The company operates an owned factory (Pacific Brands Indonesia) and also sources from other third party supplier factories. These products support our underwear brands (Berlei, Bonds and Jockey). The Indonesian garment and textiles marketplace is widely known for its well-developed and mature supply chains. Product quality, competitive pricing and the close geographical proximity to Australia make Indonesia a particularly attractive sourcing market. For us, this results in a reduction in lead times and a constant and stable supply of product.
Indonesia is home to our company-owned bra and underwear manufacturing facility. Over the last seven years we have been progressively deploying LEAN manufacturing techniques into our facility. The benefits of which include being able to operate at consistently high social compliance standards and scale quickly to support our fastest growing and most iconic Australian underwear brands.
In addition to the various local laws, we strictly apply our ethical sourcing standards. Our Indonesian factory also receives a full comprehensive WRAP audit at least once per year under a Gold level status.
Details of the location of our company owned Indonesian factory can be found here.
On the Ground
Both freedom of association and the excessive use of temporary contractors, potentially resulting in the exploitation of workers, are common issues across the Indonesian marketplace.
Our factory adopts a bipartite institutional approach to freedom of association which is registered with the Department of Labour. The benefits of this approach include the following:
- The existence of a bipartite or worker committee.
- The presence of formal communication procedures between worker representatives and management.
- Worker representatives are elected on a free and confidential basis by their fellow workers.
- The existence of written policies and procedures that recognize the right of employees to exercise their lawful rights of free association.
- A designated, qualified person responsible for deploying, communicating and monitoring freedom of association practices.
- A reduction in the incidence of employee discrimination when participating in lawful associations.
- The opportunity for workers to meet during working hours and access work facilities on a periodical basis to discuss workplace issues.
With the growing popularity in the use of temporary contract and outsourced labour, we maintain vigilance in ensuring workers receive appropriate entitlements and that contract labour laws are being upheld.
Since 2002, Hanes Australasia's wholly owned manufacturing facility has been Worldwide Responsible Accredited Production (WRAP) certified and currently holds Gold Level WRAP accreditation. WRAP is independently accredited to promote safe, lawful humane and ethical manufacturing, with its principles aligned to our broader social compliance framework which is predicated on the ETI Base Code. Hanes Australasia applies the same ethical sourcing standards to its own factories.
Lean manufacturing has also been an integral part of the Indonesian facility over the last seven years. As the LEAN program has matured, we have seen significant efficiency and quality of production benefits, as well as enhanced social compliance standards.
The LEAN program includes investing time to develop and nurture workers, helping them attain industry skill and improve their employability. Our local management are committed to the notion of mutual respect and the development of all their workers. This has led to a more stable workforce.
Given the success we have experienced to date and as part of our 3 year ethical sourcing strategic plan, we have begun to rollout LEAN training across certain targeted suppliers in China and Cambodia.