March 2012 Author Charles Kernaghan Research Charles Kernaghan, Barbara Briggs Cassie Rusnak, Elana Szymkowiak and Kevin Pietrick
Institute for Global Labour and Human Rights (Formerly National Labor Committee) 5 Gateway Center, 6F, Pittsburgh, PA 15222 , U.S.A. +1-412-562-2406 | inbox@glhr.org | www.globallabourrights.org
Table of Contents Executive Summary ....................................................................................................................................... i What Must Be Done...................................................................................................................................... ii Introduction ................................................................................................................................................... 1 A Chinese Sweater Sweatshop in Bangladesh ............................................................................................. 3 Illegal Sweatshop Conditions: Grueling Hours, Cheated of Wages ............................................................. 3 Every Single Labor Law is Blatantly Violated ......................................................................................... 4 Workers Describe Prison-like Conditions................................................................................................. 6 Rolling Stones’ Collaboration with Dressmann............................................................................... 9 No Union Allowed .................................................................................................................................. 10 The Strike ................................................................................................................................................ 10 The Sweatshop Model............................................................................................................................. 14 Addenda ...................................................................................................................................................... 17 A.
Company Profiles .......................................................................................................................... 17
B.
Ethical Codes of Conduct .............................................................................................................. 22
C.
Rosita Knitwears Handbook on Service ........................................................................................ 28
Executive Summary The Chinese-owned Rosita Knitwears and Megha Textile (Megatex) factories in Bangladesh produce sweatshop sweaters for: - Peek&Cloppenburg, Van Graaf – Germany - BHS (British Home Stores) /Arcadia Group – United Kingdom - Coles / Wesfarmers – Australia - Dressmann/Varner Group – Norway - Celio – France - de Bijenkorf – Netherlands - Fynch-Hatton – Germany - Smart Set / Reitmans – Canada (produced in 2010 and part of 2011) Five thousand workers toil under harsh and illegal sweatshop conditions. Workers paid a starvation wage of 16 to 22 cents an hour. All overtime is forced—routine, seven-day, 84-hour work weeks. Workers are beaten, threatened, stripped of their rights and imprisoned on false charges. Hundreds of workers have been fired. Chinese managers may be cheating the poor Bangladeshi workers of over $1 million a year— through underpayment of overtime hours alone. (Not one single worker is paid the legal overtime premium.) Corporal punishment is the norm: Workers arriving late are forced to stand at attention, with their arms at their sides, for at least four hours. They cannot talk, turn their head or go to the bathroom. Management also cheats the workers of their legal vacation pay, which may total some $535,000 over the last three years. Every labor law in Bangladesh is routinely, systematically and grossly violated. All International Labour Organization internationally recognized worker rights standards—freedom of association, the right to form a union and bargain collectively, and freedom from forced labor—are also blatantly violated on a daily basis. The international labels must immediately intervene to end the gross violations and restore the rule of law.
What Must Be Done Peek&Cloppenburg /Van Graaf (Germany), British Home Stores /Arcadia Group (United Kingdom), Coles /Wesfarmers (Australia), Dressmann/Varner Group (Norway), Celio (France), de Bijenkorf (Netherlands)/Selfridges Group, Ltd. (Canada and UK), Fynch-Hatton (Germany) and Smart Set /Reitmans (Canada) must: Move immediately to stop the beatings, imprisonment and firing of hundreds of workers at your supplier plants, Rosita Knitwears and Megha Textile (Megatex), in Bangladesh.
Five thousand workers are systematically and grossly cheated of their legal overtime pay, earned leave and other benefits. Every labor law in Bangladesh, as well as the core International Labour Organization internationally recognized worker rights standards are routinely violated.
Do not cut and run from your suppliers, Rosita and Megatex, which would only further punish the workers, who have already suffered enough.
Rather, keep your production in the factories while you work with management to bring them into compliance with Bangladeshi labor law and core ILO worker rights standards.
The workers imprisoned under false charges must be released.
Immediately reinstate the hundreds of workers recently fired, with back wages.
Immediately pay the workers all their back wages and benefits, which may amount to well over a million dollars.
Stop the threats and violence against the outspoken labor leaders.
An agreed upon independent ombudsman acceptable to both the workers and the labels must be installed at the Rosita and Megatex plants to transition from the current illegal and violent conditions to one of respect for the law.
The Institute for Global Labour and Human Rights proposes a joint meeting at the Rosita and Megatex factories to bring together all the stakeholders—the international labels, the workers, the local Ministry of Labor and the Chinese owners.
