Profile of CONTIGO´s partner Artisan Well

Supply chain

Trading partner: Artisan Well, medium enterprise, producer organization (association)
Function: Producer
Structure: Own production plant, associated production groups
Tradeway: Direct import CONTIGO

Products

Items made of cow leather

Location

Kolkata, in the state of West Bengal, India – distance to Europe: 7,300km

Founded in 2005

History

• 2005: Foundation of Artisan Well, as a representative of 15 manufacturer groups with 200 members from West Bengal. Goals: product development, improved quality standards, better social standards for all members, joint marketing and distribution of their products
• 2008: Artisan Well specialises in the production of leather goods, relocating of the workshop premises in the outskirts of Kolkata. Artisan Well takes over the former leather production cooperative Utkal Leather Crafts
• 2013: Artisan Well works with 7 producer groups for leather indoor. Only 4 out of formerly 13 external producer groups can be supplied with orders
• 2015: Hiring of an Indian lady as freelance designer in order to develop new leather ranges
• 2015: Support of a training center for women (initiated by NGO Tamas Society) with 18 women, Artisan Well pays charges for rent, electricity, trainer wage. Aim: education of women from rural areas in the leather processing
• 2016: Artisan Well becomes member of the World Fairtrade Organisation (WFTO)
• 2017: The central workshop hosts 12 producer groups for leather production. The cooperation with the NGO Tamas Society and the trainings for women end for the time being
• 2018: Purchase of a plot of land to build a bigger production unit south of Kolkata in the rural area off Baruipur / Mallikpur
• 2019: Construction of the new building is in process
  • Two production buildings are planned
  • Close to the railway station (Mallikpur station), easily accessible for employees, shuttle bus bring them from the station to the workshop
• 2020: Situation during the Covid-19 pandemic:
  • Production groups work rotating, only 4 groups present in the building at the same time.
  • Setting up overnight accommodation and a bus shuttle for employees as long as local public transport is closed.
  • A decline in sales of 25% is expected for the current financial year.
• 2022: Completion and official inauguration of the new company building (May)

Structure of the marketing organisation Artisan Well (status of 2019):

The organisation consists of 31 producer groups:

• External groups / decentralised workshops: jute (1), horn items (1), wood crafts (1), shanti leather (1), wallets and small items made of cow leather (15)
• Internal groups / at the central workshop: leather, production of bags (12)

Organisation (stable since 2005):

• Members meet once a year
• During annual meeting they elect a board comprised of eight members for the main handicraft groups (see above)
• Board meetings quarterly

Cooperation with CONTIGO since 2005

Why does CONTIGO work with Artisan Well: Longterm and trustful cooperation,  charaterized by high commitment to quality and workshop. Well accepted ranges, excellent and dedicated staff with long experience. There are 1 to 2 on-site visits by CONTIGO for product development every year. The continuous innovations in design, materials and techniques have brought Artisan Well an enormous growth spurt. CONTIGO supports the modernization of the factory equipment through donations and loans.

Structure of the company

Number of employees:

• Internal employees:
  • 5 employees for administration, marketing, exports
  • 1 production manager for planning of the whole process, calculation (Mr Sajal)
  • 1 assistant of production manager (Ms Gopa)
  • 2 foremen for patterns, product development
  • 10-12 producer groups with each 3-6 people (fluctuating)
  • 7 women for quality control
  • 7 skilled employees for hand bag production
• 19 external groups – providing work for 60 families
  • jute products
  • horn items
  • wood crafts
  • shanti leather
  • wallets and accessories made of cowhide leather
• Gender commitee, consists of three female employees and two men ( production manager and CEO), representing the interest of women and settle quarrels
• External, freelance product designer

Work environment:

Production premises with ground floor and three storeys:

• Three working rooms and a small side room (for storage purposes) on each floor
• 3-4 persons work in each room
• All floors are equipped with fire extinguishers and bathroom facility
• All working rooms are equipped with tables and chairs (till 2014 employees have been working on the floor)
• First floor: workplaces of sample makers and office of production manager
• Second floor: quality control
• Attic storey: recreation room for employees

The administration office, accounting office, showroom and logistics are in a seperate office appartment in 30 minutes (by car) distance.

A new building of 3.000 sqt is under construction. From 2021 on office and production will be merged under one roof in Mallikpur. The old building will be kept in order to employ more production groups.

Organisation of workforce:

• Work organisation internal groups (at the central workshop):
  • Finalising of leather accessories, which are prepared by external groups. Production of leather bags
  • 10-12 in-house producer groups with 3-6 employees each: team consists of un-skilled, semi-skilled and skilled (or highly skilled) artisans
  • Team leader coordinates the members, also keeps an account about the work performance, piece rate (which is agreed) and payment (against signature)
  • The sample makers Nur and Chatter, and the production manager Mr Sajal, are responsible for:
    • Coordination of all processes
    • Pattern making and product development
    • Calculation of piece rates for internal and external groups (they calculate the working time of the single production steps and estimate the weekly quantity)
• Work organisation external groups (decentralised workshops):
  • Groups for small leather items do not work for Artisan Well exclusively (Artisan Well can not offer a year-round employment due to lack of orders)
  • For every order the groups receive prepared packages of cut leather and other materials from Artisan Well
  • Finished orders are delivered on Fridays, pay-out is on Saturday
  • Quality control after delivery
  • Advance payment according to agreement, 60% of the balance will be paid on delivery of goods and 40% after quality control

Sales

• Exports (100%) to Germany, Austria, Finland, Netherlands

Goals

Quote from Artisan Well: “We believe that poor artisans deserve appreciation of their workmanship and dignity as a human beings.”

