Capacity building is intended to strengthen the knowledge, abilities, skills and behavior of our supplier factory management. PUMA has employed a strategic approach to address issues of non-compliance with our Code of Conduct found among suppliers, implementing top-down as well as bottom-up social and environmental capacity building projects at key points in our supply chain.
Better Work, Fair Wage Network and Freedom of Association Protocol
PUMA has partnered with Fair Wage Network (FWN) and Better Work (BW) as we continue the field testing of projects which aims to explore mechanisms to implement fairer wage structures among PUMA supplier factories.
The Human Resources Management System project with Better Work held in Vietnam and Cambodia also integrated an introduction to the Fair Wage Methodology in its approach. Launched in 2012, the project aims to enhance human resource management systems to help address worker concerns including wage concerns. The beneficiaries of this project were the 16 factories used and, more indirectly, their 30,504 workers.
The Fair Wage Remediation project in Indonesia was started in 2012 and concluded in early 2014. Initial results showed that all factories that participated benefited from more stable wage structures that helped stabilize social dialogue in the facilities, resulting in peaceful and constructive wage discussions between factory employees and management that do not disrupt factory operations despite ongoing industrial unrest in the rest of the region. A review of results is ongoing.
PUMA remains active in the leading edge Freedom of Association Protocol in Indonesia, serving on the National Committee to oversee the continued growth of more mature industrial relations within its supply chain. Discussion is underway to use the experience as a model for other industries, as only wide-reaching peaceful relations can ensure a stable manufacturing environment.
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