It is absolutely imperative that Rosita and Megatex management finally understand that they will be held accountable under the law.
Introduction By Charles Kernaghan
How Is It....that there are so many corporate codes of conduct across Europe, Australia and Canada, that fail so miserably? In the abstract, corporate codes of conduct read well and appear to guarantee so many worker rights—no forced labor; the right to organize and form a union; the right to bargain collectively; to be free of physical punishment and more. Yet two Chinese-owned sweatshops in the North Bengal region of Bangladesh—Rosita and Megatex—make sweaters which are exported to Germany, Norway, United Kingdom, the Netherlands, France, Sweden, Finland, Poland, Latvia, Iceland, Australia, Canada and other countries. And the Bangladeshi workers at these factories are routinely cheated of their wages, beaten, forced to work seven days a week, fired and imprisoned on false charges. Nor are the sweaters cheap. A “Marie Lund” sweater made in Bangladesh and purchased at a Peek&Cloppenburg store in Bremen, Germany sells for USD $66, while many Rosita and Megatex workers are paid just 16 cents an hour. What workers across the developing world need are enforceable laws—to guarantee that all local labor laws and the core International Labour Organization (ILO) internationally recognized worker rights standards be guaranteed. Corporate codes of conduct are far too often just words with no bite. Mick Jagger and the Rolling Stones could help. The Dressmann/Varner Group, with headquarters in Norway, has signed a deal with Mick Jagger and other members of the band to help design a new Rolling Stones clothing line for Dressmann. The Bangladeshi workers would immediately appreciate the Rolling Stones lyrics to “Satisfaction” “I can’t get no, I can’t get no, I can’t get no satisfaction. No satisfaction, no satisfaction, no satisfaction.” Two other points:
In 2011, “Bangladesh exports to Germany increased by 57 percent to $3.4 billion,” the vast majority of which was garments. The Bangladeshi export garment factories know full well that, “branding Bangladesh positively in Germany and Europe is critical” to their continued export growth. Germany and the European Union countries are in a strong position to demand and secure an end to slave labor conditions in Bangladesh. (Daily Star, February 29, 2012)
The office of the World Bank in Bangladesh estimates that over half the companies and factories in Bangladesh pay bribes. (Daily Star, February 29, 2012)
The Chinese-owned Rosita and Megatex plants routinely and systematically violate every labor law in Bangladesh as well as the International Labor Organization’s core internationally recognized worker rights standards. Under Chinese management, the factories are operated like minimum security prisons. Under such circumstances, the workers are trapped. Nor have Peek&Cloppenburg and Van Graaf in Germany, British Home Stores owned by Acadia Group in the United Kingdom, Coles owned by Wesfarmers in Australia, Dressmann owned by Varner Group in Norway, Celio Club owned by Celio in France, de Bijenkorf (Netherlands) owned by Selfridges Group, Ltd. in Canada and UK, Fynch-Hatton in Germany or Smart Set owned by Reitmans in Canada attempted to conduct any serious investigation into the illegal and harsh sweatshop conditions at their supplier factories. It would seem impossible for Chinese management, Bangladeshi labor authorities and the labels to have all been unaware that 5,000 workers have been systematically cheated of their legal overtime wages for the last three years! And this is just the tip of the corrupt iceberg.
(Bottom) The entrance of the Ishwardi Export Processing Zone in Pabna, North Bengal. (Right) A photo of the Megatex factory taken with a cell phone camera by a worker who risked being fired.
A Chinese Sweater Sweatshop in Bangladesh Rosita Knitwears Ltd. Megha Textile Ltd. (Megatex) Housed in the
Ishwardi Export Processing Zone Pabna, North Bengal Bangladesh
Production Manager: Assistant Manager:
Ms. Meghi (Hong Kong) Mr. Nahid Akter Nirob (Bangladeshi)
Ownership:
Hong Kong Chinese investors.
Approximately 70 Chinese floor managers oversee some 5,000 Bangladeshi workers, knitting sweaters at the Rosita and Megatex plants. The factories have been operating for over three years.
