Fast Retailing Co., the parent company of Japanese apparel retailer Uniqlo, said two of its key Chinese suppliers are cutting working hours following a report revealing poor working conditions and labor violations at the factories.
Dongguan Tomwell Garment Co. has reduced its production workers' working hours, while Pacific Textiles Ltd. gave workers one holiday a week and will establish a system which will allow them to keep up production volumes with shorter working hours, the company said in a statement.
The latest efforts from Asia's biggest clothing chain came in response to criticism levied against the two China factories by the Students and Scholars Against Corporate Misbehavior (SACOM), a Hongkong-based advocacy group which lobbies for workers' rights.
In their Jan. 11 report the group raised several issues such as having the employees work excessive hours in unsafe conditions, including high temperatures in both facilities, poor ventilation, and dirty sewage flowing on the floor.
Apart from cutting working hours, Fast Retailing said there are other steps being undertaken. These include implementing temperature and air quality checks, ending of a system of fines, and training on labor rights for employees who are not represented by unions.
Fast Retailing also said it would begin scrutinizing textile suppliers for compliance with the company standards for working conditions, as well as conduct more unannounced audits at the garment-supply level.
Yukihiro Nitta, the executive who handles corporate social responsibility initiatives for the company, said it would set up a hotline for textile employees to call with pressing concerns or complaints, Reuters stated. The company would also increase the number of audits and off-site interviews of workers.
"We know that workers can't always give an honest account in interviews on the factory floor," Nitta said.
Fast Retailing, which is listed on the Tokyo Stock Exchange, increased 0.5 percent to 43,705 yen at the end of Tokyo trading. Meanwhile, benchmark Topix rose 1.4 percent, according to the Business of Fashion.