Campax launches petition – now On opposes: “We pay well above the legal minimum”

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The beginning of 2024 was not pleasant for Swiss sneaker brand On. First, margins were revealed, showing how little On paid to manufacturers in Vietnam while customers paid high prices for shoes.

Shortly afterwards, the Swiss Enforcement Organization condemned the use of the Swiss cross on shoes.

Now more problems threaten. Claiming to be “Switzerland’s largest citizens’ movement”, Campax submitted a petition to the On administration. Demand: Pay equity and transparency in On’s production chain.

“77 percent above the minimum wage”

Campax’s accusation: According to Public Eye, the “living wage” On pays shoe manufacturers in Vietnam ranges from 120 to 170 francs a month.

Ten has not reported these charges to date. Responding to Blick’s question, On spokesperson Alexandra Bini explains: “Contrary to recent media reports, our main Vietnamese suppliers paid their employees an average of 40 percent more last year, well above the legal minimum.” When special social benefits and overtime wages are taken into account, this rate increases to 77 percent.

In addition, suppliers – there are about 15 companies for On in Vietnam alone – will have to comply with a special code of conduct aimed at ensuring economic security for workers in the supply chain.

Salary of approximately 205 francs

There are no numbers more precise than ten. However, a salary picture can still be created: Vietnam has different minimum salaries depending on the workplace. These range from 3.25 million dong (about 116 francs) in Region IV to 4.68 million dong (167 francs) in Region I. The average is equivalent to approximately 147 francs.

If you add 40 percent to this, you get a salary of around 205 francs. You get 77 percent plus 260 francs.

But: is this enough? The average monthly wage in Vietnam is around 620 francs. It’s a good thing to experience this. Campax proposes a reference value of around 450 francs per month as a fair wage for producers, based on recommendations from the Asian Floor Wage Alliance. The fees are far from that.

After all: Starting from July 1, 2024, minimum wages in Vietnam will be increased by 6 percent. Ten would have to do the same.

Bosses earn a thousand times more

Even if the Ten pay better than is often depicted, wages in Vietnam stand in stark contrast to what the five-man On administration paid themselves in 2021: 83.6 million francs. Or, as Campax calculated, about 7,600 times more per day than workers in factories in Vietnam.

Therefore, On should implement “social sustainability” and underline this with wage transparency in Vietnam. In less than a day, the Campax petition reached almost 4,400 signatures.

Source :Blick