country study poland

Fair Wear Foundation – Country Study Poland

1 / 56

Country Study

Poland

2010 - 2012


2 / 56

Table of Contents

Summary 3

1. Introduction 4

2. General country information 6

2.1 Economic indicators 6

2.2 Social, political & governance indicators 8

2.3 Income and poverty 9

2.4 General human rights situation 10

2.5 Stakeholders 11

3. Garment industry 14

4. Industrial relations 18

5. Implementation of the FWF Code of Labour Practices 22

5.1 Employment is freely chosen 22

5.2 No discrimination 23

5.3 No child labour 25

5.4 Freedom of association and the right to collective bargaining 26

5.5 Payment of a living wage 27

5.6 Occupational health & safety 30

5.7 Legally binding employment relationship 32

Appendix 1. Legal situation regarding the FWF Code of Labour Practices 34

Appendix 2. Detailed stakeholder comments 45


3 / 56

Summary Poland is a country with a long history of garment production. However, for the past few years, this branch of the industry has been systematically shrinking. The majority of Polish garment factories realise foreign orders, the number of which is diminishing due to the higher costs of production in Poland compared to other countries, especially in Asia. At the same time, the proximity to European clients, and therefore relatively lower transport costs as well as a highly skilled workforce which is able to realize more demanding and high quality orders, still represent comparable advantages for the Polish garment industry.

The most important problems facing workers in the Polish garment industry are unreliable forms of employment, low wages and the limited role of the trade unions. It is common for workers to be employed based on civil law contracts (which do not guarantee labour rights and social insurance) instead of legal work contracts. The average wage in the Polish garment industry is slightly higher than, but close to, the minimum wage and below the living wage estimated by the stakeholders. The majority of garment factories have no trade unions. These are usually small companies and gathering the ten workers required to establish a trade union can be very difficult. Additionally, many workers do not believe that the trade unions will actually improve their situation.

The problems of what we traditionally understand as forced employment and child labour do not affect the Polish garment industry. Furthermore, extensive overtime work is not as serious a problem as it used to be a few years ago. Health and safety regulations are generally observed. The problem of discrimination is difficult to assess as there is rather low awareness on this issue both among employers and workers. There are also no efficient instruments to monitor the implementation of anti-discrimination provisions by the National Labour Inspectorate or any other institution.

The garment industry is not a priority of the government’s strategies for the economic development of Poland. Employers and trade unions cooperate in order to keep the industry alive. Initiatives are undertaken to invest in innovative technologies, new types of garments and textiles, and specialized niche production. The traditional garment industry is transforming into a fashion industry. More and more Polish companies are now locating their production outside Poland, leaving their design and trade departments behind in Poland.


4 / 56

1. Introduction This country study provides a clear and concise picture of the industry, labour law, labour conditions and industrial relations within the textile/garment industry. The study has been prepared by gathering information about national laws and the local stakeholders’ views on labour issues in the garment industry in Poland

The information has been gathered by Joanna Szabuńko. Apart from the stakeholder information, the relevant laws regarding each part of FWF’s code of labour practices are also presented.

The following stakeholders representing public authorities, employers, trade unions and NGOs were consulted in producing this country study:

I. Government/public authorities Ministry of Economy Ms. Alicja Wolukanis, Main Specialist, Department of Economy Development Mr. Krzysztof Zareba, Head of Department Address: Pl. Trzech Krzyzy 3/5, 00-507 Warsaw, Poland www.mg.gov.pl National Labour Inspectorate/ Chief Labour Inspectorate Mr. Leszek Zając, Chief Labour Inspector Mr. Marian Liwo, Vice Chief Labour Inspector Address: Krucza 38/42, 00-926 Warsaw, Poland www.pip.gov.pl National Labour Inspectorate/ Regional Labour Inspectorate in Lodz Ms. Janina Glolinska, Deputy Regional Labour Inspector Mr. Janusz Grodzki, Deputy Regional Labour Inspector Mr. Kamil Kaluzny, Senior Inspector, Spokesman Mr. Dariusz Borowiecki, Chief Labour Inspector Address: al. Kościuszki 123, 90-441, Lodz, Poland www.lodz.oip.pl Central Institute for Labour Protection – National Research Institute Ms. Barbara Krzyskow, PHD, Occupational Health and Safety Management Unit Address: Czerniakowska 16, 00-701 Warsaw, Poland www.ciop.gov.pl

http://www.mg.gov.pl/

http://www.pip.gov.pl/

http://www.lodz.oip.pl/

http://www.ciop.gov.pl/


5 / 56

II. Employers

Union of Light Industry Employers (Employers of Poland) Mr. Andrzej Szychowski, President Mr. Henryk Kusmierczyk, Office Director Mr. Wojciech Slowikowski, Member Address: Szparagowa 6/8, 91-211 Lodz, Poland www.pracodawcyrp.pl Union of Fashion Industry Employers (Lewiatan)/ Polish Federation of Apparel and Textiles Mr. Boguslaw Slaby, President of the Board of the Union/Vice President of the Board of the Federation Address: Lodowa 80, 93-232 Lodz, Poland/Kielecka 7, 81-303 Gdynia, Poland www.pkpplewiatan.pl www.textiles.pl

III. Trade unions

NSZZ Solidarność - National Secretariat for Light Industry Mr. Mieczyslaw Slasko, President Ms. Mariola Lucka, Member Address: Plac Solidarnośći 1/3/5, 53-661 Wroclaw, Poland www.Solidarność.org.pl Federation of Independent Trade Unions of Light Industry (OPZZ) Mr. Zbigniew Kaniewski, President Address: Plac Zwycięstwa 13, 90-047 Lodz, Poland www.federacjanszzpl.org.pl

IV. Labour related NGOs

KARAT Coalition Ms. Anita Seibert, Programme Manager Address: Rakowiecka 39a/14, Warsaw, Poland www.karat.org Informal Group Lodz Gender Ms. Iza Desperak, Member www.gender.lodz.pl Technical University of Lodz Ms. Monika Malinowska Olszowy, PHD Ms. Małgorzata Koszewska, PHD Address: Zeromskiego 116, 90-924 Lodz, Poland www.p.lodz.pl

http://www.pracodawcyrp.pl/

http://www.pkpplewiatan.pl/

http://www.textiles.pl/

http://www.solidarnosc.org.pl/

http://www.federacjanszzpl.org.pl/

http://www.karat.org/

http://www.gender.lodz.pl/

http://www.p.lodz.pl/


6 / 56

2. General country information The Republic of Poland is situated in Central Eastern Europe. It shares its borders with Germany in the west, the Czech Republic and Slovakia in the south, Ukraine, Belarus and Lithuania in the East and Russia’ Kaliningrad enclave in the north. In the north it is also bounded by the Baltic Sea.

The area of Poland covers 312.7 thousand sq km and is divided into 16 regions (vojevodships). The capital of Poland is Warsaw. The country has a population of about 38 million people. Poles are a rather homogenous society in terms of ethnicity and nationality. Minorities constitute about 5% of the population.

Poland is a parliamentary republic with the two chambers of Parliament, the Council of Ministers chaired by the Prime Minister (government) and the President who is the head of State. Poland is a member of European Union, NATO, UN, OECD and WTO.

The value of Polish exports in 2009 was 98274.5 million EUR. Polish products are mainly exported to EU countries, in particular: Germany, Italy and France. Another significant importer of Polish goods is Russia. The main groups of exported products include: transport machines and equipment, industrial supplies, and products for the chemical industry.

Source: Polish Central Statistical Office, Official website of the President of the Republic of Poland www.prezydent.pl

2.1 Economic indicators

Among the garment producing countries in Central and Eastern Europe, countries like Estonia, Czech Republic, Hungary, Slovakia and Slovenia rank higher than Poland in the Human Development Index. However, the country scores high on “Strength of auditing and reporting standards” and “Ethical behaviour of firms” in the global competitiveness report. Comparing the country with other Central and Eastern European countries regarding purchasing power parity GDP per capita, Poland comes out in the middle.

Name of indicator

Poland How to interpret value / information Source of indicator / information

Human development index (HDI) rank

39 A composite index of life expectancy at birth, knowledge (adult literacy rate and combined enrolment ratio), and decent standard of living (the adjusted per capita income in PPP US$).

Comparison: Germany 9 China 101

Human development report, 20111

1 http://hdr.undp.org/en/statistics/

http://www.prezydent.pl/


7 / 56

GDP per capita $ 13 540 Comparison: Germany $ 43 742 China $ 5 414

IMF estimate, World Economic Outlook Database, 2012

GDP per capita (PPP)

$ 20 334 GDP calculated by purchasing power parity (PPP) to make comparisons between countries more fair.

Comparison: Germany $ 37 897 China $ 8 382

IMF estimate, World Economic Outlook Database, 2012

GNI rank minus HDI rank

7 A positive figure indicates that resources in a country are effectively used to meet the needs of the population.


Human development report, 2011

Industry percentage of GDP

32% Gives indications of industrial development in country.

Comparison: China 47%

World Development Indicators database, 2010

Strength of auditing and reporting standards rank

38 Gives a measurement of institutions based on opinion polls amongst business people. Ranking countries from 1 to 144.


Global Competitiveness Index 2012-2013 data platform (World Economic Forum)

Ethical behaviour of firms rank

53 Gives a measurement of institutions based on opinion polls amongst business people ranking. Ranking countries from 1 to 134.


Global Competitiveness Index 2012-2013 data platform (World Economic Forum)


8 / 56

2.2 Social, political & governance indicators

Poland is considered to be the country with the lowest level of corruption of all the production countries where FWF is active. The country also scores high on democracy and rule of law comparisons.

Name of indicator

Poland How to interpret value/ information Source of indicator / information

Rule of law 71.36

The quality of contract enforcement, the police and the courts, and the likelihood of crime and violence. Percentile rank 0-100.

Comparison: Germany 91.55 China 40.38

World Banks governance indicators, 2011

Democracy index, rank

45 The state of democracy in 167 countries focusing on: electoral process and pluralism, civil liberties, functioning of government, political participation and political culture.


The Economist, 20112

Control of corruption

72 Measuring the exercise of public power for private gain, including both petty and grand corruption and state capture. Percentile rank 0-100.



Control of corruption, rank

Control of corruption rank 2010:

70%

Corruption perception index 2011:

41

The annual Corruption Perceptions Index (CPI) ranks 183 countries by their perceived levels of corruption, as determined by expert assessments and opinion surveys.

Control of corruption reflects perceptions of the extent to which public power is exercised for private gain. This includes both petty and grand forms of corruption, as well as "capture" of the state by elites and private interests.

Comparison: Germany -

Transparency International, 2010/2011

2 Democracy Index 2011 Democracy under stress, The Economist Intelligence Unit Report


9 / 56

Control of corruption rank 2010: 93% Corruption perception index 2011: 14 China – Control of corruption rank 2010: 33% Corruption perception index 2011: 75

Government effectiveness

72 Measuring the competence of the bureaucracy and the quality of public service delivery. Percentile rank 0-100.



2.3 Income and poverty

Compared to other garment producing countries, the level of poverty is very low in Poland. Regarding income equality, the country scores average compared to other Central and Eastern European countries.

Name of indicator


Gini index 34.1 The Gini index is a way to measure Income Equality. A value of 0 represents absolute equality and 100 absolute inequality. According to the global labour survey less income inequality correlates with effective pro-labour institutions.

Comparison: China 42.5

World Bank, 20093

Population below income poverty line -PPP $ 1.25 a day

0 Comparison: China 15.9%

Human Development Report 2011, 2000 - 2009

3 http://data.worldbank.org/indicator/SI.POV.GINI

http://hdr.undp.org/en/


10 / 56

Population living below the national poverty line (%)

16.6% Comparison: China 2.8%

Human Development Report 2011 and World Bank Country data 2000 - 2009

2.4 General human rights situation

The general human rights situation in Poland does not raise any specific concerns for the garment industry. Human rights are, in most cases, respected in Poland, however there are some issues that are pointed out as problematic by international organisations. These are: the discrimination of lesbian, gay, bisexual and transgender (LGBT) people, the lack of an effectively functioning, institutional mechanism for gender equality, restricted women’s and girls’ access to abortion, and finally, the official investigation into the involvement of Poland in the secret detention programme led by the US Central Intelligence Agency (CIA). These problems are listed by both Amnesty International and the Human Rights Watch 2009 reports on Poland. These are also the problems identified by Polish human rights organizations.

In 2009, Poland missed the deadline for implementing some of the EU directives on gender discrimination, leading to the European Commission referring Poland to the European Court of Justice. Additionally, the Polish government has resisted calls to establish an independent anti-discrimination body. The government-controlled Office of the Plenipotentiary for Equal Treatment, created in 2008, lacks autonomy, and does not have a mandate to take complaints or assist individual victims. The matter is also a concern of the Human Rights Council which (in April 2009) urged Polish authorities to introduce comprehensive anti-discrimination legislation.

Human Rights Watch stresses that Poland continues to have one of the most restrictive abortion laws in Europe, and access to contraception is limited. This situation has been confirmed by the UN special rapporteur on the right to health who visited Poland in May 2009 and observed that women in Poland face significant barriers to accessing legal abortions and other reproductive health services.

LGBT people are continuously discriminated against in Poland in many areas. In March, in a nationally televised speech, President Lech Kaczynski threatened to block ratification of the Lisbon Treaty, claiming that the EU Charter on Fundamental Rights and Freedoms would force Poland to legally recognize same-sex relationships.

In 2005, US media reported on the possible existence of CIA-run, secret detention centres in Poland. This information was followed up by Human Rights Watch and later by the investigations of the Council of Europe and the European Parliament. The EU Commission then appealed to the Polish Government to open its independent investigation for a number of years and this was finally done in March 2008 when the District Prosecutor of Warsaw opened the investigation into the possible existence of CIA-run secret detention centers. This was transferred to the Organized Crime Unit of the National Prosecutor’s Office in June of that year. Recently, the media has also reported probable cases of the torturing of persons interrogated in Poland in relation to the CIA anti-terrorism actions. Human rights organizations in Poland have demanded that the results of Polish investigation are published, something which was also recommended by the UN special rapporteur monitoring the issue in Poland.

