Branded Logistics, LLC (“DBA Fan Brander”) Fair Compensation Statement
DEFINING FAIR COMPENSATION
The United Nations’ International Labor Organization has declared living wages as a basic human right. A living wage allows workers the ability to earn enough to cover the basic needs for their families and provide for some discretionary income. In its work on living wages, the Fair Labor Association (FLA) leverages the term “fair compensation” to incorporate in-kind benefits contributing to the realization of a living wage.
Despite the FLA’s expectation that workers have access to fair compensation, the calculation and realization implementation of fair compensation in global supply chains is challenging. Wage levels are set by factories based on a myriad of factors, including economic circumstances, cost of living, national and provincial laws, workforce supply and skill set, supplier productivity levels and competitiveness, the recognition of and ability for workers to organize and negotiate, and brand customer planning and purchasing practices.
At Branded Logistics, LLC, our vision is that all workers in our supply chain are compensated fairly. The Branded Logistics, LLC Workplace Code of Conduct outlines this vision clearly and provides detailed workplace benchmarks for our suppliers, inclusive of our compensation requirement: “…Where compensation does not meet workers’ basic needs and provide some discretionary income, each Supplier shall work with Branded Logistics, LLC and the FLA to take appropriate actions that seek to progressively realize a level of compensation that does.” Branded Logistics, LLC is committed to working collaboratively with key stakeholders to implement this vision. While Branded Logistics, LLC is proud of our commitment to ensure fair compensation is realized in our global supply chain, we are keenly aware of the journey ahead to operationalize this vision. Below we outline our foundational accomplishments to date; we look forward to providing updates on our ongoing efforts in this space.
BENCHMARKING FAIR COMPENSATION
As an FLA Accredited Company, Branded Logistics, LLC has worked for several years to align its standards and labor programming with global standards on fair compensation. In 2016, Branded Logistics, LLC updated our Workplace Code of Conduct language to include key provisions on fair compensation. This language ensures supplier compensation schemes meet both a workers’ needs (nutrition, healthcare, shelter, transportation, clothing) and the needs of their dependents, as well as providing for some discretionary income. As part of our fair compensation commitment, Branded Logistics, LLC also adopted the Global Living Wage Coalition’s (GLWC) methodology and benchmarks (where available) as the key indicator to determine whether workers employed by given supplier are earning a living wage.
SUPPLIER WAGE DATA ANALYSIS
Since 2019, Branded Logistics, LLC has deployed the FLA Wage Data Collection tool to a sample of our suppliers to secure data on present-day compensation for workers in our supply chain. Branded Logistics, LLC also leverages the FLA’s Fair Compensation Dashboard to evaluate the compensation data against key minimum wage and fair compensation benchmarks, to understand and prioritize the areas of greatest need and visualize progress made in closing any compensation gaps.
OUR APPROACH
In 2020, Branded Logistics, LLC developed a Fair Compensation Strategy which provides a multi-year roadmap that focuses on our efforts and reports on our progress. The strategy outlines six key levers through which Branded Logistics, LLC will work to positively impact fair compensation levels in our global supply chain.
Legal Obligations
In accordance with our Workplace Code of Conduct, Branded Logistics, LLC suppliers are required to pay at least the minimum wage or the appropriate prevailing wage – whichever is higher – comply with all legal requirements on wages, and provide any fringe benefits required by law or contract. Branded Logistics, LLC monitors Tier 1 cut, sew, and embellishment suppliers on an annual basis via a third party to determine supplier minimum/prevailing wage compliance. Upon the identification of any violations of legally mandated compensation, Branded Logistics, LLC works with the supplier to ensure the violation is remedied, and a management system is developed to prevent reoccurrence.
Responsible Planning and Purchasing
A core component of Branded Logistics, LLC’ Fair Compensation strategy is our commitment to Responsible Planning and Purchasing (RPP), which recognizes the role brand purchasing practices can play in impacting working conditions on the factory floor. In fact, the industry now recognizes that improvement in brand customer planning and purchasing practices can support progress in worker wage levels at the supplier level. Through Branded Logistics, LLC’ Accreditation process with the FLA, we have received meaningful feedback on our RPP practices, and continue to employ these insights to in partnership with our. Improvement in RPP practices serves as a major leverage point for Branded Logistics, LLC to support its suppliers in realizing fair compensation for workers.
