemaynotdiscloseexactwagesforthesakeofprivacy,weclassifyactualwagesintoclustersforthepurposesof thisdocument.Foranoverview,pleaserefertopage26.

Detailedwage statistics aswell as respective progress, wefrequentlysharewiththeFWF.

Wehavereviewedvariousstudiesaswellasanalysesrelatedtolivingwages;forillustration,wepresentthecaseofVietnam:

Basedondata,studiesandestimatesavailabletous,wehavedefined5targetwagelevels(notonlyforVietnam).Atlevel5,wagesexceedtheminimumwagebyatleast70%.AccordingtotheGlobalLivingwageCoalition,alivingwagethusisprovidedfor.Theright-handcolumnindicatesthepercentageofmanufacturingsitescurrentlyhavingattainedtherespectiveleveltarget.

Paidwagesmustbeknown.

Thestatutoryminimumwagemustneverbeundercut.Paidwagesareupto25%higherthanthestatutoryminimumwage.

Paidwagesare25-40% higher than the statutory minimum wage.Weconsiderattainingthisleveltobethefirststeptowardsalivingwage.

Paidwagesare40-70% higher than the statutory minimum wage.Weconsiderthistargetwagetobethesecondsteptobetakentowardssecuringalivelihood.

Paidwagesareover70% higher than the statutory minimum wage.Whenattainingthislevel,seamstresseshavereachedtargetlevel3andthushavesecuredalivelihood.(Basedonthefind-ingsoftheGlobalLivingwagecoalitioninregardtoVietnam)

Attainedfor98%ofourrevenue.Fortheremainingtwoper-cent,weareconfidentthatstatutoryminimumwageshavebeenpaid,wewernotprovidedwithreliablewageleveldata,though.

Attainedfor100%ofourrevenue.




Basicrequirement1

Basicrequirement2

Targetlevel1

Targetlevel2

Targetlevel3



AvERAGE WAGES pAID TO SEAmSTRESSES CORRESpONDING TO REvENuE Of JACK WOlfSKIN IN mANufACTuRING fACIlITIES

Averagewagelevels(notincludingovertimepayorperformance-relatedbonuses)correspondingtorevenuecontractedbyJACKWOLFSKINinmanufacturingfacilitiesin2018/2019

Availableinformationonwagesisnotconclusive

Averagesalaryofaseamstressranges0–25%abovethestatutoryminimumwage/withintherangeoftheminimumwage

Averagewageofaseamstressrangesbetween25.1–40%abovethestatutoryminimumwage/securinglivelihoodforsingles

Averagewageofaseamstressrangesbetween40.1–70%abovethestatutoryminimumwage/securinglivelihoodforfamilieswithtwoincomes

Averagewageofaseamstressexceedsthestatutoryminimumwagebymorethan70%/livelihoodissecured

2% 8%

19%

38%

33%

Atfirst,weareaimingtoaswellgainfulltransparencyonactualwagespaidfortheremaining2%revenue.Subsequently,wewill systematically address all manufacturing partners fromwhomweorderasignificant revenue.Toppriorityhere is topersuade thosepartners to increasewages. Initially,wead-dressthosepartnerswhosewagespaidrangeonlyupto25%abovethestatutoryminimumwage.Weaimtomotivatethesepartnerstopaywagesinlinewithourtargetlevel1(seetable).With partnerswhosewages already correspond to those oftargetlevels1or2,wewillexplorethepossibilityofagradualsalaryincreaseinordertoultimatelyensurelivelihoodsforall.

Inordertoillustratewagestructuresinspecificcountries,wewishtointroducesomeofourmostimportantmanufacturingcountriesinthefollowingsection.Correspondingdatawascollectedduringaudits.

OuR GOAl: GRADuAlly ESTAblISHING lIvING WAGES

WAGE SuRvEyS fOR vIETNAm, bANGlADESH AND myANmAR

vIETNAm Vietnamisoneofourmostimportantproductioncountries;therefore,tous,progressioninregardstothegeneralsalarystructureinVietnam-andwithourpartnersinparticular-isofgreatrelevance.

Inregardtosalaries,thecountryisdividedintofourregions.Ineachofthose,thestatutoryminimumwageswereincreasedsignificantly-namelybymorethan50%-between2014and2019:

pROGRESSION Of THE STATuTORy mINImum WAGE IN vIETNAm fROm 2014–2019

2014

1.900.000,00VND

2.100.000,00VND

2.400.000,00VND

2.700.000,00VND

2016

2.400.000,00VND

2.700.000,00VND

3.100.000,00VND

3.500.000,00VND

2018

2.760.000,00VND

3.090.000,00VND

3.530.000,00VND

3.980.000,00VND

2015

2.150.000,00VND

2.400.000,00VND

2.750.000,00VND

3.100.000,00VND

2017

2.580.000,00VND

2.900.000,00VND

3.320.000,00VND

3.750.000,00VND

2019

2.920.000,00VND

3.250.000,00VND

3.710.000,00VND

4.180.000,00VND

Region 4

Region 3

Region 2

Region 1

4.500.000,00VND4.000.000,00VND3.500.000,00VND3.000.000,00VND2.500.000,00VND2.000.000,00VND1.500.000,00VND

2014

Region1 Region3Region2 Region4

2016 20182015 2017 2019

ProgressionofthestatutorymonthlyminimumwageinVietnambetween2014and2019(FiguresinVND-VietnameseDong;VND4,190,000.00correspondstoapproximatelyEUR165.-)

Despitethissignificantincrease,minimumwagesarestillnotinlinewithlivingwages(refertotheestimatesofWageindicator.comandtheGlobalLivingWagesCoalitioncitedabove).Thisis true,evenconsidering that thestatutoryminimumwage inVietnamhasalreadydoubledinthelastsixyears.

In fiscal year 2018/2019, however, all of our 23 Vietnamesemanufacturingpartnersonaverage rankhighly regardingac-tualwagespaid.Justattwomanufacturingfacilities,wagesareonlyupto25%above the statutory minimum wage. These two facilities aresubcontractors, which presents us with our first challenge.Inthesecases,wehavenodirect influenceontherespective

manufacturer.Ourmaincontactforallcommunicationregard-ingpricesisourimmediatemanufacturingpartner.Therefore,itposesquiteachallengetoactivelyengageinadialoguewiththesubcontractorregardingasalaryincrease.In two further manufacturing facilities wages paid range be-tween26%and40%above the statutoryminimumwage; inelevenmanufacturingfacilitiesbetween41%and70%above.A total of eight of our Vietnamese partners pay their seam-stresseswages that exceed the statutoryminimumwage bymorethan70%.AccordingtothefindingsoftheGlobalLivingWage Coalition, these wages are considered to secure theirlivelihood.



bANGlADESH: The statutorymonthlyminimumwage inBangladeshoutsidethetextile industryamountsto1,500BDT(BangladeshTaka).ThisequalsaboutEUR16,-.AsofDecember1,2013,asector-specificminimumwageof5,300BDT(EUR56,50)wasestab-lished in the textile industry.OnDecember 1, 2018 thiswasincreasedto8,000BDT(approx.EUR85,-).Thus,thestatutoryminimumwage in the textile industry exceeds five times thestatutoryminimumwageapplicabletootherindustriesinBang-ladesh.AsthemajorityofthepopulationinBangladeshworksinthetextile industry, this industryservesasapioneer in thedevelopmentofthecountry.Nevertheless,theminimumwagelevel inBangladesh’stextileindustry is still low as compared to surrounding productioncountries.

myANmAR: In2018/2019wecollaboratedwiththreemanufacturingpartnersinMyanmar:

Eslite Garment Co., Ltd.Thecollaborationwiththismanufacturingpartnerwasinitiatedforthe2018spring/summercollection,orderingsmallquanti-ties.Unfortunately,itwassoonapparentthatalong-termpart-nershipwould not bedesirabledue todifferent approachestowards various aspects of the collaboration. Consequently,werapidlyreducedordersandthecollaborationwasdiscontin-uedapproachingtheFall/Winter2019collection.

All five manufacturing partners in Bangladesh, that JACKWOLFSKINhascontractedin2018/2019,paysalariesabovethestatutoryminimumwage.Themanufacturingfacilitiesarelocated inDhaka, thecapital,aswellas in themore remoteregionsofChittagongandComilla.ThemanufacturingpartnerinDhakapays far higherwages than the further productionsites, factoring in that cost of living is highest in Dhaka. InthemoreruralregionsofChittagongandComilla,livingcoststendtobelower.

Location

Dhaka

Chittagong

Chittagong

Chittagong

Comilla

Average wage of a seamstress including non-performance-related bonuses, excluding overtime

>300%

140,1%-170%

140,1%-170%

140,1%-170%

140,1%-170%

Name of manufacturing facility

YoungoneHi-TechSportswearInd.Ltd.&SavarSportswearCompanyLtd.

KarnaphuliShoesInd.,Ltd.(GarmentsUnit)

YoungoneCEPZLtd.

HaewaeApparelInc.

KadenaSportswearLtd. Averagewagespaidtoemployeesatthethreelocationsexceedthe statutoryminimumwage. This includes non-performance-relatedbonuses,butnotovertimecompensation.

InMyanmaritislawfultocompensateemployeesintrainingupto50%lessthanthestatutoryminimumwage.Duringthepro-bationaryperiod,employeesmaystillbepaidup to25% lessthanthestatutoryminimumwage.Oneofourthreeproductionpartners(still)optsforthispractice.Atpresent,weareworkingonspecificmeasures toend this legallypermissible,yet tousunacceptablepractice.Upuntil2018,therespectivemanufacturingpartnerpaidtrain-ees 3,400 MMK (Myanmar Kyat) /day. Employees within theprobationaryperiodreceived3,600MMK/day;and,oncomple-tionofthethree-monthprobationaryperiod,at leastthestatu-

toryminimumwageof4,800MMK/day.In2019,asafirststep,wereachedanagreementwithourpartnerunderwhichtraineesweretreatedonparwithotheremployees.Thus,theywillalsoreceiveatleast3,600MMK/dayinthefirstthreemonthsandatleast4,800MMK/day thereafter.Asof2020,noemployeewillreceivelessthanthestatutoryminimumwageduringtheproba-tionaryperiod-evenifpermittedbylawinMyanmar.

