Public Eye denounces starvation wages in a company that works for the On brand (cross-border guide)
The Public Eye report denounces minimum wages and precarious conditions in a subcontractor of On, with investigation and stop orders by the company.
Contesto
In short - Public Eye denounces living wages in Indonesia. - On Company suspends orders and initiates independent investigation. - 112 union layoffs, many summarized after pressure. ## Key facts - What: Hunger wages and precarious working conditions. - When: Recent report, date not specified. - Where: Yihong Factory, Java Island, Indonesia. - Who: Sub-supplier of the On brand and Long Rich partner. - Amount: Salaries of about 2.9 million rupees (about 130 francs). A report by Public Eye has accused the working conditions in an Indonesian sub-supplier connected to the well-known Swiss shoe brand On. The Yihong factory on the island of Java has been reported for wages at the legal minimum, equal to 2.9 million rupees per month, or about 130 francs, a figure deemed insufficient to guarantee a dignified life. The document also highlights serious violations: unfulfilled working hours, absence of written contracts, unlawful dismissals and incidents of harassment. In particular, a trade union conflict led to the dismissal of 112 members of the union, of which 64 were later resumed as a result of pressure exerted by the client brands. The On company reacted by defining these conditions as “in clear contrast” with its values and the company code of conduct. It has decided to immediately suspend all new orders to the Yihong factory until the irregularities are fully resolved.
Dettagli operativi
The implications of this affair for Ticino border workers, although not direct, touch the sensitivity towards decent working conditions, a dear theme also in the border region. Companies operating in Ticino and sourcing from foreign suppliers are increasingly under pressure to ensure standards that respect workers' rights, in line with Swiss regulations and the code of ethics imposed by brands such as On. ### Implications for the Canton of Ticino and border workers In the Canton of Ticino, where thousands of border workers with G permits work, compliance with labour standards is crucial. Although the story concerns a factory in Indonesia, it reflects a growing attention to wage conditions that also impact issues such as AVS, LPP and LAMal, which protect workers in Switzerland. Ticino companies and their suppliers must maintain fiscal and social transparency, elements that also influence the perception and value of the work of border workers, especially in view of the new tax agreement 2026. Comparing the current situation with the past, a greater empowerment of Swiss companies towards working conditions in global supply chains emerges. This indirectly contributes to strengthening the protections for frontier workers, with a positive effect also on the fight against wage dumping and undeclared work, phenomena that can negatively affect the Ticino labour market and restaurants ## Useful planning tools To estimate your pension strategy, use the pension planner and the pillar 3 simulator.
Punti chiave
For border workers and Ticino companies that collaborate or source from foreign suppliers, this story underlines the need to adopt clear procedures and strict controls to ensure respect for workers' rights throughout the production chain. ### What to do concretely 1. Supplier monitoring : Companies must periodically verify the working conditions at their suppliers, including abroad, through independent audits. 2. Code of Conduct: Adopt and enforce a code of conduct that includes compliance with minimum wages, lawful hours, and no harassment. 3. Trade union involvement: Encourage dialogue with trade unions to prevent conflicts and guarantee the right to workers' representation. 4. Tax transparency: For frontier workers, it is important to know the implications of these dynamics also in their own tax reality, especially in view of the new tax agreement 2026 and the rules on tax at source and refunds. 5. Get informed and stay up to date: Use tools like our calcolatore fiscale to better manage salary and taxation. These steps help to protect workers and maintain a healthy and competitive labour market in Ticino, while ensuring transparency and fairness, fundamental values for border workers who contribute every day to the local economy. Source: tvsvizzera.it
Punti chiave
[{"q":"What wages have been reported by Public Eye in the Indonesian factory?","a":"The report denounces wages of about 2.9 million rupees per month, equivalent to about 130 francs, equal to the legal minimum wage but deemed insufficient to live on."},{"q":"How did the On brand react to complaints about working conditions?","a":"On immediately suspended all new orders to the Yihong factory, launched an independent investigation, and confirmed the rehiring of some laid-off workers."},{"q":"What implications does this have for Ticino border workers?","a":"Although the story concerns Indonesia, it highlights the importance for Ticino companies to guarantee decent working conditions even in foreign suppliers, indirectly influencing the rights and taxation of border workers."}]
Frequently Asked Questions
- What wages have been reported by Public Eye in the Indonesian factory?
- The report denounces wages of about 2.9 million rupees per month, equivalent to about 130 francs, equal to the legal minimum wage but deemed insufficient to live on.
- How did the On brand react to complaints about working conditions?
- On immediately suspended all new orders to the Yihong factory, launched an independent investigation, and confirmed the rehiring of some laid-off workers.
- What implications does this have for Ticino border workers?
- Although the story concerns Indonesia, it highlights the importance for Ticino companies to guarantee decent working conditions even in foreign suppliers, indirectly influencing the rights and taxation of border workers.