Hierarchy is not being created for my target variation label

You need to run additional timer jobs. For the root variation (in your case english), running the Variations Create Hierarchies Job Definition is sufficient to create the hierarchy. For all additional variation labels you need to start additional timer jobs. In central administration you should see these 4 timer jobs related to variations (per web application): Variations Create Hierarchies Job Definition, Variations Propagate List Items Job Definition, Variations Propagate Page Job Definition and Variations Propagate Site and Lists Timer Job. After creating the second label and clicking the "Create Hierarchies" link you must start additional timer jobs. I can't test it right now, but I am fairly sure you need to start the Variations Propagate Sites and Lists Timer Job. Make sure that the timer jobs actually finish by checking the job's history