PRODUCTION IN CHINA

More than 25 years ago we started the production of the first IRIEDAILY styles in Portugal. After the brand grew steadily and the production volume also increased further, we decided more than 10 years ago to expand part of the production to China. It was a big step, but at the same time it brought with it a big challenge. Politically, China is still a critical country, but fortunately we are seeing rapid changes and growth – also with regard to social issues, environmental protection and the associated regulations. We therefore have confidence in our Chinese suppliers. We are aware that we have to contribute our share if we want to make a difference in the apparel industry. That is why we are constantly working with the Fair Wear Foundation to improve working conditions on site.

China is now our strongest production country, accounting for 55% of our production volume, where we work with five suppliers:

– Jiangsu Luckytop Garment Co.

– Jiangyin Chengfeng Garment Factory

– Jing Qi Shi Jia

– Jiangsu Asian Sourcing Headwear MFG. Co.

– FuLiYing Garment Factory

In some of our Chinese production sites, we have the lead in terms of Fair Wear issues. Since not only we produce in the factories, but also other Fair Wear members, one brand is designated to take the lead for the factory. This way, the producer does not have to do multiple documentation for different FWF members. This means that the selected brand takes care of FWF communication and handling of community issues on behalf of all others.

JIANGSU LUCKYTOP GARMENT CO., LTD

Since 2008 we have been working with the Chinese producer LuckyTop, who produces jackets and pants for us. In the main factory of LuckyTop about 50% of our styles made in China are produced. We produce there together with another FWF member, but we have the lead in communication. The factory has a democratically elected workers’ representation and has also been checked by BSCI and GOTS in addition to FWF audits.

LuckyTop works with the following subcontractors for some production processes: Jingyin Changjing Jinbo Garment Processing Co. (printing process) and Huitai Washing Company (washing process).

JIANGSU LUCKYTOP GARMENT CO., LTD

LuckyTop works with the following subcontractors for some production processes: Jingyin Changjing Jinbo Garment Processing Co. (printing process) and Huitai Washing Company (washing process).

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JIANGYIN CHENGFENG GARMENT FACTORY

Chengfeng is a partner factory of LuckyTop, covering the complete cut-make-trim process for IRIEDAILY jackets and pants, and we have been working with them since 2018. We are producing there together with another FWF member who has the lead for the factory. Chengfeng has a democratically elected workers’ representation and employs mainly local elderly workers who would otherwise have problems finding a job.

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JING QI SHI JIA

The producer Jing Qi Shi Jia is a partner factory of LuckyTop and specialized in the production of bags, wallets, belts and other accessories. We have been producing there since 2016 and this together with another FWF member, where we have the lead regarding FWF issues. As the factory was operating at full factory capacity, there was a change of location to ensure the possibility of expanding the business. After initial difficulties in correctly recording the working hours, a digital fingerprint time recording system was installed. After training all workers, we can now guarantee accurate timekeeping. This factory also has a democratically elected workers’ representation.

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JIANGSU ASIAN SOURCING HEADWEAR MFG. CO., LTD

We have been cooperating with the producer Asian Sourcing since 2009. The producer is specialized in the production of caps. We produce there together with other Fair Wear members from the outdoor sector. In the last two years we had the lead for this factory, but gave it to another FWF member at the beginning of the year. In 2021, two complaints were reported to us through the independent hotline. After following up and addressing the concerns, both cases were closed. In addition, the factory has a democratically elected workers’ representation.

Asian Sourcing works with a subcontractor, Huaian Yuan Tong Headwear MFG CO.LTD., who handles the printing and embroidery process.

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FULIYING GARMENT FACTORY

We have been working with the producer FuLiYing since 2011. Previously, the factory was called YongTai or Yingya. Due to the decline in orders during the pandemic, this producer had difficulties. In order to remain operational, the factory was merged with a local partner and renamed FuLiYing Garment Factory. All employees as well as the management level could thus continue to be employed. After consultation with the FWF, we were able to agree to continue production there. In order to fulfill our duty of care, the factory was audited twice in the same year. At times, the factory has an excessive factory workload. We tried to improve these circumstances by regularly exchanging information and adjusting our workflow. However, as we only make up 5% of the production volume, we only had limited influence on the producer FuLiYing.

For some processes FuLiYing cooperates with subcontractors. Xingda Knitting Company takes care of the embroidery process, Yacai Print Factory the printing process and LiFangDa Embroidering handles embroidery processes.

FULIYING GARMENT FACTORY

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FAIR PAYMENT & LIVING WAGES

Living wages are a MUST if we want to change the apparel industry sustainably. That’s why the issue of fair payment for all workers at our production sites is a top priority.

We can assure that all workers who produce IRIEDAILY articles earn at least the legal minimum wage based on the applicable laws in the respective country of production. For the production in China, we were already able to record the first milestone in the payment of living wages that exceed the legal minimum wage. Thanks to our long-standing and trusting partnership with our producer LuckyTop, we are currently able to pay a living wage for 50% of our production in China. The remaining workers in our production facilities receive at least the legal minimum wage, but usually more.

But what is the difference between minimum wage and living wage? Living wages exceed the minimum wage and ensure that an adequate standard of living is possible for workers and their families. This means that not only basic needs such as food, water and housing are covered, but also that medical care, education, clothing, transportation, savings, etc. can be financed to an appropriate extent.

Calculating the living wage is complex and often difficult due to different company structures and a lack of information. To change this, the Fair Wear Foundation has developed a tool that enables suppliers to calculate a unit price per item that already includes the costs for living wages by entering all values to be calculated. This so-called „fairprice app“ was officially introduced at the end of 2021 and can be used free of charge by all interested parties. Our main supplier is involved in testing the beta version and a further test phase with
another brand is currently underway. If the app proves to be efficient, we are planning to introduce it to other suppliers.

We realize the fair payment of our workers through a special payment at the end of each production phase. By working transparently with this supplier, it is possible to determine exactly what the real wage of each worker for every production phase is, based on the wage slips and attendance lists. We then calculate the difference between this value and our living wage benchmark, which was defined in consultation with the workers. We have chosen to base our definition of a living wage on the internationally recognized Asia Floor Wage. There are various living wage benchmarks for different regions in China, which are based on factors such as the cost of living and a food basket.