Honest Work

Sustainable fashion is built on a few key pillars. For most people, when they think of sustainability, the first things that come to mind are usually a low carbon footprint and recycled materials, both of which are, of course, very important. But for us, another equally important pillar is ensuring ethical and fair working conditions in the making of our clothes.

Everyone in our supply chain deserves to be treated with respect and valued for the work they do. While this may sound obvious, we take it seriously by doing our due diligence to ensure that working conditions in our partner factories truly meet our standards.

Our suppliers' factories are audited for social standards on the work floor, covering areas such as fair pay, worker safety, and non-discrimination. On top of that, we regularly check in with factory management ourselves and provide consulting on social issues to help create space for continuous improvement.

We’re proud to say that the factories we work with are currently rated as having sufficient to good working standards and we are committed to supporting them to improve even further.

All workers are paid at least a living wage, and no indentured or child labour takes place in any of the facilities. In addition, policies are in place to ensure that if any issues arise, they are identified and resolved as quickly as possible.

Compensation | Workers' Rights 
Discrimination | Worker Representation | Health & Safety | Checks & Balances 

 

Compensation

1. How much does a worker in one of our factories get paid? 

2. Does everyone receive a living wage?

These are the two most common questions we get about wages in the factories where Honest Basics products are made. To answer them simply: yes, everyone in our partner factories are paid at least a living wage, and in many cases more.

Reality, however, is rarely so black and white. To answer these questions properly, a bit of context is needed.

1. How much does a worker in one of our factories get paid? The truth is, there isn't one single answer. Factories employ people in many different roles, each with different levels of responsibility and skill, and therefore different pay. For instance, a seamstress in the sample room will be compensated differently from a line manager or someone working in the finishing department.

Overtime, weekend shifts, and holiday work also come with higher pay rates. Many workers use these systems to boost their overall earnings.

In most cases, factories pay by the hour. However, some sewing factories we work with use a piece-rate system, where workers are paid based on how many pieces they complete on a daily/weekly basis. Piece-rate pay is often seen as high-risk because, in exploitative factory settings, it can be abused to pressure workers into unsustainable speeds, often also resulting in lower-quality garments. When we encountered this, we immediately raised it with management.

They assured us that no exploitation was taking place. The system has been in use for over 20 years, and the workforce is accustomed to it and are reluctant to change. This was backed up by an independent audit in late 2023 by a large fashion company’s experienced sustainability team. They reviewed payment slips in two of the sewing factories producing Honest Basics and their findings confirmed that the wages were more than in order. In fact, one seamstress was earning over USD 2,000 per month which is far above the local Chinese minimum wage. In this case, the piece-rate and overtime system is working well in the worker's favour.

Back to the second question: does everyone in our factories receive a living wage? Again, the answer is yes, and we’ve checked.

It’s important to highlight the difference between a national or regional minimum wage and what is considered a living wage. In China, minimum wages are set regionally and vary greatly between urban and rural areas. In the urban region where most of our factories operate, the minimum wage is just over 2,000 Yuan per month, which is slightly under €300.

The concept of a living wage was introduced because in many places, minimum wages do not meet the basic needs of individuals or families. A living wage is calculated based on the cost of essentials in a specific region, however what is defined as a "basic need" can differ.

We refer to two organisations when determining the living wage for our workers: the Asia Floor Wage Alliance and the Global Living Wage Coalition. The first focuses on the garment industry in Asia, while the latter provides regional estimates of living wages. Together, they suggest a range of possible living wages between 3,000 Yuan and 5,114 Yuan. In the Hangzhou region, the Global Living Wage Coalition estimates a living wage of 5,030 Yuan (a little over €600) which is more than double the minimum wage. We are pleased to report that even the lowest-paid workers in our partner factories earn well above this.

An important distinction to make is that we can only verify and guarantee living wages within our partner factories which includes the sewing factories, and knitting and dyeing houses that are part of the Vane Fashion Group. At this stage, Honest Basics is still too small a business to realistically monitor wages further down the supply chain, such as in the cotton production. However, we can still create positive influence further down the supply chain by sourcing raw materials certified under the Organic Content Standard (OCS).

Research has shown that growing organic or regenerative cotton benefits not only the environment but also the communities living around the fields. Beyond avoiding exposure to hazardous pesticides, organic farming can also mean better pay for farmers and a reduced risk of child labour. Certifications such as OCS bring more transparency to supply chains, create opportunities for audits, and provide support systems for farmers.