• To support local craftsmen by marketing their products
• To offer year-round employment for all members
• To develop new products and quality standards (as a basis for more success)
• To train and further develop craft-making skills of producers
• To continuously improve the living standards and social benefits of the workers

 

Fairtrade classification

FTA = Fairtrade Approved

 

Fairtrade aspects

Artisan Well complies with the following Fairtrade Principles:

No child labour

No discrimination

No discrimination due to gender, disability, religion, ethnicity, sexual orientation, political orientation, or infection with HIV

Fair wages

• Minimum wage in the state of West Bengal: (INR = Indian rupee) for tannery and leather industry
  • un-skilled : INR 8,005/ month
  • semi-skilled: INR 8,806/ month
  • skilled: INR 9,687/ month

• Wages at Artisan Well:
  • Permanent staff: wages depend on competence and performance
    • Quality control: INR 8,250 / month
      (comment: in other companies women working in quality control are not permanent staff, they earn lower daily wages and do not receive social benefits. At Artisan Well women from quality control receive a fixed salary, bonus payments and social benefits – see below)
    • Production staff (semi skilled and skilled) with non piece rate tasks, as cutting, material preparation etc. : INR 10,000 – 12,000 /month
    • Specialists (highly skilled), sample maker: INR 13,500-22,00 /month
    • Monthly payment to individual bank account
  • Production workers at the internal / central workshop receive piece rate wages
    • 2019: Adjustment of piece wages to increased local cost of living
    • Income varies due to order situation and attendance time of workers
    • Cash payment every Saturday against signature
    • Additional benefit: free breakfast and lunch
    • In times of less work, group members receive a basic income (INR 6,000/month), which is compensated against later work
  • Production workers at the different decentralised workshops receive piece rate wage
    • Advance payment according to agreement, 60% of the balance will be paid on delivery of goods and 40% after quality control

• Annual wage increases at least to the amount of the inflation rate
• Overtime and Sunday work allowances (double salary)
• Extra payments on occasion of important holidays (Muslims: End of Ramadan. Hindus: Durga Puja) for garments and family visits in the villages (approx. 20% of the monthly salary)
• Bonus / performance incentive
  • Incentives for internal production groups with timely completion of an order
  • Permanent staff and group leaders receive one monthly salary as a bonus payment (if the annual profit allows to do so): it is a voluntarily bonus by Artisan Well, no legal claim)

Humane working conditions

Working hours:

• Permanent staff: 10:30am – 6:30pm
• Producer groups (internal): 9:30 am-6:30 pm
• incl. two breaks (à 30 minutes)
• 6 days/week

Social benefits:

Employees with fixed salaries receive the following social benefits:

• Payment of contributions to health insurance ESI (= Employee State Insurance), employer pays 3,75% and employee 0,75% of monthly gross wage
• Payment of contributions to pension scheme PF (= Employees´ Provident Fund), employer and employee pay each 12% of monthly gross wage (less “housing allowance”)
• Paid holidays:
  • 10 days for personal needs (recreation, bereavement, weddings etc.).
  • 17 -19 paid bank holidays (official and religious holidays)
  • Non taken holidays will be compensated in cash at the end of the financial year
• Continued payment of wage in case of sickness or accidents (12 days)
• Voluntary benefit paid 100% by Artisan Well: life insurance, payout after 15 contribution years as a lump sum

Production workers at the internal / central workshop receive the following social benefits:

• Monthly payment into pension insurance PF (= Employees’ Provident Fund): for all groups that decide to join the pension fund
• Voluntary benefit paid 100% by Artisan Well: life insurance, payout after 15 contribution years as a lump sum
• In case of need (e.g. for family affairs): interest-free loans (or advance payments) are available, individual reimbursable plan
• Artisan Well provides free snacks for tea breaks, group leaders pay for lunch

Educational opportunities:

• Vocational training of young men is provided throughout the year (training and preparation of professional life)
• Women from the quality control department are taught how to do easy work steps in the leather production

 

Occupationl safety:

• 20 employees receive a first aid training
• Fire licence, regular external checks

 

Transparency

• Payroll is available
• SAR (Self Assessment Report) was duly submitted to CONTIGO

 

Monitoring

• Personal visits in Kolkata (2008, 2011, 2013, 2014, 2015, 2016, 2017, 2018, 2019)
• Feedback interview during several visits in Germany
• Member of:
  • World Fair Trade Organisation WFTO (Guaranteed Member) – since 2015

Country information

See Encyclopaedia Britannica: India

 

Photos

New company building (2022)

Visit in Kolkata (2019 & 2020) 

Visit in Kolkata (2017 & 2018) 

 

Visit in Kolkata (2014)

  

 

 

Visit in  Kolkata (2013)

Visit in Kolkata (2011)

       

First visit in Kolkata (2008)