ForMyanmar there is a lack of reliable data on livingwages.Therefore, a well-founded salary study (e.g. using the AnkerMethod,aspecialmethodfordetermininglivingwages)mustbecommissioned, in order to havemanufacturingpartners agreeonatargetwageadjustedtoMyanmarandtograduallymovetowardsgenerallyimprovedwages.

Average salary of a seamstress including non-performance-related bonuses, excluding overtime

100%-125%

125,1%-140%

125,1%-140%

Name of manufacturing facility

EsliteGarmentCo.,Ltd.

V.T.Garment-SawbwaVTCo.,Ltd.

KidoYangonCo.,Ltd.

SAlARy OvERvIEW Of pRODuCTION fACIlITIES IN myANmAR

AveragesalaryofaseamstressinMyanmarin%ofthestatutoryminimumwage(includingnon-performance-relatedbonuses,excludingovertime)

InMarchof2017,priortocommencingmanufacture,asocialauditwasconductedat themanufacturer’spremises.Shortlyafterwards, inMay2017,wethereforeinitiatedatrainingpro-gramme for factory employees andmanagers in cooperationwith SMARTMyanmar (an EU co-funded organisation to im-prove labour laws inMyanmar).This trainingprovidedexten-siveinformationontheFWF’sCodeofConductandcomplaintsprocess.Theaimwasto laythefoundationsforasuccessfulcollaboration inMyanmar, a relatively youngproductionmar-ket. The second and final audit at themanufacturing facilitywasconductedinJuly2018.

Sawbwa VT Co., Ltd.The collaboration with Sawbwa VT has been established asearlyas2014.Trainingregardingourcodeofconductandthecomplaints process was conducted with this partner inMay2017aswell.Bothemployeesandmanagementparticipatedinthetraining.ThefirstauditatthefactorywasconductedinOctober2014.As a manufacturing country, Myanmar is still „fresh“ in theglobalmarket,sotheriskofnot(yet)meetingourrequirementsfor workplace conditions is high. Therefore, follow-up auditshave been conducted annually for the purpose of providingadequatesupport tocontinuously improvetheworkplaceen-vironment.To complement the six audits conducted to date, aswell asthebasictrainingonsocialstandardsin2017,afurthertraininginitiative-conductedbytheFWF-isplannedfor2020.Aswithallprevioustrainings,JACKWOLFSKINwillbearthecostsforinstructors.Themanufacturingpartnerwillbe responsible forthepersonnelcostsincurred.Thus,thepartnerguaranteesthatemployeesparticipatinginthetrainingwillreceivetheirregularwagesevenduringperiodsofabsenceduetothetraining.

Kido Yangon Co., Ltd.Thismanufacturing facilitywasacquired in 2018by a long-termpartnerthatisalreadymanufacturingforusatlocationsinVietnam.Hereaswell,thefirstauditwasconductedinNovember2017,beforecommencingcollaboration.Subsequently, in2018and2019,onesocialauditperyearwasconductedbytheFWF.Furthermore, this manufacturing facility is participating in aone-year FWF training program. Main objective of this pro-gramme is to improve and intensify communication betweenemployeesand their superiorsatallmanagement levels.ThecoreelementsoftheCodeofConductarealsoanelementaryaspectofthislong-runningtraininginitiative.


03ESTAblISHED SySTEm TO SECuRE SOCIAl STANDARDS IN mANufACTuRING fACIlITIES

Wearecommittedtotrulybeingfamiliarwiththeactualsituationinmanufacturingfacilities.Duetoourapproachofauditinglocationsevenbeforeplacingthefirstorderandroutinelyconductingrecurringaudits,auditcoveragehasbeenat99%-100%formanyyears.Onlythisapproachallowsustoreactquicklytoundesirabledevelopmentsandtocontinuouslyworkonimprovementsincooperationwithoursuppliers.


Ateamofindependentauditorsperiodicallyvisitsthemanufac-turingfacilitiesofallofourpartners.Theyassesstheworkingconditionsateachindividualfacilityandwhetherimprovementmeasuresformerlyagreedupon,havebeenimplementedsuc-cessfully.Our teamatJackWolfskinpartiallyconsistsof trainedsocialauditorsaswell.However,wehavedecidedtohavethemanu-facturingfacilities’auditsconductedexclusivelybyauditorsnotemployedwith us. Independence secures impartiality.Whichweexplicitly insistonwhenassessing theactualsituationonsiteanddocumentingpositiveaswellasnegativechanges.Fortheseaudits,wehavebeenworkingwiththeindependent,globallyactiveauditingcompanySumationssince2007,com-plementedbyFWFauditorssince2010.Thisallowsustomakeourestablishedauditingsystemevenmorerobustandprotectitfrombeingcompromised.

Sumations’auditteamsgenerallyconsistofat leasttwoindi-vidualswithdifferentculturalbackgrounds.Oneoftheauditorstypically originates in the country in which the audit is con-ducted;whereastheauditteampartnerwilltypicallybelongtoanentirelydifferentculturalbackground.Duetothefactthatatleastone teammember lacksaculturallybiasedperspectivein the sense of “this is common local practice and thereforeacceptable”,hecanassesslocalconditionsmoreobjectively.

TheFWFencouragesitsmemberstoaudittheirmanufacturingpartnersatleasteverythreeyears.Therebyrequiredisacover-ageof80%oftherevenue.We are committed to exceed this FWF requirement. Accord-ingly,wecovercloseto100%ofourtotalrevenue.Moreover,weusuallyauditalloursuppliersonceayear-eventhosewithsmallrevenueaswellasallsewingsubcontractors.Thisallowsustoexerciseanevengreaterdegreeof influenceinordertosupport our partners in meeting our requirements regardingworkingconditions.However,exceptionsaremadeformanu-facturing facilities that consistently have had excellent auditresultsoveralongperiodoftime,andwherewehavenotre-ceivedanyseriouscomplaints.Inthesecases,weextendtheintervalinbetweenaudits.Conversely,weshortentheseinter-valsifparticularsupplierssuddenlyexhibitpoorperformance.Thenwedecideonacase-by-casebasis,howwecancounter-actanynegativedevelopments.Helpfuloptionsforaddressingissuesmaybeon-sitesupport,seminars,specifictrainingsorfollow-upvisitsthroughtheauditors.

INDEpENDENT AuDITORS AuDIT plANNING: ANNuAl AuDITS

Thehigherauditfrequencygivesusfarmoreopportunitiestopositivelyinfluenceourmanufacturingpartners’operations.

Improvement processJW Audit 1


Improvement processFWF Audit 1


JACK WoLFSKINAudit 1

FWFAudit 1




FWF Audit 2


ESTABLISHEDSYSTEMTOSECURESOCIALSTANDARDS INMANUFACTURINGFACIL IT IES

Throughauditing,wemonitorwhetherourmanufacturingpart-ners’ efforts and our own supporting measures have beeneffective.Asthemajorityofourmanufacturingpartnersalreadycomplieswithour requirements toaveryhighstandard, theseauditsshouldinmostcasesberegardedmoreasananalysisofpotentialratherthanaconventionalinspection.Westrivetocon-tinuouslyimproveourselvesalongwithourpartners-andthuspavethewaytoa“newnormal”,astheFWFverynicelyputsit.Fairworkingconditionsthenarethenorm,nottheexception!

annual audits to effeCtively establish higher soCial standards


Duration of an audit:Generally,anaudit requires twodays,dependingon thesizeofthefacilitytobeaudited.Whereastheauditofasmallcom-panywithonly20employeesmaybeconcludedinjustoneday,largemanufacturingfacilitieswithseveralthousandemployeesrequiretwotothreedays.

What happens before an audit?Beforeanyaudit,auditorteamsfamiliarisethemselveswiththefacility’sbackground.Thatmayinvolvepreviouscorrectiveac-tionplansorknown issues in the facility thatmayhavebeenbroughttoattentionthroughanemployeecomplaint.Depend-ingonthequalityandextentoftheauditors’localnetwork,theywillmeetwithvariouslocalstakeholders(e.g.tradeunionsoremployee representatives)aswellas, for instance, local resi-dentsinthevicinityofthemanufacturingsiteinordertogainafirstimpression.Alsopriortotheactualaudit,the-preferablylocal -auditorspassby the respectivemanufacturingsiteonweekendsorduring latehours.A favourable timewouldalsobeat theendofashift.Thesevisitsallowtoassesswhetherandtowhatextentovertimeworkisbeingperformed.Further-more,thesevisitsprovideanopportunitytointerviewindividualemployeesatease.Theinsightsthusgainedmayalsoservetoverifytheaccuracyofstatementsmadeduringanaudit.

Occasionally,severalglobalbrands,thatareFWFmembersaswell,havetheirproductsmanufacturedinthesamefacility.Insuchcases,wecooperatewiththeseFWFmembersandjointlyconduct audits aswell as support implementationof correc-tivemeasures.Thishasanumberofbenefitsforallpartiesin-volved.Firstly,themanufacturingpartnermustimplementonlyonesinglecorrectiveactionplanformultipleclients.Secondly,themanufacturingpartnermaybe certain not to receive any

contradictoryrequirementsfromhisclients.

