Social Compliance

Project Name: Social Compliance

Project Timeline: 2008 to 2024

Funding Organization(s): Adidas Group (India, Indonesia)

Development Organization(s): Phulki (Bangladesh)

Partnership(s): Adidas Group

Project Goal:

To ensure adherence to labor laws and promote a safe workplace and working environment in Adidas-listed factories.

Project Purpose / Objective:

• To maintain labor law compliance and ensure a standard working environment in Adidas-listed factories.

• To support the development of better working conditions for workers, focusing on their rights, benefits, and overall well-being.

Project Output:

• 18 Adidas-listed factories have been monitored for compliance.

• Currently, Phulki is working with Karnaphuli Shoes Industries Limited in Chittagong Korean EPZ.

• Phulki’s work has gained credibility from global brands, particularly Adidas.

Project Working Areas:

Chittagong Korean EPZ (specifically working with Karnaphuli Shoes Industries Limited).

Short Description:

The project involves regular visits to Adidas-listed factories (twice a month) where Phulki conducts interviews with workers to assess their working environment, legal rights, benefits, and grievances. Any issues identified are promptly addressed with factory management, and corrective actions are discussed with clear deadlines. Phulki submits monthly reports to the Adidas Group to ensure compliance with labor laws and improve the work environment. Additionally, offsite interviews are conducted to ensure the smooth implementation of the project.

Achievement Stories / Case Studies:

Maternity Leave Issue:

Problem: A worker did not receive maternity benefits as required by law.

Solution: Phulki intervened, engaging with the factory management to ensure the worker received the required maternity benefits. The support of the Adidas brand was pivotal in resolving the issue.

Outcome: The factory complied with maternity leave laws, ensuring the worker’s legal rights were honored.

Resignation Pressure Due to Pregnancy:

Problem: A worker was pressured to resign after becoming pregnant.

Solution: Phulki representatives took a strong stance, communicating with management to allow the worker to continue her employment and stay with her baby in the daycare center.

Outcome: The worker’s rights were upheld, and she was able to retain her job without facing any discrimination, thanks to Phulki’s intervention and the support from Adidas.

Overtime Pay for Female Workers:

Problem: Female workers were forced to work until 12 am without receiving overtime (OT) pay.

Solution: Phulki addressed the issue by engaging factory management, explaining the illegality of the practice. The factory management complied with labor laws by providing the unpaid overtime and reducing working hours to the legally permissible limit (8 hours regular + 2 hours OT).

Outcome: Female workers received the overdue OT pay, and working hours were aligned with labor laws, ensuring better work-life balance for workers.

Key Outcomes:

• Improved working conditions in Adidas-listed factories.
• Enhanced compliance with labor laws, benefiting the workforce, especially women workers.
• Increased awareness about workers’ rights, leading to the resolution of grievances effectively.
• Stronger collaboration between Phulki, Adidas, and factory management to foster a safer, more supportive work environment.