Docstoc

Chart - Nonprofit organization dedicated to ending sweatshop

Document Sample
Chart - Nonprofit organization dedicated to ending sweatshop Powered By Docstoc
					FLA Audit Profile Country Name of Factory Independent External Monitoring Organization Date(s) in Facility FLA Affiliated Compan(ies) Number of Workers Product(s) Production Processes
FLA Code/Benchmark

Sri Lanka 070070642F T-Group Solutions Pvt. Ltd. August 10 & 11, 2007 Nike, Inc. 579 Knits, Tops & Bottoms Cut to Pack
Compliance Status Describe noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance List sources/documentation used for reference and corroborating evidence (e.g. worker interviews, factory walkthrough, records review, etc.) Visual observation & Interview with Management and workers. Cite and describe local and/or Describe notable features country laws used for additional implemented by factory reference management or Company

1. Code Awareness GEN 3: Develop a secure communications channel, in a manner appropriate to the culture and situation, to enable Company employees and employees of contractors and suppliers to report to the Company on noncompliance with the workplace standards, with security that they shall not be punished or prejudiced for doing so. 2. Forced Labor There will not be any use of forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise. F.9 Employment Records

Noncompliance

Contact information of the Company is not available to employees.

Noncompliance

Employment documents of Security Review of records and Interview Guards, Housekeeping & Canteen workers with Management and workers are not maintained in the facility.

Other

Noncompliance

Security Guards and Housekeeping Interview with Management and workers interviewed stated that they do not workers receive a copy of their appointment letter.

3. Child Labor No person will be employed at an age younger than 15 (or 14 where the law of the country of manufacture allows) or younger than the age for completing compulsory education in the country of manufacture where such age is higher than 15. CL.3 Proof of Age Documentation Noncompliance Proof of age documentation for outsourced workers is not maintained. Review of records and Interview with Management.

4. Harassment or Abuse Every employee will be treated with respect and dignity. No employee will be subject to any physical, sexual, psychological or verbal harassment of abuse. 5. Non-Discrimination No person will be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin. 1

FLA Code/Benchmark

Compliance Status

Describe noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance

List sources/documentation used for reference and corroborating evidence (e.g. worker interviews, factory walkthrough, records review, etc.)

Cite and describe local and/or Describe notable features country laws used for additional implemented by factory reference management or Company

6. Health and Safety Employers will provide a safe and healthy working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of employer facilities. H&S.9 Evacuation Requirements and Procedure 1.Finished goods store has only one exit. 2. Visual observation For few workers access to passage was blocked with bins containing garments in main production area. 3.Two workers were seen working in one workstation in the sewing section, hence the worker on the inner side had no access to the passage. 4.Finishing section is crammed and congested with space less than 12 inches between few workstations. 5.Cartons containing garments are stored in a haphazard manner against sidewalls, across the passages blocking few aisles in finished goods store. 6. Some of the emergency lights installed had very weak illumination and few were not working when tested. 7. “Keep clear” yellow box markings are not marked in front of few exits in the fabric stores, Canteen and at the main production floors. 8. Aisle and evacuation routes are not marked on one part of the cutting section area. Few aisle and evacuation route markings have faded in main production area. 9.„YOU ARE HERE‟ is not marked on the evacuation plans posted in all work areas. Evacuation plans are not posted near few exits in cutting and main production areas. Evacuation plans posted in Factory–3 do not match the actual floor layout. Also these plans are in English and not in the local language. Risk of noncompliance Factory has 4.9 % of employees trained in Documentation Fire Fighting. Noncompliance 1. Few overlock operators were not using respiratory masks. 2. Few needle guards were tampered rendering them ineffective. Visual observation Noncompliance BOI - Labour Standards & Employment Relations Manual Industrial Safety -section 6.15 & 6.16, Section 7.1 - overcrowding

H&S.10 Safety Equipment and First Aid Training

H&S.11 Personal Protective Equipment

BOI - Labour Standards & Employment Relations Manual Industrial Safety

2

FLA Code/Benchmark

Compliance Status

H&S.17 Ventilation/Electrical/Facility Installation and Maintenance

Noncompliance

List sources/documentation used Cite and describe local and/or Describe notable features for reference and corroborating country laws used for additional implemented by factory evidence (e.g. worker interviews, reference management or Company factory walkthrough, records review, etc.) BOI - Labour Standards & 1. Noise near Thread sucking machine was Visual observation Employment Relations Manual recorded at 95.6 db. Also workers working Industrial Safety -sections 6.13 on workstations adjacent to the side walls of and 7.3 the production areas are exposed to high noise when music is played through speakers of the P.A. System installed on the walls. Noise level of 99.3db was recorded in this area. 2.Electrical wires connecting few sewing and overlock machines with mains were lying loose close to operators‟ feet. 3.Lighting is inadequate in finishing section and at the needlepoint on few sewing machines ranging from 110 to 231 lux. Most of the workers with standing jobs in cutting and finishing section were seen working either bare feet or using highheeled or hard-soled footwear. Visual observation

Describe noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance

H&S.20 Bodily Strain

Noncompliance

H&S.21 Medical Facilities

Risk of noncompliance Minor injury records are not being maintained at the first-aid locations.