ThefollowingofferssomeinsightonsuccessfulcooperationwithotherFWFmembers,improvingworkingconditionsinmanufacturingfacilities:https://www.youtube.com/embed/YjgCuzx5o3U?wmode=opaque

AuDIT pROCEDuRE AND SCOpECOOpERATION WITH OTHER bRANDS

What happens during an audit?Theauditisinitiatedviaanintroductorysession.Thismeetingisattendedbytheentiremanagementteam,ideallyemployeerepresentatives,aswellasthesustainabilityteam,whichisinchargeofcompliancewiththeCodeofConductatthemanu-facturingfacility.Boththeexpectationsofallthoseinvolvedaswellastheprocedureoftheauditwillbeconsidered.Further-more,allpartiesinvolvedaregiventheopportunitytoaddressunresolvedissues.Subsequently,theentirepremisesofthemanufacturingfacilitywillbeexplored.Onthistour,primarilysafetyprecautionsarechecked. This encompasses employee protection measures,theuseofpersonalprotectiveequipment,architecturalcharac-teristics,firesafetyandmanyotheraspectsrelevanttohealthandsafetyinthefacility.Duringthistour,auditorsarealsoalert,forinstance,tothepresenceofparticularlyyoungemployees.Furthermore,auditorsalsousetheopportunitytoconductini-tial interviewswith individual employees and actively involvethem.Following the tour, documents provided by the manufactur-ingpartnerwill be reviewedcomprehensively. These include,forinstance,payrollrecords,timesheetsaswellaspersonnelrecords.Alsorelevantaredocumentsresultingfromcollectivebargaining; recordsofemployeeabsences;butalsowork in-structions,workorders,processdocumentation,etc.Auditorsfurthermoreconductindividualaswellasgroupinterviewswithemployees,obviouslywithoutanymanagerspresent.Theover-allimpressiongainedthroughthetour,thedocumentationandthestaffinterviewsallowtheauditteamtoassesstowhatex-tenttheCodeofConductiscompliedwithonsite.Oncetheauditprocesshasbeenconcluded,acorrectiveac-tionplaniscompiledforthissite.Thisplanbrieflysummarizestheissues,thatmanagement,incooperationwiththeemploy-eeswhoarealsoresponsibleforcompliancewiththeCodeofConduct,needtoaddressforimprovement.Toconcludetheaudit, thecorrectiveactionplanwillbethor-oughlyreviewedwithmanagement,employeerepresentatives,aswellasthesustainabilityteam.Itiscrucialthatallpartiesin-volvedfullyunderstandtheindividualissuessoimprovementsmayactuallybeimplemented.



Asystematicassessmentprovidesclarityandallowsthefindingsofsocialauditstobecomprehensibleeventopartiesnotimme-diatelyinvolved.Therefore,wehaveestablisheda10-levelratingscaleprovidingastraightforwardsummaryofauditresults.

straightforWard and systematiC assessment as Well as individual improvement measures

Since 2007, we as well as auditing teams have relied on asystematic and precise assessmentwhen auditing. Audit re-sultsareillustratedapplyinga10-levelratingscale.Inordertoclearlydocumentprogress,wedepictuptothreeconsecutiveaudits in a diagram. This allows to identify newand existingchallenges-butalsomajorleapsintermsofimprovement-atasingleglance.

Thecorrectiveactionplanidentifiesallissuesthatwereidentifiedduringtheauditaseitherofferingpotentialorrequiringimprove-ment.Accordingly,manufacturingpartnersdeviseimprovementmeasures independentlyon theirown,coordinating thesewithusperiodically.Wethusactasa“sparringpartner”andalsomaycontributeusefulsuggestions.Also,wemayevaluateproposedmeasures before their implementation.Wemonitor the actualimplementationbasedondocumentationandphotos,aswellasinterviewswithemployees.Final reviewof the implementationwilltakeplaceduringthenextindependentauditonsite.

1-10 RATING SCAlE

ImpROvEmENT mEASuRES bASED ON CORRECTIvE ACTION plANS

10-levelratingscaletoillustratesocialauditresults

1 2 3 4 5 6 7 8

201420152019

9 10

ManagementPractice

Workinghours

Compensation

ChildLabour

ForcedLabour

Discrimination

Environment

Healthy,Safe,WorkingConditionsandSocialFacilities

Freedomofassociation&CollectiveBargaining

fullcompliancewithrequirementsoftheCodeofConduct


soCial report 39

AccordingtoanFWFstudy,thetextileindustrycontinuestobeoneofVietnam’smost importantexport industries.Forsomeyears now, the country has been seeing positive economicgrowthandasamanufacturingcountryisattractinganincreas-ing number of brands from the apparel sector.However, ac-cordingtotheFWF,therighttofreeunionizationandcollectivebargaining remains one of the country’s greatest challenges.Sofar,itisnotlegaltoformindependenttradeunions.Alltradeunionactivitiesmustconformwith theVietnamGeneralCon-federationofLabour(VGCL),theonlyofficiallyapprovedtradeunioninVietnam.Generallyspeaking,thisdoesnotimplythatworkers’interestsarenotadequatelyrepresentedwithinthemanufacturingfacili-ties.Nevertheless,inthecontextofsocialaudits,wearepayingverycloseattentionwhetherlocaltradeunionrepresentativesactuallydorepresentworkers’interests.AfurtherchallengeinVietnamstill isobservanceof reasonableworkinghours.Fre-quently, the statutory overtime limits are exceeded - which,clearly, we deem unacceptable. During the social audits, wethereforeverify inparticular, ifworkinghoursareproperlyac-counted for. Ifmanufacturing facilities report excessive over-time,weattempttofindindividualapproachestokeepemploy-eeovertimewithinacceptablelimits.According to a further FWF study, compliance with buildingcodesaswellasoccupationalsafetyandhealthregulationshassignificantlyimprovedinVietnam.However,someofourcon-tractedmanufacturingfacilitiesstillshowpotentialtoimproveoccupationalsafety,anissuethatweconsistentlyaddressdur-ingourperiodicsocialauditsandalsointhecorrectiveactionplans. Positive is, as well, the improvement in the statutoryminimumwage,whichhasbeenconsiderablyincreasedinre-centyears(seealsopage27).

According toaFWFcountry study, the textile industry is thesecond most important economic sector in China, only sur-passedbytheelectronicsindustry.Atthesametime,Chinaistheworld’s largestexporteroftextiles.AccordingtotheFWF,themostseriouschallengesinthetextileindustryareexceed-ingstatutoryovertimelimitsaswellaslowwages.Furthermore,free unionization and collective bargaining is illegal, as inde-pendent tradeunionsarenotpermitted.Thus,whenauditingour contractedmanufacturing facilities,we observe that rea-sonable working hours and adequate compensation are notnecessarilyprovided.Wetrytoactivelyresolvetheseissuesincooperationwiththemanufacturingpartners.Unfortunately, we still receive incomplete or inaccurate timesheetsfromsomeofourChinesepartners.Insuchcases,itisnotpossible to validly estimatecompensation in these facili-ties.Hereourtaskremainstoidentifywhyrecordsareincom-pleteor inaccurate. In thepast,wehavebeenable toobtainaccurate timesheets innearlyallof these instances, throughextensivetalksandconfidence-buildingmeasures.Onceweareprovidedaccuraterecords,wemay,cooperatingwiththerespectivemanufacturingfacility,devisemeasurestoreduceovertime.

vIETNAm CHINA

vietnam10,009,008,007,006,005,004,003,002,001,00

OverallaverageofauditresultsforallmanufacturingfacilitiesinVietnamcontractedbyJACKWOLFSKINinfiscalyear2018/2019.

OverallaverageofauditresultsforallmanufacturingfacilitiesinChinacontractedbyJACKWOLFSKINinfiscalyear2018/2019.

China10,009,008,007,006,005,004,003,002,001,00

soCial report 38

rating results for 2018/2019 in overvieW

Ourmanufacturing partners are located around theworld. Infiscalyear2018/2019wecollaboratedwithmanufacturingfa-cilities in Vietnam, Bangladesh, China, Cambodia, Myanmar,Indonesia, South Korea, Taiwan, Turkey, Italy, Slovenia andGermany. Every country has specific national regulations; auniquecultureandhistory,aswellasspecificcontemporarysocialchanges,traditionsandcustoms.Thisleadstocountry-specificpeculiaritiesandpossiblyevenrisks,thatmustbetakenintoaccountwhentryingtoestablishfairandsafeworkingcon-ditions.Apart from thesecountry-specifics, factors individualtoeachmanufacturingfacilitymayalsoplayanimportantrole.Theseinclude,forinstance,therespectivemanagementprac-tices, the local environment or the individual history of thelocal facility. In the followingwewill provideanoverviewofourpersonalexperienceaswellassomebackground in thevariousmanufacturingcountries.