In 2012, the investigation into the alleged CIA prisons in Poland was continuing and it has since been prolonged until February 2013. No information about the progress or outcomes of the investigation have, so far, been made public. In its resolution adopted on September 11, 2012,


11 / 56

the European Parliament "encourages Poland to persevere in its on-going criminal investigation into secret detention," however, it deplores the "lack of official communication on the scope, the conduct and the state of play" of this investigation.

Source: Amnesty International; Human Rights Watch; European Parliament News

2.5 Stakeholders

This section gives a brief summary of a number of stakeholders active in the garment/textile industry. The focus is on stakeholders who are an active part of forming the labour conditions or monitoring the situation for workers in the industry.

Government institutions

Ministry of Economy

The Ministry of Economy is responsible for the development of the economy. It also prepares and implements strategies for industry. Representatives of the ministry are members of the Tripartite Commission for Economic and Social Affairs and the Tripartite Committee for Light Industry. www.mg.gov.pl

Ministry of Labour and Social Affairs

The Ministry of Labour and Social Affairs is involved in developing and implementing legislation in the three areas: labour, social services, and insurances and family issues. The two first areas in particular are relevant to employees of the garment industry as the activities of the ministry cover the following issues: employment and counteracting unemployment, labour law, work relations, working conditions, wages, social insurances, pensions, collective bargaining agreements and the facilitation of social dialogue. The representatives of the ministry are involved in the Tripartite Commission for Economic and Social Affairs and the Tripartite Committee for Light Industry. www.mpips.gov.pl

National Labour Inspectorate

The National Labour Inspectorate is an authority established in order to supervise and inspect the observance of labour law, in particular occupational safety and health rules and regulations, as well as regulations on the legality of employment. Apart from that, the inspectorate takes part in the legislation process by presenting its opinions on issues related to labour law. The inspectorate runs a number of education programs and awareness raising campaigns related to labour law and working conditions. www.pip.gov.pl

Central Institute for Labour Protection – National Research Institute

The Institute is the main research institution and deals comprehensively with the problems of improving working conditions in accordance with human psychophysical abilities.

http://www.mg.gov.pl/

http://www.mpips.gov.pl/

http://www.pip.gov.pl/


12 / 56

The Institute’s activities are based around conducting research and development work leading to new technical and organizational solutions in the field of labour protection, or related to occupational safety, health and ergonomics, as well as carrying out other tasks felt especially important for achieving the goals of the state’s social-economic policy in this field. www.bip.ciop.pl

Employers organisations

Union of Light Industry Employers

The Union of Light Industry Employers is the oldest association representing the interests, and advocating the rights of, the employers in light industries. The union’s representatives are members of the Tripartite Committee for Light Industry. The union is a member of the oldest and biggest Polish employers’ association: Employers of Poland. This membership enables the union to participate in official consultations with employers on legislative proposals. www.pracodawcyrp.pl

Union of Fashion Industry Employers

The Union of Fashion Industry Employers has recently changed its name from the Union of Garments and Textiles Producers. It is a member of the second largest Polish employers’ association: Polish Confederation of Private Employers Lewiatan. The union works on issues crucial to the functioning of the sector and related to the regulations on the export and import of garments and textiles, certificates of its production, EU funds for development of the industry, etc. The union is also very active in the promotion of the fashion industry, especially among young people who are encouraged to work in this sector. The union is a member of the Tripartite Committee for Light Industry. www.pkpplewiatan.pl

Polish Federation of Apparel and Textiles

The Polish Federation of Apparel and Textiles brings together companies from the clothing and textile sector; their unions and associations, trade enterprises, as well as research organizations and universities. The main objectives of the Federation are: submitting problems in the industry, and suggestions of solutions, to the state authorities and parliamentary commissions, promotion of the interests of its members within European Union's institutional framework, contributing to the research, development, innovation and other educational or social projects at the national and European level, engaging in a constructive social dialogue with social partners at the national and EU level, and finally, collecting, analyzing and disseminating economic and statistical data on the industry. The Federation represents the Polish textile and clothing sector in EURATEX - the European Apparel and Textile Organization. www.textiles.pl

http://www.bip.ciop.pl/

http://www.pracodawcyrp.pl/

http://www.pkpplewiatan.pl/

http://www.textiles.pl/


13 / 56

Trade Unions

Federation of Independent Trade Unions of Light Industry (OPZZ)

The Federation of Independent Trade Unions of Light Industry (OPZZ) is a member of one of the two most important trade union federations in Poland: All-Poland Alliance of Trade Unions (OPZZ). OPZZ has 6,000 members in the garment sector. In companies where trade unions are active, up to half of the workers are members. At the factory level in the garment industry, OPZZ focuses on health and safety issues and salaries. On a national level, the trade union advocates the improvement of monitoring of production standards and fair competition. At an EU level, they focus on the monitoring of importers and the production standards of products imported to EU.

OPZZ is a member of the Tripartite Commission for Economic and Social Affairs and the representatives of the Federation are members of the Tripartite Committee for Light Industry.

Since 2006, OPZZ has been a nationwide organization affiliated to the International Trade Union Confederation (ITUC) and to the European Trade Union Confederation (ETUC). www.federacjanszzpl.org.pl www.opzz.org.pl

NSZZ Solidarność - National Secretariat for Light Industry

The National Secretariat for Light Industry is a branch organization of NSZZ Solidarność, one of the two most important trade unions in Poland. Solidarność is active in about 30% of the garment companies in Poland and mainly in those companies which were privatized in the 1990’s and where the trade unions had been active before. In 2006, there were 3,200 members of Solidarność in the light industry sector. Currently there are 1,300 members associated with the National Secretariat of Light Industry of Solidarność and around 1,500 garment workers who are members of Solidarność but not associated with the secretariat of the branch.

The secretariat mainly focuses on the activities within the Tripartite Committee for Light Industry. The main issues addressed there by Solidarność are the elimination of illegal import of garments to Poland as well as unfair competition.

NSZZ Solidarność is affiliated to the International Trade Union Confederation (ITUC), the International Textile, Garment and Leather Workers Federation (ITGLWF) and to the European Trade Union Confederation (ETUC). www.solidarnosc.org.pl

Labour NGOs

KARAT Coalition

The KARAT Coalition is an NGO network active in 23 countries of the Central and Eastern Europe region and Central Asia. The Secretariat of the network is based in Warsaw and coordinates KARAT’s activities in Poland. The Coalition’s main areas of work are: women’s human rights, gender and development, and gender economics and social justice. The working conditions of garment industry workers is an issue which crosses all of these areas and KARAT has been working on this problem since 2004. The organization has carried out research on working conditions in the garment industry in Poland. KARAT has also initiated a garment consumers’ campaign for the improvement of working conditions in the global garment industry. KARAT has

http://www.federacjanszzpl.org.pl/

http://www.opzz.org.pl/

http://www.solidarnosc.org.pl/


14 / 56

been cooperating with the Clean Clothes Campaign (CCC) for many years and since 2009 it has been coordinating the Polish national coalition of CCC. www.karat.org

There are no other NGOs in Poland which would deal directly with the issue of working conditions in Poland and the garment industry. Therefore, during the preparation of this study, two other independent stakeholders have been consulted. These are not labour NGOs, however their work is relevant to the content of the study.

Informal Group - Lodz Gender

An informal group of activists is based in Lodz, the capital city of the region where the majority of garment companies is located. The group is active in various areas related to gender issues, in particular women’s human rights, but also the economic and social situation of women. www.gender.lodz.pl

Technical University of Lodz

The Technical University of Lodz (TUL) is a university specializing in the light industry sector. It is an education and research institution. TUL prepares its students to work in thr light industry, but also runs a number of research projects contributing to the development of the garment and textile industry in Poland. Some of these projects are implemented in clusters together with the industry associations. www.p.lodz.pl

3. Garment industry

Organisation of the garment industry in Poland

The vast majority of Polish garment companies are small and medium sized enterprises. The industry is almost 100% privatized. The state has some small shareholdings in a few, formerly public companies, but these have no significant impact on the decisions in these companies. The main products of the Polish garment industry are: dresses, stockings, coats, suits, jackets, blouses, shirts and trousers.

Table: Companies conducting activities in 2010 by number of employees

Total 0-49 50-99 100-249 250-499 500-999 1,000 &more

Manufacture of textiles 745 548 87 84 21 2 3

Manufacture of wearing apparel 2,533 2,126 248 134 20 2 3

http://www.karat.org/

http://www.gender.lodz.pl/

http://www.p.lodz.pl/


15 / 56

Manufacture of leather and related products 482 380 61 32 5 3 1

Source: Central Statistical Office, Statistical Yearbook of Industry - Poland 2011

The estimates of the number of garment companies in Poland from the consulted stakeholders vary significantly. According to the Ministry of Economy, there were 679 garment companies in Poland in 2008: 246 small companies, 395 medium size companies and 38 large companies.

According to the Union of Fashion Industry Employers (Lewiatan), there are 2,700 garment companies in Poland based on data gathered by the Polish Federation of Apparel and Textiles.

The number of garment companies in Poland is decreasing. According to the Ministry of Economy, the situation was stable in 2006-2007, but decreased slightly in 2008 (from about 700 companies to 679 at the end of 2008). Production in the garment sector is also decreasing. Production decreased by 13% in 2009 compared to the previous year. This drop is noticeable in all groups of products except for suits and dresses. Further decreases in the production of clothes can be observed after 2009.

Table: Gross Output of the Industry

Specification 2005 2006 2007 2008 2009 2010

in million PLN

Manufacture of textiles

7971.8 8310.8 9022.5 8570.8 8915.5 9443.0

Manufacture of wearing apparel

9388.4 9790.5 10972.9 10622.7 9715.7 9044.9

Manufacture of leather and related products

3003.2 3310.5 4087.3 3500.4 3287.7 3621.0

Source: Central Statistical Office, Statistical Yearbook of Industry - Poland 2011

The majority of the factories in Poland, about 70%, work on outsourced production for the trade. All materials, fabric and embroidery are supplied from external sources and Poland is only responsible for the sewing. Poland mainly produces items for foreign companies (mainly from ‘old EU’ countries) interested in short series, highly of processed products for boutique sales, clothes made to individual size, niche products, or those which require skilled workers. The remaining 30% of companies produce clothes for Polish brands and ‘corporate garments’ supplying the army, hospitals, hotels, etc.

Most of the stakeholders consulted have strong opinions on the future of the industry. Some consider that this industry will become even less important for the Polish economy, while others


16 / 56

claim that the industry is not in decline, but is changing its character. The traditional garment industry is transforming into a fashion industry. More companies are locating their production outside the country, only leaving their design and trade departments in Poland. However, everybody agrees that the garment industry in Poland has a chance to survive if the producers invest in innovative technologies, new types of garments and textiles, and specialized niche production.

Over the past few years, the garment and textile sector has been provided with significant funds for research and innovation. A large number of donations have been granted to the Technical University of Lodz. These funds, mainly allocated by European Union institutions, have allowed the developing and testing of various technologies for the garment and textile industry.

Source: Union of Light Industry Employers (Employers of Poland), Union of Fashion Industry Employers (Lewiatan), Polish Federation of Apparel and Textiles, Technical University of Lodz, OPZZ, Informal Group Lodz Gender, KARAT Coalition.

Main exports from the garment industry

Table: Exports by groups of countries, sections and divisions of NACE (current prices); 2010

Specification Total

Developed countries Countries of Central and Eastern Europe

Developing countries Total Of which

European Union

In million PLN

TOTAL 334522.9 291533.1 270261.7 19467.6 23522.2 Manufacture of textiles

4226.1 3868.9 3771.1 245.9 111.3


3229.0 2829.4 2711.3 336.6 63.0


1387.2 1124.3 1054.5 241.4 21.5

Source: Central Statistical Office

Leather products constitute a large part of the exports. According to the Ministry of Economy, leather garments represent a value of 10 million euro and tanned and dyed leathers a value of 50 million euro.

Exports by the Polish garment industry constitute about 2% of the total value of Polish exports. Exports have been influenced by the recent financial crisis and the number of orders has reduced. However, Polish products are considered to be of high quality and there is more stability in the production of the more “exclusive” products. Exports represent about 40% of the income of Polish garment companies.

While analyzing the statistical data, it is important to bear in mind that the majority of the garments are only sewn in Poland. Therefore it is very difficult to estimate the real value of the exports and imports and official data does not take this into account.

Source: Ministry of Economy and the Union of Fashion Industry Employers (Lewiatan)


17 / 56

Main areas for garment production

Garment companies are located all over the country, however there are a few main regional concentrations: Lodzkie (region around Lodz), Wielkopolskie (region around Poznan), Kujawsko – Pomorskie (region around Torun and Bydgoszcz), Mazowieckie (region around Warsaw) and Dolnoslaskie (region around Wroclaw).

Source: Ministry of Economy

% employed in garment industry

Table: Number of people employed in industry

2006 2007 2008 2009 2010

Specification in thousands


61.2 62.2 63.2 55.2 53.2


174.0 172.9 166.6 140.1 122.4


35.5 36.4 33.6 29.0 27.5

Source: Central Statistical Office, Statistical Yearbook of Industry – Poland 2011

According to the Central Statistical Office, in 2010, the number of people employed in the manufacturing of textiles constituted 1.8%, those employed in the manufacturing of wearing apparel – 4.2%, and those employed in the manufacturing of leather and related products – 1% of all employees in Polish industry.4

The OPZZ confirms that the economic crisis had a significant impact on the garment industry in Poland. During 2008 and 2009, about 60,000 garment workers lost their jobs and many factories were closed.

44 Total number of people employed in industry in Poland in 2010: 2909.5 thousand (Source: Statistical Yearbook of Industry – Poland 2011)


18 / 56

Social composition of the garment workforce

All stakeholders confirm that the majority of garment industry employees in Poland are women, middle-aged, well educated through occupational garment schools, qualified and experienced. It is a homogenous group as far as the national and ethnic background is concerned.

A few years ago, there were attempts to employ foreigners, and discussions even took place in the tripartite committee aimed at introducing regulations which would facilitate this process, but these attempts were not successful.

