Company profile: Calida
Headquarters: Sursee
Country: Switzerland
Founded in: 1941
Total points of sale in Europe: n.a.
Owned by: The company is quoted on the stock market
Name of CEO: Felix Sulzberger
Product description: women's-, men's-, children's underwear, nightwear and loungewear
Countries of production: China (People's Republic of China), India, Turkey, Croatia, Czech Republic, Hungary, Italy, Poland, Portugal, Slovenia
General remark: n.a.
Calida
Albert Brunner
Industrie Münigen Postfach 6210 Sursee
info(at)calida.com
Comment from CCC and proposals for action
Calida places too much emphasis on risk-oriented business initiative BSCI (Business Social Compliance Initiative) where maintaining the company’s reputation is at the forefront. The BSCI alone is not a sufficient instrument to solve the central problems of the workers in the textile chain. The BSCI admits that their approach to auditing companies often does not uncover more "subtle" offences such as the freedom of assembly. Nevertheless, Calida does not allow its factories to be verified by an independent, and therefore credible, multi-stakeholder initiative (MSI). According to information provided by Calida, of the eleven direct suppliers in the high-risk countries, one factory was SA8000 certified. BSCI audits were conducted for 90 percent of the commodities in the high-risk countries. Calida works neither with organic nor with fair trade cotton. The company is exclusively set on the material-oriented environmental textile standard 100. What is also positive is that Calida strives for a long-term relationship with its suppliers, which according to Calida, applies to 95 percent of the companies. For this reason it is not clear why Calida has not yet joined a credible regulatory multi-stakeholder initiative like the Fair Wear Foundation (FWF).
Take action: Share your desire for fair trade and organic cotton with the sales personnel and express your misgivings about BSCI’s approach. Encourage Calida to join the Fair Wear Foundation (FWF).
The following evaluation of the company’s performance in terms of transparency, code implementation and monitoring of labour standards is based on the company’s response to the questionnaire from the CCC and on an additional desk study conducted by the CCC in 2007. In the section “Recent developments” you can find additional information gathered after 2007.
Transparency
Calida has responded to the CCC-questionnaire and has provided some additional documents. The company is in dialogue with some NGOs and/or trade unions. Some information is disclosed about turnover and profits. The amount of salaries of the top management is not known. Some information is given about producer countries and the structure of the supply chain. There is no sustainability report available. Calida provides neither the results of factory audits nor information about verification activities. The company does not disclose general targets for future monitoring activities.
Formal commitment to labour standards
Calida has adopted a code of conduct that includes a reference to the Universal Declaration of Human Rights and requires compliances with all relevant local labour laws. The code also indicates that where local and international standards are at variance the higher standard should prevail. The company is formally committed to respecting minimum labour standards in all workplaces where their products are made, in accordance with ILO Core Conventions. These include the right to organise and bargain collectively and prohibit child labour, discrimination, and forced labour. Calida’s code of conduct does not apply to all workers affected by labour practices for which the company has some measure of responsibility. Beyond the ILO Core Conventions, the company is committed to workers’ right to earn a wage for standard working hours that meets the basic needs of workers and their families but does not provide a discretionary income. It is therefore not a living wage. Overtime is stipulated to be occasional only and is paid at a premium rate. The company’s code calls for a safe and hygienic environment for the workers who produce its garments and/or sportswear. The company does not explicitly require that all workers receive a regular employment contract. Beyond the labour standards mentioned above, the company code is not precise enough on some specific issues. It does not state its commitment in relation to*:
- guaranteeing a living wage during regular working hours without overtime.
Code implementation and purchasing practices
Calida did not indicate the steps it is taking to effectively implement minimum labour standards in its supply chain. The code of conduct is translated into most of the languages of the countries the company is sourcing from. Calida agrees to pay a living wage, but does not document its calculations. According to the information available, over 80 percent of the production sites are in countries or zones where freedom of association is guaranteed by law. Calida takes, to some extent, the impact of its own purchasing practices into account. It has established some procedures which show how to improve planning and prevent excessive overtime. There are no provisions to give buyers positive incentives to reward better working conditions.
Monitoring and Verification
As a member of BSCI, the company has audited 8 factories signed the CoC, 2 new suppliers will do this in the next 2 months List of auditing teams: 1 company = SA800 1 BSCI Audit = done 1 BSCI Audit = running 3 - 4 audits will start in the next 2 - 7 months suppliers within one year. Calida did not provide any information on corrective steps for the remediation of labour rights violations in its supply chain. The company is not involved in independent verification by a multi-stakeholder approach.
Violations of labour rights and public conflicts
There are no public urgent appeals from CCC calling on Calida to take responsibility for workers’ rights violations in its supply chain.
Recent developments
In August 2008 the company announced that the current environmental and sustainability standards were being revised internally.