Man

agem

ent

Practice

Working

hou

rs

Com

pens

ation

ChildLab

our

Forced

Lab

our

Freed

omofas

sociation

&C

olle

ctiveBargaining

Freed

omofas

sociation

&C

olle

ctiveBargaining

Discrim

ination

Hea

lthy

,Safe,

WorkingC

ond

itions

and

SocialFac

ilities

Env

ironm

ent

Man

agem

ent

Practice

Working

hou

rs

Com

pens

ation

ChildLab

our

Forced

Lab

our

Discrim

ination

Hea

lthy

,Safe,

WorkingC

ond

itions

and

SocialFac

ilities

Env

ironm

ent

• Freedometoassociationand collectivebargainingremain achallenge

• Inrecentyears,safetyofbuildings hasgenerallyimprovedsignificantly

• Thetextileindustryisthe second-strongestsector

• Textileindustryisasignificant economicsector

• Structurally,thecountyisstill ratherweak,thoughcurrently experiencingconsiderable developmentandchanges

• Thepopulation‘saverage ageisratheryoung

• Establishedveryrecentlyasa productioncountryintheglobal market,structuraldeficiencies arestillevident

• Textileindustryisasmallbut neverthelessverysignificantsector

• Above-averagenumberoffemale employeesinthetextileindustry‘s facilities

• Quiteoftenratherlargeproduction facilitiesemployingalargeworkforce

• Considerabledifferencesinsalary levelsdependingonthespecific regionofthecountry

• Duetoalackofexperiencein unionworkaswellascollective bargaining,accordingsupport mustbeprovided

• Managementofovertime continuestobelessthanideal

• Harassmentandviolence,especially againstwomen,continuestobe anissue.Facilitiesdoactively counteractandthushave establishedvariousanti-harassment- committees

• Nostatutoryrighttofreedom ofassociationandcollective bargaining

• Compliancetobuildingcodes aswellasoccupationalsafety generallytendtobegood • Salarielevelsareincreasing

• Overtimeremainscommonpractice

• Thereisprogressinthe developmentofthestatuatory minimumwageaswellasthe generalsalarylevel

• Culturalchallenges,e.g.lackof opendialogueregardingareas ofimprovement

vIETNAm

CHINA

bANGlADESCH

KAmbODSCHA

myANmAR

INDONESIEN


Myanmar’s business environment has undergone fundamen-tal changes since the country’s boarders were opened. La-bour laws have gradually been revised and approximatedmore closely to global standards. According to the FWF, theso-called “social dialogue” is not yet well-established in thecountry,complicatingestablishmentofsocialstandards.Socialdialogueinvolves,for instance,collectivebargaining,butalsocreatinganenvironmentforopendialogueaswellasactivelysharing relevant knowledge. Social dialoguemay involve theadministration,government,authoritiesand the industrysec-tor,but itmayberestrictedtothe industrysector itself.Also,theinternaldialoguebetweenmanagementandworkersorem-ployeerepresentativeswithinmanufacturingfacilitiesqualifiesassocialdialogue.Unfortunately, inMyanmar the social dialogue is still provingunsatisfactory. To date, processes have hardly been estab-lishedandallpartiesinvolvedareuncertainaboutprocedures.Topositivelychangethecurrentstatus,firstandforemostwemayhelpcreateanenvironment foropendialoguewithin themanufacturing facilities.Thus,wehave initiatedon-site train-ingsconveyingexpertiseoneffectivecommunicationchannelsand tools for bothmanagement andworkers. Next year, weintendtofurtherexpandourtrainingprogram.Formoreinfor-mationonthetrainings,pleaserefertopage28/28.

InBangladesh,textilesarealsothemostimportantexportgood,accordingtotheFWF.ThemainchallengeinBangladeshremainscompliancetobuildingcodes-despitesignificantimprovementsinrecentyears.FollowingthecollapseoftheRanaPlazabuildingin2013, the“BangladeshAccord”and the“Alliance forBang-ladeshWorkerSafety”wereformed.Bothinitiativesaimtoim-provethesafetystandardsoffacilities,i.e.buildings,inthetex-tileindustry.Tothisend,expertscloselyinspectmanufacturingfacilitiesonsiteregardingcompliancewithbuildingcodesandfiresafety.Correctiveactionplansderivedfromtheinspectionsarepublicised;inspectionsarerepeatedperiodically.Asaresult,thesafetyofBangladesh’smanufacturingfacilitiesingeneralhassignificantlyimprovedinrecentyears.Allmanufacturingfacilitieswe contract inBangladesh, havebeen audited in thepast byeitheroftheseinitiatives,andhaveimplementedthenecessaryimprovementmeasures.Inthemeantime,initiative“BangladeshAccord”hasbeendisbanded; itsdutieshavebeentransferredbacktoBangladesh’sauthorities.Unfortunately,harassmentandviolence,usuallydirectedagainstwomen,isstillwidespreadinBangladesh.Wecontinuouslyandemphatically address thisdelicate,highly important issuedur-ing theannualauditsaswellas in thecorrectiveactionplans.Weinsistonformingso-called“AntiHarassmentCommittees”.Thesecommitteesprovideapointofcontactforfemaleworkersinthefactorieswhoarevictimsofphysicaland/orpsychologicalaggression.Onapositivenote,theadjustmentinstatutoryminimumwagesin the textilesectorhas led toasignificant increase inwages.Inourcontractedfacilities,wagesalreadyexceedthestatutoryminimumwageby40%to208%(seealsopage28).ThefacilitywiththehighestwagesaccountsforthelargestshareofJACKWOLFSKIN’stotalrevenuebyfar.

According to theFWFcountry study, the textile industry is arelativelysmall yetsignificanteconomicsector thataccountsforasubstantialshareofIndonesianexports.Noteworthyisthehigh proportion of female employeesworkingwith ourman-ufacturing partners; at around 90%, it surpassesmost othermanufacturing countries. The statutory minimum wage hasbeenincreasedconsiderablyinrecentyears,especiallyinthemetropolitanareas.Asaresult,textileproductionincreasinglyshiftstomoreruralandatthesametimemoreremoteregionsofIndonesia.The Indonesian share of our total revenue amounts to onlyaboutfourpercent,acomparativelylowpercentage.Also,ourordervolumesarecomparativelysmallfortheindividualmanu-facturingfacilities.Therefore, inIndonesia,wearefacingverydifferentchallengesascomparedtootherprocurementcoun-tries. Also,we too are affected by the above-mentioned de-velopment,thatmanufacturingcompaniesarerelocatingfromurbantomoreruralregionsforcostreasons.Unfortunately,wecannotinfluencethesedecisions.Inthepast,wehaveatleastbeen able to negotiatewith our partners that our productionvolumeswillcontinuetobemanufacturedattheexistingsite.Intheeventofacompleteclosureofasite-whichweneitherde-mandnorwish-wearefacedwiththedecisiontodiscontinuethecooperationwiththecompanyorgoalongwiththemove.In Indonesia, as elsewhere, we frequently offer our partnersFWF trainings that focus explicitly on free unionization andcollective bargaining, or on the general requirements of theCodeofConduct.

The textile industry iscurrentlyconsideredCambodia’s fastestgrowingsector.Compared toneighbouringcountries, suchasVietnam,Cambodiaisratherstructurallyweak,though.Bothin-frastructureandoverall livingstandardsarecomparatively low.Todate, theFWF isnotpresent inCambodia;however,socialauditsareconductedonsitebyanindependentteamofaudi-torsapprovedbytheFWF.ThisteamalsooffersmanyyearsofexperiencewithourCodeofConduct.Auditresultsusuallystillrevealpotentialforfurtherimprovementatthemanufacturingfa-cilitieswehavecontracted.Forinstance,managementpracticesrequiretobeimproved.Amoresophisticatedinternalorganisa-tionaswellasabetterunderstandingofmanagementingeneral,areessentialprerequisites toeffectivelyestablish fairandsafeworkingconditions.Themanufacturingpartnerswecollaboratewith,aregenerallycommittedtoestablishinghigherstandards.However, theirefforts toachieve thisgoal requireoursupport,which,clearly,wegladlyprovide.Weactivelyleadtheimplemen-tationofimprovementmeasures;furthermore,weareinperma-nentcontactwithourpartnerssoastoidentifyissuesfast,andreactaccordingly.

myANmARbANGlADESH INDONESIACAmbODIA

bangladesh10,009,008,007,006,005,004,003,002,001,00

Cambodia10,009,008,007,006,005,004,003,002,001,00

myanmar10,009,008,007,006,005,004,003,002,001,00

indonesia10,009,008,007,006,005,004,003,002,001,00

OverallaverageofauditresultsforallmanufacturingfacilitiesinBangladeshcontractedbyJACKWOLFSKINinfiscalyear2018/2019.

OverallaverageofauditresultsforallmanufacturingfacilitiesinMyanmarcontractedbyJACKWOLFSKINinfiscalyear2018/2019.

OverallaverageofauditresultsforallmanufacturingfacilitiesinCambodiacontractedbyJACKWOLFSKINinfiscalyear2018/2019.

OverallaverageofauditresultsforallmanufacturingfacilitiesinIndonesiacontractedbyJACKWOLFSKINinfiscalyear2018/2019.


Man

agem

ent

Practice

Working

hou

rs

Com

pens

ation

ChildLab

our

Forced

Lab

our

Freed

omofas

sociation

&C

olle

ctiveBargaining

Freed

omofas

sociation

&C

olle

ctiveBargaining

Freed

omofas

sociation

&C

olle

ctiveBargaining

Freed

omofas

sociation

&C

olle

ctiveBargaining

Discrim

ination

Hea

lthy

,Safe,

WorkingC

ond

itions

and

SocialFac

ilities

Env

ironm

ent

Man

agem

ent

Practice

Working

hou

rs

Com

pens

ation

ChildLab

our

Forced

Lab

our

Discrim

ination

Hea

lthy

,Safe,

WorkingC

ond

itions

and

SocialFac

ilities

Env

ironm

ent

Man

agem

ent

Practice

Working

hou

rs

Com

pens

ation

ChildLab

our

Forced

Lab

our

Discrim

ination

Hea

lthy

,Safe,

WorkingC

ond

itions

and

SocialFac

ilities

Env

ironm

ent

Man

agem

ent

Practice

Working

hou

rs

Com

pens

ation

ChildLab

our

Forced

Lab

our

Discrim

ination

Hea

lthy

,Safe,

WorkingC

ond

itions

and

SocialFac

ilities

Env

ironm

ent


manufaCturing faCilities in fisCal year 2018/2019 - overvieW

CAmbODIA4 manufacturing facilities

9.869 employeesworkinthemanu-facturingfacilitiescontractedbyJACKWOLFSKIN,ofthose8.512 (86%)arefemaleand1.357 (14%) male