Visual observation

H&S.22 Sanitation in Factory Facilities

Noncompliance

Factory has 3 hand washes for 171 male employees and 5 hand washes for 379 female employees.

Visual observation

H&S.26 Drinking Water

Risk of noncompliance Only two Stainless steel mugs have been Visual observation provided near two drinking water containers for use by all workers.

BOI - Labour Standards & Employment Relations Manual Industrial Safety - section 7.5.1

7. Freedom of Association and Collective Bargaining Employers will recognize and respect the right of employees to freedom of association and collective bargaining. 8. Hours of Work Except in extraordinary business circumstances, employees will (i) not be required to work more than the lesser of (a) 48 hours per week and 12 hours overtime or (b) the limits on regular and overtime hours allowed by the law of the country of manufacture or, where the laws of such country will not limit the hours of work, the regular work week in such country plus 12 hours overtime; and (ii) be entitled to at least one day off in every seven day period.

HOW.2 Rest Day

Noncompliance

House keeping workers stated during Interview with house-keeping interviews that they do not get a workers. compensatory off if they work on a rest day. They are only paid compensation as required by law.

BOI - Labour Standards & Employment Relations Manual Holidays -Section 4.1.1

3

FLA Code/Benchmark

Compliance Status

HOW.6 Time Recording System

Noncompliance

List sources/documentation used Cite and describe local and/or Describe notable features for reference and corroborating country laws used for additional implemented by factory evidence (e.g. worker interviews, reference management or Company factory walkthrough, records review, etc.) Documentation and Interviews BOI - Labour Standards & 1.Discrepancies noticed in manual OT Employment Relations Manual record maintained by the recorder in Hours of Work -Section 2.1.1. Packing section and the time records. While Packing section records had entries of a worker who had worked up to 6.30 pm on a certain day, time records reflect that the worker was absent that day. Mismatch in actual time of exit also noticed. While the OT record reflects OT hours worked by few workers in the packing section, time records reflect that these workers had exited after regular working hours hence had not worked overtime. The concerned recorder stated that she writes the OT time as per work plan but the concerned worker may not have worked OT. A corrected list providing names of workers and actual hours worked is sent to HR department. However, when requested to produce any one such corrected list for past 6 months, none could be produced. She stated that no such list has been made in the past 6 months and this was the first instance where she would need to make the revised list. The management could not provide satisfactory explanation for these discrepancies.

Describe noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance

2.Security guards work on 12 hour shifts. At times they have worked on 13 hour shifts. 3. Factory has 4 workers who operate the Canteen. No food is cooked inside the Canteen. Food is brought from outside and sold. No documents are maintained for these 4 workers. HOW.10 Overtime/Calculation over Period Longer than One Week Noncompliance Review of time records for past 3 months Documentation for Security Guards reveal that on some occasions few of these guards have worked for 24 to 36 hours continuously. BOI - Labour Standards & Employment Relations Manual Hours of Work

9. Wages, Benefits and Overtime Compensation WAGES AND BENEFITS: Employers recognize that wages are essential to meeting employees‟ basic needs. Employers will pay employees, as a base, at least the minimum wage required by local law or the prevailing industry wage, whichever is higher, and will provide legally mandated benefits.

4

FLA Code/Benchmark

Compliance Status

Describe noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance

List sources/documentation used for reference and corroborating evidence (e.g. worker interviews, factory walkthrough, records review, etc.)

Cite and describe local and/or Describe notable features country laws used for additional implemented by factory reference management or Company

OVERTIME COMPENSATION: In addition to their compensation for regular hours of work, employees will be compensated for overtime hours at such premium rate as is legally required in the country of manufacture or, in those countries where such laws will not exist, at a rate at least equal to their regular hourly compensation rate.

WBOT.4 Timely Payment of Wages

Noncompliance

Wages for Security Guards are paid on the Interview with Security guards. 15th of the month.