That said, Honest Basics does not yet have the resources to fully verify that all workers throughout the supply chain are fairly compensated. We know this is a gap in our transparency coverage, and as soon as we have the resources, we plan to investigate further and extend our checks all the way back to the cotton fields.

Workers' Rights

Aside from being paid fairly, what other rights do factory workers have and how does Honest Basics monitor that these rights are respected?

We follow the guidelines of international monitoring organisations such as SLCP and Amfori, which categorise workers’ rights into key themes.

Discrimination

We are pleased to report that our factories perform very well in social audits overall, and particularly in the area of non-discrimination. Management shows strong awareness of different types of discrimination to look out for. Additionally, the staff is quite diverse with women well represented in management roles.

Of course, we have a zero-tolerance approach when it comes to discrimination in our factories. Simply put, we do not allow discrimination of any kind based on gender, sexuality, ethnicity, religion, ability, or age.

That said, simply stating this is not enough to guarantee that discrimination does not take place, whether consciously or not. Certain types of discrimination are known to be especially common in the fashion industry.

For example, because migrant workers often make up a large share of the workforce, the risk of discrimination based on ethnicity, region of origin, or religion is higher. In some cases, people living with HIV may face difficulty being hired or when hired face discrimination and bullying within the workplace. What's more, across the industry (as with many other sectors) women still face a disproportionate amount of discrimination.

Many forms of discrimination can also be hidden. For instance, factory managers are aware that audits are increasingly focused on this issue, and may employ people from groups considered 'at risk' of discrimination but won't officially register them as staff.

Reducing and eliminating discrimination requires constant vigilance. That’s why we not only ask partners for a code of conduct, we will personally check in with staff, and request the audits conducted include randomised interviews with workers.

We also look for management practices that can indicate whether a working environment is inclusive or not. For example:

• Are all employees properly registered?

• Do managers speak the same languages as their teams? Are key documents available in those languages?

• Is there a fair gender balance across the workforce?

• Do staff reflect the diversity of the region (e.g. ethnic groups, domestic migrants)?

The more diverse a workforce is, the stronger and fairer the factory environment becomes, especially when policies are in place that support the different needs.

Worker Representation

Representation in our supply chain is well organised on a factory level. Elected representatives from the workforce sit on management teams and show good understanding of workers’ rights. One area we believe could be improved is grievance mechanisms, and we are working with our partners to strengthen these systems.

Worker participation and involvement are centred on two fundamental international rights: freedom of association and the right to collective bargaining. These rights mean that workers are free to form and join unions or other bargaining associations without interference from employers or the state. They matter because, while individuals often lack political or economic power, collectively they can put pressure on employers and the state to negotiate for better wages, conditions, and protections.

In China however, this issue is more complex. As a communist state, China has specific rules around associations. China has a national worker’s union which represents all employees across the country. People may form unions, but these cannot operate independently of the national union and must function as sub-groups within it.

Even within this context, factories can still create space for workers to participate in decision making. Worker representatives can influence management decisions on issues concerning staff such as health and safety.

Representatives should be elected by staff, included in decision-making processes, and empowered to raise concerns. Best practices to ensure this includes:

• Worker representatives sitting on management teams.

• Regular, documented check-ins between management and representatives.

• An effective grievance mechanism, ideally with oversight from an independent mediator who can step in if serious issues arise.

Health & Safety

Factory work inevitably comes with safety concerns. To manage these, our partner factories implement specific health and safety policies. These are checked and approved during annual social audits.

These policies cover safe handling and disposal of chemicals to protect workers as well as the environment. They also cover other crucial areas such as fire safety, electrical safety, ergonomic workstations (e.g. adjustable chairs), accessibility tools for staff with specific needs, and the provision of private toilets.

Checks & Balances

How do ensure working conditions in our partner factories are genuinely up to standard?

We base this on three pillars:

1. Annual social certifications: all factories participate in SLCP and/or BSCI programmes, which include yearly audits. These provide up-to-date insights into working conditions and check for zero-tolerance issues.
2. Our own checks and visits: we regularly visit the factories ourselves. These visits give us a direct sense of the atmosphere on the factory floor and how workers are treated (and we’re happy to say it’s always been positive!). We also carefully review certifications and raise any concerns directly with management.
3. Independent audits by other brands: since our partner factories also work with larger brands, they are regularly audited by those companies too. These audits are often very thorough, as bigger brands have more resources to carry out deeper investigations. Their findings and follow-ups add another layer of assurance that our partner factories are being held to high standards.