12,08% of our production volumeismanufacturedinCambodia

ITAly3 manufacturing facilities

69 employeesworkinthemanufacturingfacilitiescontractedbyJACKWOLFSKIN,ofthose37 (54%) arefemaleand32 (46%) male

<1% of our production volumeismanufacturedinItaly

INDONESIA6 manufacturing facilities

8.431 employeesworkinthemanu-facturingfacilitiescontractedbyJACKWOLFSKIN,ofthose7.497 (89%)arefemaleand934 (11%) male

4,35% of our production volumeismanufacturedinIndonesia

TuRKEy 1 manufacturing facility

530 employeesworkinthemanufacturingfacilitiescontractedbyJACKWOLFSKIN,ofthose235 (44%)arefemaleand295 (56%) male

1,67% of our production volumeismanufacturedinTurkey

myANmAR3 manufacturing facilities

5.918 employeesworkinthemanu-facturingfacilitiescontractedbyJACKWOLFSKIN,ofthose5.513 (93%)arefemaleand405 (7%) male

9,60% of our production volumeismanufacturedinMyanmar

bANGlADESH5 manufacturing facilities

48.183 employeesworkinthemanu-facturingfacilitiescontractedbyJACKWOLFSKIN,ofthose32.402 (67%)arefemaleand15.781 (33%) male

21,50% of our production volumeismanufacturedinBangladesh

TAIWAN1 manufacturing facility


<1% of our production volumeismanufacturedinTaiwan

GERmANy1 manufacturing facility


<1% of our productionvolumeismanufacturedinGermany

vIETNAm 23 manufacturing facilities

39,749 employees workinthemanu-facturingfacilitiescontractedbyJACKWOLFSKIN,ofthose32,410 (82%)arefemaleand7,339 (18%) male

39.47% of our production volumeismanufacturedinVietnam

SlOvENIA2 manufacturing facilities


<1% of our production volumeismanufacturedinSlovenia

SOuTH KOREA1 manufacturing facility


<1% of our production volumeismanufacturedinSouthKorea

CHINA18 manufacturing facilities

9.370 employees workinthemanu-facturingfacilitiescontractedbyJACKWOLFSKIN,ofthose7.283 (78%)arefemaleand2.087 (22%) male

11,01% of our production volumeismanufacturedinChina



KidoHanoiCo.,Ltd. Vietnam KI 2005 1048 >170,1%

39,47%

8 Sumations 18.–19.08.2017

Kido-DongTienJointStockCompanyFactoryNo.3

Vietnam KI 2012 1038 >170,1% 8 FWF 25.–26.10.2019

KidoVinhCo.Ltd. Vietnam KI 2012 4288 140,1%–170% 7 Sumations 22.–23.03.2019

ElegantTeamManufacturerCo.,Ltd. Vietnam ET 2007 374 140,1%–170% 7 FWF 20.–21.04.2018

ElegantTeamManufacturer-DucThangJointStockCompany

Vietnam ET 2016 392 100%-125% 6 Sumations 18.–19.03.2019

ShintsBVTCo.,Ltd. Vietnam SH 2006 3635 140,1%–170% 8 FWF 19.–20.05.2017

ShintsBVT’BRAND Vietnam SH 2014 1280 >200% 8 Sumations 21.–22.08.2017

MAXZONE-AstroVinhLong Vietnam MZ 2015 991 140,1%–170% 7 Sumations 26.–27.08.2019

MAXZONE-AstroSaigonCo.,Ltd Vietnam MZ 2005 773 125,1%-140% 6 Sumations 01.–02.04.2019

MAXZONE-HaiAnhHungCo.,Ltd. Vietnam MZ 2017 36 140,1%–170% 6 Sumations 03.04.2019

MAXZONE-MayCuongThinhCo.,Ltd Vietnam MZ 2019 26 100%-125% 6 Sumations 04.04.2019

ASGGlobalCo.,Ltd. Vietnam ASG 2016 1747 >170,1% 7 Sumations 25.–26.03.2019

UnicoGlobalInc. Vietnam UN 2015 2708 >200% 7 Sumations 19.–20.08.2016

FulgentSunFootwearCo.,Ltd.(Sunshine)

Vietnam VFS 2016 6657 140,1%–170% 7 FWF 14.–15.03.2019

DonaBiti‘sImexCorp.,Pte.,Ltd. Vietnam VDB 2016 3508 >170,1% 5 Sumations 05.–06.04.2019

AJSolutions-BethelVinaCo.,Ltd. Vietnam BE 2016 438 140,1%–170% 6 Sumations 27.–28.03.2019

KaiYangVietnamCo.,Ltd. Vietnam VKY 2008 2408 140,1%–170% 5 Sumations 11.–12.03.2019

YoungtechVietNamCo.,Ltd. Vietnam YT 2017 982 125,1%–140% 7 Sumations 21.–22.03.2019

Youngone-BroadpeakSocTrangCo.,Ltd.

Vietnam YO 2018 1945 140,1%–170% 7 Sumations 28.–29.08.2019

VMCRoyalCo.,Ltd.(TanBien) Vietnam VHC 2017 1218 140,1%–170% 7 Sumations 29.–30.03.2019

SungjinInc.VinaCo.,Ltd. Vietnam SJ 2017 2085 140,1%–170% 6 Sumations 11.–12.09.2017

GreatProcess(Vietnam)Co.,Ltd. Vietnam 2018 1650 140,1%–170% 6 Sumations 20.–21.08.2019

Maxport4(88)(Headquarter) Vietnam MAX 2017 522 >200% 9 Sumations 11.–12.08.2017

YoungoneHi-TechSportswearInd.Ltd.&SavarSportswearCompanyLtd.

Bangladesch YO 2008 8718 >300%

21,50%

8 FWF 13.–14.10.2018

KarnaphuliShoesInd.,Ltd.(GarmentsUnit)

Bangladesch KSI 2016 17137 140,1%–170% 6 FWF 14.–15.09.2019

YoungoneCEPZLtd. Bangladesch YO 2011 13780 140,1%–170% 7 FWF 15.–16.02.2016

HaewaeApparelInc. Bangladesch HW 2017 3500 140,1%–170% 7 Sumations 02.12.2017

KadenaSportswearLtd. Bangladesch KA 2014 5048 140,1%–170% 6 Sumations 13.–14.05.2019

Tseng-JiujiangZhandaClothingCo.,Ltd.

China TL&TS

2009 282 >170,1%

11,01%

7 Sumations 11.–12.11.2016

Youngtech(Dongguan)Co.,Ltd. China YT 2007 512 140,1%–170% 7 FWF 10.–11-08.2016

ASI-JiangsuAsianSourcingHeadwearMFG.Co.,Ltd.

China ASI 2008 1249 >170,1% 8 FWF 03.–04.06.2019

ASI-ShanghaiWeijieGarmentCo.,Ltd. China ASI 2016 462 >170,1% 8 Sumations 08.–11.06.2018

ASI-YuanTongHeadwearMFG.Co.Ltd(HuaiAn)

China ASI 2017 882 keineAussagemöglich

7 FWF 30.–31.05.2018

ShanghaiYangfan-ShanghaiHongyangTravelProductsCo.,Ltd.

China YF 2009 82 140,1%–170% 6 Sumations 21.–22.06.2019

ShanghaiYangfan-JiangsuCeratoOutdoorProductsCo.,Ltd.

China YF 2019 376 140,1%–170% 6 Sumations 19.–20.06.2019

E-one-HeshanTopEagleGarmentLtd. China EON 2013 743 >250% 9 Sumations 08.–09.08.2019

E-one-HubeiTopEagleGarmentLtd. China EON 2016 322 >200% 8 Sumations 05.–06.08.2019

SuniconApparelLtd.-HuiZhouLiJiaGarmentLimited

China SUN 2017 158 >200%

11,01%

6 Sumations 03.–04.06.2019

Youngone-QingdaoYoungoneSports-wearCo.,Ltd.

China YO 2018 957 140,1%–170% 8 Sumations 17.–18.05.2018

QMIIndustrial(Jiangsu)Co.,Ltd. China QMI 2018 309 >170,1% 7 FWF 12.–13.08.2019

QMIShanghaiCo.,Ltd. China QMI 2018 792 100%–125% 8 Sumations 11.–12.10.2019

DongguanXingtailaiSportsProductsCo.,Ltd.

China 2019 106 >170,1% 5 Sumations 13.06.2019

ZhongshanJuBangTechnologyGroupCo.,Ltd.

China 2019 521 >170,1% 7 Sumations 14.–15.06.2019

AscentGlobalLimited China AGL 2018 39 keineAussagemöglich

- -

JiangyinCityShenchengInternationalTradeCo.,Ltd.

