On January 3 and 4, 2012, FLA hosted a training session in Shenzhen, China, for accredited monitoring organizations and others wishing to learn more about the Fair Wage Approach developed by Daniel Vaughn-Whitehead of the ILO. During the training, attendees debated the piece rate payment system that is widely used in Chinese factories. This system pays employees per garment produced and is often implemented because it seems transparent and easily understood by both workers and managers. However, this approach can result in long working hours due to the incentive to produce a high quantity of goods. It also fails to build loyalty in the workforce and can lead to a poorer-quality product.
Some attendees suggested a mixed-pay system that could combine the piece rate system with performance incentives. These incentives could be quality-based, skills-based or even attitude-based, rewarding an employee for contributing to a positive working environment. This mixed approach, they said, could help keep the compensation system simple to understand and manage, while incentivizing workers to invest in their skills, the workplace atmosphere, and quality of the goods they produced.
Learn more about FLA’s approach to wage issues in supply chains.
On October 3, 2011, the U.S. Department of Labor launched its annual Findings on the Worst Forms of Child Labor. The report contains more than 140 country profiles, focusing on hazardous work performed by children. The report includes major findings on each central government’s efforts to address the worst forms of child labor; gaps in legislation, enforcement, policies, and programs; and proposed actions for each government to consider in addressing those gaps.
The DOL hosted a special event in support of the report launch, with Secretary of Labor Hilda L. Solis, Senator Tom Harkin, Ambassador of the Philippines Jose L. Cuisia, Jr., International Labor Organization – International Program on the Elimination of Child Labor (ILO-IPEC) and others. The DOL announced grants totaling $32.5 million to organizations focused on eliminating child labor internationally.
The FLA commends the Labor Department for its ongoing efforts to combat child labor. All FLA company affiliates have agreed, as stated in the FLA Workplace Code, that “no person shall be employed under the age of 15 or under the age for completion of compulsory education, whichever is higher,” and FLA affiliated universities, NGOs and companies will continue working together toward the elimination of child labor in global supply chains.
FLA’s research, assessments and surveys over the past two years confirm that excessive working hours have a negative impact on workers, often resulting in physical and psychological stress for workers and increased worker turnover. FLA surveys in China found that an estimated 50 percent of workers in the garment industry and 80 percent in electronics manufacturing work more than 60 hours per week, and an estimated 80 percent regularly work more than 7 days in a row. Even more alarming is the fact that 20 percent sometimes work more than 24 consecutive days without a day of rest.
One argument some have used in defense of excessive working hours is that Chinese factory workers want to work more hours. This argument, however, does not paint the full picture: 45 percent of 1,766 recently-surveyed workers say that their salary would not be sufficient if they did not work more than 60 hours per week. In fact, 40 percent said their salaries were not sufficient to cover basic needs, such as education, health care and housing. In addition, 50 percent of workers reported that excessive working hours make them feel isolated and more prone to sickness. Many said that they did not get to spend enough time with their families. Only 20 percent of workers felt satisfied with their job.
Data obtained by FLA shows that those who spend an excessive number of hours at work are eight times more likely to be unhappy with their job than those with regular hours. In addition, they are six times more likely to show signs of poor mental health. In short: long working hours create risks to workers’ wellbeing and undermine factories’ retention efforts and long-term productivity. Because of the harmful impact that long hours have on workers, the FLA Workplace Code of Conduct, which is based on international labor standards, states that “the regular work week shall not exceed 48 hours…Employers shall allow workers at least 24 consecutive hours of rest in every seven-day period…[and] the sum of regular and overtime hours in a week shall not exceed 60 hours.”
On September 20, FLA Shanghai hosted a networking event and brief workshop for suppliers and brands operating in or sourcing from factories in China. Session facilitators asked participants to consider how to improve relations at hypothetical “Factory A,” which has high working hours. Read the rest of this entry »