Illegal Sweatshop Conditions Grueling Hours, Cheated of Wages The peak season at the Rosita and Megatex sweater factories is long, approximately eight months, from February through September, and all overtime is strictly mandatory. The standard peak season shift is 13 hours, from 8:00 a.m. to 9:00 p.m., six days a week, with a six-hour shift from 7:00 a.m. to 1:00 p.m. on Fridays—which is supposed to be the workers’ day off. Workers are routinely at the factory 84 hours a week. They have an hour off for lunch, but the security guards blow their whistles after 40 minutes, ordering the workers to return to their stations. During the four hours of mandatory overtime from 5:00 to 9:00 p.m., the workers are supposed to receive a 15-minute break, when tea and a biscuit are supplied. It turns out not to be much of a break, as there are no biscuits and there is never enough tea for all the workers. The workers’ wages are bad enough—just 22 cents an hour and $10.79 a week for a senior worker, while less experienced workers receive just 16 cents an hour! Three years back, when the Chinese factories were opened, the workers were told they would receive 8000 taka—$97.03—a month. That never happened.
Junior Workers’ are paid 2,750 taka per month ($1.00 = 82.45 taka) 16 cents an hour $ 1.28 a day (8 hours) $ 7.70 a week (48 hours) $ 33.35 a month $400.24 a year Senior Experienced Workers are paid 3,855 taka a month 22 cents an hour $ 1.80 a day (8 hours) $ 10.79 a week (48 hours) $ 46.76 a month $561.07 a year Nor do workers receive their pay stubs along with their wages. The pay stubs are handed out 15 days later, making it impossible for workers to challenge any underpayment. The work is also exhausting. For one thing, most knitters are on their feet for the entire 12-hour shift. Supervisors push the workers to reach their excessive production targets, which are arbitrarily set by management. Management is always looking for ways to fire experienced workers, to bring in cheaper workers who earn just 16 cents an hour. Also, the senior workers are more aware of their legal rights under the labor code. The workers told us, “Our backs are close to the wall, and we live always in fear of losing our jobs.”
Every Single Labor Law is Blatantly Violated By law, all overtime work beyond the regular daily eight-hour shift must be paid at double time. A senior worker should make 44 cents an hour (double the regular 22-cent an hour wage) for all overtime work. But this is not how the Chinese managers operate. No one is paid the legal overtime wage. Every single worker is being cheated! The normal peak season shift is 78 working hours per week—48 regular hours and 30 overtime hours. The 30 overtime hours should by law be paid as double time, at 44 cents an hour. But management never pays more than the minimum wage of 22 cents an hour. It may not seem like a big deal. So what if management steals 22 cents per hour by not paying the legal overtime rate? In fact, management—in broad daylight—is stealing $143,000 a month from some of the hardest working yet poorest workers in Bangladesh! [22 cents an hour x 30 OT hours = $6.60 per week, or $28.60 per month per worker. $28.60 x 5000 workers = $143,000 per month in wages stolen from the workers.]
But it gets worse: As the overtime peak season can stretch out to eight months, each worker is being shortchanged of $28.60 a month and some $288.80 over the eight months. Since there are 5,000 workers at the Rosita and Megatex factories, Chinese management may be cheating the workers of as much as $1.14 million. This is big time robbery and graft. (We are calculating this based on the senior workers’ rate.) In fact, everything about the Rosita and Megatex plants is illegal! Workers are routinely cheated of their vacation days. By law the workers are due 17 days of annual vacation. Yet there is not one single worker in the two factories who has received either their legal vacation days or was paid properly for working through their vacation. In lieu of their 17 days vacation, the workers should be paid $30.60 in “earned leave” —$1.80 a day for 17 days. This has been going on for three-and-a-half years, which means each worker has been robbed of $107.10 in earned vacation pay. If you multiply this by 5,000 workers, to date management may have stolen some $535,500 in vacation pay owed the already poorly paid workers. Where is the Bangladeshi Ministry of Labor, or the international labels? Doesn’t anyone care?
An order form and style sheets smuggled out from Rosita and Megatex factories in February 2012.
Workers Describe Prison-like Conditions
Arriving one or two minutes late to work three times in a month results in a full day’s wages being docked.
If a worker misses a day—for example, if they are sick and have the legal right to a paid sick day— they are still docked a day’s wages. They are also humiliated. As punishment, a worker missing a day is forced to stand at attention in front of their co-workers for at least four hours with her arms at her sides. She is not permitted to move, stretch, speak or go to the bathroom during those four hours. Any normal human being would call this corporal punishment, but this is the norm at the Megatex and Rosita plants. But it gets even worse. Workers who miss a day are often moved to a different type of knitting machine, forcing them to learn new patterns and styles. If they cannot catch on fast, failing to reach their mandatory production goal will result in firing.
If a family member dies and a worker requests three days unpaid leave to return to her home village to mourn and bury her family member, management routinely refuses leave and instead demands that the worker “submit her resignation and get out of the factory.” How’s that for sisterly love?
