Workers at the Falc East footwear factory in Knjaževac, Serbia, launched a strike for wage increases and other material allowances on June 2, 2023, following a series of failed negotiations. The strike was led by the Sloga Union, the representative union at the factory.
After 11 days, on June 16, the strike ended in a significant victory for the workers. Falc East is a subsidiary of the Italian company Falco and a supplier for prestigious global luxury fashion brands, including Balenciaga, Gucci (Kering Group), Burberry, and Hogan (TOD’s Group). The workers secured a 10 percent wage increase, an increase in the daily meal allowance (hot meal) from 150 to 200 dinars, and a commitment from management to negotiate further increases starting in September.
Prior to this victory, approximately 80 percent of Falc East workers earned very low wages, close to the statistical poverty line in Serbia—amounting to barely a third of a living wage, according to the 2021 CCC calculation. To cover basic household expenses, many workers were forced to take on one or more additional jobs.
The agreement was reached thanks to the mobilization of the majority of workers led by the Sloga Union, who found the strength and courage to take a stand, sacrificing 11 days of wages to demonstrate that their working conditions were unsustainable.
The brave struggle of the Knjaževac workers was supported by numerous organizations within the Clean Clothes Campaign. In addition toletter of support, they contacted the brands sourcing products from Falc East, urging them to intervene in the dispute and secure a positive resolution.
As established by international law—which will be further reinforced in the coming months by the European Corporate Sustainability Due Diligence Directive —luxury brands have a responsibility to ensure that the workers who produce their goods receive a living wage. This is, fundamentally, a responsibility to respect a basic human right.
For workers who struggle daily to make ends meet, an 11-day strike is a difficult choice, as it means their June wages will be nearly cut in half. Therefore, CCC Italy and CCC Serbia, together with the Falc East workers, have launched a fundraising campaign to help mitigate the loss of income for the 600 workers who went on strike. A similar request for support has been made to the international luxury brands—the de facto employers of the Falc East workers.
The brave struggle of the Falc East workers serves as an example for all workers across Serbia and Europe. Organizations within the Clean Clothes Campaign network will continue to support them in their fight for decent working conditions, as well as the struggles of other workers in the global fashion industry, starting with the fight for a living wage.
The victory at Falc East sends a powerful message: poor conditions do not have to be endured, and solidarity and perseverance are prerequisites for victory. While a 10 percent increase above the minimum wage is a modest monetary amount, it is a significant achievement for the future of the Serbian workforce. This milestone was paid for by the Falc East workers with 11 days of lost wages, and it is up to us to help recover at least a portion of that loss.
The goal of this campaign is to collect two daily wages (at the minimum wage rate) for 600 workers, totaling 2,208,000 RSD (€18,836).
230 (price of working hours) x 8 (hours per day) = 1,840 RSD per day per person
One daily allowance for 600 people: 1,840 RSD x 600 = 1,104,000 RSD
Two daily allowances for 600 people: 1,104,000 RSD x 2 = 2,208,000 RSD
We invite you to donate and support the brave workers of Falc East through the Donations.rs platform. Let’s work together to fight for the rights of every worker!