It is a common view that one of the main problems of the industry is the lack of interest from young people to work in this sector. This is due to the low wages paid for the hard work as well as the negative image of the industry. The Union of Fashion Industry Employers (Lewiatan) has introduced a number of campaigns aimed at promoting the garment industry and encouraging young people to seek education in garment schools.

Source: Union of Fashion Industry Employers (Lewiatan), Union of Light Industry Employers (Employers of Poland).

4. Industrial relations

Organisation of employers and trade unions in the garment sector

The main trade union federations (Solidarność and OPZZ) and the employers’ associations (Lewiatan and Employers of Poland) are active in the garment sector. No other (significant) employers’ or trade union organization is active in this sector.

All of these organizations are members of the Tripartite Commission for Economic and Social Affairs and represent the garment sector in the Tripartite Committee for Light Industry.

The worsening situation of the garment industry is influencing traditional industrial relations in this sector. The employers and the trade unions are being forced to speak with one voice if they want to keep the garment industry alive. For a long time, there have not been any typical discussions or conflicts between these groups which would be related to issues such as salaries or other working conditions. The employers’ associations and the trade union organizations cooperate closely and prepare common positions for the Tripartite Committee meetings. In fact, it can often seem to be two groups in the tripartite committee rather than three: employers and unions on the one hand and the government on the other.

According to OPZZ, although the cooperation between the trade unions and the employers’ associations is well developed at this level, at the factory level this cooperation is often not that successful. Here, it is more difficult to reach the compromises required regarding concrete problems such as low wages. According to the OPZZ, the trade unions are not welcome in the majority of garment companies.

Both, the employers’ associations and the trade unions in the garment industry are not very representative. Only a small percent of the workers, as well as from the employers, are members of these organizations. This is due to the weak financial situation of the garment industry in Poland. Neither the trade unions nor the employers’ associations have much to offer to their potential members.


19 / 56

The majority of the garment factories in Poland are small companies with just a few employees. Many of them function on the verge of the grey economy. Being a member of a registered organization requires them to live up to certain standards which many of them are not compliant with. Additionally, in the majority of these factories, there are no trade unions and therefore the employers do not feel the need to join a business association as the larger unionized factories do.

The trade unions are active mainly in the formerly state owned factories which only constitute a small percentage of the garment companies in Poland. There are almost no trade unions in the smaller companies that emerged after 1989. These companies usually employ just a few workers and it is therefore difficult to meet the requirement of a minimum of 10 workers to establish a trade union in the company.

According to the KARAT Coalition, trade unions are not welcomed in the majority of garment companies and workers generally lack interest in them as they think that the unions have failed in increasing wages and improving working conditions. The difficult situation of the garment industry in Poland reduces the chances of union activities bringing any success.

Source: Solidarność, OPZZ, Union of Light Industry Employers (Employers of Poland), Union of Fashion Industry Employers (Lewiatan), Ministry of Economy, KARAT Coalition

General situation on trade union rights

The ITUC’s Annual Survey of Trade Union Violations 2010 identifies following problems in Poland: an increase of employers’ hostility against trade unions, at least 20 men and women dismissed for their trade union activities (although the unions were able to negotiate re-engagement for four of them), limited trade union rights, and the right to strike hampered by excessive restrictions.

The ITUC report criticizes the regulation in Poland regarding the establishment of trade unions by certain groups of workers i.e. policemen, border guards, etc. The ITUC also stresses that, although there is a right to bargain collectively in Poland, many workers cannot enjoy it. The ITUC also mentions excessive restrictions to the right to strike due to the fact that strikes are seen as an element of collective disputes and can only be called if the parties do not reach an agreement through negotiations. Additionally, the strike must be preceded by conciliation or mediation. Finally, to call a strike, a majority of all employees must vote in favour of the strike. According to the ITUC, the list of “essential services” exceeds the ILO definition.

Polish trade unions confirm the hostility of employers against trade union in the Polish garment industry. They share the opinion that most of the trade unions in the garment sector function in formerly state owned companies where they have a long tradition of activity. Wherever the trade union are active they are tolerated, however, it is almost impossible to establish a new trade union organization in a garment factory. Trade unions activists do not have access to the majority of companies, and workers interested in organizing a union are threatened and eventually give up.

Source: ITUC, Annual Survey of violations of trade union rights 2010, Solidarność, OPZZ


20 / 56

Union density in the country

Table: Trade Union Density in Poland (%)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

24.2 22.5 24.1 23.7 19.7 19.0 16.8 15.2 15.6 15.1 15.0

Source: OECD5

CBA coverage in Poland

As at March 31st, 2010, there are 169 CBAs signed for more than one workplace registered in Poland. This number does not cover individual factories. These CBAs cover 391,000 employees. These are mainly persons employed in public institutions and large companies from the mining, energy, construction, and telecommunication industries.

Source: Ministry of Labour and Social Affairs

CBA coverage in garment industry

There is no Collective Bargaining Agreement for the whole garment industry in Poland. The negotiations for such an agreement started in 2001-2002 and the main trade unions and employers’ associations worked intensively on the CBA for about four years. One of the main issues covered by this document was the calculation of the value of work on particular positions which would be used as a basis for the wage calculations. The government and the EU supported the project of developing this CBA, however, the implementation of this CBA failed because of the deteriorating economic situation in the industry. Many of the employers withdrew from this initiative, some because of their weak financial situation, others because there were no trade unions in their factory to sign the CBA with. Others preferred sustaining their business through the grey economy. The economic crisis finally ended the work on a CBA at country level. It is very unlikely that such a CBA will be developed again for the garment industry.

Collective bargaining agreements have been negotiated in some garment factories where the trade unions were able to do this. Given the fact that the trade unions are active in only a small percentage of factories, not many garment industry employees are covered by CBAs.

Solidarność estimates that half of its member trade union organizations that are active in the garment industry have managed to negotiate CBAs in their workplaces.

The issues regulated in these CBAs are: working conditions (mainly health and safety), annual leave and wages. The CBAs usually include the agreement that wages may be renegotiated every one or two years, depending on the company.

Many CBAs had to be renegotiated at the request of employers who were worried by the unstable situation facing their companies. In order to keep a company alive, trade unions often agreed to suspend or withdraw from some benefits covered in the CBA.

5 http://stats.oecd.org/Index.aspx?DatasetCode=UN_DEN#


21 / 56

Source: Solidarność, OPZZ, Union of Light Industry Employers (Employers of Poland)

Local grievance mechanisms for workers

The grievance mechanism that is most accessible for workers in the whole garment industry is making an employee’s compliant to the National Labour Inspectorate. Every employee can file such a complaint to this institution whenever his/her rights are violated. These complaints are answered within 30 days and usually followed by an inspection by the labour inspectorate. The complaints are initially handled anonymously and the inspection is done by the National Labour Inspectorate following the complaint and focusing on the problem raised. Whenever possible, the problem is solved by invoking the authority of the Labour Inspector. If this is not possible, the appropriate institution, usually the prosecutor, is informed and takes over the case.

Complaints are usually related to wages, working times, and legally binding work contracts. There are not many complaints related to health and safety. Over the last few years, the number of complaints has been growing, something that might be related to the recent financial crisis.

An employee does not have to file a complaint just to the National Labour Inspectorate, but can also file a law suit directly to the Labour Court.

Source: National Labour Inspectorate

State role in Industrial Relations

The Ministry of Labour and Social Affairs tries to promote social dialogue in Poland. Most of the work is done through the Tripartite Commission for Economic and Social Affairs, the Tripartite Committees for the different industry sectors (including light industry) and the Regional Social Dialogue Commissions.

The law on collective disputes requires the parties involved in a conflict to undertake negotiations and mediations before a strike is pursued. In order to facilitate these processes, the Ministry of Labour and Social Affairs provides a list of mediators who fulfil the required standards.

The State is involved in the work of the Tripartite Commission for Economic and Social Affairs, mainly through the representatives of Ministry of Economy and Ministry of Labour and Social Affairs. They are also members of the Tripartite Committee for Light Industry.

While the cooperation between employers and the trade unions is rather good, the cooperation with the government has not been as easy. The good relations between the employers and the trade unions have put the government in an unusual position. Since there is no typical conflict between the employers and the trade unions, their cooperation on national level runs smoothly. Unfortunately, there is not enough continuity of the representatives of the Ministry in the tripartite committees. Consequently, a lot of time is spent on initiating the same processes again and again in the tripartite committee. Documents, strategies and plans are developed but not implemented and decisions taken during the meetings are not followed up or implemented in a way that is satisfactory for all the parties. Additionally, the garment industry is not a priority area for the government’s strategies.


22 / 56

A different opinion is expressed by the Ministry of Economy, which claims that the Tripartite Committee for Light Industry is functioning very well and actively. It is an important forum for discussions where all the problems of the industry are addressed. Usually employers’ associations and trade unions prepare their common positions and present them to the government representatives.

Source: Solidarność, OPZZ, Union of Light Industry Employers, union of Fashion Industry Employers

5. Implementation of the FWF Code of Labour Practices In this chapter, the implementation of every part of the FWF Code of Labour Practices is examined by looking at official statistics on compliance (where available), laws and regulations, as well as different stakeholders’ opinions and analysis on implementation. Each section starts with a quote from the FWF Code of Labour Practices. Any text in italics is a quote from the relevant laws.

5.1 Employment is freely chosen

"There shall be no use of forced, including bonded or prison, labour." (ILO Conventions 29 and 105)

Laws and Regulations

The provisions of Polish law related to labour relations correspond well with the FWF Code of Labour Practices. Poland has ratified both ILO Conventions related to the issue of freely chosen employment (29 and 105) and incorporated these conventions into its legal system. The Constitution of Poland guarantees the freedom of choosing an occupation as well as the place of work. The specific regulation on this issue is covered in the Labour Code.

The first of the ‘Basic principles of labour law’ listed in article 10 of the Labour Code guarantees the right to freely chosen employment. Further, it confirms that the initiation of labour relations, as well as defining the terms of employment and remuneration, requires a consistent declaration of will expressed by both employer and employee.

The Labour Code regulates in detail the terms of initiating and terminating the employment. It describes the process, as well as the duties and rights of the employees and employers, related to signing and terminating the contract. Regulations are provided for different cases and situations, such as: termination of the contract by the employee, employer, and as a result of mutual agreement and the contract expiring. The Labour Code also provides regulations which apply in the case of illegal termination of the contract by either of the parties (employer or employee). At no point is there any doubt that the regulations may allow forced employment.

Stakeholders’ opinion and analysis on implementation

All of the stakeholders confirmed that this standard is generally observed in Poland as far as its traditional understanding is concerned. Employees do not work against their will, they are not imprisoned in their work places, their identity documents are not kept by the employer, and they can quit their jobs freely under the terms of the law. However, the trade unions have described situations when the work in garment factories is not entirely voluntary, for example: obligatory overtime or lack of possibility to choose the dates of annual leave (forced vacations when there is no production in the company). Employees of garment factories agree to various


23 / 56

compromises regarding their rights due to the weak financial situation and instability of the industry. This involves acceptance of changes of position, work that they are not qualified to perform or work below their qualifications, as well as agreement for civil law contracts (which do not guarantee the labour rights and social insurance) instead of legal work contracts. The employees believe that they do not have a choice and that these compromises will enable them to keep their jobs which they would not find anywhere else. This problem is perceived by the trade unions to be one of the most serious problems facing garment industry workers.

5.2 No discrimination

"Recruitment, wage policy, admittance to training programs, employee promotion policy, policies of employment termination, retirement, and any other aspect of the employment relationship shall be based on the principle of equal opportunities, regardless of race, colour, sex, religion, political affiliation, union membership, nationality, social origin, deficiencies, or handicaps." (ILO Conventions 100 and 111)

Official statistics on compliance

Name of indicator


Gender Index Rank

25 A composite measure reflecting inequality in achievements between women and men in three dimensions: reproductive health, empowerment and the labour market.


Human Development Report, 2011 (data from 2011)

The Global Gender Gap Index Rankings

42 Assesses countries on how resources are divided and opportunities among their male and female populations, regardless of overall levels of resources and opportunities. Ranking countries from 1 to 135.


Global Gender Gap Report 2011 (WEF)

Wage equality for similar work (rank)

123 Ranking countries from 1 to 131.


Ibid


24 / 56


Polish regulations in the area of discrimination at work cover the issues included in the FWF Code of Labour Practices. The equal treatment of all persons is guaranteed in the Constitution of Poland, which also forbids any kind of discrimination and ensures equal rights of men and women in Poland, in particular, regarding education, employment and promotion, compensation for work of similar value, social security, public honours and decorations.

Poland has ratified ILO Conventions 100 and 111 related to the issue of equal opportunities and discrimination. These conventions, as well as some of the EU anti-discrimination directives related to the employment, have been included in the Labour Code.

The provisions related to equal treatment and discrimination are included among the ‘Basic principles of labour law’ of the Labour Code and specified in Chapter IIa. The Labour Code provisions guarantee the equal rights of women and men doing the same job and forbid any kind of discrimination in employment, in particular based on sex, age, disability, race, religion, nationality, political views, trade union association, ethnicity, sexual orientation, as well as in the type of employment (fixed, temporary, full time and part time employment). Employees have the right to equal treatment as far as the initiating and terminating of labour relations, terms of employment, promotion, and access to professional training are concerned. The Labour Code also provides the definitions of direct and indirect discrimination, sexual, physical and psychological harassment at work. The Labour Code also differentiates the discrimination and activities aimed at the equalization of rights and opportunities at work. It guarantees equal wages for equal work.

Part Eight of the Labour Code regulates the rights of employees related to parenthood. Among other things, it ensures the right to paid maternity leave, which may last from 20 up to 37 weeks, depending on the number of newborn children. Fathers are entitled to 2 weeks leave to be used by the time the child is 12 months old. Both parents are entitled to up to 3 years of parental leave (unpaid) to be used by the time the child is 4 years old.

The National Labour Inspectorate stresses that the weakness of the Labour Code lies in the lack of an effective mechanism for monitoring the implementation of antidiscrimination provisions by the employers. The only efficient way for discriminated employees to claim their rights and demand compensation is by filing a lawsuit in court.

The antidiscrimination regulations included in the Labour Code are exceptional in Poland. Many of antidiscrimination regulations related to areas other than employment are still not incorporated into the Polish law system. Poland lacks the antidiscrimination law and efficient institution to ensure its proper implementation. In 2009, the European Commission referred Poland to the European Court of Justice for not implementing a number of antidiscrimination directives.