BOI - Labour Standards & Employment Relations Manual Wages -Section 3.2.2

WBOT.7 Payment for All Hours Worked

Risk of noncompliance Workers interviewed stated that they Review of records and interview receive a statement for OT hours worked with Management and workers. for verification. Required changes if any are made and returned to the HR dept. The HR dept incorporates the changes and informs the concerned workers. Once the final sheet has been prepared, these verification sheets are destroyed. Hence none of these sheets could be produced to the auditors for verification. Noncompliance Employer‟s contribution towards EPF and ETF is being calculated only on the basic wage which does not comply with BOI guidelines on Labour standards & Employment relations manual . Documentation

BOI - Labour Standards & Employment Relations Manual Payment of Overtime -Section 3.2.5

WBOT.17 Accurate Calculation and Recording of Wage Compensation

BOI - Labour Standards & Employment Relations Manual Superannuation Benefits Section 16.2 The wages board ordinance notification dated 27th. Feb 2007Wages Board for Security Services Trade BOI - Labour Standards & Employment Relations Manual Wages -Section 3.2.5

WBOT.18 Accurate Length of Service Calculation

Noncompliance

In absence of personal files of Security Documentation Guards, date of hiring could not be verified. Hence, it cannot be determined if the Guards are being paid as per years of service, as required by law Workers interviewed stated that they Interviews and documentation. receive a statement for OT hours worked for verification. Required changes if any are made and returned to the HR dept. The HR dept incorporates the changes and informs the concerned workers. Once the final sheet has been prepared, these verification sheets are destroyed. Hence none of these sheets could be produced to the auditors for verification. Wage records are not maintained in the facility for outsourced workers. Review of records and interview with Management.

WBOT.20 Payroll Record Maintenance/Worker Acknowledgement

Noncompliance

WBOT.21 Record Maintenance

Noncompliance

BOI - Labour Standards & Employment Relations Manual Wages and Overtime Payment Section 3.2.5

WBOT.26 Pay Statement

Risk of noncompliance Wage slips are not in the local language.

Documentation

10. Miscellaneous

5

FLA Code/Benchmark

Compliance Status

Describe noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance

List sources/documentation used for reference and corroborating evidence (e.g. worker interviews, factory walkthrough, records review, etc.)

Cite and describe local and/or Describe notable features country laws used for additional implemented by factory reference management or Company

Subcontracting, homework and other issues not covered by above benchmarks and code requirements.

6

FLA Audit Profile Country Name of Factory Independent External Monitoring Organization Date(s) in Facility FLA Affiliated Compan(ies) Number of Workers Product(s) Production Processes
FLA Code/Benchmark

Sri Lanka 070070642F T-Group Solutions Pvt. Ltd. August 10 & 11, 2007 Nike, Inc. 579 Knits, Tops & Bottoms Cut to Pack
Compliance Status Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance Company Internal Audit Findings (optional) Remediation Company Remediation Plan Target Factory Response Company Follow-Up (cite date Completion (optional) of follow-up) Date Visit on 27/11/2008 Factory has implemented a formal grievances handling system and observed it functioning. Factory has changed their grievances procedure and policy. Management with the JCC member opens the suggestion boxes regularly and management feedback/actions taken by the management are posted on the notice board. Factory also hired the service of a professional Counselor. Documentation Status Completed, Pending, Ongoing

GEN 3: Develop a secure communications channel, in a Noncompliance manner appropriate to the culture and situation, to enable Company employees and employees of contractors and suppliers to report to the Company on noncompliance with the workplace standards, with security that they shall not be punished or prejudiced for doing so.

Contact information of PC is not available to employees.

Company Compliance visit 07/20/07: 1. The factory already has a formal confidential grievance process, the same needs to be strengthened. 2. The factory should implement a written investigation procedure, which establishes clearly the responsibility to investigate grievances, record complaint information and document the evidences/findings. 3. The factory should communicate to all workers how the system works, verify that workers have confidence in the system and communicate action taken.

The objective of the Company is to 11/30/2007 strengthen contract manufacturers‟ internal grievance systems so that direct involvement by the Company in employee grievances is considered a last resort. The Company requests that the factory establish a formal system of dialogue between the management and workers in order to allow workers to voice workplace grievances, develop internal procedures for resolving workplace disputes, and resolve grievances in good faith. In an effort to encourage internal grievance systems to be effective, the Company opts not to print contact information on its Code of Conduct. Monitors from the Company conduct one-on-one confidential interviews with factory employees during labor compliance audits of their contract facilities. During Company's audits at contractor sites, Company's internal auditors provide contact information to workers who desire to contact the Company directly.

Grievances Completed Procedure, Grievances record Interview of workers

F.9 Employment Records

Noncompliance

Employment documents of Security Guards , Housekeeping & Canteen workers are not maintained in the facility.

11/30/2007 1) Regarding the outsourced services (Canteen & Housekeeping workers, and Security Guards), the factory should have an agreement with each of the outsourced parties. The agreement stipulates the outsourced parties to treat their workers pursuant to the local regulations, (for example, working hours, minimum wages and OT compensations, and legally mandated benefits). The outsourced parties are required to keep track of the working hours and to maintain the time cards and payroll records and furnish copies of records maintained of the workers to the principal employer/factory. On the other hand, the factory is required to monitor the outsourced parties to verify if they treat the workers as per the local legal standards 2) Factory should encourage the outsource companies to maintain employment records in the facility.