Rosita Knitwears factory
Throughout January 2012, a line leader called Kamal had been stalking a young, very attractive woman worker named Ms. Bina. Kamal was constantly pressuring her and demanding that she have sex with him. If she would not submit, he would make her life miserable. She had one choice, he said, have sex, or you will be fired (on trumped up charges that she was a poor worker). Ms. Bina filed a complaint to the managing director of the Rosita factory, but received no response. Ms. Bina then turned to the Rosita “Workers Welfare Association” for help. (Illegally, unions are outlawed in Bangladesh’s Export Processing Zones.) Mr. Helal Uddin, president of the Workers Welfare Association, approached management demanding that the sexual harassment of Ms. Bina be stopped. Management responded that they would need two or three months to look into it. The end result was that two other supervisors beat Ms. Bina and threatened anyone who had witnessed the stalking to keep their mouth shut. Case closed.
Bina’s Letter to the Managing Director at Rosita Knitwears
To: Managing Director Rosita Knitwears Company Ltd. Ishwardi EPZ Pakshi, Pabna.
Date: January 25, 2012
Dear Sir, I the undersigned, Ms. Bina Khatun, have been working at Rosita on the third floor as knitting operator for a long time. Unfortunately the line leader, Md. Kamal Hossain, next to my line, proposed a nasty offer through the operator Ms. Kohinoor. For the sake of my job, I did not respond. But Kohinoor continued to propose the same bad thing. I rejected the offer and then Kamal propositioned me via telephone. He asked me to go to Kohinoor’s house after the factory work was over and proposed to spend a night with him like a husband –wife does. Considering my dignity and honor I disclosed this matter to my guardian. Later my guardian suggested that I place a written complaint to the company to get justice. Therefore, I would urge you look into the matter and give proper punishment to him. Your most obedient employee (Signature) Ms. Bina
Style sheets smuggled out from Rosita and Megatex factories in February 2012.
Rolling Stones’ Collaboration with Dressmann Dressmann clothing is made in a Chinese-owned sweatshop in Bangladesh where every single labor right is grossly violated.
Photo from Norwegian Fashion
“In an effort to renew their image and profile, Dressmann has landed a one year contract with the legendary rock band Rolling Stones, in an effort to penetrate the global market and become a world leading provider of suits and clothes in general.” “The deal has secured Dressmann the rights to use old classical songs in advertisement as well as artwork created by the Rolling Stones. A new Rolling Stone collection will also be available from Dressmann stores in February.” (Norwegian Fashion, January 17, 2011)
“Make Poverty History”: Dressmann stores are part of a campaign—“Make Poverty History”— and sell wrist bands to raise awareness of global poverty.
Dressmann/Varner Group has a Code of Conduct regarding Best Ethical Practices. Varner Group is affiliated with: Ethical Trading Initiative Norway Businesses for Social Responsibility (BSR)
Varner Group has approximately 400 supplier factories.... “Manufacturers are therefore continuously monitored and controlled.”
No Union Allowed The massive Export Processing Zones across Bangladesh are in direct violation of the ILO’s internationally recognized worker rights standards, including freedom of association and the rights to join a union and bargain collectively. The ILO also prohibits forced labor, which is the norm at Rosita and Megatex. Instead, the Bangladeshi Government only recognizes what are called “Workers Welfare Associations,” which are meant to be extremely weak, with no right to organize an independent union or bargain collectively.
This is what happened to the “Workers Welfare Association” at the Chinese-owned Rosita and Megatex sweatshops:
The Strike Just a few months earlier, the leaders of the Workers Welfare Association were re-elected in a landslide victory. An estimated 95 percent of the 5,000 workers at the Rosita and Megatex plants had cast their ballots, with President Helal Uddin and the other officers winning over 75 percent of the vote. On the day of the election, the administrative manager for the two plants, Mr. Nirob, blocked President Helal from campaigning—which would have been the normal procedure. Nirob had security guards lock Mr. Helal in the Rosita factory. But he still won by a landslide against management’s proposed candidate. All the workers looked up to Mr. Helal Uddin. “Helal is our voice,” the workers told us. The workers conducted a peaceful work stoppage on Sunday, January 29, 2012. It was management’s illegal firing of over 50 workers in the previous few days, without cause or notice, that sparked the protest. But this was just the tip of the iceberg: For the last three years, the workers had been systematically cheated of their overtime pay, their vacation pay, holidays and more. November, December and January are also slow season for sweater makers, a time when the workers’ salaries plummet. It was a simple enough demand. The workers desperately needed and demanded that they be paid the $107.10 in vacation benefits due them. (Over the last three and a half years, management had robbed the 5,000 workers of $460,000 in vacation pay due them.) If they were at least paid their vacation benefits, their families could make it through the slow season.