A few stakeholders agree that the lack of this legislation influences the perception of the problem in Polish society and makes it difficult for the employees to exercise their rights granted by the Labour Code, as these kind of legal provisions and procedures are not rooted in the law system as a whole.


The stakeholders give different opinions on the implementation of the ‘no discrimination’ standard in the Polish garment industry. The trade unions and employers claim that discrimination is not a problem in the garment companies. The National Labour Inspectorate


25 / 56

and consulted NGOs think that the problem of discrimination may be more serious than it seems. This is because there are no efficient instruments to monitor the implementation of antidiscrimination provisions by the National Labour Inspectorate or any other institution. Workers have limited possibilities to address their problems and claim their rights. The available procedures are difficult and the plaintiff usually needs time as well as money in order to follow through a discrimination complaint. Workers are often afraid to use them. Additionally, the lack of the antidiscrimination legislation influences the perception of the problem in Polish society. Many workers and employers do not understand what gender discrimination is. Finally, gender discrimination may be difficult to spot in the garment industry because the majority of employees in this sector are women, so identifying cases of very obvious discrimination, where male workers receive better treatment than women, is less common when compared to more mixed work environments.

5.3 No child labour

"There shall be no use of child labour. The age for admission to employment shall not be less than the age of completion of compulsory schooling and, in any case, not less than 15 years." (ILO Convention 138) "There shall be no forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage and serfdom and forced or compulsory labour. [...] Children [under the age of 18] shall not perform work which, by its nature or the circumstances in which it is carried out, is likely to harm their health, safety or morals." (ILO Convention 182)


Polish regulations related to child labour are entirely in line with the FWF Code of Labour Practices. Poland has ratified the ILO Conventions 138 and 182 and incorporated these into the Polish legal system.

The Constitution of Poland prohibits permanent employment of children under 16 years of age. It also states that everyone has the right to education and that education up to 18 years of age is compulsory. Additionally the Constitution guarantees the protection of the rights of the child, which includes the state’s obligation to defend children against exploitation.

The Labour Code regulates in detail the possibilities of employment for juveniles. It is forbidden to employ children younger than 16 and those who have not completed the basic education (elementary school and junior high school). Juveniles between 16 and 18 years old may be employed, in connection with a number of conditions, in only two situations: employment with the purpose of professional preparation, and other than professional preparation. The employer is obliged to keep detailed records of all juvenile employees.

As far as the working time is concerned, the Labour Code forbids the employment of juveniles at night and for doing overtime. Juveniles are entitled to 14 hours of undisturbed rest during the day and 48 hours during the week.


According to the National Labour Inspectorate, the very specific and clear regulations related to the employment of juveniles are obeyed by the employers in Poland. All stakeholders confirm that child labour is not used in the garment industry. However, it does happen that students of


26 / 56

garment schools are employed in garment factories on special terms and with the purpose of gaining professional experience and qualifications.

5.4 Freedom of association and the right to collective bargaining

"The right of all workers to form and join trade unions and bargain collectively shall be recognised." (ILO Conventions 87 and 98) "Workers' representatives shall not be the subject of discrimination and shall have access to all workplaces necessary to carry out their representation functions." (ILO Convention 135 and Recommendation 143)


Polish law covers freedom of association and the right to collective bargaining as understood by the FWF Code of Labour Practices. Poland has ratified the ILO Conventions 87, 98 and 135. The Constitution of Poland guarantees freedom of association in trade unions and in employers' organizations, as well as the right to collective bargaining and strikes. Freedom of association is also included in the ‘Basic principles of labour law’ of the Labour Code which also provides regulations on collective bargaining. The specific regulations regarding freedom of association are covered by a separate act: the Trade Unions Bill.

The right to establish and join a trade union is granted to every person employed with an official working contract, members of the farmer’s cooperatives, as well as employees working under an agent’s contract unless they are employers. Workers performing outsourced work have a right to join the trade union operating in the company they cooperate with. Workers who become unemployed can keep their union membership. Unemployed persons can also join a trade union (depending on the internal regulations of the trade union). A trade union can be initiated by 10 employees at a work place. Any discrimination and negative treatment of the employees involved in a trade union is forbidden. The employer is obliged to provide the trade union with the facilities necessary for their work, as well as to pay the salaries of the trade union’s board members.

Trade unions have the right to negotiate and sign collective bargaining agreements. There are two kinds of collective bargaining agreements: for one work place, or for several work places (for example a sector of industry). The collective agreements can cover all issues related to the conditions of work and other matters which are not definitely regulated by the labour law. The CBA provisions cannot be less favourable to the employees than the provisions of the Labour Code. Both parties are obliged by law to negotiate on CBA.


The trade unions which already exist in garment companies in Poland enjoy freedom of association and the right to collective bargaining. It does occur that union members are discriminated against, but these are rather isolated cases. The trade unions in the garment sector generally cooperate with the employers in the name of a common interest: the survival of the garment industry in Poland.

The trade unions are mainly active in factories formerly owned by the state. These constitute only a small percentage of the garment companies in Poland. The majority of garment factories have no trade unions. Trade union activists do not have access to non-unionised factories, so establishing a trade union there is very difficult. These are usually small companies and gathering the 10 workers required to establish a trade union can be very difficult. Additionally,


27 / 56

many workers do not believe that the trade unions will improve their situation. Cases have also been reported where workers who initially wanted to join a trade union withdrew their interest after they have been threatened by the employer.

There is no sectorial collective bargaining agreement for the garment sector in Poland and there are few CBAs covering individual factories.

The National Labour Inspectorate does not investigate the violations regarding freedom of association. According to the stakeholders consulted when writing this country study, the working conditions are generally better in unionised factories than in those where the workers are not organized.

5.5 Payment of a living wage

"Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet the basic needs of workers and their families and to provide some discretionary income." (ILO Conventions 26 and 131, the Universal Declaration of Human Rights, art 23(3) and art 25(1)) "Deductions from wages for disciplinary measures shall not be permitted, nor shall any deductions from wages not provided for by national law be permitted. Deductions shall never constitute an amount that will lead the employee to receive less than the minimum wage. Employees shall be adequately and clearly informed about the specifications of their wages including wage rates and pay period."


AVERAGE MONTHLY GROSS WAGES in GARMENT INDUSTRY COMPANIES (Based on survey data from companies employing more than 49 employees for first quarter of 2010)

Gross salary up to

1317

(minimum wage)

up to

2000

up to

2500

up to

3000

up to

3500

up to

4000

up to

4500

up to

5000

More than

5000

Percentage of employees in indicated wage range

7.8 % 62.2 % 22.4 % 3.5 % 1.8 % 2.3 % 0.1 % - 0.1 %

Source: Central Statistical Office

Poverty in Poland in 2011 as defined by the state

Poverty line (PLN) For single person For a family

(2 adults, 2 children)

People living below poverty lines in 2011 (%)

Extreme poverty line

(minimum of existence); defined by the Institute

495 1336 6.7


28 / 56

of Labour and Social Affairs based on OECD calculations

Poverty line by law 477 1404 6.5

Relative poverty line; defined in the Law on social assistance.

690 1863 16.7

Source: Polish Central Statistical Office


The regulations in Poland do not state that the wage should meet basic needs of workers and their families and provide some discretionary income. However, the Labour Code states that the employee has the right to ‘fair’ remuneration. The Labour Code does not elaborate on what the ‘fair’ remuneration means.

Poland has not ratified the ILO Conventions 26 and 131 related to the wage issue. It is however a signatory of the Universal Declaration of Human Rights, as well as the European Social Charter.

The Minimum Wage Act regulates the process of setting the minimum wage. The minimum wage is negotiated every year within the Tripartite Commission. The government presents a proposal along with the following information: prices in the previous year, forecast of the average price index for the following year, the average remuneration, average expenditure of households, standard of living of different social groups, general economic condition of the state, and forecast of the increase of GDP. The final minimum wage level is negotiated based on the above indicators and announced by 15 July annually. The minimum wage for 2010 was 1 317 PLN (around 330 EUR) gross and for 2011 it was 1 408 PLN (around 352 EUR) gross.

Companies are obliged to keep a separate pay roll for each employee listing all the payments related to his/her remuneration, including the tax and social insurance premiums.

The salary for an apprentice is calculated based on the average wage. It constitutes four to six per cent of this wage, depending on the length of the employment of the apprentice.


It is a common opinion of almost all the stakeholders consulted that low wages is the most significant problem for garment industry employees in Poland. This is mainly due to the difficult financial situation of the garment companies. The concept of a ‘living wage’ is not known among the local Polish stakeholders. However, most of the stakeholders agree that the minimum wage of 1317 PLN (gross) is not enough to cover all basic expenses. They estimate that workers would need to earn at least 1500 PLN (net) to afford a humble standard of living.

According to the consulted stakeholders, the regulations on the minimum wage are generally implemented and followed in Poland. All but one stakeholder confirmed that the basic wage paid to the seamstresses in Poland usually equals the minimum wage. It is a bit higher in better prospering factories, but still far below the average wage in Poland (3300 PLN gross). The salary is usually just as low for educated and experienced workers. According to the stakeholder, this is also the main reason why young people do not look for jobs in the garment industry.


29 / 56

A different opinion is expressed by the Union of Fashion Industry Employers which says that according to a survey conducted together with the Polish Federation of Apparel and Textiles, the average wage of a seamstress in Poland is 2300 to 2500 PLN gross.

Salaries are usually paid on time along with all the tax and insurance payments, at least as far as factories with trade unions are concerned.

5.6. Excessive working hours

"Hours of work shall comply with applicable laws and industry standards. In any event, workers shall not, on a regular basis, be required to work in excess of 48 hours per week and shall be provided with at least one day off for every 7-day period. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis, and shall always be compensated at a premium rate." (ILO Convention 1)


Polish regulations on working time are partially in line with the FWF Code of Labour Practices. The weekly working time in Poland is 40 hours per 5 days week with an 8 hour working day. The working time including overtime cannot exceed 12 hours per day and 48 hours per week on average during the remuneration period. Employees have the right to 11 hours of undisturbed rest during a day (24h) and 35 hours of undisturbed rest during a week (7 days). The overtime of an employee cannot exceed 150 hours during the year and cannot be demanded on regular basis.

The labour law does not explicitly state that overtime work should be voluntary, but it does state that overtime is permissible in the case of special needs of the employer or extraordinary situations such as rescue actions.

For overtime work during night, on Sunday, during holidays or other days off, the employee should receive double the wage. In case of overtime work at other times, the employee should receive 50% more. Instead of paying the additional payment, the employer may grant the employee time off in the same remuneration period.

All employees have a right to 20 days paid annual leave. If workers have longer than 10 years experience (occupational and higher education time included), they should receive at least 26 days.

The employer is obliged by the Labour Code provisions to keep records of the working time of the employees as a basis for calculation of wages and other payments related to the employment. The employees have the right to access to these records. The regulations on the format of these records is covered by the decree of the Ministry of Labour and Social Affairs on documentation related to aspects of the work which the employer is obliged to keep.

Some workers work under a quota system paid per piece. Polish law does not regulate explicitly when in such cases overtime starts and how overtime should be calculated. Furthermore, there are no rules on break times. It does state however that the employer is obliged to define the working time system and period of remuneration.

Poland has not ratified ILO Convention 1 on working time. The Constitution of Poland states that the employee shall have the right to statutorily specified days free from work as well as annual paid holidays, and, as for the maximum permissible hours of work, it refers to the specific law. This law is the Labour Code which includes the specific provisions on working time.


30 / 56


The majority of the stakeholders consulted agreed that currently the problem of excessive working hours is not as big as it used to be a few years ago. The regulation on working time is generally followed. However, in non-unionised factories, working hours can be an issue.

Another commonly expressed opinion is that the specific conditions of the garment industry influence the working times in the factories. Irregular orders, seasonal peaks in production, the need for the maintenance of machinery, as well as the quota system contribute to overtime work. The choice of dates of annual leave by the employees is quoted as another issue contributing to overtime.

Just as in other sectors, garment industry employers try to reduce their tax and insurance payments, sometimes by making informal and illegal agreements with the employees. Therefore it does happen that employees work unregistered hours, receiving unregistered salary for these hours.

5.6 Occupational health & safety

“A safe and hygienic working environment shall be provided, and best occupational health and safety practice shall be promoted, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Appropriate attention shall be paid to occupational hazards specific to this branch of the industry and to ensure that a safe and hygienic work environment is provided for. Effective regulations shall be implemented to prevent accidents and minimize health risks as much as possible.” (following ILO Convention 155) "Physical abuse, threats of physical abuse, unusual punishments or discipline, sexual and other harassment, and intimidation by the employer are strictly prohibited."


PERSONS WORKING IN HAZARDOUS CONDITIONS 2010

Specification

a) In total

b) In which women

Persons working in hazardous conditions

in total

Hazard related to work environment

Hazard related to strenuous conditions

Hazard related to mechanical factors

per 1000 paid employees of total surveyed


a) 116.2

b) 67.5

a) 107.0

b) 62.6

a) 8.3

b) 4.9

a) 0.9

b) -


a) 16.1

b) 11.7

a) 11.4

b) 7.7

a) 4.1

b) 3.9

a) 0.6

b) 0.2


a) 40.1

b) 14.9

a) 16.0

b) 5.8

a) 18.0

b) 8.8

a) 6.0

b) 0.3


31 / 56

Source: Polish Central Statistical Office


Poland has not ratified ILO Convention 155. However, it has implemented a number of EU directives on occupational health and safety. As a result of this, the Polish regulations in this area are in line with the FWF Code of Labour Practices.

The Constitution of Poland confirms everybody’s right to safe and hygienic conditions of work. The specific provisions are included in the Labour Code and the executive regulations.

The employer is responsible for working conditions in the work place and obliged to ensure that these working conditions are healthy and safe. The work system, as well as the workplace, should be organized in line with the health and safety regulations. According to the Labour Code, the employer is to conduct an occupational risk assessment at the work place, document the results, take measures to eliminate the risks and inform the employees about it. The employer is also obliged to eliminate any dangers that arise and execute the recommendations and orders of the labour inspectors. The employer has to provide health and safety training, health and safety equipment and all necessary protection measures to the employee.