China 2018 557 keineAussagemöglich

7 FWF 18.–19.03-2019

LPVSportsHubeiCo.,Ltd. China LPV 2018 1021 keineAussagemöglich

6 Sumations 26.–27.06.2019

Asmara-PT.GreentexIndonesiaUtama Indonesien AKA 2016 1082 100%–125%

4,35%

7 Sumations 11.–12.03.2019

Asmara-PT.MorichIndoFashion Indonesien AKA 2013 2255 100%–125% 7 Sumations 26.–27.02.2018

Agility-PT.CiptaKaryaBuana Indonesien 2019 718 100%–125% - Sedex 06.–08.08.2019

PT.TrigoldenstarWisesa Indonesien TSG 2010 1088 100%–125% 7 FWF 27–28.08.2018

PT.Ameya-PT.AmeyaLivingstyleIndonesia

Indonesien AMA 2010 2127 100%–125% 7 FWF 02.–03.08.2018

PT.Ameya-PT.AnggunKreasiGarment Indonesien ANG 2018 1161 100%–125% 7 Sumations 28.02.–01.03.2018

QMICo.,Ltd.(SuccesIndexGroup) Kambodscha QMI 2010 4118 125,1%–140%

12,08%

6 Sumations 01.–02.07.2019

JawCoLtd. Kambodscha QMI 2019 1044 125,1%–140% 6 Sumations 22.–23.8.2019

PontusFootwearLtd. Kambodscha 2018 3934 100%–125% 7 Sumations 19.–20.03.2018

Tseng-GarthaInternationalCo.,Ltd. Kambodscha KH&TS

2014 773 140,1%–170% 6 Sumations 28.02.–29.03.2018

Intersocks-InterknitS.R.L. Italien ISO 2004 24 keineAussagemöglich

0,11%

7 SAI 23.–24.07.2019

Intersocks-InsocksS.R.L. Italien ISO 2010 24 keineAussagemöglich

7 SAI 23.–24.07.2019

Intersocks-NewKoko´sS.R.L. Italien ISO 2000 21 keineAussagemöglich

10 Sedex 21.09.2016

Intersocks-IntersocksConfection Slowenien ISO 2004 11 100%–125%0,11%

6 Sedex 13.06.2016

Intersocks-Recinkod.o.o. Slowenien ISO 2008 107 100%–125% 6 Sedex 26.–27.09.2016

PanteraIcveDisTicA.S. Türkei PA 1993 530 125,1%–140% 1,67% 7 FWF 02.–03.10.2017

P.A.C.GmbH Deutschland PAC 2016 73 keineAussagemöglich

0,06% 8 -

EsliteGarmentCo.,Ltd. Myanmar EAM 2017 3161 100%–125% 9,60% 6 FWF 17.–18.07.2018

V.T.Garment-SawbwaVTCo.,Ltd. Myanmar VTG 2014 837 125,1%–140% 6 FWF 10.–13.08.2019

KidoYangonCo.,Ltd. Myanmar KI 2018 1920 125,1%–140% 6 FWF 17.–18.12.2018

FengYiOutdoorLeisureEquipment Taiwan FY 2000 164 keineAussagemöglich

0,01% 6 Sumations 13.–14.10.2015

NaschemCo.,Ltd. Südkorea NS 2004 9 keineAussagemöglich

0,04% 6 Sumations 30.11.–01.12.2016

Man

ufac

turin

gpa

rtne

r‘sna

me

Man

ufac

turin

gpa

rtne

r‘sna

me

Cou

ntry

Sup

plierco

de

Sup

plierco

de

shareofpurch

asingvo

lume

shareofpurch

asingvo

lume

Soc

ialA

uditov

erallrating

Soc

ialA

uditov

erallrating

Lastaud

it

Lastaud

it

Aud

itedby

Aud

itedby

Collabo

ratio

nsinc

e

Collabo

ratio

nsinc

e

Num

berofemploy

eesworking

in

thefacilityatth

etim

eofth

eau

dit

Num

berofemploy

eesworking

inth

efacilityatth

etim

eofth

eau

dit

Ave

rage

wag

eofasea

mstressin

clud

ing

non-pe

rforman

ce-related

bon

uses

,exc

luding

ov

ertim

e,in

relatio

ntostatutorym

inim

umw

age

(aspe

rcen

tage

)g

roup

ing

:10

0%-125

%;1

25,1%-140

%;1

40,1%-170

%;

170,1%

-200

%;>

200%

;>25

0%;>

300%

Ave

rage

wag

eofasea

mstressin

clud

ing

non-pe

rforman

ce-related

bon

uses

,exc

lud-

ingov

ertim

e,in

relatio

ntostatutorym

inim

um

wag

e(aspe

rcen

tage

)g

roup

ing

:10

0%-125

%;1

25,1%-140

%;1

40,1%-170

%;

170,1%

-200

%;>

200%

;>25

0%;>

300%

TableOverviewManufacturingSitesinfiscalyear2018/2019


Cou

ntry

EDuCATIONAl mEASuRES TO ImpROvE SOCIAl SuSTAINAbIlITy IN THE Supply CHAIN

Sustainability in manufacturing facilitiesmay not be achieved overnight; instead, it is the result of adedicatedcooperationatagloballevel.Fairworkingconditionsmayonlybeestablishedwhenallthoseinvolvedarecommittedtothesameobjectives.Allpartieshavetobewillingtoassumeresponsibilityandtotakeaction-whilealsopossessingthenecessaryknowledgeandtheappropriateresources.Inthisregard,continuoustrainingisakeyfactor-whichiswhyweroutinelysupportlocalmanufacturingfacilitieswithcomprehensivetrainingmeasureson-site.


04

WeverifythatFWF“WorkerInformationSheets”areondisplayineverymanufacturingfacilityintherespectivelocallanguage.Theseprovide important informationonfairandsafeworkingconditions. Also, contact details for any enquiries or comp-laints.

Firstandforemost, it isthemanufacturingfacilities’responsi-bilitytoimplementourCodeofConductaswellasFWFsocialstandards.Weconsider itour role toencourageandsupportourpartnersintheireffortstoimproveworkingconditions.Wedonotexpectthemtofullysucceedstraightfromtheverybe-ginningof a collaboration.Sometimes, necessary knowledgeor the required resources are lacking. Therefore, we supportourpartnerswithtrainings,tailoredtoindividualrequirementsonsite.Afterall,onlythoserelyingonproperqualificationmayassumeresponsibilityforfairandsafeworkingconditions.

Atthemanufacturingfacilities,weofferon-sitetrainingswithinthescopeoftheFWFWorkplaceEducationPrograms(WEP).Tothisend,wesendexperiencedFWFemployeeswhoarewellacquaintedwiththelocallanguage,cultureandcharacteristicsofthatparticularcountry.Trainings are not intended formanagement only. Primarilywewishtoaddressemployees.Theobjectiveistocreateawarenesstowardssafeandfairworkingconditions.Alsoconveyedaretherightsandobligationsofallpartiesinvolved;asquiteoftenem-ployeesandmanagementlacksufficientaccordingknowledge.Additional training focuses on the means and possibilities ofconstructive communication when encountering issues in theworkplace aswell as on FWF’s complaintsmanagement sys-tem(forcomplaints,alsorefertopage53etseqq).Asawhole,trainingaswellasexpertiseshouldhelpimproveinternalcom-municationanddialoguewithinthemanufacturingfacilities.Afterall,soundsocialdialogueisthebasisforestablishinghighsocialstandardsatanymanufacturingfacility.

If required,we support ourmanufacturing partnerswith addi-tional trainingsandseminarsregardingfurtherrequirementsorcountry-specifictopics.ForMyanmar,e.g.,theFWF-incoop-erationwithseveralFWFmembers,includingJACKWOLFSKIN-designeda trainingapplicable to theHRdepartments. Theobjectivewas to enableHRemployees to determine the ac-tualageof jobapplicants. InMyanmar,many localspossesseithernoneorforgedidentitydocuments,which,forinstance,iscrucialinpreventingchildlabour.Applyingthistraining’sex-pertise, HR employeesmay better fulfil their responsibilities.TheFWFalsoofferssupportregardingmanufacturingfacilities’pricing.Specifictrainingshavebeendesignedthathelptofac-torinlivingwageswhencalculatingprices.AsamemberoftheFWF,weencourageourpartnerstoparticipateinsuchtraining.From a facility in Turkeywe have received a complaint con-cerningthelackoffreeunionization.Thus,wehaveconductedcomprehensivetrainingsonthistopicinthatparticularfacility.TrainingsonfreeunionizationwerealsoofferedforIndonesia.

Wereactspecifictoexistingchallenges;andwhennecessary,wedevelopnewapproaches,eitherindependentlyorinclosecooperationwiththeFWF,toaddresstheneedsofthepeopleworkinginthemanufacturingfacilities.

Infiscal year2018/2019,weconducteda totalof9WEPs inVietnam and Myanmar. Further individual training measureswereofferedforourpartnerinTurkey.Withthesetrainingswereached 29,021 employees, which corresponds to about aquarterofallemployeesworkingforourmanufacturingpartners.Itisourobjectivetorepeattrainingsatmanufacturingsitesatregular intervals.Furthermore,wewish tobroadenthescopeofthetrainingstofurthertopics,astocontinuouslyexpandtheexpertiseofthepeopleworkinginmanufacturingfacilities.

fWf WORKER INfORmATION SHEETS

SHARING RESpONSIbIlITy

fWf WORKplACE EDuCATION pROGRAmS (WEp)

OTHER TRAINING TOpICS OvERvIEW fISCAl yEAR 2018/2019

EDUCATIONALMEASURESTO IMPROVESOCIALSUSTAINABIL ITY INTHESUPPLYCHAIN

effeCtive training on-site at manufaCturing faCilities


Do you have QUESTIONS about your salary, working

hours or any of these other issues?

