Responses from Lotto

Proposal A1:

Require suppliers to issue 'Right to Organize' guarantees to workers.

No response given.

Proposal A4: Provide an accessible complaints process for workers.

No response given.

Proposal A9: Require suppliers to sign union access agreements.

No response given.

Proposal B2: Eliminate third-party employment schemes.

Lotto says it is waiting for the Fair Labor Association (FLA) code review to be completed and will try to follow FLA policy on this issue. The company is not currently willing to make a commitment on the matter.

Full response

"With reference to the questions in the section 'Precarious Employment', we would like to mention that we are waiting on an update on behalf of FLA in regards to this matter, and once this is finalised, we will try following a similar policy."

Proposal B3: Eliminate short-term contracting.

Lotto does not commit to the elimination of short-term contracts, their clearly defined use, providing same salary and benefits to short-term contracts, or automatic open-ended contracts for workers after 2 fixed term contracts or two years’ employment.

Full response

"Lotto Sport Italia researches and plans the workload of the factories on the basis of the amount of productivity needed, and therefore, identifies a workload plan for the labourers. We also acknowledge that our business is seasonal, however, it is in the factories’ interest to retain workers on a flat rate, although there are some cases where workers leave for more prosperous offers and the consequence is a general lack of labourers. Furthermore, Lotto’s production requires a high level of “know how” for the creation of the products, and therefore has minimal interest in promoting precarious employment as this would only mean the continuous transfer of our “know how” resources from worker to worker. Notwithstanding what above mentioned, precarious employment is a phenomenon that occurs globally, and to all businesses, including first tyre world countries."

Proposal B6: Establish long-term relationships with factories.

Lotto claims to have relationships of more then 5 years with more than 50% of its suppliers, meaning the company already meets the Vancouver 2010 target, however, no commitment in made on London 2012 target.

Full response

"We have working relationships of more then 5 years with more than 50% of our suppliers (10% of our total suppliers longer than 15 years), highlighting positive partnerships that have been established, and these factories are present in China, Indonesia and Vietnam."

Proposal C1: Adopt Responsible Transitions policies.

No response given.

Proposal C3: Report publicly on length of factory relationships.

Lotto reports it has “working relationships of more than 5 years with more than 50% of our suppliers (10% of our total suppliers longer than 15 years)” and that “these factories are present in China, Indonesia and Vietnam,” however the company has not committed to ongoing public disclosure of most of the information requested.

Full response

"We have working relationships of more than 5 years with more than 50% of our suppliers (10% of our total suppliers longer than 15 years), highlighting positive partnerships that have been established, and these factories are present in China, Indonesia and Vietnam."

Proposal C4: Report publicly on how suppliers are chosen and/or eliminated.

Lotto says its selection policy adheres to its Code of Conduct, but makes no commitment on CSR performance, and managing the impact of exiting factories.

Full response

"In terms of our selection process, when identifying a supplier we adhere to the terms that are outlined in our Code of Conduct, we also consider whether a supplier can meet our demands of quality and quantity, delivery times and level of service required. We also emphasise that
our weight, compared to the weight of our competitors is minimal, and therefore, it is extremely rare that a factory would suffer should we cease our partnership with them, in the instance of a factory closure, it would in fact be Lotto Sport Italia that would suffer."

Proposal D1:

Make a commitment to paying a living wage.

Lotto says it is not able to influence the development of a living wage because of its relatively small presence in its supplier factories.

Full response

"We do not have the power to establish the wage of a factory labourer, as this is not directly influenced by the retail price of our products. This subject should be approached between unions and factory workers. We would be happy to redefine our language and wording in regards to the living wage standard, however, we are not able to influence or cause the development of a wage ladder, including a living wage figure for workers in each country or region due to our limited power."

Proposal D3: Ensure prices are sufficient to pay a living wage.

No response given.

Proposal D6: Take steps to improve workers’ wages.

No response given.

Response Key

The brand claims to implementing all components of this proposal or has agreed to implement them within Play Fair's proposed timeframe.

The brand is currently implementing or has agreed to implement some of the essential components of the proposal but has refused to implement, has overlooked, or has raised issues with one or more important components; or, the brand agrees to implement the proposal but not within Play Fair’s proposed timeframe.

The brand has refused to implement the essential components of the proposal.

The brand has misunderstood or failed to comment on the proposal; or the brand is considering the proposal, but has yet to make a decision.