Visit on 27/11/2008 outsource companies maintaining employment records with In the facility

Outsourced services agreements, and other records

Completed

7

FLA Code/Benchmark

Compliance Status Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance Company Internal Audit Findings (optional)

Remediation Company Remediation Plan

Target Factory Response Company Follow-Up (cite date Completion (optional) of follow-up) Date Visit on 27/11/2008 Observed that letter of appointment has issued for outsourced workers.

Documentation

Status Completed, Pending, Ongoing Completed

Other

Noncompliance

Security Guards and Housekeeping workers interviewed stated that they do not receive a copy of their appointment letter.

11/30/2007 1) Regarding the outsourced services (Canteen & Housekeeping workers, and Security Guards), the factory should have an agreement with each of the outsourced parties. The agreement stipulates the outsourced parties to treat their workers pursuant to the local regulations, (for example, working hours, minimum wages and OT compensations, and legally mandated benefits). The outsourced parties are required to keep track of the working hours and to maintain the time cards and payroll records and furnish copies of records maintained in respect of workers to the principal employer/factory. On the other hand, the factory is required to monitor the outsourced parties to verify if they treat the workers as per the local legal standards 2) Factory should encourage the Security and Housekeeping companies to issue a copy of appointment letter to their employees. 11/30/2007 1) Regarding the outsourced services (Canteen & Housekeeping workers, and Security Guards), the factory should have an agreement with each of the outsourced parties. The agreement stipulates the outsourced parties to treat their workers pursuant to the local regulations, (for example, working hours, minimum wages and OT compensations, and legally mandated benefits). The outsourced parties are required to keep track of the working hours and to maintain the time cards and payroll records and furnish copies of records maintained of the workers to the principal employer/factory. On the other hand, the factory is required to monitor the outsourced parties to verify if they treat the workers as per the local legal standards 2) Factory should encourage the outsourced companies to maintain proof of age documentation in file for their workers. 1. Factory agreed to provide additional 12/30/2007 exit for finished goods stores. 2/3/4/5. Pathways and workstations to have clear access and maintained without obstruction. 6. Emergency lights should have adequate lighting. 7/8. Aisles/evacuation routes and "keep clear" yellow boxes to be clearly marked/repainted. 9. Factory should mark the evacuation plan with the position of the plan and it should be posted near all exits. Factory ESH committee/safety officer to do regular inspection to ensure compliance in these areas.

Outsourced service records / PF

CL.3 Proof of Age Documentation

Noncompliance

Proof of age documentation for outsourced workers is not maintained.

Visit on 27/11/2008 Observed Outsourced that Proof of age documentation service records / PF is maintaining.

Completed

H&S.9 Evacuation Requirements and Procedure

Noncompliance

1.Finished goods store has only one exit. 2. For few workers access to passage was blocked with bins containing garments in main production area. 3. Two workers were seen working in one workstation in the sewing section, hence the worker on the inner side had no access to the passage. 4. Finishing section is crammed and congested with space less than 12 inches between few workstations. 5. Cartons containing garments are stored in a haphazard manner against sidewalls, across the passages blocking few aisles in finished goods store. 6. Some of the emergency lights installed had very weak illumination and few were not working when tested. 7. “Keep clear” yellow box markings are not marked in front of few exits in the fabric stores, Canteen and at the main production floors. 8. Aisle and evacuation routes are not marked on one part of the cutting section area. Few aisle and evacuation route markings have faded in main production area. 9.„YOU ARE HERE‟ is not marked on the evacuation plans posted in all work areas. Evacuation plans are not posted near few exits in cutting and main production areas. Evacuation plans posted in Factory–3 do not match the actual floor layout. Also these plans are in English and not in the local language.

Visual Visit on 27/11/2008 Observation 1. Factory provided additional exit for finished goods stores 2. Pathways and workstations maintained without obstruction. 3. Emergency lights have adequate lighting. 4. Aisles/evacuation routes and keep clear yellow boxes have been repainted. 5. Factory has corrected the evacuation plan .

