Overtime was reduced in all factories that took part in a three-year
project conducted among the Chinese partners of western companies by
Impactt, the international ethical consultancy specializing in supply
chains.
The number of workers’ days off increased and, although this change was
not wholly consistent with Chinese law, it was a starting point for
more improvements.
Impactt’s Overtime Project involved labour-intensive manufacturers of
garments, beauty products, furniture and accessory products in
Guangdong province, Hangzhou and Xiamen supplying 11 companies – Body
Shop International, Debenhams, Hennes & Mauritz, Ikea, Kingfisher,
Lambert Howarth, Marks & Spencer, Next, New Look, Pentland/Ellesse
and Sainsbury.
In its report, just released, Impactt emphasizes that part of the process
was improving quality management, and the result was a 25 per cent reduction in
the number of orders sent back by buyers for re-working. One factory achieved a productivity
increase of 190 per cent.
The achievements were reflected in pay. When productivity rose and
hours were cut, pay at least remained static but in most cases
increased.
Impactt found a big factor in teh success was the switch from punitive measures such
as fines to incentives, including quality bonuses and loyalty payments.
However, communication was an area in which little progress was
achieved. At the end of the project workers had hardly any way of
putting their concerns to management and said they felt uncomfortable
doing so.
