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