Completed

8

FLA Code/Benchmark

Compliance Status Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance Company Internal Audit Findings (optional)

Remediation Company Remediation Plan

Target Factory Response Company Follow-Up (cite date Completion (optional) of follow-up) Date

Documentation

Status Completed, Pending, Ongoing

H&S.10 Safety Equipment and First Aid Training H&S.11 Personal Protective Equipment

Risk of noncompliance Noncompliance

Factory has 4.9 % of employees trained in Fire Fighting. 1. Few overlock operators were not using respiratory masks. 2. Few needle guards were tampered rendering them ineffective. 12/30/2007 1. PPE& Machine guarding should be provided to all workers free of charge and factory management should promote the use of PPE at all times to workers. 2. The factory should conduct educational training sessions on the proper PPE/machine guarding usage and importance to respective workers. 3. The factory should post warning signs in the local language spoken by employees and pictorial diagrams illustrating proper PPE/machine guarding and usage in all production areas where PPE is required. 1. Factory should have mechanisms to 12/30/2007 reduce the high noise exposure. Audiometric testing should be done if the noise level exceeds 85db (at recruitment and annually). 2. Electrical wires should be arranged in a way not disturbing the work stations and pathways. Regular monitoring should be done. 3. Workstation should have adequate lighting. Factory should monitor the light levels to ensure that it's within the required standard. Visit on 27/11/2008 Installed proper needle guards and observed O/L machine operators using masks. Visual Observation Completed

H&S.17 Ventilation/Electrical/Facility Installation and Maintenance

Noncompliance

1. Noise near Thread sucking machine was recorded at 95.6 db. Also workers working on workstations adjacent to the side walls of the production areas are exposed to high noise when music is played through speakers of the P.A. system installed on the walls. Noise level of 99.3db was recorded in this area. 2. Electrical wires connecting few sewing and overlock machines with mains were lying loose close to operators‟ feet. 3. Lighting is inadequate in finishing section and at the needlepoint on few sewing machines ranging from 110 to 231 lux.

Visual Visit on 27/11/2008 Observation 1. Factory has rearranged the factory layout plan and removed that thread sucking machine 2. Electrical wires arranged properly. 3. Factory is monitoring the light levels.

Completed

H&S.20 Bodily Strain

Noncompliance

Most of the workers with standing jobs in cutting and finishing section were seen working either bare feet or using high-heeled or hard-soled footwear.

When work is done standing, workers should be advised to wear rubber slippers while at work to minimize the effects of MSD. Factory should conduct regular training to workforce on Ergonomics risks.

12/30/2007

Visit on 27/11/2008 Observed that workers wear rubber slippers

Visual Completed Observation/Traini ng Records

H&S.21 Medical Facilities

Risk of noncompliance

Minor injury records are not being maintained at the first-aid locations.

H&S.22 Sanitation in Factory Facilities

Noncompliance

Factory has 3 hand washes for 171 male employees and 5 hand washes for 379 female employees. Only two Stainless steel mugs have been provided near two drinking water containers for use by all workers.

Factory should maintain the log with all 12/30/2007 injuries taking place in factory. These should be summarized and analyzed by the ESH committee. Factory should provide hand washes at 12/30/2007 the ratio of one hand washer per every 20 workers. Individual drinking cups/bottles should 12/30/2007 be provided. A mechanism should be available to provide properly cleaned cups near the drinking water dispensers.

Visual Completed Visit on 27/11/2008 Factory maintained the log with Observation/Injury records all injuries taking place in factory. Ongoing

H&S.26 Drinking Water

Risk of noncompliance

Visit on 27/11/2008 Factory maintaining individual drinking cups

Visual Observation

Completed

HOW.2 Rest Day

Noncompliance

House keeping workers stated during interviews that they do not get a compensatory off if they work on a rest day. They are only paid compensation as required by law.

Visit on 27/11/2008 Observed Time keeping records compensatory off has been given to House keeping staff.

Completed

9

FLA Code/Benchmark

Compliance Status Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance Company Internal Audit Findings (optional)

Remediation Company Remediation Plan

Target Factory Response Company Follow-Up (cite date Completion (optional) of follow-up) Date 11/30/2007

Documentation

Status Completed, Pending, Ongoing Completed

HOW.6 Time Recording System

Noncompliance

1.Discrepancies noticed in manual OT record maintained by the recorder in Packing section and the time records. While Packing section records had entries of a worker who had worked up to 6.30 pm on a certain day, time records reflect that the worker was absent that day. Mismatch in actual time of exit also noticed. While the OT record reflects OT hours worked by few workers in the packing section, time records reflect that these workers had exited after regular working hours hence had not worked overtime. The concerned recorder stated that she writes the OT time as per work plan but the concerned worker may not have worked OT. A corrected list providing names of workers and actual hours worked is sent to HR department. However, when requested to produce any one such corrected list for past 6 months, none could be produced. She stated that no such list has been made in the past 6 months and this was the first instance where she would need to make the revised list. The management could not provide satisfactory explanation for these discrepancies.

Transparency : This was noted in the internal compliance visit done in July and same was communicated with group HR and senior mgt. Handling of attendance system manually has been stopped forthwith.

Factory should not have any manual changes in the time attendance system to conceal the actual work hours. System controls should be in place to identify any manual entries. All working hours to be transparent in the time keeping system and payroll.

Pay roll, Time Visit on 27/11/2008 keeping records Not observed any manual changes in the time attendance system.