The workers were at the breaking point, with their backs against the wall. That Sunday, the President of the Workers Welfare Association, Helal Uddin, and its General Secretary, Masud Rana, presented Rosita management with a list of 22 demands to bring management into compliance with the labor law. Management responded by offering the workers just 40 percent of the legal vacation pay they were owed. But the workers could not even count on this offer. On January 29, 2012, the Rosita factory paid Mr. Helal Uddin, for example, just 810 taka ($9.82) and Mr. Khalil just 890 taka ($10.79) in earned leave, which is a far cry from what they are legally owed. That same day, Mr. Nirob publicly threatened Mr. Helal saying he would be punished for taking the workers out on strike and daring to make demands. Nirob said: “You will see just how great a leader Helal is!” The Sunday passed quietly, but the following Monday, January 30, was different. The workers returned to the factories but refused to work, calling a sit-down strike. Whenever the workers tried to reason with Nirob, he would respond: “Don’t come to complain to me. Just get out, go home, you’re fired. If you keep talking, I’ll call the police.” At 8:00 a.m. that morning, Mr. Helal and several other officers of the Workers Welfare Association went to Nirob’s office to meet. Nirob had hired six gang members—outside thugs referred to as “muscle-men,”—who were waiting with Nirob in his office. The minute Mr. Helal and the other labor leaders entered the office, the thugs, one of them a man named Mr. Biplob, started to beat them with bamboo sticks, also kicking and punching them. The leaders were thrown out of the office. The Vice President of the Workers Welfare Association, Mr. Akash Mahmud, and another executive officer, Mr. Dilu Miah, were badly beaten and had to be hospitalized. News immediately spread to all 5,000 workers. To protect their leaders they raced up to the second and third floors. In anger at the beatings, the workers broke some windows, threw some stones and overturned several motorcycles in the courtyard. The workers told us they saw the hired gang members along with factory line supervisors overturning several work benches and machines, and breaking some computers. The damage was not extensive, but it was enough to bring false charges against the most outspoken workers. A hundred police, including some from the elite Rapid Action Battalion, also stormed the Rosita and Megatex plants. Many workers were beaten by the police, who later responded to the press that the workers were “injured while they were vandalizing the factories.” Workers were chanting: “We want Nirob out! He is a criminal! He exploits us. We will not continue to work until Nirob resigns or gets kicked out.” On January 30, Chinese management posted a notice that the factories would be closed until February 5. Then, on Sunday night, February 5 at 7:30 p.m., Mr. Helal Uddin, President of the Workers Welfare Association of the Rosita factory, was arrested in front of the Export Processing Zone and imprisoned in the Pabna District jail. Five other workers, General Secretary Masud Rana and activists Shamin, Shadul, Likhor and Sabuj, had been taken from their homes at 1:00 a.m. on February 3 and imprisoned.
As soon as the workers were paid in February, every worker gave 50 taka (61 cents) to help free their labor leaders. In Rosita alone, the 2,500 workers contributed $1516 to hire attorneys to free the leaders. The following day Megatex workers did the same. As of February 5, hundreds more workers were fired without cause. The first 291 workers have already been fired and management is threatening to terminate 250 more people. Hundreds of workers demonstrated in front of the Ishwardi Export Processing Zone. The Rosita and Megatex plants briefly re-opened on Sunday, February 19, from 7:30 a.m. to 1:00 p.m., but were then closed for several days. On February 14 the association’s General Secretary Masud Rana and four other activists were released on bail. On Saturday, February 20, after 15 days of imprisonment, Helal was finally released as well. But all six workers still face charges.
On February 21, two local newspapers in Bangladesh, Saptahik Ishwardi and Hello Ishwardi, reported on the protest. The headline of the first article reads, “Human chain demanding release of imprisoned workers and reinstatement of all fired workers.”
