People in circle laughing from Bangladesh factory

ALDI Factory Advancement Project

Our Approach

The ALDI SOUTH Group is committed to promoting human rights in the garment industry and together with ALDI Nord, our ALDI Factory Advancement (AFA) Project has introduced an effective tool to deliver change in factories that produce our garments in Bangladesh.

Launched in 2013, the AFA Project places factory workers and managers at the centre of its activities to find sustainable solutions for improving workplaces. Its core principle is the promotion of dialogue and cooperation between workers and managers. Together they identify challenges, examine them critically and then create joint visions for the future with tailor-made solutions to reach improvement. Only with the commitment and the ownership of both parties can real change be achieved.

Rabeja - Worker of an AFA Project factory

“I realised that my opinion and my ideas are important in order to advance my factory. We learned how to use good communication and dialogue to resolve any problems or conflicts in the factory.”

Rabeya, worker of an AFA Project factory

The key to the project’s success has been the active involvement of the workers. To date, approximately 85,000 workers and their managers in 40 participating factories have benefitted from the project and experienced positive changes in their day-to-day working environment.

Our Actions

Project Phase 1.0

The first phase of the AFA Project was successfully completed in the summer of 2019. During 450 AFA Project activities, workers, managers and AFA Project trainers discussed various topics such as the establishment of effective communication structures, health and safety in their workplaces, working hours, promotion systems, private financial planning, quality management and productivity. Additionally, six impact assessments were conducted to measure the success of the AFA Project.

Improved workplace cooperation creates sustainable solutions

Workers and managers at each factory identified and addressed a wide variety of different challenges found in their workplaces: from ensuring the use of personal protective equipment, improving the quality of canteen food or setting up structures to prevent inappropriate behaviour from supervisors and middle management.

Effective communication leads to cooperative behaviour and understanding

Poor communication was found to be a major cause of issues in the factories. We found behaviour on the production floor becomes more cooperative, with less stress and conflict, and more mutual understanding when we worked on improving communication.

The untapped potential in workers utilised for change

Throughout the AFA Project, we demonstrated to factory owners that the most important asset of their businesses are the employees. By providing a safe space for workers to discuss challenges, we became aware that their keen observations, creative ideas and influence on peers can play a big part in driving positive change processes in their factories.

Improved workplace cooperation increases productivity and quality

Workplace cooperation leads to increased job satisfaction, motivated employees, and improved conditions for workers. This is important in reducing sickness, absenteeism and employee turnover. It was also found to increase innovation, quality, productivity and ensure the long-term competitiveness of factories.

Project Phase 2.0

In the second half of 2019, we launched the exciting next phase of the AFA Project – an innovative pilot with selected AFA Project factories and business partners. Together we will take the AFA Project to the next level: we have used six years’ worth of experience to develop a programme that will make factories independent of the support of AFA Project trainers.

We know that skilled facilitators are key to creating sustainable solutions. It is the facilitators who provide the mindset and tools for dealing with complex challenges and who are driving positive change through workplace cooperation.

New approach

In AFA Project 1.0, AFA Project trainers guided the dialogue and cooperation between workers and managers.

In AFA Project 2.0, selected workers and managers will take over the role of project trainers. These workers and managers will facilitate dialogue and cooperation in their own factories.

Each factory has selected workers and managers who will train to be facilitators for workplace cooperation. They will be enabled to assist other workers and managers in their factory to address workplace issues in a cooperative manner. They will learn to moderate in their factory in order to find sustainable solutions for workplace issues.

AFA Project Plus: Childcare service

From 2016 until 2019, the AFA Project PLUS addressed the critical need for quality childcare for the children of working parents in factories that produce our textile goods in Bangladesh. ALDI supported selected factories participating in the AFA Project in improving their internal day-care services.

Many workers are reliant on these services due to financial constraints and a lack of alternative care options. Together with local non-governmental organisations, we trained caregivers, childcare centre supervisors, nurses and parents working at the factory. A total of 16 production facilities have been included in the AFA Project PLUS.

ALDI Factory Advancement Project PLUS

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Seven areas for enhancement

The factories were assisted in enhancing their day-care centres in the following seven areas

Management of childcare centres
Caregivers and caregiving practices
Safety of children
Health and nutrition
Preschool education
Equipment and design of childcare centres
Provision of information, increased parental engagement and knowledge

Our Performance

85000

Workers and managers experienced positive change

40

Factories involved

450

AFA Project activities

More 'Goals and Performance'

Our Successes

Female and male people sitting on ground

Sustainable solutions

Hotline facilitates authorised leave in factories

Challenge:

In one AFA Project factory, managers noticed that workers were often absent without giving any explanation. This hampered production and led to overtime for other workers. In one of our first activities, workers and managers discussed the root causes. They found out that workers stayed away from the factory without giving prior notice because the procedure to request leave, e.g. in case of sickness or for vacation, was difficult to understand.

Solution:

Managers and workers jointly decided to conduct an awareness campaign on which types of leave exist and the leave procedure according to the Bangladeshi labour law. Additionally, a “leave hotline” was set up. It serves as an information and grievance channel which workers can approach when they have issues with their leave. Workers mainly use this hotline for two purposes:

If workers need leave while they are outside the factory, e.g. when they become sick.
When leave applications were not approved and workers feel that this is unfair.

Outcome:

Between 15 and 30 workers use the hotline each month. The proportion of workers using the proper leave procedure increased by 50%.

Effective communication

Improving the working environment

Challenge:

When joining the AFA Project, workers of one factory identified working practices on one specific work line as the most pressing issue. The line supervisor was unsatisfied with the workers’ performances and pressured workers to improve.

Solution:

Workers and managers jointly discussed why the sewing quality of garments and the productivity of this line was below-average. By creating a safe space for everyone to speak up and listen actively, workers started to raise their concerns to the management: The line was located right next to the window where fans were fixed and the circulated air blew the fabrics off work stations. Workers and managers decided to rearrange the line away from the fans.

Outcome:

The quality and productivity of the line as well as the relationship between workers and managers improved significantly. Workers feel less pressured and are much more satisfied with their working environment.

Potential in workers

Understanding salaries

Challenge:

One of the main sources of grievances in factories is the salary of employees, as workers are often unaware of the payslip and confused about the calculation of their salary including all allowances, bonuses, overtime and potential deductions. This often resulted in a large number of complaints at the HR department.

Solution:

Workers and managers came up with the idea to produce a video in their factory in order to provide awareness about the payslip, the wage structure and salary calculation to workers. Workers were also involved in the production of the video: from writing a script to being actors. The involvement of the workers in the production of the video ensured that the content of the video was relevant and easily understood.

Outcome:

The workers now understand their monthly pay slip and the composition of their wage. Also, complaints at the HR department decreased.

Increased productivity and quality

Ensuring a safer workplace

Challenge:

Workers and managers identified poor housekeeping as a major safety problem in their factory: They used cardboard boxes to store and transport materials from one workstation to another. Theses boxes blocked aisles and workplaces and increased the risk of fire.

Solution:

Sometimes the solution to an issue is something really simple, but it takes a moment to talk and listen to each other in order to discover it: The workers and managers decided to replace the cardboard boxes with plastic boxes. Plastic boxes are less vulnerable to fire and can be stacked better and, due to their size, provided better opportunities to be stored in the designated areas without blocking emergency ways.

Outcome:

Workers now feel safer. The solution also resulted in productivity gains: less dirt enters the boxes, which makes the products cleaner and reduces the need for spot removal. This saves time in the production process. Also, the boxes can be reused which reduces costs for the factory.