2.Security guards work on 12 hour shifts. At times they have worked on 13 hour shifts. 3. Factory has 4 workers who operate the Canteen. No food is cooked inside the Canteen. Food is brought from outside and sold. No documents are maintained for these 4 workers.

HOW.10 Overtime/Calculation over Period Longer than One Week

Noncompliance

Review of time records for past 3 months for Security Guards reveal that on some occasions few of these guards have worked for 24 to 36 hours continuously.

With respect to the security guards, the 11/30/2007 factory contracts with an outside security company that hires the guards and schedules them for rotation at different factories in the area. As such, under the law the factory has no employer obligations towards the security guards, and has limited leverage to influence their employment terms and working hours. However, in order to provide an additional layer of protection for these workers, the Company has recommended the factory to include compliance requirements (e.g., working hours, benefits) in their contractual terms with their third-party service providers (1) Regarding the outsourced services 11/30/2007 (Canteen & Housekeeping workers, and Security Guards), the factory should have an agreement with each of the outsourced parties. The agreement stipulates the outsourced parties to treat their workers pursuant to the local regulations, (for example, working hours, minimum wages and OT compensations, and legally mandated benefits). The outsourced parties are required to keep track of the working hours and to maintain the time cards and payroll records and furnish copies of records maintained in respect of workers to the principal employer/factory. On the other hand, the factory is required to monitor the outsourced parties to verify if they treat the workers as per the local legal standards.

Visit on 27/11/2008 Did not observe any security guards working more than 12 hrs continuously.

Pay roll, Time keeping records

Completed

WBOT.4 Timely Payment of Wages

Noncompliance

Wages for Security Guards are paid on the 15th of the month.

Visit on 27/11/2008 Wages Pay roll, Time for Security Guards are paid on keeping records, Security worker the 10th of the month. interview

Completed

10

FLA Code/Benchmark

Compliance Status Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance Company Internal Audit Findings (optional)

Remediation Company Remediation Plan

Target Factory Response Company Follow-Up (cite date Completion (optional) of follow-up) Date 11/30/2007 Visit on 27/11/2008 Did not observe any manual changes in the time attendance system.

Documentation

Status Completed, Pending, Ongoing Completed

WBOT.7 Payment for All Hours Worked

Risk of noncompliance

Workers interviewed stated that they receive a statement for OT hours worked for verification. Required changes if any are made and returned to the HR dept. The HR dept incorporates the changes and informs the concerned workers. Once the final sheet has been prepared, these verification sheets are destroyed. Hence none of these sheets could be produced to the auditors for verification. Employer‟s contribution towards EPF and ETF is being calculated only on the basic wage which does not comply with BOI guidelines on Labour standards & Employment relations manual . In absence of personal files of Security Guards, date of hiring could not be verified. Hence, it cannot be determined if the Guards are being paid as per years of service, as required by law

Transparency : This was noted in the internal compliance visit done in July and same was communicated with group HR and senior mgt. Handling of attendance system manually has been stopped forthwith.

Factory should not have any manual changes in the time attendance system to conceal the actual work hours. System controls should be in place to identify any manual entries. All working hours to be transparent in the time keeping system and payroll.

Pay roll, Time keeping records, OT verification sheets, Worker interview,

WBOT.17 Accurate Calculation and Recording of Wage Compensation

Noncompliance

Factory calculates EPF and ETF for base wage and BRA allowance as required by the EPF /ETF acts.

Visit on 27/11/2008 Observed Pay Roll records that factory consider wage and BRA allowance to calculate EPF/ETF as required by the EPF /ETF acts. Visit on 27/11/2008 P/F maintained for security guards and observed that they have been paid as per the service

Completed

WBOT.18 Accurate Length of Service Calculation

Noncompliance

11/30/2007 1) Regarding the outsourced services (Canteen & Housekeeping workers, and Security Guards), the factory should have an agreement with each of the outsourced parties. The agreement stipulates the outsourced parties to treat their workers pursuant to the local regulations, (for example, working hours, minimum wages and OT compensations, and legally mandated benefits). The outsourced parties are required to keep track of the working hours and to maintain the time cards and payroll records and furnish copies of records maintained of the workers to the principal employer/factory. On the other hand, the factory is required to monitor the outsourced parties to verify if they treat the workers as per the local legal standards 2) Factory should encourage the outsource companies to maintain employment records in the facility Transparency : This was noted in the internal compliance visit done in July and same was communicated with group HR and senior mgt. Handling of attendance system manually has been stopped forthwith. Factory should not have any manual changes in the time attendance system to conceal the actual work hours. System controls should be in place to identify any manual entries. All working hours to be transparent in the time keeping system and payroll and accurately paid. 11/30/2007

Pay Roll records,/ Completed PF

WBOT.20 Payroll Record Maintenance/Worker Acknowledgement

Noncompliance

Workers interviewed stated that they receive a statement for OT hours worked for verification. Required changes if any are made and returned to the HR dept. The HR dept incorporates the changes and informs the concerned workers. Once the final sheet has been prepared, these verification sheets are destroyed. Hence none of these sheets could be produced to the auditors for verification.