News Caption: 291 workers terminated at Ishwardi EPZ// Human Chain. Hello Ishwardi. Tuesday, February 21, 2012 Photo caption: Human Chain of Rosita Knitwear and Megatex Workers Staff Reporter: There has been more labor unrest at the two Chinese (Hong Kong) owned factories namely Rosita Knitwear and Megatex as 291 workers were unjustly fired. According to workers, Mr. Nahid Akther Nirob, Bengali administration manager of the two factories involved in massive corruption, unethical practices, indecent behavior with women workers, and illegally cutting money from workers wages. This caused labor unrest in the factories and violations erupted. Workers were sued and imprisoned. The management temporarily closed both the factories. After 15-18 days of closure of the factories the management arbitrarily fired 291 workers. The workers of Rosita Knitwear and Megatex formed a 1.5 km long Human Chain on Sunday, February 19 from 10.00 a.m. to 11.30 a.m. at Rup Pur Pakar Circle. They demanded the reinstatement of the fired workers, withdraw of all false charges against them, and termination of the corrupt manager, Nahid Akther Nirob, along with a charter of 22 demands. The human chain was formed under the banner of Worker’s Welfare Association. In the human chain the speakers were WWA Vice President Mr. Habibur Rahman, Mr. Akash Ali, Asst. G S Mr. Mostafizur Rahman Shahin and women’s secretary Ms. Nargis Akther, etc. It is mentionable here that workers damaged the factories because of the labor unrest. The company filed two cases against the workers and fired 291 workers from both the factories.
The Sweatshop Model On February 19, the workers told us, “Today management is threatening the workers that if we continue to raise questions and try to negotiate they will shut the factories down permanently.” Ms. Meghi, the Chinese production manager, has often threatened the workers: “Don’t try to bargain with me. If you don’t like what you get, you’ll lose your job. Don’t ask any questions.” An informant leaked to us that millions of dollars of upgraded machinery has recently been installed at Rosita and Megatex. Management is lying when it threatens that the factories will be shuttered.
Ms. Meghi, production manager
“BHS” and “Mix” labels smuggled out of the Rosita and Megatex factories in 2012.
“Marie Lund” label is owned by the high-end clothing retailer, Peek&Cloppenburg KG of Hamburg in Germany. Peek&Cloppenburg also owns Van Graaf, which has retail stores in Austria, the Czech Republic, Hungary and Poland, where the “Marie Lund” label is also sold.
“Smart Set” sweater made in 2010. “Smart Set” is a fashion retail store in Canada, owned by Reitmans Ltd.
“BHS”, or British Home Stores, is owned by the Arcadia Group which also owns Topshop and other brands in United Kingdom. BHS sweaters are sold at £20-35 (USD$30-56). “Mix” is exclusively sold at Coles, a supermarket chain owned by Wesfarmers in Australia.
“Celio*Club”, “Dressmann”, “de Bijenkorf” and “Fynch-Hatton” labels smuggled out of the Rosita and Megatex factories in March 2012. Celio*Club is a line of Celio, which is a menswear company in France with 1000 stores in 70 countries, including 500 in France, selling over 35 million items every year. Celio* sweaters are sold at €30-60 (USD$40-78).
Fynch-Hatton is a German menswear company. FynchHatton sweaters are sold at £50-60 (USD$78-94).
De Bijenkorf is a chain of fashion department stores in Netherlands.
Dressmann is a fashion chain for menswear, a part of the Varner Group.
Addenda A. Company Profiles
Peek&Cloppenburg KG Hamburg
Peek&Cloppenburg KG Hamburg owns department stores in Germany as well as the Van Graaf international chain in Austria, the Czech Republic, Hungary, Poland and Switzerland. The “Marie Lund Copenhagen” and “Brookshire” labels are sold in both department store chains.
Peek&Cloppenburg KG Hamburg Mönckebergstraße 8 20095 Hamburg Germany Phone: 49-40-3396702 Fax: 49-40-33967104 info@peek-und-cloppenburg.de www.peek-und-cloppenburg.de/ CEO: James Cloppenburg
BHS (British Home Stores) BHS is one of the oldest retail chains in United Kingdom, with 185 department stores in Britain and 18 stores in 17 countries elsewhere across Europe and the Middle East with an estimated one million-plus customers entering BHS stores each week. BHS is owned by the Arcadia Group, which also owns Topshop and other brands in UK.