The employees are obliged to know and obey the health and safety regulations, complete the required training and medical health check, take proper care of the machines they work with, use the necessary protection measures, and inform the employer of any dangers.

The Labour Code and the executive regulations specifically describe various aspects of health and safety. The most relevant regulation for the garment industry is that concerning work with machines and noise.

Regarding machines, two main sets of regulations apply: minimal requirements for machines (purchased before 1st of January 2003) and essential requirements for machines (purchased after 1st of January 2003).

The regulations on the noise level include limits of noise in the work place, obligations to carrying out noise measurements (repeating the measurements when the level of noise is high), as well as assessments of professional risk analysts, which identify sources of risk in the factory and suggest strategies to minimize any risks found.

Source: Central Institute for Labour Protection


The consulted stakeholders disagree on the level of health and safety in garment companies. On the one hand, the majority of stakeholders confirm that the occupational health and safety regulations are quite exhaustive and implemented (many occupational risks have been eliminated and the number of accidents have decreased). On the other hand, the representatives of the trade union Solidarność point out a few serious problems which are difficult to solve because they are not entirely covered by the regulations. These problems are: noise, temperature and ergonomics. The trade union OPZZ stresses that the unstable situation in the garment industry has a significant impact on the psychical health of the workers causing stress and exhaustion. The Labour Inspectorate states that the garment industry is not different from other sectors when it comes to the implementation of the health and safety regulations. Therefore they do not work more closely with this sector than the others.


32 / 56

5.7 Legally binding employment relationship

"Working relationships shall be legally binding, and all obligations to employees under labour or social security laws and regulations shall be respected."


Name of indicator


Employment in the informal economy

9.2% Employment in the informal economy as % of total employment

KILM 6th edition, 2009 (data from 1999, no data update since then)


The Polish regulations regarding legally binding employment relationships correspond well with the FWF Code of Labour Practices. The employment relationship is regulated by the Labour Code. The general social insurance system in Poland is regulated by the Act on Social Insurance System, the Act on Organization and Functioning of the Pension Funds, the Act on Pensions and Social Security Fund. The obligations of the employer regarding the required documentation are covered in the decree of the Ministry of Labour and Social Affairs on the employer’s documentation of the employment relationship and the employee’s personal file.

The work relationship is established when the employee commits to perform work on the terms established in an agreement with the employer. The work relationship is established based on the work contract. According to the Labour Code, the work contract can be concluded for an indefinite period, a fixed period, and for the period necessary for completing given work tasks.

The employer is obliged to keep a personal file for every employee. This should include the documents provided by the employee during the recruitment process as well as the documents related to the work relationship. The employer is also obliged to keep all the documents related to the termination of the contract with the employee. Additionally, for each employee, the employer keeps working time records and a separate payroll list documenting the remuneration and all other payments to the employee.

All employees should be covered by the obligatory pension, disability and health insurance system based on the work relationship. The insurance premiums are calculated based on the remuneration of the employee and constitute a % of the gross salary (about 37%). The costs of the premiums are divided in equal parts between the employee and employer. However, the employer is obliged to transfer the entire amount of the premium to the Social Insurance Institution (ZUS).

The Social Insurance Institution collects social premiums. This institution is also responsible for the payment of pensions, disability pensions, remuneration for employees on maternity leave, and other allowances. The Work Office pays the allowance for the unemployed. Every employee who can document 365 days of employment has the right to this allowance.


33 / 56


All stakeholders confirm that there are cases of illegal employment and informal work in the garment industry. This is due to the fact that the costs of employment (taxes and mandatory insurance premiums) are considered high in Poland. This problem is also relevant to in other sectors in Poland. The employers and employees often come to a mutual agreement when deciding whether to sign civil contracts instead of work contracts, or when they commit to entirely or partially informal (meaning illegal) work relationships. The motivation for this is usually money. The employers save on the employment costs by avoiding paying part of the taxes, social insurance premiums. Under such conditions, there is no need to pay for the employee’s annual leave and the regulations on the minimum wage do not apply. The benefit for the employees is a higher salary. They are often forced to agree to such solutions due to their financial situation or other circumstances. The stakeholders agree that this may happen more often in the garment industry than in other sectors because of the difficult economic situation of this sector. This is usually a problem in the non-unionised factories.

Another problem with the implementation of this standard is the excessive use of fixed period contracts. Employers prefer to sign this type of contract instead of indefinite period contracts which entitle the employees to more rights and benefits. In general, it is permissible to sign two fixed period contracts in a row, while the third one must be an indefinite period contract, except when there is a 31 day break in-between the contracts. This regulation, as well as the special ‘anti-crisis package’ which softens the labour law by abolishing the limits of the number of fixed period contracts, is used by employers in the garment industry. This issue is particularly important for workers who have worked for a long time in a factory before being laid off, for example because of a factory closure.

According to the Labour Inspectorate, one of the regulations most often not followed, is the one on the preparation of the employee to work on a given position. Such preparation should involve a medical examination and a series of training modules (professional and health and safety). Often, the employers do not do this in time, or produce false documentation of the training, etc. The health and safety training should also be adjusted to the specific work place or branch (for example, the garment industry).

One of the recommendations of the Labour Inspectorate is to certify the companies conducting the health and safety training and to require the employers to produce the certificates of these companies.


34 / 56

Appendix 1. Legal situation regarding the FWF Code of Labour Practices

Employment is freely chosen

"There shall be no use of forced, including bonded or prison, labour." (ILO Conventions 29 and 105)


ILO Conventions:

Poland has ratified both ILO Conventions related to the issue of freely chosen employment (29 and 105) and incorporated these conventions into its legal system.

Constitution of Poland:

Article 65 guarantees the freedom in choosing the occupation as well as the place of work. An obligation to work may be imposed only by statute.

Labour Code:

Article 10 - the first of the ‘Basic principles of labour law’ listed in the Labour Code guarantees the right to freely chosen employment.

Article 11 confirms that the initiation of labour relations, as well as defining the terms of employment and remuneration, requires a consistent declaration of will expressed by both employer and employee.

Articles 22-67 regulate in detail the terms of initiating and terminating the employment, and describe the process as well as duties and rights of the employees and employers related to signing and terminating the contract. The regulations are provided for different cases and situations, such as: termination of the contract by the employee, the employer, and as a result of mutual agreement and the contract expiring. The Labour Code also provides the regulations applying in case of the illegal termination of the contract by either of the parties (employer or employee). At no point is there any doubt that the regulations allow forced employment.

Article 22 states that the work relationship is established when the employee commits to perform the given work on the terms defined in the agreement with the employer.

Article 25 states that the work contract can be concluded for an indefinite period, fixed period and for the period necessary for completing given work tasks. Each of these contracts may be preceded with a contract for a trial period of no longer than 3 months.

Article 29 states that the contract should define the parties, the type, and the date of signing the contract, as well as the conditions of the employment, in particular: type of work, place of work, remuneration with all components specified, working time, and the start date.

Article 30 describes the possible ways of terminating the contract: mutual agreement of the parties, notice given by one of the parties without the period of notice, notice given by one of the parties with the period of notice, and expiration of the contract (date and the completion of the work the regulated by the contract). The trial period contract expires when the period ends, it can be also terminated by notice given by one of the parties. In all cases, the notice should be given in writing.


35 / 56

Articles 33-36 regulate the period of notice depending on the type of contract and the length of the employment. In general, fixed term contracts for periods longer than 6 months are terminated with 2 weeks’ notice, shorter, fixed term contracts and trial period contracts may be terminated with 3 days notice. Infinite period contracts may be terminated with 3 months notice if the employee has been working based on the contract for longer than 3 years, in other cases the period of notice is 1 month.

Articles 56 and 61 state that both employee and employer have a right to address their cases in a labour court in the event that the other party terminates the contract in a way which is not in line with the law.

No discrimination

"Recruitment, wage policy, admittance to training programs, employee promotion policy, policies of employment termination, retirement, and any other aspect of the employment relationship shall be based on the principle of equal opportunities, regardless of race, colour, sex, religion, political affiliation, union membership, nationality, social origin, deficiencies, or handicaps." (ILO Conventions 100 and 111)


ILO Conventions:

Poland has ratified ILO Conventions 100 and 111 related to the issue of equal opportunities and discrimination. These regulations, as well as some of the EU antidiscrimination directives related to the employment, have been transferred to the Labour Code.


Article 32 guarantees equal treatment of all persons and forbids any kind of discrimination.

Article 33 ensures equal rights of men and women in Poland, in particular, regarding education, employment and promotion, compensation for work of similar value, social security, public honours and decorations.

Labour Code:

General provisions related to equal treatment and discrimination are included among the ‘Basic principles of labour law’.

Article 11(2) guarantees the equal rights of women and men in the same job.

Article 11(3) forbids any discrimination in employment, in particular based on sex, age, disability, race, religion, nationality, political views, trade union association, ethnicity, sexual orientation, as well as in the form of employment (fixed, temporary, full time and part time employment).

Chapter IIa specifies the antidiscrimination regulations.

In particular it states that employees should be treated equally as far as the initiating and terminating of labour relations, terms of employment, promotion and access to professional training are concerned.

Articles 18 (3a) – 18 (3e) provide detailed regulations. Among other things, they precisely define the regulations and provide definitions of direct and indirect discrimination, sexual, physical and


36 / 56

psychological harassment at work, as well as differentiating the discrimination and activities aimed at the equalization of rights and opportunities at work.

Article 18 (3c) guarantees equal wages for equal work.

Part Eight (Articles 176-189) regulates the rights of employees related to parenthood.

Article 180 guarantees the right to paid maternity leave, which may last from 20 up to 37 weeks, depending on the number of new born children. Fathers are entitled to 2 weeks leave to be used by the time the child is 12 months old. Both parents are entitled to up to 3 years of parental leave (unpaid) to be used by the time the child is 4 years old.

The antidiscrimination regulations included in the Labour Code are exceptional. The antidiscrimination regulations related to areas other than employment are still not incorporated into the Polish law system. A serious weakness of Polish law is a lack of an antidiscrimination bill. Furthermore, a number of aspects regarding discrimination and the procedures for claiming the rights and possible compensation of the discriminated persons are still not regulated by Polish law. In 2009, the European Commission referred Poland to the European Court of Justice for not implementing a number of antidiscrimination directives. These cases are still being processed, but in the meantime an antidiscrimination law proposal was presented in the Parliament in September 2010, however it was widely criticised by the civil society, among others, for not being consistent with the antidiscrimination regulations included in the Labour Code.

Some of the stakeholders (National Labour Inspection, KARAT Coalition, Informal Group Lodz Gender) share the opinion that the weakness of the labour code regulations lies in the lack of the monitoring procedures. The only instrument the Labour Inspection can use in this area are the employees complaints and these cannot be followed up with any concrete action except for the inspection which ends with a report. The stakeholders also agree that the lack of a general antidiscrimination law makes it difficult for employees to exercise their rights granted by the Labour Code, as these kinds of legal provisions and procedures are not rooted in the law system as a whole. However, the National Labour Inspection stresses that the employees are entitled to claim their rights in this area through the courts, and that they can also count on compensation if they win the court cases. Similar rights are granted to the employee as far as the issue of harassment is concerned. However, in cases related to the discrimination, the burden of proof is the duty of the employer and in cases related to harassment it is a duty of the employee. These are, however, very difficult and time-consuming procedures.

No child labour

"There shall be no use of child labour. The age for admission to employment shall not be less than the age of completion of compulsory schooling and, in any case, not less than 15 years." (ILO Convention 138) "There shall be no forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage and serfdom and forced or compulsory labour. [...] Children [under the age of 18] shall not perform work which, by its nature or the circumstances in which it is carried out, is likely to harm their health, safety or morals." (ILO Convention 182)


ILO Conventions:


37 / 56

Poland has ratified the ILO Conventions related to the issue of child labour 138 and 182 and transferred their regulations to Polish law system.


Article 65 prohibits the permanent employment of children under 16 years of age. It also states that the types and nature of admissible employment shall be specified by the additional acts of law.

Article 70 states that everyone has the right to education and that education to 18 years of age is compulsory.

Article 72 guarantees the protection of the rights of the child, and among other things, the state is obliged to defend children against the exploitation.

Labour Code:

Part Nine, Chapters I-VI regulate in detail the possibilities regarding the employment of juveniles. It is forbidden to employ children younger than 16 and those who have not completed the basic education (elementary school and junior high school).

The Code regulates the terms of employment of juveniles between 16 and 18 years old under a number of conditions, either with the purpose of professional preparation or the employment of juveniles for purposes other than professional preparation.

In the first case, the aims of such employment have to be specified in the contract. Employees under the age of 18 are also entitled to schooling under the Labour Code and the employer is obliged to enable such participation in school education.

In the second case, the juvenile may only perform ‘light work’. The employer (after consultations with a doctor) has to provide the list of ‘light work’ for the approval of the Labour Inspectorate.

As far as the working time is concerned, the Code forbids the employment of juveniles at night and for performing overtime. Juveniles are entitled to 14 hours of undisturbed rest during the day and 48 hours during the week.

Article 193 states that the employer is obliged to keep detailed records of juvenile employees.

Freedom of association and the right to collective bargaining

"The right of all workers to form and join trade unions and bargain collectively shall be recognised." (ILO Conventions 87 and 98) "Workers' representatives shall not be the subject of discrimination and shall have access to all workplaces necessary to carry out their representation functions". (ILO Convention 135 and Recommendation 143)


ILO Conventions:

Poland has ratified the ILO Conventions 87, 98 and 135 related to the issue of freedom of association.


Article 59 guarantees the freedom of association in trade unions and in employers' organizations as well as the right to collective bargaining and workers’ strikes.


38 / 56

Labour Code:

Article 18 (1) includes the freedom of association in the ‘Basic principles of labour law’ and states that the regulations on establishing, and the activities of, trade unions are covered by the Trade Unions Bill.

Part Eleven: Articles 238 – 241 (30) provide specific regulations on Collective Bargaining Agreements. These regulations describe the content and the process of negotiating and signing, as well as terminating, the two kinds of collective bargaining agreement: for one or for a number of work places.