Visit on 27/11/2008 Did not observe any manual changes in the time attendance system.

Payroll, Time keeping records, OT verification sheets, Worker interview

Completed

WBOT.21 Record Maintenance

Noncompliance

Wage records are not maintained in the facility for outsourced workers

Regarding the outsourced services 11/30/2007 (Canteen & Housekeeping workers, and Security Guards), the factory should have an agreement with each of the outsourced parties. The agreement stipulates the outsourced parties to treat their workers pursuant to the local regulations, (for example, working hours, minimum wages and OT compensations, and legally mandated benefits). The outsourced parties are required to keep track of the working hours and to maintain the time cards and payroll records and furnish copies of records maintained in respect of workers to the principal employer/factory. On the other hand, the factory is required to monitor the outsourced parties to verify if they treat the workers as per the local legal standards

Visit on 27/11/2008 records maintained for outsourced workers

Wage Pay roll,Time keeping records

Completed

11

FLA Code/Benchmark

Compliance Status Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance Company Internal Audit Findings (optional)

Remediation Company Remediation Plan

Target Factory Response Company Follow-Up (cite date Completion (optional) of follow-up) Date

Documentation

Status Completed, Pending, Ongoing Completed

WBOT.26 Pay Statement

Risk of noncompliance

Wage slips are not in the local language.

Wage slips are in local language since mid 2006.

Visit on 27/11/2008 Wage Wage Slips slips are in local language.

12

FLA Audit Profile Country Name of Factory Independent External Monitoring Organization Date(s) in Facility FLA Affiliated Compan(ies) Number of Workers Product(s) Production Processes
FLA Code/Benchmark

Sri Lanka 070070642F T-Group Solutions Pvt. Ltd. August 10 & 11, 2007 Nike, Inc. 579 Knits, Tops & Bottoms Cut to Pack
Compliance Status [Status] Completed, Pending, Ongoing Noncompliance Completed Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance Contact information of the Company is not available to employees. Updates (Cite Date of Follow-Up) Company Follow- Documentation Up Third-Party Verification External Documentation Verification (Date) Company Verification Follow-Up Company Follow- Documentation Up (cite date of planned or followup visit, if

GEN 3: Develop a secure communications channel, in a manner appropriate to the culture and situation, to enable Company employees and employees of contractors and suppliers to report to the Company on noncompliance with the workplace standards, with security that they shall not be punished or prejudiced for doing so. F.9 Employment Records Other

Noncompliance Noncompliance

Completed Completed

Employment documents of Security Guards, Housekeeping & Canteen workers are not maintained in the Security Guards and Housekeeping workers interviewed stated that they do not receive a copy of their appointment letter. Proof of age documentation for outsourced workers is not maintained. 1.Finished goods store has only one exit. 2. For few workers access to passage was blocked with bins containing garments in main production area. 3.Two workers were seen working in one workstation in the sewing section, hence the worker on the inner side had no access to the passage. 4.Finishing section is crammed and congested with space less than 12 inches between few workstations. 5.Cartons containing garments are stored in a haphazard manner against sidewalls, across the passages blocking few aisles in finished goods store. 6. Some of the emergency lights installed had very weak illumination and few were not working when tested. 7. “Keep clear” yellow box markings are not marked in front of few exits in the fabric stores, Canteen and at the main production floors. 8. Aisle and evacuation routes are not marked on one part of the cutting section area. Few aisle and evacuation route markings have faded in main production area. 9.„YOU ARE HERE‟ is not marked on the evacuation plans posted in all work areas. Evacuation plans are not posted near few exits in cutting and main production areas. Evacuation Factory has 4.9 % of employees trained in Fire Fighting.

CL.3 Proof of Age Documentation

Noncompliance

Completed

H&S.9 Evacuation Requirements and Procedure

Noncompliance

Completed

H&S.10 Safety Equipment and First Aid Training

Risk of noncompliance

0

13

FLA Code/Benchmark

H&S.11 Personal Protective Equipment

Compliance Status [Status] Completed, Pending, Ongoing Noncompliance Completed

Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance 1. Few overlock operators were not using respiratory masks. 2. Few needle guards were tampered rendering them ineffective. 1. Noise near Thread sucking machine was recorded at 95.6 db. Also workers working on workstations adjacent to the side walls of the production areas are exposed to high noise when music is played through speakers of the P.A. System installed on the walls. Noise level of 99.3db was recorded in this area. 2.Electrical wires connecting few sewing and overlock machines with mains were lying loose close to operators‟ feet. 3.Lighting is inadequate in finishing section and at the needlepoint on few sewing machines ranging from 110 to 231 lux.