Productivity Gains
Across the industry, production inefficiencies have been found to cause both overtime premium and minimum wage violations by factories, among other compensation issues. Branded Logistics, LLC supports productivity initiatives and supplier management systems improvements to generate efficiencies.
Supplier Compensation Management Systems
As part of our Fair Compensation Strategy, Branded Logistics, LLC works closely to train our suppliers on devising compensation management systems that attract, reward, and retain their workforce.
Government Engagement Channels
The United Nations has made clear the role of Governments both to protect and uphold human rights, including the right to a living wage. Governments are a key stakeholder in realizing fair compensation for workers in global supply chains. Through Branded Logistics, LLC’ affiliation with multi-stakeholder organizations such as the FLA and Better Work, Branded Logistics, LLC strives to support constructive engagement with governments in countries of manufacture where wage levels are not aligned with fair compensation benchmarks.
Industrial Relations and Social Dialogue
Where government-set minimum wage levels do not meet basic needs and provide for discretionary income, it is important for bi-partite social dialogue structures to exist for suppliers and their workers to align on how to progressively close the gap. Through Branded Logistics, LLC’ Better Work Partnership, suppliers in participating countries will work to strengthen these dialogue structures. Through our multi-year strategy, Branded Logistics, LLC will continue to encourage constructive social dialogue with all its supplier partners, as well as train suppliers on best practices identified in incorporating unions and worker representative structures into fair compensation benchmarking and dialogue efforts. Such engagement also includes regular consultation with civil society organizations (CSOs) on worker rights programming.
Branded Logistics and dba FanBrander Code of Conduct
Our Company’s Commitment To Ethical And Responsible Conduct
Our Company believes we must meet the highest ethical expectations of our customers and consumers. To that end, we have adopted standards for the quality and safety of the products we sell, and we are committed to assuring that our manufacturing processes respect the rights of individuals and protect the environment.
We work to assure compliance with all applicable laws, and conduct business in an ethical, responsible manner. We expect the same commitment from all businesses that provide us products as primary manufacturers or component subcontractors. We expect those Suppliers to document procedures and keep records which ensure continual compliance and upon mutual agreement will open their factories and records for audits by our company’s staff or qualified third-party organizations.
- Product Safety
Compliance With Laws and Standards. We comply with all applicable laws and regulations regarding safety of products we sell. Where feasible and appropriate, we will meet applicable voluntary industry standards for our products and processes.
- Product Quality
Expectations Consistently Met. We support and expect manufacturing processes that ensure consistently met expectations of agreed-upon product quality and functionality.
- Social Compliance
No Abuse Of Labor. We will not use any form of forced labor, including indentured, prison, bonded, or slave labor. Physical abuse, the threat of physical abuse, sexual or other harassment, verbal abuse, or other forms of intimidation is prohibited.
Inclusion Diversity, Equality, Advocacy- IDEA isn’t just about race or gender, it’s about what you can and can’t see: race, ethnicity, gender or gender identity, age, religion, sexual orientation, family status, educational background, culture, experiences, veteran status, physical abilities, physical appearance, neurodiversity, and more.
Employment Relationship. Employees are free to end employment at their discretion.
No Child Labor. We comply with the minimum ages defined by ILO Conventions on child labor, or applicable laws and regulations if they specify to a higher age requirement.
Freedom Of Association: We respect the rights of employees to associate or organize without fear of reprisal or interference. If employees are represented by an organization recognized under law, we respect the right to bargain collectively.
No Discrimination. We do not discriminate in employment hiring practices on the basis of age, nationality, race, religion, social status, ethnic origin, gender, sexual orientation, political affiliation, marital status, disability, or other protected class as determined by local law.
Hours And Wages. We do not require workers to work more than the regular and overtime hours allowed by the law of the country where the workers are employed. All overtime work shall be consensual. Employers shall compensate all overtime work at a premium rate
Workplace Conditions. We provide a safe, healthy, and secure workplace. We abide by all applicable laws and regulations for safety and health.
- Environmental Sustainability
Minimizing Adverse Impact. We abide by all applicable environmental laws and regulations. We manage our environmental footprint to minimize the adverse impact on the environment. We manage our production processes, energy and water usage, and waste systems for maximum efficiency and minimal adverse impact on the environment.
- Supply Chain Security
Product Security Through Delivery. We and our Suppliers implement procedures that ensure products have not been changed or tampered with from shipping point through delivery.
