Last Updated: 2018.03.22
Progress on Improving Conditions at Tomwell UNIQLO Production Partner in China
FAST RETAILING CO., LTD.
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The January 11, 2015 report issued by the Hong Kong advocacy group, Students & Scholars Against Corporate Misbehaviour (SACOM), along with other reports, highlighted issues regarding working conditions at the factory operated by Dongguan Tomwell Garment Co., Ltd. that makes UNIQLO clothing in China. Following those reports, Fast Retailing started working with the Tomwell factory to determine a regime of improvements and implement better working conditions. Fast Retailing was able to confirm that the instructed improvements had been made when the Sustainability Department visited the factory in November 2017 to interview employees directly and check onsite documentation.
The Fast Retailing Group remains committed to actively encouraging improvements in working environments across its entire supply chain.
| Highlighted Problem Areas | Confirmation of Improvements |
|---|---|
| No health and safety training was provided in the factory despite reports of workers being injured by heavy machinery. | The Tomwell factory conducts worker health and safety training sessions. |
| The factory failed to give workers the results of their medical check-ups. | The factory now provides workers with the results of their medical check-ups. |
| The factory's housing provident fund was unpaid. | The factory explained the housing provident fund system to the managers, and all workers who wish to participate in the scheme can now do so. In addition, the factory has deposited the housing provident funds for those workers participating in the scheme with a government body. |
| The factory's basic wage was the minimum wage, less than half the living wage. | Factory workers' average wage, which constitutes a basic wage (excluding overtime) plus a productivity bonus, is double the minimum wage. |
| Overtime hours at the factory were illegally high at between 80 and 100 hours per month. | After reviewing Tomwell factory production capacity, the factory started ensuring working hours for employees across all production processes were kept within Fast Retailing's own stipulation for a 60-hour week from February 2015. Working hours continue to be managed within those regulations as of November 2017. |
| Tomwell calculated wages on a piece rate rather than offering legally required overtime wages. | Tomwell labor contracts are now calculated using an hourly remuneration rate. Workers are paid a basic wage plus a premium for overtime work (including a premium for weekends and public holidays) and a productivity bonus, all of which are based on Chinese labor law. |
| Insufficient worker representation, with no democratic election of worker representatives. | Workers selected worker representatives for the Tomwell factory in an employee election held in March 2015. Worker representatives hold committee meetings every six months. Direct discussion between management and worker representatives was held in November 2017. |
Relevant information
－In response to Working Condition Claims at UNIQLO Garment and Textile Suppliers in China (January 11, 2015)
－Fast Retailing Takes Action to Improve Working Conditions at its Production Partners in China (January 15, 2015)
－Fast Retailing Strengthens its Commitment to Improve Working Conditions at Production Partners (February 18, 2015)
－Fast Retailing Advances Working Conditions at its Production Partners (July 31, 2015)