Arcadia Group, Ltd. Colegrave House, 70 Berners St. London W1T 3NL, United Kingdom Phone: 44 20 7927 1484 0844 243 0000 Fax: 44 20 7927 0577 www.arcadiagroup.co.uk 2011 Revenue: £2.68billion ($4.25billion USD) CEO: Ian Grabiner 2011 salary: £1.9 million ($3.01M)
BHS (British Home Stores) 129-137 Marylebone Road London, NW1 5QD United Kingdom Phone: 44 2072 623 288 / 0845 196 0000 www.bhs.co.uk
Dressmann The Dressmann men’s fashion chain is part of the Varner Group. As of 2010, Varner Group had over 1,162 stores in 9 countries, including Norway, Sweden, Denmark, Finland, Germany, England, Iceland, Poland and Latvia Dressmann Dressmann AS Pb 124, 1376 Billingstad, Norge, Norway Phone: +47 66 77 31 00 Sales (2010): €370,000,000 (USD$489.07million) General Manager: Petter Varner
Varner Group Postboks 124, Bergervn. 5, 1376 Billingstad Norway Phone: +47 66 77 31 00 Fax: +47 66 77 34 85 CEO: Marius Varner Operating Income (2010): €1.15billion (USD$1.52billion)
Coles “Mix” is the label the Australian supermarket chain, Coles. Coles, one of Australia’s largest supermarket chains with 741 full-service stores across the country, is owned by Wesfarmers Ltd, itself one of Australia’s largest companies, which also owns Australia’s Target and Kmart stores, along with a variety of other retail outlets. Coles PO Box 2000 Glen Iris VIC 3146, Australia Phone: 1800 061 562 www.coles.com.au 2011 Revenue: AUD $32.1billion (USD $34.7billion) Managing Director: Ian McLeod
2011 total salary package: AUD$15.6million (USD$16.67million) Wesfarmers, Ltd. Level 11, Wesfarmers House, 40 The Esplanade Perth, Western Australia 6000 Australia Phone: (+618) 9327 4211 Fax: (+618) 9327 4216 info@wesfarmers.com.au www.wesfarmers.com.au 2011 Revenue: AUD $54.875billion (USD $59.249billion) Managing Director: Richard Goyder
2011 salary: AUD$6.9million (USD$7.37million)
Celio Celio is a menswear company with 1,000 stores, 500 in France where the company is based, 500 outside the country. In 2010, Celio had sales of â‚Ź460 million ($603.47 million USD). Celio stores can be found in 70 countries including Albania, Andorra, Armenia, Bahrain, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Cameroon, Congo, Croatia, Cypress, Egypt, Estonia, France (500 stores), Gabon, Georgia, Greece, Equatorial Guinea, India, Israel, Italy, Ivory Coast, Jordan, Kazakhstan, Kuwait, Lebanon, Libyan Arab Jamahiriya, Lithuania, Malaysia, Malta, Martinique, Mauritius, Moldova, Mongolia, Morocco, New Caledonia, Panama, Philippines, Qatar, Reunion, Romania, Russia, Saudi Arabia, Senegal, Slovakia, Slovenia, Spain, Syria, Taiwan, Thailand, Tunisia, Ukraine, United Arab Emirates and Vietnam.
Celio France SAS 21 Rue Blanqui, 93400 Saint-Ouen, France Phone: +33 1 49 48 13 00 Fax: +33 01 48 74 59 54 contact@celio.com CEO: Christian Pimont
de Bijenkorf Founded in 1870 in Amsterdam, de Bijenkorf is a chain of 12 upscale department stores in the Netherlands. De Bijenkorf is owned by the same family which owns Selfridges&Co. in UK, Holt Renfrew in Canada, and Brown Thomas in Ireland.
de Bijenkorf 1102 AN Amsterdam Zuidoost, Frankemaheerd 6 Hoogoorddreef 11 Phone: 0800-0818 info@bijenkorf.nl Selfridges Group, Ltd. 22 St Clair Ave E Suite 2001 Toronto, ON M4T 2S3, Canada Phone: (416) 967-7923 Fax: 4169677994
Fynch-Hatton Textilhandelsgesellschaft mbH Fynch-Hatton’s branding is derived from big-game hunter Denys Finch Hatton, whose life was “synonymous with freedom and adventure.” FynchHatton is sold in department stores including Peek&Cloppenburg.
Fynch-Hatton Alsstr. 166 D-41063 Mönchengladbach Germany Phone: +49 (2161) 56745-0 Fax: +49 (2161) 56745-19 www.fynch-hatton.de info@fynch-hatton.de
Smart Set Smart Set is a fashion retail chain with 158 stores in Canada “for style-savvy young women” aged 25 to 35. Smart Set is owned by Reitmans, one of the largest retailers in Canada. Reitmans, Ltd. 250 Suave St. West Montreal, QC H3L 1Z2 Canada Phone: 514 384 1140 Fax: 514 385 2669 www.reitmans.ca 2011 Revenue: CAD $1.07billion (USD $1.08billion) Chairman & CEO: Jeremy H. Reitman 2011 total salary: CAD $1.245million (USD $1.241M)
B. Ethical Codes of Conduct
Peek&Cloppenburg KG Hamburg “We show what we stand for and what is important to us: not necessarily to profit the most, but to be the one that uses responsibility and respect to continually create something better.” “Our collaboration with manufacturers is based on rigorous principles: assuring flawless compliance with labor law and ecology-oriented requirements plays a definitive role in the development of our partnerships. We inflict penalties for violation without reservation.”