If you want more information, or feel you have not been treated correctly:

If these don’t work, you can email Fair Wear:

1

2

3

[email protected]@Fair Wear will always treat your complaint confidentially. If you wish to file a complaint, we will investigate the issue. If possible, we will help you to solve the issue you have raised. Fair Wear is an independent, nonprofit organisation. You can learn more at www.fairwear.org

Talk to your supervisor, if possible

Talk to your representative if there is a worker committee

Get advice from your union or from a charity

1Employment

is freely chosen

2Freedom of

association and the right to collective

bargaining

3No discrimination

in employment

4No exploitation

of child labour

5Payment of a

living wage

6Reasonable hours

of work

7Safe and healthyworking conditions

8A legally binding

employment relationship

AtJACKWOLFSKINheadquartersinIdstein,wealsoencour-age all colleagues tobe awareof the importanceof fair andsafeworking conditions at ourmanufacturingpartners. Eachemployeeshouldhavetherightknowledgeandunderstandingregardingsocialstandards,correspondingtohisorherrangeofresponsibilities.Allnewemployeesreceive introductory train-ingsonsocialstandards,ourCodeofConductandtherequire-mentsoftheFWF.Ourinternalnewsletterfrequentlyreportsonvarioustopicsandupdatesrelevanttooursupplychain.Col-leaguesworkingmorecloselywithourmanufacturingpartnersandthusbearingresponsibility fora faircollaborationreceiveextensiveadditionaltraining,accordingtotheirspecificrole.Inparticular,travellingtechnicians,whoareprimarilyresponsiblefor securing product quality on-site, receive specific trainingonoccupationalsafety.Also, theyareprovidedachecklist inordertomonitorthemostimportantsafetyrequirementsinthemanufacturingsites,complementarytotheindependentauditsthatareconductedanyway.Brandcoaches,salesteamandproducttrainersalsofrequentlyreceivereportsanddetailedinformationonoureffortstoestab-lishfairworkingconditionsinoursupplychain.

VendorControl Teammembers,who closelyworkwithman-ufacturing sites and supervise local compliance with socialstandards, frequently participate in social audits themselves.Thishelpsdevelopingafeelforacountry,itspeopleandtheirspecific culture - also, on site, theymay personally familiar-izethemselveswithmanufacturingfacilitiesandworkers.Theresulting personal association enables us to better attend toindividualneedsoftheworkers.

Continuously raising aWareness among our oWn employees

By now, I have been travelling for a total of 3 weeks in Vietnam, from Hanoi to Ho Chi Minh City, and have

observed our independent auditors conducting social audits in several manufacturing facilities. Surrounded

by a lot of mopeds sounding their horns, sultry tropical air, very cold A/Cs and foreign but very de-

licious food, we managed to very closely inspect the manufacturing facilities: By touring entire

factory premises, leafing through documents and records, and talking to workers, union representatives

as well as management, we obtained comprehensive insights from every audit. On site, immediately after

an audit, we devised a corrective action plan, covering all the necessary improvements. I am now taking these

corrective action plans back to Germany. They are the basis for my work with the manufacturing

facilities, the objective being to implement planned improvement measures.

April 9th, 2019

ApersonalaccountbyAnjaHeinemann,CSRteammember

I now realize that I am able to provide support more effectively when I am aware of the characteristics of a country and its people, as well as being familiar with the manufacturing facilities and the individuals I am directly involved with. On the journey, I learned something new about my work every day, but I am also taking away many personal impressions. Most impressive to me was the opportunity to directly speak with the workers and gain some insight into their lives and daily routines. In Germany, we often don’t consider who manufactures our products where, and under what conditions. My experience on site has further increased my appreciation for the things that surround us in everyday life.

soCial report 50

EDUCATIONALMEASURESTO IMPROVESOCIALSUSTAINABIL ITY INTHESUPPLYCHAIN

JACK WOlfSKIN RESpONDS TO COmplAINTS COmING fROm mANufACTuRING fACIlITIES

Thecomplaintssystemisanorganisedprocessthatallowsemployeesofourmanufacturingpartnerstofilecomplaintsrelatingtonon-compliancewithoneorseveraloftherequirementsofourCodeofConduct.


05


Thetermcomplaintssystemmaysoundnegativeatfirst.How-ever,itactuallyindicatesapositiveaswellasprogressivepro-cess.Onlycompanieshavingthecouragetoaddressthecon-cerns and needs of their employees, are willing and able tochangeoperationsforthebetter.Thisusuallydoesnot“only”benefittheworkers,butultimatelyservestowardstheprosper-ityoftheentirecompany.Overall, it isevidentthatthenumberofcomplaintsissteadilyincreasing.Thisweregardasapositivesign.Itdemonstratesthat theworkers in themanufacturing facilities by now havesuchconfidenceinthesystem,thattheyaresharingtheirwor-ries anddistresswithout fearing any negative repercussions.Thisinturnallowsus,astheclientofthemanufacturingfacili-ties,tointerveneandparticipateinanactiveandpositivedia-loguewithourmanufacturingpartner-evenasanintermediarybetweenmanagementandworkers.

Shouldworkers in amanufacturing facility face an issue theycannotresolveviastandardapproach-i.e.byspeakingtotheirsuperiorsormanagement-theymaycontactJACKWOLFSKINortheFWF,oruseCombox.com,acomplaintssystemwehavespecificallysetupforthispurpose.Ifdesired,thismayalsobedoneanonymously.Wewillinvestigateeachcomplaintand,ifnecessary, also involve localFWFemployeesorother stake-holders. We attempt to understand the issue in detail, alsoconsideringtheperspectivesofallpartiesinvolved.Thishelpsto avoid exposing, accusing or prejudging individual people.Instead,weareaimingto identifya fairand legallycompliantsolution.Webelieveitiscrucialthatthoseconcerned,ifatallpossible,engageinpersonaldialogue.Insomecases,amedia-tormustbeinvolvedsoastoestablishasuitableandfairat-mosphereforthedialogue.ThemediatorrolemaybeassumedbyFWFemployeesorevenbyJACKWOLFSKIN.

WHy IS A “COmplAINTS SySTEm” NECESSARy If COmplIANCE WITH SOCIAl STANDARDS IS mONITORED?

HOW ExACTly DOES THE COmplAINTS SySTEm WORK?

ViatheFWF,employeesofmanufacturingfacilitiescollaborat-ingwithFWFmembercompanies,aregiven theopportunitytodirectlyconsultanoutsideauthority,shouldtheyencounterdifficulties.Thus,theymaybereassuredthattheirconcernswillbetreatedwithabsoluteconfidentiality,ifsodesired.FWFmember companies are obliged to consider each individu-al complaint in detail. They bear the responsibility that eachissuewillbeaddressedwithallparties involvedand, ifpos-sible,resolved.Thissystemisakeyelementforimplementingsound, social and fair working conditions. In particular, thesystemprovidesavoiceforeverysingleworkerandisthere-forethefoundationoftheCodeofConduct.

the meChanism in the Complaints proCedure: open dialogue With all staKeholders

JACKWOLFSKINRESPONDSTOCOMPLAINTSCOMINGFROMMANUFACTURINGFACIL IT IES

Itmaybethecase, that theworker’sconcerncannotbere-solved within themanufacturing facility, because she or hedoesnotreceiveanysupportfromimmediatesuperiors,em-ployee representatives ormanagement. Possibly one of thepartiesimplicatedinthecomplaintssystemmayevenbethecauseofthecomplaint.

Inalmostallcases,opendialogueaboutaspecificissueisthekeytoresolvingtheconflict.Oftencomplaintsarecausedduemanagement’sorworkers’ falseexpectationsandneitherad-dressestheproblemuntilitescalates.However,nearlyallcom-plaintsmay be taken care ofwith relative ease, if all partiesinvolvedareopentoconsidertheotherparty’sperspective.Inourexperience,veryvaluableaswell,isapersonalmeeting,inwhichanimpartialobserver,whoisnotinvolvedintheconflict,is present. This role is often assumedby FWF employees,externalmediatorsorJACKWOLFSKINemployees.

COmplAINT fOR WHICH THE COmplAINT HOTlINE mAy bE ADDRESSED

SuCCESSfully RESOlvING COmplAINTS

UsesFWFcomplainthotlinetoforwardhisorhercomplainttotheFWForJACKWOLFSKINandreceivesupportforthespecificissue

BothFWFandJACKWOLFSKINacknowl-edgebothperspectivesregardingthecom-plaintandthenattempttoresolvetheissueby encouraging dialogue and, if required,further investigation, consultation on legalimplications,orbymediation.Thusreachinganagreementbetweenallpartiesinvolved.

ResolutionoftheissuethroughsupportfromFWFandJACKWOLFSKIN

Do you have QUESTIONS about your salary, working

hours or any of these other issues?

If you want more information, or feel you have not been treated correctly:

If these don’t work, you can email Fair Wear:

1

2

3

[email protected]@Fair Wear will always treat your complaint confidentially. If you wish to file a complaint, we will investigate the issue. If possible, we will help you to solve the issue you have raised. Fair Wear is an independent, nonprofit organisation. You can learn more at www.fairwear.org

Talk to your supervisor, if possible

Talk to your representative if there is a worker committee

Get advice from your union or from a charity

1Employment

is freely chosen

2Freedom of

association and the right to collective

bargaining

3No discrimination

in employment

4No exploitation

of child labour

5Payment of a

living wage

6Reasonable hours

of work

7Safe and healthyworking conditions

8A legally binding

employment relationship

Detailsonthecomplaintfromemployer‘sperspective

Chart external process for resolving complaints

TheFWFinvestigatesthecomplaintandforwardsittoJACKWOLFSKIN.JACKWOLFSKINthenapproachesthefacility‘smanagementtoreviewthespecificcomplaintandlearnthemanagement‘sviewregarding



Aworkercomplainsaboutanissuetoherimmedi-atesupervisor,employeerepresentativeormanage-ment,seekingtoresolvethespecificissue.Therespectivecontactpersonreactsappropriatelyandsupportstheworkerinre-solvingtheissue.

COmplAINT, THAT mAy bE RESOlvED WITHIN THE COmpANy

Chartexemplaryprocessforresolvingcomplaints

WorkerSuperior

Complaint

Issue will be resolved

Worker Superior

Complaint

Cannotresolvetheissueoritselfiscauseforcomplaint

ComPLAINT No. 786 (CasenumbersassignedbyFWF)

Country where complaint originates: ChinaAtotalofeightFWFmembercompaniescommissiontheirproductsatthismanufacturingfacility.