The collective agreements can cover all issues related to the conditions of work relationships and other matters which are not definitely regulated by the labour law. The CBA provisions cannot be less favourable to the employees than the provisions of the Labour Code.

In the agreements, the procedures for interpretation, the system of monitoring and conflict resolution may be established.

None of the parties can refuse negotiations concerning the CBA. All parties are obliged to negotiate the agreement in good faith and keeping in mind the interests and rights of third parties. Employers are obliged to provide information on their financial situation relevant to the substance of negotiations and the trade unions are obliged to confidentiality in this matter.

Trade Unions Bill:

This Bill defines the trade union and regulates the terms and process of its establishment.

Article 2 ensures the right to establish and join a trade union. It is granted to every person employed based on their work contract, members of the farmer’s cooperatives, as well as employees working under an agent’s contract unless they are employers. The workers performing outsourcing work have a right to join the trade union operating in the company they cooperate with. Unemployed workers preserve their membership in a trade union and they can also join a trade union based on its internal regulations. Civil servants have the right to join trade union in the work place where they perform their service. The restrictions on the right of establishing and joining the trade union of the Police, Border Guards and employees of the Supreme Chamber of Control are regulated in separate bills. There are no additional conditions of joining a trade union.

Article 3 prohibits any negative treatment of employees, in particular related to the establishing and sustaining of working relationships, promotion etc, which would be a consequence of involvement, or lack of involvement, of the employees in a trade union. The Bill also provides the provisions on sanctions to be applied in the event of any violation of the regulations of the Bill.

Articles 4-8 describe the mandate and rights of the trade unions: representing employees’ interest, co-shaping the working conditions (for example by negotiating the agreements with the employers), and the monitoring of working conditions.

Article 12 states that a trade union in the work place can be initiated by 10 employees who have the right to join a trade union.

Article 13 lists the components of the Statutes of the trade unions, which should in particular describe: the name, aims and tasks, structure, sources of funding, governance system, rights and obligations of the members etc.

Article 21 ensures the trade unions the right to negotiate and sign collective bargaining agreements.


39 / 56

Article 31 states that an employee who has been chosen to perform the function of the board member in the trade union organization in a given workplace may be released from the work obligation while his/her salary will still be paid. The number of these trade unionists depends on the number of members of the trade union in the work place. In cases where it is less than 150 members, one trade unionist may be partially released from his/her work obligation, in cases of 150-500 members - 1 full time employee, 501-1000 – 2 full time employees, 1001 – 2000 – 3 employees, and then 1 employee per each thousand workers.

Article 33 obliges the employer to provide the trade union organization with the space and equipment necessary for their activities.

Payment of a living wage

"Wages and benefits paid for a standard working week shall meet at least the legal or industry minimum standards and always be sufficient to meet the basic needs of workers and their families and to provide some discretionary income." (ILO Conventions 26 and 131, the Universal Declaration of Human Rights, art 23(3) and art 25(1)) "Deductions from wages for disciplinary measures shall not be permitted, nor shall any deductions from wages not provided for by national law be permitted. Deductions shall never constitute an amount that will lead the employee to receive less than the minimum wage. Employees shall be adequately and clearly informed about the specifications of their wages including wage rates and pay period."


ILO Conventions:

Poland has not ratified the ILO Conventions 26 and 131 related to the wage issue. It is however a signatory of the Universal Declaration of Human Rights, as well as the European Social Charter.


Article 65 states that the minimum level of remuneration for work, or the manner of setting its levels, is specified in a separate law.

Labour Code:

Article 10 confirms that the State authorities are responsible for setting the minimum wage.

Article 13 states that the employee has a right to ‘fair’ remuneration and that the terms of implementation of this right are regulated in separate law acts and by the policy of the state in the area of setting the minimum wage.

Additionally the wages and other payments related to the work relationship are regulated in Part 3 (Articles 77-93) of the Labour Code.

Articles 77(1) and 77(2) state that the wages are regulated by the CBAs. In workplaces where there are more than 20 employees and no CBA, the employers are obliged to set a wage system based on internal regulations. In the event that there is a trade union in the work place, it should be consulted while developing the internal regulations on wages.

Article 78 states that the regulations should set the wages for given posts or the kinds of work performed in the work place.

Article 83 states that a remuneration system based on meeting required norms (quota) may be established in the work place if it is required by the character of the performed work.


40 / 56

Article 85 states that the salary should be paid at least once a month on a fixed date.

Decree of the Ministerial Council on the occupational training of juveniles and their remuneration, May 28th1996:

§ 19. 1 regulates the manner of calculating the remuneration of the juvenile employed with the purpose of occupational training. The remuneration is calculated as a percentage of the average wage in the industry sector and it varies depending on the length of the training: first year – 4%, second year – not less than 5%, third year – no less than 6%.

Decree of the Ministry of Labour and Social Affairs on the scope of the documentation required to be held by employers in matters relating to the employment relationship and the employee personal file:

Chapter 2 includes the regulations which oblige the employer to keep a separate payroll list documenting the remuneration and all other payments for each of the employees.

Minimum Wage Act:

This law regulates the process of settling the minimum wage in Poland. The amount of minimum wage is negotiated every year within the Tripartite Commission. The government presents a proposal along with the following information: prices in previous year, forecast of average prices index for the following year, the average remuneration, average expenditure of households, the standard of living of different social groups, general economic condition of the state and a forecast of the increase of GDP. The final amount of minimum wage is negotiated based on the above indicators and announced by July 15th.

The minimum wage for 2010 was 1317 PLN (around 330 EUR) gross salary and for 2011 it was 1408 PLN (around 352 EUR) gross.

No excessive working hours

"Hours of work shall comply with applicable laws and industry standards. In any event, workers shall not, on a regular basis, be required to work in excess of 48 hours per week and shall be provided with at least one day off for every 7-day period. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a premium rate." (ILO Convention 1)


ILO Conventions:

Poland has not ratified ILO Convention 1 on working time.


Article 66 states that employees shall have the right to statutorily specified days free from work as well as annual paid holidays, and regarding the maximum permissible hours of work, it refers to the specific acts of law.

Labour Code:

Part Six (articles: 128-151 (12)) provides regulation on the working time.

Article 129 sets the working time in Poland at 8 hours per day, and an average 40 hours per average 5 day week.

Article 131 The weekly working time (including overtime) cannot exceed 12 hours per day and 48 hours per week on average.


41 / 56

Article 132 and 133 ensure the right to 11 hours of undisturbed rest during the day (24h period) and 35 hours of undisturbed rest during the week (7 days).

Article 134 states that employees working at least 6 hours per day have a right to at least one 15 minute long break during the day.

Article 151 states that overtime work is allowed in the case of the employer having special needs or extraordinary situations such as, for example, rescue actions. The same article sets the limit of overtime for one employee at 150 hours during the year.

Article 151(1) ensures the remuneration for overtime work: In addition to the regular wage, the employee is additionally paid 100% of the regular wage in case of work at night, on Sunday, holidays or other days off; and 50% in case of overtime work on any other day.

Article 151(2) states that instead of paying the additional remuneration, the employer may grant the employee the relevant time off in the same period. This solution may also apply upon the request of the employee.

Article 149 states that the employer is obliged by the Labour Code provisions to keep evidence of the working time of employees as a basis for the calculation of wages and other payments related to the employment. The employees have the right to access such evidence.

Part Seven (articles 152-175) regulates the various kinds of leave.

All employees have a right to paid annual leave, 26 days per year if they have worked longer than 10 years (occupational and higher education time included) and otherwise 20 days per year. The annual leave of part time employees is calculated proportionally. Upon the request of the employee, an employer may also grant him/her unpaid leave.

Part Eight (Articles 176-189) on the rights of employees related to parenthood also includes provisions on working time and leave.

Article 180 guarantees the right to paid maternity leave, which may last from 20 up to 37 weeks depending on the number of newborn children. Fathers are entitled to 2 weeks leave to be used by the time the child is 12 months old. Both parents are entitled to up to 3 years of parental leave (unpaid) to be used by the time the child is 4 years old.

The Labour Code does not provide concrete regulations on the permits by authorities for overtime or the procedure, nor for the working time and overtime remuneration for workers employed in quota system. However, it states that the employer is obliged to define the working time system and period of remuneration. In smaller work places, this is notified in a form of announcement, whereas in larger work places these regulations are included in the Work Regulations or in the collective bargaining agreements. The regulations on the procedures regarding working time should be covered in these documents, but must be in line with the provisions provided by the Labour Code.

Decree of the Ministry of Labour and Social Affairs on the documentation related to the work relationship:

This law covers the regulations on the format of the working time evidence which employers are obliged to keep. Separate working time charts must be kept for each employee and they have to include information on the number of working hours for each day, including overtime, work on Sundays, holidays and other days off, and at night. The chart also has to include information on annual, sick and other leave, on call work, and other kinds of justified and unjustified absences.

Information from the Regional Labour Inspectorate in Lodz:


42 / 56

Since 2004, after the reform of the labour law, it is recommended in the regulations that the employer ensures a 5-day working week and in the event of any additional day of work, the employees should receive a day off during the same remuneration period.

Occupational health & safety

A safe and hygienic working environment shall be provided, and best occupational health and safety practice shall be promoted, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Appropriate attention shall be paid to occupational hazards specific to this branch of the industry and to ensure that a safe and hygienic work environment is provided for. Effective regulations shall be implemented to prevent accidents and minimize health risks as much as possible (following ILO Convention 155). "Physical abuse, threats of physical abuse, unusual punishments or discipline, sexual and other harassment, and intimidation by the employer are strictly prohibited."


ILO Conventions:

Poland has not ratified ILO Convention 155.


Article 66 confirms everybody’s right to safe and hygienic working conditions.

Labour Code:

Part Ten (articles 207-237(15))

The employer is responsible for working conditions in the work place and is obliged to ensure that these working conditions are healthy and safe. The work system, as well as the workplace, should be organized in line with the health and safety regulations. According to the Labour Code, the employer is to conduct an assessment of the occupational risk at the work place, document the results, take measures to eliminate the risk, and inform the employee about it. The employer is also obliged to eliminate any dangers that may arise and in particular execute the recommendations and orders of the labour inspectors. The employer has to provide health and safety training, health and safety equipment, and all necessary protection measures to the employee. In work places with over 100 employees, the employer must establish a health and safety team which is consulted on issues related to health and safety. It must also have a mandate to monitor working conditions in the work place. In smaller work places, a single employee may be appointed to fulfil these tasks. The Labour Code explicitly forbids the discrimination of employees engaged in health and safety work based on this requirement ensures legal protection for them.

All employees are obliged to know and obey the health and safety regulations, complete the required training and medical examination, take proper care of the machines they work with, use the necessary protection measures, and inform the employer of any dangers which may arise etc.

Information from the Central Institute for Labour Protection:

The Labour Code and the executive regulations specifically describe various aspects of health and safety. However, as far as the garment industry is concerned, the most relevant are the regulations regarding work with machinery and noise.


43 / 56

As regards machinery, there are two main sets of regulations: minimal requirements for machinery (for those purchased before 1st of January 2003) and for the remaining machinery: essential requirements for machinery, which are valid in all EU countries.

The regulations covering noise levels include limits of noise in the work place, obligations for carrying out noise measurements (repeating the measurements when the level of noise is high), and an assessment of professional risk (each employer is obliged to assess the risk, identify the sources and undertake measures to eliminate the risk).

Although this is an obligation of the employer, they do not do it alone. The assessment should be prepared in cooperation with the health and safety team as well as with medical institutions.

If high temperatures in the work place are a result of technological processes, then the employer has an obligation to ensure adequate resting space with air conditioning. If high temperatures are a result of climate factors, then the regulations dictate that the employer has to provide beverages when the temperature goes over 28 degrees Celsius. In general, if the temperature is making working conditions hard, then the employer has the possibility (not obligation) to reduce the working time or to increase the number and length of breaks (within the working time). However, such a situation must involve consultation with a doctor and these special measures may also be undertaken at the request of the workers.

Legally binding employment relationship

"Working relationships shall be legally binding, and all obligations to employees under labour or social security laws and regulations shall be respected."


Labour Code:

Part Two (articles 22-77) regulates the employment relationship.

Article 22 states that the work relationship is established when the employee commits to perform the given work on the terms defined in the agreement with the employer. The work relationship is established mainly based on the work contracts. This article explicitly states that work contracts cannot be replaced with civil law contracts when the work relationship is to be established.

Article 25 states that the work contract can be concluded for indefinite period, fixed period, and for the period necessary for completing given work tasks. Each of these contracts may be preceded with a contract for a trial period of no longer than 3 months.

Article 29 states that the contract should define the parties, the type, and the date of signing the contract, as well as the conditions of the employment, in particular: type of work, place of work, remuneration with all components specified, working time, and the start date.

Article 30 states that the work contract may be legally revoked based on the mutual agreement of the parties, notice by any of the parties, or the expiration of the contract.

Act on the Social Insurance System, the Act on the Organization and Functioning of the Pension Funds, and the Act on Pensions and Social Security Fund:

These laws regulate the general social insurance system in Poland.

All employees are subject to an obligatory pension, and a disability and health insurance system based on the work relationship. The insurance premiums are calculated based on the


44 / 56

remuneration of the employee and constitute a % of the gross salary (about 37%). The premiums are divided in equal parts between the employee and employer, however the employer transfers the entire amount of the premium to the Social Insurance Institution (ZUS). The part covered by the employee is deducted from his/her gross salary. In the case of the pension insurance, a part of the premium (7.3%) is transferred by ZUS to one of the Open Pension Funds chosen by the employee.

All the security provisions are executed by the Social Insurance Institution (ZUS). This institution is also responsible for the payment of pensions, disability pensions, remuneration for employees on maternity leave, and other allowances. The allowance for the unemployed is paid by the Work Office. The right to this allowance is for every employee who can document 365 days of employment.

Decree of the Ministry of Labour and Social Affairs on the scope of the documentation required to be held by employers in matters relating to the employment relationship and the employee’s personal file:

The employer is obliged to keep a personal file for every employee. This should include the documents provided by the employee during the recruitment process as well as any documents related to the work relationship.