Updates (Cite Date of Follow-Up) Company Follow- Documentation Up

Third-Party Verification External Documentation Verification (Date)

Company Verification Follow-Up Company Follow- Documentation Up (cite date of planned or followup visit, if

H&S.17 Ventilation/Electrical/Facility Installation and Maintenance

Noncompliance

Completed

H&S.20 Bodily Strain

Noncompliance

Completed

Most of the workers with standing jobs in cutting and finishing section were seen working either bare feet or using high-heeled or hard-soled footwear. Minor injury records are not being maintained at the first-aid locations. Factory has 3 hand washes for 171 male employees and 5 hand washes for 379 female employees. Only two Stainless steel mugs have been provided near two drinking water containers for use by all workers. House keeping workers stated during interviews that they do not get a compensatory off if they work on a rest day. They are only paid compensation as required by law.

H&S.21 Medical Facilities H&S.22 Sanitation in Factory Facilities

Risk of noncompliance Noncompliance

Completed 0

H&S.26 Drinking Water HOW.2 Rest Day

Risk of noncompliance Noncompliance

Completed Completed

14

FLA Code/Benchmark

HOW.6 Time Recording System

Compliance Status [Status] Completed, Pending, Ongoing Noncompliance Completed

Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance 1.Discrepancies noticed in manual OT record maintained by the recorder in Packing section and the time records. While Packing section records had entries of a worker who had worked up to 6.30 pm on a certain day, time records reflect that the worker was absent that day. Mismatch in actual time of exit also noticed. While the OT record reflects OT hours worked by few workers in the packing section, time records reflect that these workers had exited after regular working hours hence had not worked overtime. The concerned recorder stated that she writes the OT time as per work plan but the concerned worker may not have worked OT. A corrected list providing names of workers and actual hours worked is sent to HR department. However, when requested to produce any one such corrected list for past 6 months, none could be produced. She stated that no such list has been made in the past 6 months and this was the first instance where she would need to make the revised list. The management could not provide satisfactory explanation for these discrepancies.

Updates (Cite Date of Follow-Up) Company Follow- Documentation Up

Third-Party Verification External Documentation Verification (Date)

Company Verification Follow-Up Company Follow- Documentation Up (cite date of planned or followup visit, if

0

Noncompliance

2.Security guards work on 12 hour shifts. At times they have worked on 13 hour shifts. 3. Factory has 4 workers who operate the Canteen. No food is cooked inside the Canteen. Food is brought from outside and sold. No documents are maintained for these 4 workers. Completed Review of time records for past 3 months for Security Guards reveal that on some occasions few of these guards have worked for 24 to 36 hours continuously. Wages for Security Guards are paid on the 15th of the month. Workers interviewed stated that they receive a statement for OT hours worked for verification. Required changes if any are made and returned to the HR dept. The HR dept incorporates the changes and informs the concerned workers. Once the final sheet has been prepared, these verification sheets are destroyed. Hence none of these sheets could be produced to the auditors for verification.

HOW.10 Overtime/Calculation over Period Longer than One Week

Noncompliance

WBOT.4 Timely Payment of Wages WBOT.7 Payment for All Hours Worked

Noncompliance Risk of noncompliance

Completed Completed

15

FLA Code/Benchmark

WBOT.17 Accurate Calculation and Recording of Wage Compensation

Compliance Status [Status] Completed, Pending, Ongoing Noncompliance Completed

Description of noncompliance, risk of noncompliance or uncorroborated evidence of noncompliance Employer‟s contribution towards EPF and ETF is being calculated only on the basic wage which does not comply with BOI guidelines on Labour standards & Employment relations manual . In absence of personal files of Security Guards, date of hiring could not be verified. interviewed stated WorkersHence, it cannot bethat they receive a statement for OT hours worked for verification. Required changes if any are made and returned to the HR dept. The HR dept incorporates the changes and informs the concerned workers. Once the final sheet has been prepared, these verification sheets are destroyed. Hence none of these sheets could be produced to the auditors for verification. Wage records are not maintained in the facility for outsourced workers. Wage slips are not in the local language.

Updates (Cite Date of Follow-Up) Company Follow- Documentation Up

Third-Party Verification External Documentation Verification (Date)

Company Verification Follow-Up Company Follow- Documentation Up (cite date of planned or followup visit, if

WBOT.18 Accurate Length of Service Calculation WBOT.20 Payroll Record Maintenance/Worker Acknowledgement

Noncompliance Noncompliance

Completed Completed

WBOT.21 Record Maintenance WBOT.26 Pay Statement

Noncompliance Risk of noncompliance

Completed Completed

16


				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:6
posted:11/16/2009
language:English
pages:16