Australian fashion label Zimmermann has rolled out a supply-chain-focused grievance mechanism in key factories in China, which now covers around 50 per cent of its finished goods spend.
This is according to the brand’s latest Modern Slavery Statement, published on the Australian Government’s Modern Slavery Register, covering the FY24 period.
The hotline is currently available in eleven factories. Zimmermann confirmed in its statement that all grievances received during FY24 were successfully resolved by the factory management, with support from the Zimmermann team and the grievance mechanism provider.
The issues were primarily related to incorrect compensation, which the fashion label noted were promptly rectified by the factory management.
“In one instance, a worker employed in our supplier’s garment factory contacted the hotline to report delayed payments and the absence of employment contracts and payslips,” Zimmermann reported. “This grievance was promptly escalated to both the Zimmermann team and our supplier.
“In collaboration with Zimmermann and the hotline team, the supplier developed and implemented a strategy to ensure that all payments are made on time, always accompanied by payslips, and that all workers are provided with employment contracts.
“Arrears payments were also made to workers who had not been paid on time.”
The worker has reportedly since confirmed that the factory rectified the issue and expressed satisfaction with the steps taken. Zimmermann added that it will continue to monitor the factory to ensure that these measures are consistently implemented.
Zimmermann did not note the organisation who is handling its grievance mechanism, but stated it has over a decade of experience in designing and implementing grievance mechanisms and supporting remediation.
Workers at the factories have received in-person training to familiarise themselves with the grievance mechanism. Posters and handouts were also provided to ensure all workers have access to the hotline.
“Beyond offering insight into working conditions and access to remedy, the independent grievance mechanism is integral to our capacity-building efforts,” Zimmermann reported. “It can drive continuous improvement in the factory by equipping management with the tools to proactively address issues before they escalate and, ultimately, prevent their recurrence.”
For FY25 and beyond, Zimmermann reported it will maintain annual third-party audits for tier 1 and tier 2 suppliers, and will “continue engaging the workers in our supply chain, ensuring the successful implementation of the grievance mechanism [and] advancing the use of anonymous surveys.”
The factories Zimmermann sources its finished goods from are based in a dozen countries including China, Vietnam, Italy, Portugal, Sri Lanka and India, with China taking 82 per cent of the spend. Other countries include Türkiye, Spain, Madagascar, Indonesia, Australia and Morocco.
For fabrics and trims, 92 per cent of the spend is in China, followed by Italy at 3 per cent, Portugal at 2 per cent and Türkiye at 1 per cent.
Zimmermann does not own or operate any factories. Its suppliers range from medium-sized facilities employing approximately 100 people to small artisan workshops that specialise in traditional methods of craftsmanship.
Garments represent the largest product category, accounting for 93 per cent of its FY24 spend, while accessories and footwear account for the remaining 7 per cent.