Company profile: Odlo International
http://www.odlo.ch/www.odlo.ch
Headquarters: Hünenberg
Country: Switzerland
Founded in: 1946
Total points of sale in Europe: 9 (Mono-Brand-Stores)
Owned by: Inc.
Name of CEO: Odd Lofterod
Product description: Functional sportswear (Underwear, Tec Shirts, Running, Nordic Walking, Outdoor, X-Country clothing)
Countries of production: China (People's Republic of China), India, Korea, South Korea (Republic of Korea), Thailand, Vietnam, Germany, Italy, Portugal, Romania, Switzerland
General remark: n.a.
Odlo International
Brigitte Amherd
Im Bösch 67 6331 Hünenberg ZG
brigitte.amherd(at)odlo.com
Comment from CCC and proposals for action
Odlo would like to improve the working conditions with its mere 20 producers; however, the selected approach has lacked transparency and credibility. During the data acquisition of 2007, Odlo had a highly-insufficient social code and hardly-developed management system to implement the social codes. At the same time, the structure of the supply chain (with its few but long-standing suppliers) would provide ideal conditions for implementing a progressive system as well as introducing an independent verification of the working conditions. Thus, what is hardly understandable is why Odlo has not yet joined a reliable verification initiative. Furthermore, the participation in a verification initiative would have an advantageous synergistic effect. Outcomes from related studies have demonstrated that companies who take part in such initiatives can often learn from others’ experiences quite efficiently.
Take action: Mention to the sales personnel how much you appreciate Odlo joining the FWF ask regularly about what concrete steps towards implementation have been taken.
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
Odlo International has responded to the CCC-questionnaire and has provided some additional documents. The company is in dialogue with some NGOs and/or trade unions. The amount of salaries of the top management is not known. The information given about producer countries and the structure of the supply chain is not comprehensive. There is no sustainability report available. Odlo International 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
Odlo International has adopted a code of conduct that requires compliance with all relevant local labour laws, but does not indicate that where local and international standards are at variance the higher standard should prevail. The code does not include a reference to the Universal Declaration of Human Rights. The code of conduct does not include all provisions from the ILO Core Conventions. These include the right to organise, bargain collectively and prohibit child labour, discrimination, and forced labour. Odlo International’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 that meets the basic needs of workers and their families but does not specify that this is within standard working hours and makes no reference to discretionary income. It is therefore not a living wage. 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*:
- The provision of transitional measures that will be in the interest of the child and of her/his family where child labour is found;
- special provisions for workers under 18 years of age (e.g. education, no night work);
- specific steps to encourage decent working conditions in countries where freedom of association and collective bargaining are restricted by law;
- prohibiting the retention by employers of security deposits or identity papers;
- payment of overtime at a premium rate.
- guaranteeing a living wage during regular working hours without overtime.
- prohibiting physical abuse, threats of physical abuse, unusual punishments or discipline, sexual and other forms of harassment as well as intimidation by the employer.
- ending the the worst forms of child labour with explicit reference to ILO core-convention 182.
Code implementation and purchasing practices
Odlo International did not indicate the steps it is taking to effectively implement minimum labour standards in its supply chain. The company has not disclosed whether its code of conduct has been translated into the languages of any of the countries it is sourcing from. According to the information given Odlo International has no intention to implement the payment of living wages to workers. Odlo International has not shown that it is aware of the fact that part of its production sites are located in countries or zones where freedom of association is not guaranteed by law.
Monitoring and Verification
The company is not a member of any business initiative. There is nothing known to CCC about monitoring results. 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 Odlo International to take responsibility for workers’ rights violations in its supply chain.
Recent developments
Odlo joined the FWF on October 1st 2008 after numerous preliminary talks and, as a preliminary step, will adapt its code as well as define an action plan with concrete measures. Moreover, the topic corporate social responsibility/sustainability was defined as a "strategically important project" in the Odlo business strategy at the start of 2008. In July 2008 Odlo also got involved in a newly-formed international working group which aims to analyze ecological standards. In 2008 the company initiated two projects with an ecological focus ("waste management" and "recycled polyester") and is now interested in launching internal initiatives.