How we work step by step within our chain to close the gap between current wages and a living wage.
At Kessels B.V. we believe that responsible business conduct goes beyond simply supplying quality products. As a textile importer with a small team (five people, including the CEO), we feel involved in the conditions under which our products are made. That is why we actively focus on living wages within our supply chain. This forms an important part of our CSR policy and our efforts within Green Button and other sustainability guidelines.
We understand that the difference between current wages and a living wage in production countries such as Pakistan and China is not easy to resolve. Factors such as inflation, economic conditions and international price pressure play a major role. At the same time, we believe that even a small organisation can make an impact through fair cooperation, transparency and long-term relationships with suppliers.
Kessels B.V. considers it important that workers in our supply chain receive sufficient income to provide for their basic needs. This includes the cost of food, housing, healthcare, education, transport and other necessary expenses, including a limited financial reserve. We see it as our responsibility to work step by step, together with our manufacturers, on improvements in wage structures and working conditions.
Although as a small company we have limited direct influence within the international textile chain, we believe that every positive contribution can make a difference. That is why we focus on long-term cooperation, open communication, fair purchasing practices and transparency within the chain. We are convinced that sustainable improvements are only possible where there is mutual trust and continuity.
Kessels B.V. consists of five employees, including the Managing Director. Ultimate responsibility for sustainability, living wages and the policy around Green Button lies with management, in cooperation with the purchasing department. Due to our small-scale organisation, communication lines are short, which means policy adjustments can be implemented quickly and topics around living wages can be discussed directly with suppliers.
In selecting and assessing suppliers we look not only at price, quality and delivery times, but also at social conditions and terms of employment. We consider it important to choose suppliers who are open to cooperation and improvement in the social field. Changes, malpractices and/or other important matters concerning our manufacturers are communicated monthly via an internal e-mail on the state of affairs, or during a meeting.
To gain insight into the situation at our suppliers we use various sources of information. Our most important source is direct communication with manufacturers, and with indirect suppliers via the agent. Through factory visits, conversations with suppliers, their visits to our office and regularly receiving payslips, we are able to actively discuss and monitor the subject of living wages. Transparency from both direct and indirect suppliers is essential to us in this respect.
In addition, we use BSCI audits, publicly available information and data from sources including WageIndicator (Anker methodology). We have also carried out a wage gap analysis for Pakistan and China. These analyses show that a considerable gap still exists between current wages and a living wage, particularly in Pakistan. Due to high inflation in many production countries, this gap has widened further in recent years.
We use this information to better understand wage developments, to make areas for improvement discussable and to look at possible improvements together with suppliers. We also check whether wage developments are proportionate to, for example, growth in production capacity and turnover. Because as a small company we are largely dependent on the information suppliers provide, we consider mutual trust and open communication to be of great importance.
We understand that our purchasing practices affect suppliers’ ability to raise wages and offer good working conditions. That is why we strive for responsible purchasing and sustainable partnerships. By way of example, wherever possible we will always negotiate as little as possible on price. This is particularly important in Pakistan, given the wage gap analysis we carried out, which showed that the gap in Pakistan is large.
We consider it important to gain insight into how prices are built up, including the share relating to labour costs. We also expect openness from suppliers when wages or working conditions are under pressure. During negotiations we try to make agreements in a fair manner, without exerting unnecessary pressure on suppliers. We also aim to pay on time so that suppliers have sufficient financial room to pay wages promptly.
Kessels B.V. strives for long-term relationships with manufacturers. We believe that continuity gives suppliers more certainty to invest in staff and improvements within their organisation. In addition, we try to agree stable orders and realistic planning, so that unnecessary workload, overtime and last-minute changes are avoided as much as possible.
As a small player within the international textile sector, our direct options are limited. That is why we believe above all in cooperation, dialogue and a step-by-step approach towards improvement.
In the event of complaints regarding remuneration, stakeholders can contact us in accordance with the complaints procedure. Contact can be made by e-mail (info@kesselstextiles.nl) or by telephone with the Managing Director, Mr F. Kessels (+31 (0)35 533 5000). Reports and complaints about wages are analysed in order to identify any structural risks or shortcomings and are taken into account in the annual supplier discussions. Where possible, appropriate remedial measures are taken, such as correction or back payment of wages.
We consider it important that workers are able to make their voices heard within the organisation where they work. That is why we encourage suppliers to support open communication with workers and to pay attention to worker representation and labour rights.
In addition, we consider it important that any wage increases do not lead to redundancies or an increased workload. We also discuss this subject during evaluations with suppliers. We expect manufacturers to remain in consultation with workers and any workers’ organisations within their company.
Kessels B.V. sees achieving living wages as a long-term process requiring cooperation between suppliers, brands, governments and other parties. That is why we continue to focus on periodically monitoring the wage gap and discussing living wages and working conditions with suppliers.
We request payslips annually in order to follow developments and schedule an annual evaluation moment with suppliers, for example during a visit to the factory or via an online meeting. During this we discuss progress, possible bottlenecks and any improvement plans.
The wage gap analysis identifies the suppliers in Pakistan as high risk. In the coming years we will focus specifically on the following for this country:
Kessels B.V. remains committed to taking its responsibility within the supply chain seriously and to contributing step by step to better working conditions and living wages.