The complaint relates to the following claims:Freechoiceofworkplace;nodiscrimination;salary;legallybindingemploymentcontract

Complaint status: The FWF confirms that complaint has been resolved.AllcasedetailsrepublishedonFWF’swebsite.

ComPLAINT No. 296 (CasenumbersassignedbyFWF

Country where complaint originates: TurkeyThecasewashandledincooperationbyanFWFmemberandamemberoftheFairLabourAssociation(FLA)

The complaint relates to the following claims:Freeunionization

Complaint status: The FWF confirms that complaint has been resolved. Allcasedetailsarepub-lishedonFWF’swebsite.

overvieW of Complaint Cases in fisCal year 2018/2019

ComPLAINT No. 616

(CasenumbersassignedbyFWF)

Country where complaint originates:

Indonesia

ThecasewashandledbyJACKWOLFSKIN

The complaint relates to the following claims:

Nodiscrimination;salary;legallybindingemployment

contract

Complaint status:

The FWF confirms that the issue cannot be

resolved by JACK WoLFSKIN. The case was

closed, the issue could not be resolved

satisfactorily for the submitting individual.

AllcasedetailsarepublishedonFWF’swebsite.


Country where complaint originates: ChinaThecasewashandledbyJACKWOLFSKIN

The complaint relates to the following claims:legallybindingemploymentcontract

Complaint status: The FWF confirms that complaint has been resolved. AllcasedetailsarepublishedonFWF’swebsite.


Country where complaint originates: VietnamThecasewashandledbyJACKWOLFSKINandtwofurtherFWFmembers.

The complaint relates to the following claims:Salary;legallybindingemploymentcontract

Complaint status:Allpartiesinvolvedarecurrentlystillworkingtoresolvetheissue;theFWFwasonsitetomedi-atebetweentheconflictingpartiesandhasalsoprovidedlegaladvice.Thecomplaintisstillbeingprocessed;theFWFwillpublishcasedetailsonitswebsiteassoonaspossible.

Complaint No. 749 (CasenumbersassignedbyFWF)

Country where complaint originates: VietnamThecasewashandledbyJACKWOLFSKINandonefurtherFWFmember

The complaint relates to the following claims:Workhours;safeandhealthyworkingconditions;le-gallybindingemploymentcontract

Complaint status: The FWF has closed the case as the person who submitted the complaint could no longer be reached. Furthermore, work hours are closely monitored by the companies that commission products at the manufacturer.AllcasedetailsarepublishedonFWF’swebsite.

ComPLAINT No. 778(CasenumbersassignedbyFWF)

Country where complaint originates: ChinaThecasewashandledbyJACKWOLFSKIN

The complaint relates to the following claims:Salary;legallybindingemploymentcontract

Complaint status: The FWF has closed the case, as it was not pos-sible to reach a proper conclusion regarding the issue. AllcasedetailsarepublishedonFWF’swebsite.

ComPLAINT No. 693

(CasenumbersassignedbyFWF)

Country where complaint originates:

myanmar

ThecasewashandledbyJACKWOLFSKINandone

furtherFWFmember

The complaint relates to the following claims:

legallybindingemploymentcontract;salary;

safeandhealthyworkingconditions

Complaint status:

The FWF has closed the case as the person who

submitted the complaint could no longer be

reached. The FWF can confirm, however, that

management of the manufacturing facility has

adequately investigated the issue. The FWF rec-

ommended a WEP training (whichwasalready

conductedinNovember2019).Allcasedetailsare

publishedonFWF’swebsite.



JACK WOlfSKIN’S COmmITmENT bEyOND ITS COmmERCIAl OpERATIONS

To us, building trust is very important. Therefore,wewish to establishmaximumtransparencyinallprocesses.Since2014wehavebeenlistingallourmanufactur-ingpartnersandtheirrespectivefacilitiesonourwebsite.Furthermore,wealwaysprovideup-to-dateinformationregardingtheimplementationofsocialandecologicalstandards.


06


ENGAGEMENTVONJACKWOLFSKINüBERDIE E IGENEGESCHäFTSTäTIGKEIT HINAUS

Our products’ supply chains are very complex. Themajorityofourproductsareassembled frommany individualcompo-nents.This includesfabrics,aswellaszippers,buttons,etc.,eachsuppliedbydifferentmanufacturersfromdifferentcoun-tries.Theassemblyofallthesefabricsandcomponentsintoafinishedproductisthefinalstepinthemanufacturingprocess.Thisso-calledfinishingtakesplaceinthemanufacturingfacili-tieswecommission.Thisismostlydonebyhandandrequiresalotofmanpower.Therefore,alargenumberofindividualsareinvolvedinthisprocess,whichiswhycompliancewithsocialstandardsandtheimplementationoffairandsafeworkingcon-ditionsareparticularlyimportant.Webelievethatthepracticalimplementationofsocialstandardsisreflectedbytransparencyand disclosure of detailed specifics. Consequently, we havebeendisclosingourmanufacturingpartners’andtheirfacilities’addressesaswellastherespectiveoutcomesofthelatestso-cialauditsasearlyas2014.

Allmanufacturingfacilitiesarelistedhere:https://www.jack-wolfskin.com/supply-chain.html#manufacturer

Each manufacturing partner has a so-called supplier code,whichwealsolistonthetransparencypage.Thissuppliercodemaybefoundoneachofourapparelandequipmentproductsonthemarket.Thus,referringtothiscode,allourcustomersmayidentifytherespectivemanufacturingpartnerwhohasmadethisparticularproduct,andviaourtransparencypageobtaindetailedknowl-edgeontheconditionsatthatspecificmanufacturingfacility.

JACKWOLFSKINactivelyseekstoengagewithvariousstake-holders (e.g. NGOs, consumers, trade associations, tradeunions)topromotefairandsafeworkingconditions inmanu-facturing facilities and in the supply chain. After all, only byactivelyexchangingideas,wewillbeabletomakeprogress.Inparticular,weattendtheannualFWFstakeholdermeetingsandconferences;activelysupportNGOs in theirqueriesandpro-jects,andfurthermoreengageinactivedialoguewithourcus-tomers,addressingsustainabilitytopics.Attradefairs,confer-ences,lecturesaswellaspaneldiscussions,wevalueandalsopromotetheopenexchangeof ideaswithall interestgroups.This stakeholder dialogue provides uswith valuable externalinputandprovidesuswithnewinspiration.

Weareactiveatourmain location,aswell.WesupportVitosBehindertenhilfe in Idstein. Vitos Behindertenhilfe enableschildrenandadolescentswithlearningormentaldisabilities,startingfromtheageofsixyears,toliveinsmalllivinggroups.Inthesegroupstheyareindividuallymentoredbytrainedcar-egivers and therapists who help them strengthen their per-sonalities,capabilitiesandtalents.Theobjectiveistoenablethe protégés to lead as self-determined a life as possiblewhentheyreachadulthood.Weconsiderthecommitmentofthischaritytobeparticularlyvaluableandhavebeensupport-ive inmanywayssince2014.Frequently,wedonate for theworkwiththedisabledandorganiseanannual“Wolf‘sRun“,across-countryevent foreverybody, theproceedsofwhichalsogotoVitos.Furthermore,weassigntasksandsmalljobstotheteenagersincare,forinstancegardeningonourcampus.

Toprovideaneasyoverview,wehaveorganizedmanufacturingfacilitiesintothreecategories.“Pioneers”wedecoratewiththe“Gold”label.Manufacturingfacilitiesthatalreadyperformwell,butstillofferpotentialfor improvement,areawarded“Silver”.Thosemanufacturingfacilitiesthatarestillatanearlystagere-gardingfairandsafeworkingconditions,butalsodemonstrateacommitmenttoimprove,areawardedthe“Bronze”label.

Supply CHAINS DISClOSED ONlINE

RATING Of mANufACTuRING fACIlITIES

Infiscalyear2018/2019,wewereabletoawardfortymanufacturingfacilitieswith“Gold”andtwenty-sixwiththe“Silver”label.Noneofthemanufacturingfacilitiesreceivedthe“Bronze”award.However,therearetwomanufacturingfacilitiesthathavenotyetbeenrated.

JaCK WolfsKin transparently disCloses its supply Chain

proaCtive and open dialogue With our staKeholders

Commitment to soCial responsibility at JaCK WolfsKin headquarters

Where does my produCt originate?

40 26 0

20 20soCial report 64 soCial report 65

Goals

soCial report 67

GOALSFOR2020

When attempting to implement higher social standards, weconstantlyset thebarhigherand thusworkhard tocontinu-ously and sustainably further improve the collaboration withourpartners.WewillcontinuetofrequentlyvisitoursupplierssoastoactivelysupportthemonsitewiththeimplementationofourCodeofConduct.

Currently, we are working to stabilize the supplier base forproduct category footwear and further qualify our suppliersthroughtrainingmeasures.Wecontinuetofocusonestablishinglivingwagesatourpart-ners’ facilities. Alsowe continue tomotivate our partners tograduallyestablish the targetwages.To thisend,wewillusetheanchormethodmentionedaboveasabasisforcalculatinglivingwages.

PUBLISHER

JACKWOLFSKIN

AUSRüSTUNGFüRDRAUSSENGmbH&Co.KGaA

D-65510Idstein

www.jack-wolfskin.com

EDITORIAL

MelanieKuntnawitz&AnjaHeinemann-VendorControl

[email protected]

LAYOUT

KaselDesignbüro,Düsseldorf

GOAlS fOR 2020?

ImpRINT

JACKWOLFSKINAusrüstungfürDraussenGmbH&Co.KGaA,JackWolfskinKreisel1∙65510Idstein/Ts.,Germany

RückfragengerneperMail:[email protected]

social report...product sustainability, as well as protecting the environment and climate...

Documents