Chapter 2, article 6 provides a long list of the documents required including, among others, the work contract, certificate of completion of required training in occupational health and safety, read and written acknowledgement of the Work Regulations by the employee, documents related to the property entrusted to the employee, documents related to the professional training completed by the employee, statements related to the termination or change of the terms of employment, documents related to awards and penalties, documentation of annual, sick, maternity and other leave, medical certificates, and any correspondence with the workers organization representing the employee.

The employer is also obliged to keep all the documents related to the termination of the contract with the employee. Additionally, for each employee, the employer must keep separate working time evidence and separate payroll lists documenting the remuneration and all other payments.


45 / 56

Appendix 2. Detailed stakeholder comments

Employment is freely chosen

All of the stakeholders confirmed that this standard is generally observed in Poland as far as its traditional understanding is concerned. Employees do not work against their will, they are not imprisoned in their work places, their identity documents are not kept by the employer, and they can quit their jobs freely under the terms of the law. However, the trade unions have described situations in the garment industry where work is not entirely voluntary, for example: obligatory overtime work or lack of possibility to choose the dates of annual leave (forced vacations when there is no production in the company). Employees of garment factories agree to various compromises regarding their rights due to the weak financial situation and the instability of the factories. This involves acceptance of changes of position, work that they are not qualified to perform or work below their qualifications, as well as agreement for civil law contracts (which do not guarantee the labour rights and social insurance) instead of legal work contracts. The employees believe that they do not have a choice in this and that these compromises will enable them to keep the jobs which they would not find anywhere else. This problem is perceived by the trade unions as one of the most serious problems facing garment industry workers.

The most obvious example of ‘forced’ work is obligatory overtime work, although trade unions have noticed improvement in this area over the past few years. The lack of freely chosen annual leave, however, is still a problem. Workers are often denied the right to annual leave during the intensive production periods, usually in the summer. This is particularly problematic for women with children; with schools on summer break, childcare becomes a major problem, and mothers are unable to spend time with their children during the vacation period. They are also required to use vacation days when there is no production in the company (so-called ‘forced leave’). These problems affect the whole industry and have proven difficult to solve despite ongoing efforts by the trade unions. This kind of activity is not in line with the standard labour code, but employers invoke the ‘extraordinary needs of the company’ clause, which allows for exceptional treatment in this case.

Source: Solidarność and OPZZ

Due to the difficult situation facing many garment factories, employers offer employees changes of position, work that they are not qualified to perform or work below their qualifications. Workers agree to such changes as they do not think they have a choice: they are afraid that otherwise they will lose their jobs and will be unable to find other ones. In this sense, according to trade union representatives, employment is not always freely chosen.

Source: OPZZ

In general, employees in garment factories agree to compromises regarding their rights due to the weak financial situation and the instability of the factories. They believe that these compromises will enable them to keep the jobs which they would not find anywhere else. This situation is perceived by the trade union as one of the most serious problems facing garment industry workers.

Source: OPZZ, Solidarność, National Labour Inspectorate, Regional Labour Inspectorate in Lodz

There have been isolated cases of workers ‘imported’ illegally from the East (Eastern Europe and Asia). Because they are staying illegally in Poland, these workers are totally dependent on their employer. They live nearby the workplace and work for very low wages in poor working conditions. Sometimes, they pledge themselves to pay a commission for the possibility of work,


46 / 56

which is to be paid in instalments, and then the workers have to stay at the disposal of the employer until the debt is paid off. This is not a widespread phenomenon and the reported cases of such arrangements mainly concern workers in the agriculture sector. There are rumours in the employers’ community that similar situations take place in the garment industry as well, although there are no documented cases in this sector.

Source: KARAT Coalition, Union of the Light Industry Employers (Employers of Poland)

No discrimination

The stakeholders present different opinions on the implementation of the ‘no discrimination’ standard in the Polish garment industry. The trade unions and employers claim that discrimination is not a problem for the garment industry. However, the National Labour Inspectorate and NGOs think that the problem of discrimination may be more serious than it seems. This is because there are no efficient instruments to monitor the implementation of antidiscrimination provisions by the National Labour Inspectorate or any other institution. Workers have limited possibilities to address their problems and claim their rights. The procedures available are very difficult, and cost a lot of time and money. Also workers are often too afraid to use them. Additionally, the lack of this legislation influences the perception of the problem in Polish society. Many workers and employers do not understand exactly what gender discrimination actually is. Finally, gender discrimination may be difficult to spot in the garment industry because the majority of employees in this sector are women. This means that identifying cases of very obvious discrimination, where male workers receive better treatment than women, is less common when compared to more mixed work environments.

The trade unions do not report any discrimination of women workers who are pregnant or/and return to work after their maternity leave. They are, however, exposed to the possibility of layoffs and other changes in employment status in the same way as other workers are, but this situation is regarded as the result of the unstable financial situation of companies, and not discrimination.

Source: OPZZ, Solidarność

Trade union representatives perceive some working conditions, i.e. those specific to garment industry employees working in the quota system, as discrimination based on the form of employment. Examples of such discrimination would be no paid breaks in the quota system and the lack of possibility to take annual leave during the summertime. However, it seems that arguing that these violations are forms of discrimination would be problematic.

Source: Solidarność

The Labour Inspectorate does not have the capacity or possibility to work closely on the antidiscrimination standard. It is a sensitive issue, difficult to monitor and inspect. Therefore compliance with this standard can only be evaluated based mainly on the complaints raised by the employees. Such complaints concern, for example, discrimination in wages and promotions.

Employees are quite well informed on the regulations in this area. Often they want their complaints to be considered anonymously, which is impossible according to Polish law. This aspect prevents many of them from proceeding further with the complaint as they are too afraid of the consequences to their employment.

The Inspectorate does not receive many such complaints. This is not because problems do not exist, but because employees do not believe that their actions will change anything. In cases of discrimination (unlike harassment), the burden of proof is on the employee; therefore the complaint has to be completed with a number of documents/proofs which need to be gathered


47 / 56

by the employee and which eventually would form the basis of the lawsuit. The Inspectorate has no mandate here, and the only institution which can exercise some sanctions as far as the discrimination is concerned, is the court.

Source: National Labour Inspectorate, Regional Labour Inspectorate in Lodz

The lack of this legislation influences the perception of the problem in Polish society. Many workers and employers do not understand exactly what gender discrimination actually is. For example, we often asked female workers if there was gender discrimination in their workplace and they thought that we were asking them if their male co-workers were polite to them! There is a great need for education programs which would change this situation. Furthermore, the problem of gender discrimination is so entrenched in both the labour market and society in general that sometimes employees do not need to discriminate against women as women will themselves decide not to work in the most vulnerable periods when they are most at risk of discrimination. For example, in research that KARAT has conducted over the years in the garment industry, very few cases of women being discriminated against in the work place when returning to work after maternity leave have been reported. But this does not mean that all women happily return to work after maternity leave and successfully combine their parental responsibilities with paid work. What actually happens is that they very rarely return to work so therefore nobody actually has the opportunity to discriminate them. One could speculate that women themselves make the decision not to return to work when they have very small children because they know that insufficient childcare facilities, combined with inflexibility in the workplace, traditional social norms, and numerous other factors, makes the task of combining paid work and parenting of small children very difficult.

Another reason why gender discrimination may be difficult to be seen in the garment industry is that the majority of employees in this sector are women. Therefore, spotting cases of very obvious discrimination, where male workers receive better treatment than women, is less common when compared to more mixed work environments. The very low wages in the garment industry are the reason why it is a mainly female branch. Of course, there are also other circumstances and reasons for this problem, but the assumption that women will work for a lower wage is one of them.

Source: KARAT Coalition

No child labour

According to the National Labour Inspectorate, employers in Poland obey the very specific and clear regulations related to the employment of juveniles. However, all stakeholders agree that child labour is not used in the garment industry. It does happen, however, that the students of garment schools are employed in garment factories on special terms and with the purpose of gaining professional experience and qualifications.

Freedom of association and the right to collective bargaining

The trade unions which already exist in garment companies in Poland enjoy the freedom of association and the right to collective bargaining. It sometimes happens that trade unionists are discriminated against but these are rather isolated cases. In general, the trade unions in the garment sector cooperate with the employers in the name of a common interest: the survival of the garment industry in Poland.

However, the trade unions are active in the factories formerly owned by the State and which constitute only a small percentage of the garment companies in Poland. The majority of garment


48 / 56

factories is not covered by the trade unions. Moreover, the activists do not have access to these factories and establishing a trade union there is very difficult. These are usually small companies and gathering the 10 workers required to establish a trade union is problematic. Additionally, the workers do not generally believe that the trade unions will improve their situation. Finally, it can happen that workers who initially decide to become involved in a trade union withdraw their interest after they are threatened by their employers.

There is no collective bargaining agreement for the whole garment sector in Poland although there are a few CBAs covering particular factories. Given the fact that the trade unions cover a very low percentage of the sector, the number of CBAs is also very low.

The National Labour Inspectorate does not investigate violations in this area, it only cooperates with the trade unions. According to the stakeholders, the working conditions are definitely better in the factories in which trade unions are active than in those where the workers are not organized.

Trade unions that have been formed and are functioning in this sector are usually members of the two largest trade union federations in Poland: Solidarność and OPZZ. Most of them cooperate with employers because of a common interest: the survival of the garment industry in Poland. Due to the fact that the whole industry is in a rather weak condition, any strong demands of the trade unions have very little chance of being implemented. However, it is important that the trade unions exist because they monitor the implementation of labour standards in the factory. It is evident that the working conditions are better in the factories in which trade unions are active than in those where the workers are not organized.

Source: OPZZ, Solidarność, Union of Light Industry Employers, Union of Fashion Industry Employers

Trade union activists do not have access to the majority of companies. They organize meetings with workers outside them and, unfortunately, even if there is an initial interest in establishing a trade union, the workers often resign when it comes to signing declarations because they are afraid of being fired. Solidarność is occasionally informed about such threats, and also actual cases of workers being fired, because of their involvement in the trade unions.

OPZZ receives signals from workers that they are discouraged by the employers, not officially, but in private conversations. Such threats are, however, difficult to prove, and therefore OPZZ cannot usually do anything about it.

It has also occurred that trade unions which already exist have had problems with their activities. These cases of violations of freedom of association, as well as the cases of unpaid salaries, illegal dismissals were tried in court. In many cases the result was that the employers avoided punishment due to ‘insignificant social noxiousness of an act’.

Source: Solidarność, OPZZ

There is no Collective Bargaining Agreement for the whole garment industry in Poland. Negotiations regarding such an agreement started in 2002 and the main trade unions and employers associations were intensively negotiating about the CBA for about four years. Then the tripartite committee for the garment industry was established and the work was continued. However, in the end, the implementation of the negotiated CBA failed due to the fact that many of the employers in the employers association started to withdraw from these organizations as they did not want to make a commitment to the negotiated CBA, particularly as far as the wages were concerned. The economic crisis definitely ended the work on a CBA at country level.


49 / 56

Collective bargaining agreements exist in some factories where trade unions were able to negotiate them, but given the fact that trade unions are only active in a small percentage of factories, not many employees are covered by a CBA. In the case of Solidarność, half the trade union organisations associated in this federation have signed a CBA in their companies, which means that the CBA signed by Solidarność covers about 15% of garment companies in Poland. These documents usually cover issues like: wages, financial and social benefits, and regulations regarding negotiations.

However, even if CBAs exist in a factory, they are often renegotiated at the request of employers motivated by the unstable situation of many companies. In order to keep the company alive, trade unions often agree to suspend or withdraw from some benefits agreed in the CBA.

Source: Solidarność, OPZZ, Union of Light Industry Employers (Employers of Poland), Union of Fashion Industry Employers (Lewiatan)

The Labour Inspectorate does not investigate any violations in this area. The activities of trade unions are regulated by a separate bill and any violations in this field have to be reported directly to the court.

However, the Inspectorate does cooperate with the trade unions, especially if the unions’ activities are partially regulated by the internal documents in the work place, such as for example ‘Work Regulations’.

In case of a violation of the freedom of association, the workers have to file a lawsuit. These cases are very difficult, the violations are difficult to prove, and the employees are often too afraid of losing their jobs to get involved in trials on the trade unions’ side.

Source: National Labour Inspectorate, Regional Labour Inspectorate in Lodz

Trade unions are free to function in Poland. However, in practice, it is sometimes difficult to establish a trade union, especially in the garment industry where the factories are rather small and it is hard to find the appropriate number (10) of interested workers. Additionally, employers who are in a difficult financial situation do not want to support the trade unions whose activities may increase the costs of an already unstable business. Finally, KARAT’s research has shown that the workers themselves are not very much interested in joining the unions. They lack the belief that the trade unions can be effective in improving their working conditions.


Payment of a living wage

It is a common opinion of almost all the stakeholders that low wages are the most significant problem of garment industry employees in Poland. This is mainly due to the difficult financial situation of the garment companies. The concept of a ‘living wage’ is not known among the stakeholders. They all refer to regulations on the minimum wage and agree that these are generally implemented in Poland. Most of the stakeholders also agree that the minimum wage of a gross salary of 1317 PLN is not enough to cover all basic expenses. They estimate that workers should earn at least 1500 PLN net to afford a humble living.

All but one stakeholder confirmed that the basic wage paid to the seamstresses in Poland usually equals the minimum wage. It is a bit higher in prospering factories, but still way below the average wage in Poland (3300 PLN gross). The salary is also equally low in respect of well-educated and experienced workers. It is also the main reason why young people do not want to start work in the garment industry.


50 / 56

The Union of Fashion Industry Employers, based on the survey conducted together with the Polish Federation of Apparel and Textiles, claims that the average wage of seamstresses in Poland is higher: 2300 – 2500 PLN gross.

The salaries are usually paid on time along with all the tax and insurance payments, at least as far as the factories with trade unions are concerned.

The basic wage paid in the garment industry in Poland equals the minimum wage. In prospering factories it is a bit higher, but still way below the average wage in Poland. The majority of seamstresses earn about 1317- 1800 PLN (gross salary). The salary is also equally low in respect of well-educated and experienced workers. It is also the main reason why the young people do not want to start work in the garment industry.

The salaries are usually paid on time along with all the tax and insurance payments, at least as far as the factories with trade unions are concerned.

