Company profile: Charles Vögele Trading AG
Headquarters: Pfäffikon SZ
Country: Switzerland
Founded in: 1955
Total points of sale in Europe: 809
Owned by: Public company (share holders)
Name of CEO: Andre Maeder
Product description: n.a.
Countries of production: Asia, Europe
General remark: It is the company's strategy to grow in Eastern Europe.
Charles Vögele Trading AG
Gwattstr. 15
8808 Pfäffikon
info(at)voegele-mode.com
Comments CCC and proposals for action
Charles Vögele Trading AG places emphasis on the 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, Vögele does not allow its factories to be verified by an independent, and therefore credible, multi-stakeholder initiative (MSI).Within one year, of the nearly 400 producers, only three factories were classified as “good” after the implementation of corrective measures. A classification of “good” should not carry too much weight, however, when considering the low-standards of the BSCI and the lack of independent verification. Vögele motivates its suppliers through the payment of a living wage. It is unclear, though, which producers really pay a living wage and whether Vögele allows the suppliers to do so through the adjustment of its purchasing politics. Furthermore, the factory workers are expected to submit their complaints to the central office in Switzerland while it has often been shown that an adequate complaint instrument does not exist (one reason, among many, being that many workers cannot write). For both of these aspects, the Fair Wear Foundation (FWF) already has a solution.Take action: Express your misgivings to Vögele about the BSCI membership and express your desire for independent verification standards. In each branch, ask for products produced from fair trade or organic-certified cotton.
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
The company works with civil society on corporate accountability issues and is in regular dialogue with NGOs and/or trade unions, including the CCC. Some information is disclosed about turnover and profits. The amount of salaries of the top management is known. Some information is given about producer countries and the structure of the supply chain. There is no sustainability report available. Charles Vögele Trading AG 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
Charles Vögele Trading AG 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 accordance with ILO Core Conventions. These include the right to organise and bargain collectively and prohibit child labour, discrimination, and forced labour. The company does not make the code mandatory for all workplaces where its products are made. Charles Vögele Trading AG’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
Charles Vögele Trading AG 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 some of the languages of the countries the company is sourcing from; every buying contract states the obligation for the supplier to comply with the code. Charles Vögele Trading AG provides some ideas about what constitutes a living wage in the different producing countries, but has no credible methodology for achieving it. According to the information available, some of the production sites are in countries or zones where freedom of association is not guaranteed by law. Charles Vögele Trading AG 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.
Monitoring and Verification
As a member of BSCI, the company has audited 40 suppliers within one year. The company is not involved in independent verification by a multi-stakeholder approach. The monitoring process includes consultation of local stakeholders.
Violations of labour rights and public conflicts
There are no public urgent appeals from CCC calling on Charles Vögele Trading AG to take responsibility for workers’ rights violations in its supply chain.
Recent developments
In 2008, Vögele launched a test assortment of organic cotton, which will be expanded in 2009. In addition, the CSR post in Switzerland has been slightly upgraded and since November 2007, there is a Vögele representative for CSR-related questions in Shanghai and Hong Kong. Recently Vögele has begun sending teams to its companies, as needed, to assist in implementing the plan and corrective measures in accordance to a BSCI audit. The costs associated with this process are covered by Vögele. From fall 2008 onward, Vögele will work with the company WethicA to implement individual qualification measures in China. Although these steps show good will and initiative, the commitment so far has taken place primarily within the context of the BSCI.