Source: Peek&Cloppenburg KG and Van Graaf
Wesfarmers Ltd, owner of Coles “Wesfarmers places a high priority on its sustainability and community responsibilities.... Sustainability Principles include: “Providing a safe and secure work environment for all our employees, customers and other stakeholders”... “In terms of workplace relations, we recognise the right of those we employ to negotiate either individually or collectively”... “There has never been a time when responsible and ethical behaviour has been more critical for our organisation.” Source: Wesfarmer Sustainability, Sustainability Report 2010 and 2011
de Bijenkorf De Bijenkorf is a member of Business Social Compliance Initiative (BSCI). “No discrimination on grounds of gender, age, religion, race, caste, of social background, disability, ethnic or national origin, nationality, membership employees of organizations including unions, political affiliation, sexual orientation or any other personal characteristics is not allowed. This is in accordance with ILO Conventions 100, 111, 143, 158, 159, 169 and 183.” Source: de Bijenkorf Corporate Social Responsibility
Reitmans, owner of Smart Set “Reitmans (Canada) Limited is committed to conducting its business in accordance with ethical standards and the countries local labor laws in which it does business.” “Manufacturers and their subcontractors are expected to treat all workers with respect and dignity and provide them with a safe and healthy environment. Workers must not be subjected to corporal punishment or any other form of physical, psychological, sexual or verbal harassment.” Source: Reitmans Code of Conduct for Suppliers
Arcadia Group, owner of BHS
“At Arcadia, Freedom of Association is one of our main projects because we believe that worker representation and dialogue with management is fundamental to empowering workers to improve their working conditions.” “When customers buy our goods we want them to be confident that they have been produced under acceptable conditions. That means the goods must have been produced: lawfully, through fair and honest dealing; without exploiting the people who made them; in decent working conditions; and without damaging the environment.” “Each supplier must complete a factory set-up form, which includes our code of conduct. The supplier signs each section of this document to acknowledge that they have received it, that they understand and will comply with each section of the code.”
Source: Arcadia Group Ethical Trading and Code of Conduct & Guidebook
Arcadia Group suppliers’ pledge:
Varner Group, owner of Dressmann Dressmann sells “Make Poverty History” Campaign bracelets in their stores. Dressmann and Varner Group are members of the Ethical Trading Initiative Norway (IEH) and Business for Social Responsibility (BSR).
“Recognizing our social and environmental responsibility is fundamental to the success of our company. Our long‐term success depends on our ability to balance profit‐making objectives with societal needs and to meet our customers’ new requirements for good business practice.” “We aim to achieve commercial success together with our suppliers and manufacturers in ways that respect ethical values, human and labour rights and the natural environment.” “The code means that everyone involved in production for us must have the right to good and safe working conditions, in accordance with accepted human rights, legislation and regulations (UN's human rights and the International Labour Organisation's (ILO's) - core conventions).” Source: Varner Group Supplier Requirements Manual Part. IV. Code of Conduct and Dressmann Ethical Responsibility
C. Rosita Knitwears Handbook on Service
A HANDBOOK ON SERVICE Rosita Knitwears (PVT) LTD.
Minimum wages and benefits Grade 1 2 3 4 5
Job Title Trainee Helper Operator Senior Operator Highest Skill
Monthly Minimum Wage (US$) $ 39 per month [19 cents an hour] $ 55 per month [25 cents an hour] $ 61 per month [29 cents an hour] $ 67 per month [32 cents an hour] $ 107 per month [51 cents an hour]
Hours Regular working hours: 8 hours Maximum overtime: 2 hours Maximum day: 10 hours Overtime must be paid at a 100% premium Holiday Leave Casual leave: Sick days: Earned leave: Festival leave:
10 days 14 days at half pay 17 days 11 days
Yearly Wage Increase A 10 percent salary increase each year (on basic wage). Attendance Bonus Workers who do not miss a single work day in a month will receive a 150 taka [$1.82] monthly attendance bonus.
Institute for Global Labour and Human Rights (formerly National Labor Committee) 5 Gateway Center, 6th Floor, Pittsburgh, PA 15222, U.S.A. Office +1 412.562.2406 | Fax +1 412.562.2411 inbox@glhr.org | www.globallabourrights.org