Ethical Behavior. Our suppliers are expected to conduct their business in accordance with the highest ethical standards and strictly comply with all laws and regulations on bribery, corruption and prohibited business practices. No money, assets, gifts, fees, bribes or compensation of any kind may be given to our employees or our affiliates’ employees in an attempt to unduly influence such person’s decision making abilities.
Our Company’s Commitment To These Business Principles
Our adoption of this Commitment to Ethical and Responsible Conduct Policy expresses our sincere commitment to the principles expressed. It is our guide to conducting our business decisions and relationships. However, by adoption and application of these business philosophies, we do not waive and expressly reserve all our rights granted us under applicable law.
Branded Logistics appreciates the diversity of our own workforce as well as that of our manufacturers and believes this is a key factor to our success.To that end, Branded Logistics is dedicated to providing an equal opportunity for all.
Part of any successful and responsible business includes the environment in which people work. The business must value an environment that includes the following:
Respect for all individuals
Ethical and responsible conduct in all business endeavors and operations
Safe and healthy work conditions
Fair and lawful employment and compensation practices
Branded Logistics has an unwavering commitment to our core purposes and values. Branded Logistics makes decisions based on our values and the Code of Ethical Conduct reflecting those values.
Branded Logistics expects these same commitments to be shared by all manufacturers of Branded Logistics product.
At a minimum, we require the following standards from all our manufacturers:
Child Labor: The manufacturer will not use child labor; this includes any person younger than 15 years of age (14 years in countries where this is the legal minimum age). The manufacturer will be in compliance with any and all local, province, state or national regulations and where local standards are higher, no person under the legal minimum age will be employed.
Forced Labor: The manufacturer will not use forced or involuntary labor, whether prison, bonded, indentured or otherwise.
Employment Practices: The manufacturer will not discriminate against any person concerning recruitment, hiring, training, promotion, compensation, benefits and social or recreational programs on the basis of race, color, religion, sex, national origin, ancestry, age or disability. The manufacturer will treat all employees with dignity and respect. No employee will be subjected to any physical, verbal, sexual or psychological harassment or abuse.
Association: The manufacturer will recognize and respect employees’ right to free association and their right to organize and collectively bargain in a lawful and peaceful manner.
Harassment or Abuse: Every employee shall be treated with respect and dignity. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse.
Health and Safety: The manufacturer will provide a safe and healthy work environment to protect against work-related accidents and injuries. The manufacturer will be in compliance with any and all local, province, state or national regulations and laws concerning health and safety workplace standards, including access to potable water and sanitary facilities. Where applicable, these same standards will also apply to any housing for employees provided by the manufacturer.
Compensation: The manufacturer will comply with any and all local, province, state or national wage and hour laws and regulations including those related to minimum wage, overtime, maximum hours worked, piece rates, and any other elements of compensation. The manufacturer will provide each employee with a clear, written accounting of his/her hours of work and pay for each pay period. The manufacturer will provide all legally required benefits to employees. Except in extraordinary business circumstances, employees will be entitled to at least one day off in every seven-day period.
Monitoring: The manufacturer agrees to submit to labor practice audits or inspections with or without prior notice in order to insure compliance to this Code of Conduct
Hours of Work: Except in extraordinary business circumstances, employees shall (i) not be required to work more than the lesser of (a) 48 hours per week and 12 hours overtime or (b) the limits on regular and overtime hours allowed by the law of the country of manufacture or, where the laws of such country do not limit the hours of work, the regular work week in such country plus 12 hours overtime and (ii) be entitled to at least one day off in every seven day period.
Overtime Compensation: In addition to their compensation for regular hours of work, employees shall be compensated for overtime hours at such premium rate as is legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate at least equal to their regular hourly compensation rate.
Subcontracting: The manufacturer is required to obtain written approval from Branded Logistics before utilizing any subcontractors. If permission is granted, subcontracting company must agree to this compliance manual.
Other Laws: The manufacturer will comply with any and all local, province, state or national regulations or laws, or voluntary industry standards, including those pertaining to the manufacture, pricing, sale, and distribution of products.
Publication: The manufacturer will take appropriate steps to ensure that the details of this Code of Conduct are communicated to employees, including a prominent posting at all times of this Code of Conduct in the local language.
Branded Logistics (Licensed as “Branded Logistics, LLC”) reserves the right to terminate any relationship in which these standards are not being upheld.
For more information please visit the Fair Labor Association Website