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Production in china
under the flag of the fair wear foundation
We started producing the first IRIEDAILY styles in Portugal more than 25 years ago. After the brand grew steadily and the production volume increased further, we decided to outsource part of the production to China more than 10 years ago. This was a big step, but it also brought with it a major challenge. Politically, China is still a critical country, but fortunately we are seeing rapid changes and growth - also in terms of social issues, environmental protection and the associated regulations. We therefore have confidence in our Chinese producers. We are aware that we have to do our part if we want to make a difference in the clothing industry. That is why we are constantly working with the Fair Wear Foundation to improve working conditions on the ground.
With around 54% of production volume, China is now our top-selling production country, where we work with the following producers:
In some of our Chinese production sites, we have the "lead" in connection with Fair Wear matters. Since not only we produce in the factories, but also other Fair Wear members, one brand is appointed to take the lead for the factory. This means that the producer does not have to provide multiple documentation for different FWF members. This means that the selected brand takes care of the FWF communication and handling of community issues on behalf of all the others.
JIANGSU LUCKYTOP GARMENT CO., LTD
Since 2008, we have been working with the Chinese manufacturer LuckyTop, which produces jackets and pants for us. Around 50% of our styles from China are produced in LuckyTop's main factory. We produce there together with another FWF member, whereby we have the lead in communication. The factory has a democratically elected workers' representation and has also been audited by BSCI and GOTS in addition to the FWF audits.
LuckyTop works with the following suppliers for some production processes: Jingyin Changjing Jinbo Garment Processing Co. (printing process) and Huitai Washing Company (washing process).
JIANGYIN CHENGFENG GARMENT FACTORY
Chengfeng is a partner factory of LuckyTop, which covers the complete cut-make-trim area for IRIEDAILY jackets and pants and with whom we have been working since 2018. We produce there together with another FWF member who has the lead for the factory. Chengfeng has a democratically elected workers' representation and employs mainly local older workers who would otherwise have problems finding a job.
For the washing process, this producer works together with the supplier Huitai Washing Company.
JING QI SHI JIA
The producer Jing Qi Shi Jia is a partner factory of LuckyTop and specializes in the production of bags, purses, belts and other accessories. We have been producing there since 2016, together with another FWF member, whereby we have the lead with regard to FWF matters. As the factory was operating at full capacity, there was a change of location to ensure the possibility of expanding the company. After initial difficulties in correctly recording 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' representative body.
ASI GLOBAL LIMITED
We have been working with the producer Asi Global Limited, formerly Asian Sourcing, since 2009. The producer specializes in the manufacture of hats. We produce there together with other Fair Wear members from the outdoor sector. We have had the lead for this factory for the last two years, but handed it over to another FWF member at the beginning of the year. In 2021, two complaints were reported to us via the independent hotline. After following up and processing the concerns, both cases were closed. The factory also has a democratically elected workers' representative body.
ASI Global Limited works together with the supplier Huaian Yuan Tong Headwear MFG CO.LTD., which handles the printing and embroidery process.
DONGGUAN WANHUITU KNITTING
We have been working with the producer WanHuiTu since 2022. Due to our exit strategy with the supplier FuLiYing, we had to take early action to replace our knitwear production. We therefore audited the producer around a year before we place large orders with them in order to have enough time to take corrective measures. Our main focus is now on eliminating excessive overtime. Our ability to change this is still limited, but we will work to make progress with this supplier.
FAIR PAYMENT & LIVING WAGES
Living wages are a MUST if we want to bring about sustainable change in the clothing industry. That is why the issue of fair pay for all workers at our production sites is a top priority.
We can assure you that all workers who produce IRIEDAILY items earn the statutory minimum wage based on the applicable laws in the respective country of production. For production in China, we have already achieved the first milestone in paying living wages that exceed the statutory 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 statutory minimum wage, but usually more.
But what is the difference between the minimum wage and a living wage? Living wages go beyond the minimum wage and ensure that a decent 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 that medical care, education, clothing, transportation, reserves, etc. can also 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 producers to calculate a unit price per item that already includes the cost of living wages by entering all the values to be calculated. This so-called "fairprice app" was officially launched at the end of 2021 and can be used free of charge by all interested parties. Our main producer LuckyTop was involved in testing the beta version and a further test phase with another brand is currently underway. If the use proves to be beneficial for our supplier and us, we are planning to use it with other of our producers.
We ensure that our workers are paid fairly by making a special payment at the end of each production phase. Thanks to the transparent cooperation with our supplier LuckyTop, it is possible to determine exactly how high the real wage of the individual workers is for each production cycle based on the pay slips and attendance lists. We then determine 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.
