Code of Labour Practices of the Fair Wear Foundation

We became a member of the Fair Wear Foundation in 2016. And we made it again! For the second time, we received the Leader status in June 2019.
The basis of the cooperation with Fair Wear is the so-called “Code of Labour Practices”. This provides 8 labour guidelines derived from the ILO conventions and the UN Declaration of Human Rights.

IRIEDAILY Fair Wear

1 Employment is freely chosen
There shall be no use of forced, including bonded or prison, labor.

2 Freedom of association and the right to collective bargaining
The right of all workers to form and join trade unions and bargain collectively shall be recognized.

3 No discrimination in employment
All aspects of the employment relationship shall be based on the principle of equal opportunities, regardless of race, color, gender, religion, political affiliation, union membership, nationality, social origin, deficiencies or handicaps.

4 No exploitation of child labor
There shall be no use of child labor. The age for admission to employment shall not be less than the age of completion of compulsory schooling and, in any case, not less than 15 years.

5 Payment of a living wage
Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income.

6 No excessive working hours
Hours of work shall comply with applicable laws and industry standards. Workers shall not regularly work more than 48 hours per week. At least one day off shall be provided for each seven-day period. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a premium rate

7 Safe and healthy working conditions
Ensure a safe and hygienic working environment, paying due attention to occupational hazards specific to the sector. This is to prevent accidents and minimise health risks. Physical abuse and threats of physical abuse, sexual and other harassment are strictly prohibited.

8 Legally-binding employment relationship
Obligations to employees under labor or social security laws and regulations shall not be avoided through the use of labor-only contracting arrangements or through apprenticeship schemes. Younger workers shall be given the opportunity to participate in education and training programs.

IRIEDAILY Fair Wear

 

IRIEDAILY Fair Wear

Living Wages

In setting the targets for 2019, we have placed a special focus on the fifth point of the Code – the payment of living wages.
We can assure you that all the workers who produce the IRIEDAILY items earn the statutory minimum wage, based on the laws in force in the country of production. However, we also make a distinction between minimum wages and living wages.

The regular minimum wage, based on a 40-hour week, should normally fulfill basic needs, but often it is not enough to cover the needs of a whole family. Therefore, the payment of fair and living wages is our highest priority.
Every worker should have the opportunity to live on his or her income and have the possibility to set something aside without additional overtime. The fashion industry must not build its profit on the shoulders of poorly paid sewing workers.

In 2019, we have taken a close look at the wages paid and the attendance lists of the workers from the factories where most of our products are manufactured. In this way, we were able to determine exactly how much each worker earns in a 40-hour week without any supplements.
With these figures and the transparency of our most important supplier in China, we were able to define our share of living wages , based on the Asia Floor Wage.

We were able to determine what a production minute would cost us there in 2019. This knowledge now enables us to calculate what we need to pay per minute in order to guarantee a living wage at the end of the month for each worker. The calculation for this is very complex and takes many factors into account. You can find the exact calculation key in the Social Report on pages 11-14.

IRIEDAILY Fair Wear

Living wages are a MUST if we want to achieve sustainable change in the garment industry.

Avoidance of Overtime

Another important goal for 2019 was to avoid overtime by workers in the factories. While European law applies in Portugal, the situation and working methods are somewhat different in China. There, many workers leave their homes, are usually separated from their families all year round and aim to earn as much money as possible during this time.

They often work 60+ hours a week to get the highest possible income at the end of the month. Obviously, as the health of our sewers is of great importance to us, this type of situation is not in our interest. Therefore, we hope that by paying living wages, the motivation to work excessive overtime will decrease for the workers, as they will be able to avoid the additional burden of excessive overtime due to the higher wages that are paid.