Profile of CONTIGO’s partner Veva

Supply chain

Trading Partner: Vaniché / Veva, microenterprise
Function: Producer
Structure: Own production plant, affiliated production groups
Tradeway: Direct import CONTIGO

Products

Silver jewellery

Location

Chiang Mai, Thailand – distance to Europe: 8,300km

Founded in 2006

History

• 2000: Vaniché Co.Ltd is established by a group of sisters and brothers of Vanichmongol family. First business area: toys and textiles
• 2006: The sisters Saipin and Ying expand the business to silver jewellery, VEVA is established as brand name, derived from VE (= we: four family members) and VA ( Vanichmongol)
• Since 2007: Introduction of the nature inspired jewellery collection on international trade shows
• 2013: Purchase of a new production building, considerable growth of staff
• 2016: Expanding international success and recognition as design brand leader in Thailand, work force grows to 31 people
• 2018: Collapse of the international market, continuous decrease of sales (loss of big customers, increasing prices for raw material, Euro crisis)
• 2019: Restructuring of the company: cut down of work force and reorganisation of the whole production schedule

Cooperation with CONTIGO since 2012

Structure of the business

Number of employees:

• 8 permanent employees (6 women, 2 men)
• 2 directors: Ms. Saipin Vanichmongkol (marketing) and Ms. Ying Sainampung (design)
• Cooperation with various subcontractors and a company specialised in silver casting

Work organisation:

 Main workshop:

• Administration, marketing and product design
• Purchase of materials
• Manufacturing of master moulds (plaster)
• Preparation of models (waxing) for the silver casting process
• Distribution of jewellery to subcontractors for further processing
• Polishing, stone setting, gold and silver plating
• Fixing of fittings (chains, hooks, clasps) to ready made pieces
• Quality control, packing and dispatch

Restructuring in 2019:

• Permanent workforce was decreased from 25 to 8 people
• The salary for former staff was continued for 2 months after leaving the company to allow everybody to find new jobs
• The production schedule was adapted to the requirements of the market, to cover periods with less orders
• Indoor staff took over more responsability and was trained according to their skills on various processes in administrating the production schedule. Higher qualification and increased salaries lead to better motivation of the remaining staff. The more flexible and efficiant production secures the recovery of the company

Subcontractors:

• Processing after silver casting: cleaning, sanding (matt finishing), polishing, soldering
• Two small units and four individuals, partly former experienced staff. To newcomers a two months training is given on the job
• Veva provides soldering and polishing equipment, if needed. Piece rates are agreed according to time and skills needed
• Casting process is (as before) done by a service provider outside, as the technical equipment is highly specialised and expensive. Veva provides the silver for the jewellery casting

Work environment

• Modern equipment of workstations with the necessary protections
• Well-ventilated and well-lit work spaces
• Well-equipped kitchen is located on-site where lunch can be prepared
• In addition: catering service for lunch
• One common room for lunch break

Sales

• Home market (30%): Products are sold via duty free shops in Bangkok
• Exports (60%) to Germany, Spain, China, US

Goals

• To operate the company efficient and sustainable
• To provide well-paid and qualified jobs, specially to single mothers
• Capacity building and self-development for all employees
• To strengthen long term trade relations

Special features

Why does CONTIGO work with Veva:  Veva is a family company with “heart and hand “. CONTIGO appreciates Veva’s strong commitment for training and educating of their employees and the effort to provide a safe perspective. Veva stands for innovative and high-quality products and constant product developement. Veva understands like hardly anybody that quality is the key to success.

Fairtrade classification

FTA = Fairtrade Approved

 

Fairtrade aspects

Veva 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 

Different minorities from Myanmar and Thailand, as well as people with disabilities work at Veva.

Fair wages

• Average wage in this sector/region: THB 9,000/month (THB = Baht)
• Salaries at Veva:
  • Skilled worker minimum 12.000 THB
  • Specialists (e.g. sample maker): up to THB 16,800
• Monthly salaries are remitted to bank accounts
• Payment of bonuses
• Higher wages in case of overtime (150% of normal wages)

Humane working conditions

Working hours:

• 8 hours/day
• 5 days/week
• 1 lunch break (1 hour)

Social benefits:

• Paid holidays (max. 31 days, depends on seniority of employee; special feature: 1 extra holiday for Chinese New Year)
• Maternity leave: salary of 1,5 months before birth is paid by Veva, salary of 1,5 months after birth is paid by social insurances
• Payment of contributions to governmental health insurance and social security system. Employer and employee pay each 5 % of the salary
• Continued payment of wage in case of sickness or accident (30 days)
• Commuting allowance (partial)
• Working gear allowance
• Payment of yearly health check ups
• Free drinking water
• Lunch fee, daily THB 25

Educational opportunities:

• Thorough initial trainings for all employees
• Capacity building according to skills and responsibilities
• Offer of health and security trainings

Occupational safety:

• All safety standards are met

Transparency

• Work contracts are available
• Payroll is available
• Pay slips are available
• SAR (Self Assessment Report) was duly submitted to CONTIGO

Monitoring

• Personal visits in Chiang Mai (2010, 2012, 2016, 2019)
• Feedback interview during several visits in Germany

 

Country information

See Encyclopaedia Britannica: Thailand 

 

Photos

Visiting Veva in Chiang Mai (2016):

 

Visiting Veva in Chiang Mai (2012):