Source: Solidarność

The wages in the garment industry are among the lowest wages in Poland. The disproportion in wages between the garment and other industries is also growing. Low wages in this industry are a result of the bad situation facing Polish garment companies, unstable orders, low prices paid by clients etc. The Polish industry still depends on OPT (outward processing trade). Work in garment factories is organized using the quota system, wages are low, and the basis is the minimum wage. It also happens that when there are not enough orders, employers have to pay the difference between the actual salary for piece work performed by a worker and the minimum wage because the quota was not fully worked out due to the lack of orders. Workers are also frustrated because, despite their will to work, they are not able to earn higher wages in the quota system, again, because of the lack of orders and breaks in production.

Trade unions fight for an increase of the minimum wage, but it is always a complication for employers.

Source: OPZZ

Low wages are the main problem of the industry. This is also an issue discussed in the tripartite committee where trade unions have demanded an increase of the minimum wage up to 1500 PLN. This means that the derivatives of such a wage will also increase significantly. Consequently, the employers will not be able to meet this standard, which will then worsen the conditions of the industry and push many factories into the grey economy. The government may undertake some measures to fight the spread of the grey economy, but it will have still have consequences for those workers who will lose their jobs.

Source: Union of Light Industry Employers (Employers of Poland)

While all the other stakeholders stress low wages as the main problem for garment industry workers in Poland, a different point of view is presented by one of the employers' organization, the Union of Fashion Industry Employers (Lewiatan), which claims that the wages in the garment industry are not that low. This opinion is based on the outcomes of some research on wages in the garment industry which the Union of Fashion Industry Employers has conducted together with the Polish Federation of Apparel and Textiles. Their questionnaire was answered by about 250 - 300 garment companies (app. 10% of the factories in Poland). The companies were asked about the gross salaries of the employees performing a given kind of work. The results were as follows :


51 / 56

Constructor 2500-5800 PLN, Seamstress 2300-2500 PLN, Technologist 3500-6000 PLN, Chief of production 2700-7200 PLN, Foreman 2250 -2500 PLN, Cutter 2200 -6000 PLN6.

Source: Union of Fashion Industry Employers (Lewiatan)

The concept of a living wage is not very well known in Poland. The salaries of garment industry workers are not living wages. While conducting research among the garment and electronic industry workers in Poland, KARAT asked workers for their estimate of a living wage. The interviewees usually answered that the amount of 1500 PLN net would be a living wage. This amount seems low, and is a reflection of the very low expectations of workers as it will only cover the costs of the basic goods needed for a very modest living (food, housing, bills, very modest clothing, public transport). 3000 PLN would be a more suitable amount to cover standard living costs which could include better food, clothing, medication as well as childcare (state-provided), and some (but still extremely limited) leisure and self-development activities.


According to the web-portal wynagrodzenia.pl (salaries.pl) seamstresses are among the worse paid jobs in Poland. Their salaries are in the same group as the salaries of students working in summer jobs, even if they work for many years. This group of salaries is also described as specific, because the workers in this group are not able to increase their salaries despite their experience, working time, region of employment, education etc. It is not a living wage.

Source: Informal Group Lodz Gender

The labour inspections in various work places, including garment factories, do not show any violations of the regulations on the minimum wage. The inspectors suspect that in many cases the employees receive higher salaries and that the minimum salary is included in the contracts in order to minimize the taxes and insurance premium paid by employers. This is possible, due to the specific ‘alliance’ between the employer and employees, and the inspectors are helpless in this case.

Source: Regional Labour Inspectorate in Lodz

No excessive working hours

In the opinion of the stakeholders, the regulations on working time are obeyed in factories covered by the trade unions but there are problems with their implementation in those where the trade unions are not active, as also happens with regards to other labour standards. Another common opinion is that the specific conditions of the garment industry influence the working time regulations in the factories. The irregular orders, seasonal peaks and lows in production, technical down time, as well as the quota system are the reasons given by the employees for necessary overtime work and the lack of discretion in choosing the dates of annual leave. Just like in other sectors, garment industry employers also try to reduce their expenses related to the tax and insurance payments and make informal, sometimes illegal, agreements with employees who want to earn more no matter what the legal consequences. Therefore it can happen that employees work unregistered hours, receiving unregistered salaries. However, the majority of the stakeholders agree that the problem of excessive working hours is not as significant today as it used to be a few years ago.

6 1 PLN = 0.25 EUR


52 / 56

In companies not covered by the trade unions, excessive working hours are still a significant problem. In those where the trade unions are active, excessive working hours are not such as big a problem as they used to be a few years ago. In the factories where the trade unions are active, the regulations on overtime work are implemented. There is still a problem with annual leave which cannot be used by employees for the dates they choose themselves. The roots of this problem lie in the quota work system and the intensive production periods during the summer time. Due to these facts, workers are often ‘forced’ to use their annual leave during periods when the factory is closed because of technical shutdowns. The lack of the possibility of days off during the summer is particularly inconvenient for women with small children, who then have problems in arranging care for them as the schools and public kindergartens are closed in this period. Additionally, the whole annual leave cannot be used during the technical shut downs as they are shorter than the annual leave that the workers are entitled to.


Inspections in different sectors show that there are problems with the full implementation of the regulations regarding working time. The employers often look for various solutions, sometimes illegal, to reduce their financial obligations related to overtime work. For example, they do not pay properly for the overtime, they keep double work time registers and sometimes make unofficial payments to the employees, thus avoiding the tax and insurance premiums. It can also happen that these violations are committed in agreement with the employees who want to earn more, even at the price of compromising their labour rights.

A lack of proper work time documentation is also a problem for an employee who would like to prove in court that the regulations on working time were violated in his/her case. Employees are advised to keep their own registry.

Source: National Labour Inspectorate, Regional Labour Inspectorate in Lodz, OPZZ

It is a feature of the garment industry that in some periods production is very intense while in others the companies do not receive any orders. The work therefore has to be adapted to these circumstances. This means that the employees often work overtime, especially during the production peaks in summers, and then they have their time off later. If it proves impossible to take the time off, then overtime is paid instead.


A few years ago, excessive and unpaid overtime work in the garment industry was a significant problem. In 2004-2005, when the employment rate in Poland was much higher (up to 18%), the workers interviewed by KARAT were stressing the fact that their rights were violated in relation to working hours, but whenever they tried to object to that, they faced the threat of losing their job. This was caused by the ample availability of employees who would accept the poor working conditions. Even if it was not true, this was the argument presented by the employers.

Despite the global economic crisis, the current economic situation has improved, and, at the same time, there are fewer garment workers available. Consequently, the problem of excessive working hours is not as significant as it used to be.



53 / 56

Occupational health & safety

As far as the occupational health and safety in garment companies is concerned, there are some differences of opinion among the stakeholders. On the one hand, the majority of stakeholders confirm that the occupational health and safety regulations are quite exhaustive and implemented. Many of the dangers specific to the garment industry have been neutralized which, for example, has resulted in a drop in the number of accidents. On the other hand, the representatives of the trade union Solidarność point out a few serious problems which are difficult to solve due to the fact they are not entirely covered by the regulations. These problems are: noise, temperature, and a forced body position. OPZZ stresses the fact that the unstable situation of the branch has had a significant impact on the physical health of the workers causing stress, exhaustion, and a lack of satisfaction and perspective. Finally, the Labour Inspectorate claims that the garment industry is not special in any way as far as the health and safety regulations and their implementation are concerned, and therefore this institution has no grounds to intensify its work in this area for this branch.

In companies not covered by the trade unions, excessive working hours are still a significant problem. In those where the trade unions are active, excessive working hours are not such as big a problem as they used to be a few years ago. In the factories where the trade unions are active, the regulations on overtime work are implemented. There is still a problem with annual leave which cannot be used by employees for the dates they choose themselves. The roots of this problem lie in the quota work system and the intensive production periods during the summer time. Due to these facts, workers are often ‘forced’ to use their annual leave during periods when the factory is closed because of technical shutdowns. The lack of the possibility of days off during the summer is particularly inconvenient for women with small children, who then have problems in arranging care for them as the schools and public kindergartens are closed in this period. Additionally, the whole annual leave cannot be used during the technical shut downs as they are shorter than the annual leave that the workers are entitled to.


Inspections in different sectors show that there are problems with the full implementation of the regulations regarding working time. The employers often look for various solutions, sometimes illegal, to reduce their financial obligations related to overtime work. For example, they do not pay properly for the overtime; they keep double work time registers and sometimes make unofficial payments to the employees, thus avoiding the tax and insurance premiums. It can also happen that these violations are committed in agreement with the employees who want to earn more, even at the price of compromising their labour rights.

A lack of proper work time documentation is also a problem for an employee who would like to prove in court that the regulations on working time were violated in his/her case. Employees are advised to keep their own registry.

Source: National Labour Inspectorate, Regional Labour Inspectorate in Lodz, OPZZ

It is a feature of the garment industry that in some periods production is very intense while in others the companies do not receive any orders. The work therefore has to be adapted to these circumstances. This means that the employees often work overtime, especially during the production peaks in summers, and then they have their time off later. If it proves impossible to take the time off, then overtime is paid instead.



54 / 56

Legally binding employment relationship

All the stakeholders confirmed that there are cases of illegal employment and informal work in the garment industry. This is due to the fact that the costs of employment (taxes and mandatory insurance premiums) are rather high in Poland. This problem is also relevant to other sectors. The employers and employees often come to a mutual agreement in deciding to sign civil contracts instead of work contracts, or when they commit to entirely or partially informal (meaning illegal) work relationships. The motivation for such solutions is usually money as the employers save on employment costs by avoiding paying part of the taxes and social insurance premiums. They use the fact that there are no work time norms required in this kind of contract or lack of contract, there is no need to pay for the employee’s annual leave and also the regulations on the minimum wage do not apply. The benefit for the employee is a higher salary. They are often forced to agree to such solutions due to their financial situation or other circumstances. The stakeholders agree that these situations may happen more often in the garment industry than they do in other sectors because of the difficult economic situation of this branch in Poland. Again, these procedures usually take place in factories where the trade unions are not active, which effectively means the majority of the factories.

Another problem with the implementation of this standard is the excessive use of fixed period contracts. The employers use every opportunity to sign this type of contract instead of indefinite period contracts which entitle the employees to more rights and benefits. The employers use a ‘loophole’ in the legal system. In general, it is permissible to sign two fixed period contracts in a row, while the third one must be an indefinite period contract, except when there is a 31 day break in-between the contracts. This regulation, as well as the special ‘anti-crisis package’ which softens the labour law by abolishing the limits of the number of fixed period contracts, is much used by employers in the garment industry. This issue is particularly crucial in case of long-term workers of factories that are being closed.

According to the Labour Inspectorate, one of the most violated regulations relates to the preparation of an employee to work on a given position. This should involve a medical examination and a series of training modules (professional and health and safety). Often employers do not implement this regulation at the right time, or they produce false documentation of the training which has not actually been conducted, etc. The health and safety training should be adjusted to the specifics of the given work place or branch (for example the garment industry) but very often this is not implemented.

One of the recommendations of the Labour Inspectorate is to certify the companies conducting the health and safety training and to require the employers to produce the certificates of these companies.

It does happen that seamstresses are employed illegally in the Polish garment industry, meaning that they work without a contract and that part of the production is ‘subcontracted’ to them. This happens in factories where trade unions do not exist.

Another popular practice is employing seamstresses based on part time contracts, when in fact they work full time. The idea behind this solution is reducing the payments that have to be made by the employers (taxes and insurance premiums), while the employees receive part of their salaries ‘under the table’. The employees agree to this due to their financial situation. However, this procedure has consequences, for example, lower pensions being received by the employees in future.

Employers use every opportunity to sign temporary contracts instead of fixed work contracts which would give their employees more rights. The employers use a ‘loophole’ in the legal


55 / 56

system. In general, it is permissible to sign two temporary contracts in a row, while the third one must be a fixed work contract, except when there is a 31 day break in-between the contracts. This regulation, as well as the special ‘anti-crisis package’ which softens the labour law by abolishing the limits of the number of temporary contracts, is much used by employers in the garment industry.

This issue is particularly crucial in the case of long-term workers of factories that are being closed. Despite people having worked for over 10 years in a factory, they are still legally only temporary workers. This means that, for example, they are not entitled to any compensation like the long-term workers are. Additionally there are no limits to the length of temporary contracts in the law or regulations.

According to OPZZ, about 30% of garment production in Poland takes place in the informal sector.


The most violated regulations are those related to the preparation of an employee to work on a given position. This should involve a medical examination and a series of training modules (professional and health and safety). Employers often do not implement this regulation at the right time, or they produce false documentation about the training which has actually not been conducted, etc. The health and safety training should be adjusted to the specifics of the given work place or branch (for example the garment industry) but very often this is not implemented.

One of the recommendations of the Labour Inspectorate is to certify the companies conducting the health and safety training and to require that the employers produce the certificates of these companies.

The work contracts vs. civil contracts – it is a very sensitive issue. In general employing a regular employee based on the civil contract is a violation of the regulations, on the other hand it is usually done with the agreement of the employee and it also happens that the employees take the employers side when the case is prosecuted in labour court.

It is difficult to assess if the scale of this problem is large or small. There is no data on this issue.

Source: National Labour Inspection, Regional Labour Inspection in Lodz

It can happen in the garment factories that work is done outside the factory by workers who do not have any contracts. They take the orders from the factory and perform their work, usually at home, and then return finished products back to the factory. The Labour Inspection has no power to investigate in the case of such a situation, but maybe the independent social auditors could do that, for example by comparing the work effectiveness of the workers in the factory with the number of products produced. It the results were disproportionate, then one could suspect that some form of hidden, illegal employment was taking place in a given factory.

Source: Regional Labour Inspectorate in Lodz

It can happen that employees work illegally or partially legally (part time contract, full time work). This solution is very short sighted, especially for the employees who entirely or partially lose their social, health and retirement insurance, and also compromise their pensions.


The grey economy is a consequence of the high costs of legal production. This not only means salaries, but also all the other costs related to legal employment. When employers move to the grey economy, the labour standards are not fully implemented.


56 / 56

Source: Union of Light Industry Employers (Employers of Poland)