Treehouse improves working conditions

Knitwear factory Treehouse in China is a large-scale company that highly values the well-being of its employers. Solidaridad and Treehouse collaborate to improve working conditions and efficiency.

Target

To increase efficiency and productivity and improve working conditions through compliance with the BSCI, and in a later stage continuous improvement towards SA8000 labour standards.

Reason

Working conditions in the Treehouse factory were poor, partly due to inefficient working methods. Ill-treatment of the employees included excessive overtime, low wages, no worker representation, fines and penalties.

Activities

• In 2007, a base scan on working conditions was implemented, which demonstrated the feasibility of improvements.
• An analysis demonstrated the interrelations of social compliance and efficiency/productivity.
• Another analysis demonstrated the interrelations of social compliance and human resources management.

Results

• A worker committee is set up.
• The wage is increased to € 150 per month.
• Working hours are reduced to about 280 hours per month (4 days off per month).
• 100% of the workers now has a labour contract.
• About 40% of the workers received a social insurance coverage.
• No fines and penalties are given.
• Efficiency is enhanced, e.g. auto-knitting machines replaced hand knitting machines.
• Management and worker training programmes are set up.

Facts

Location: sales office in Hong Kong, production facilities in Dongguan, Guangdong Province, China.
Target group: 600 employers.
Annual turnover: € 8,000,000