Docstoc

Chart - Nonprofit organization dedicated to ending sweatshop - Excel

Document Sample
Chart - Nonprofit organization dedicated to ending sweatshop - Excel Powered By Docstoc
					FLA Audit Profile
Country                                                    India
Name of Factory                                            070232631F
Independent External Monitoring                            International Resources For Fairer Trade
Organization
Date(s) in Facility                                        July 19 & 20, 2007
FLA Affiliated Compan(ies)                                 Nike, Inc. & Puma AG
Number of Workers                                          961
Product(s)                                                 Sports Shoes
Production Processes                                       Cutting and Stitching

FLA Code/Benchmark                                         Compliance Status      Describe noncompliance, risk of               List sources/documentation used     Cite and describe local and/or Describe notable features
                                                                                  noncompliance or uncorroborated               for reference and corroborating     country laws used for          implemented by factory
                                                                                  evidence of noncompliance                     evidence (e.g. worker interviews,   additional reference           management or Company
                                                                                                                                factory walkthrough, records
                                                                                                                                review, etc.)

1. Code Awareness
GEN 2: Ensure that all Company factories as well as       Risk of noncompliance   Code is posted on the notice board on the Walkthrough, worker interviews
contractors and suppliers inform their employees about                            shop floor, which is communicated to the
the workplace standards orally and through the posting                            workers by way of displaying it. However
of standards in a prominent place (in the local languages                         some of the new workers interviewed
spoken by employees and managers) and undertake                                   were not aware of the Code.
other efforts to educate employees about the standards
on a regular basis.
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          No confirmation letters, wage slip not        Workers interview, record review    Factories Act 1948
                                                                                  issued, time in and out records not
F.15 Personal Worker Identification and Other              Noncompliance          proper.
                                                                                  No identity cards are issued to               Worker interviews
Documents                                                                         employees, except for the time in and out
                                                                                  swipe card, which is also not issued to all
                                                                                  the employees.
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.

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.
H&A.6 Discipline/Worker Awareness and Participation of Noncompliance              The facility has a Code of Conduct          Walkthrough, records review
Workers                                                                           entitled ‘Philosophy of Management’
                                                                                  displayed on the shop floor, in both
                                                                                  English and Hindi (the language
                                                                                  understood by the workers). The facility
                                                                                  has workers committee to address their
                                                                                  grievances, but some of the workers we
                                                                                  spoke to are not aware of the existence of
H&A.11 Discipline/Verbal Abuse                             Noncompliance          The a committee.
                                                                                  suchsupervisor was found abusing the        Walkthrough
                                                                                  workers on production floor (stitching
                                                                                  area) right in front of the monitors during
                                                                                  the visit.
5. Non-Discrimination




                                                                                                                                                                                                                               1
FLA Code/Benchmark                                             Compliance Status       Describe noncompliance, risk of               List sources/documentation used     Cite and describe local and/or Describe notable features
                                                                                       noncompliance or uncorroborated               for reference and corroborating     country laws used for          implemented by factory
                                                                                       evidence of noncompliance                     evidence (e.g. worker interviews,   additional reference           management or Company
                                                                                                                                     factory walkthrough, records
                                                                                                                                     review, etc.)

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.
D.3 Recruitment and Employment Practices (Job                  Risk of noncompliance   The Broad Employment Policy mentions Worker interviews, records review                                          During the audit it was observed
Advertisements, Job Descriptions and Evaluation                                        the category of workers, casual workers,                                                                        that there was a likely
Policies)                                                                              application and age proof, working time                                                                         representation of the minority
                                                                                       with lunch/tea breaks, weekly holiday,                                                                          section of eunuchs/trans-
                                                                                       overtime, leave with pay, attendance and                                                                        genders on the production floor.
                                                                                       wage payment, but nothing about                                                                                 This is a notable feature as this
                                                                                       termination/retrenchment.                                                                                       section of people are hardly
                                                                                                                                                                                                       represented in the employment
                                                                                                                                                                                                       arena.
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                    Noncompliance           Found blocked aisles in stores. The fire      Walkthrough                         Factories Act 1948
                                                                                       exit staircase for stores is dangerous and
                                                                                       needs to be changed. It is not a regular
                                                                                       staircase but a ladder with width of about
                                                                                       5 inches per step. There is a risk of falling
                                                                                       at the time of emergency and otherwise
                                                                                       as well. No evacuation drills, fire safety or
                                                                                       use of fire extinguishers training provided
                                                                                       to the workers from stores as observed
                                                                                       by worker interview. Access was blocked
                                                                                       for one fire extinguisher. Some of the fire
                                                                                       extinguishers had surpassed the
                                                                                       expiration date and an attempt was made
                                                                                       to change the dates during the 2 days that
                                                                                       the monitors were present in the factory.
                                                                                       No records were made available during
                                                                                       the audit on any assessment conducted in
                                                                                       the factory to identify ESH hazards and
                                                                                       the appropriate response to such risks.
H&S.13 Chemical Management and Training                        Noncompliance           Diesel barrels storage inadequate. There Walkthrough                              Factories Act 1948
                                                                                       is no secondary containment to catch
                                                                                       spillage. MSDS are not posted at the
                                                                                       storage area. The workers working in the
                                                                                       boiler area especially are not provided
                                                                                       with the required PPEs. The labels are in
                                                                                       English and not in Hindi (the language
                                                                                       understood by majority of workers).
H&S.17 Ventilation/Electrical/Facility Installation and        Noncompliance           Proper ventilation is required on 1st floor   Walkthrough                         Factories Act 1948
Maintenance                                                                            of the stores department. There is no
                                                                                       cross ventilation due to the design.
                                                                                       Moreover, the fans are few and there is
                                                                                       no wind flow, making the floor extremely
                                                                                       hot.




                                                                                                                                                                                                                                           2
FLA Code/Benchmark                                         Compliance Status       Describe noncompliance, risk of             List sources/documentation used     Cite and describe local and/or Describe notable features
                                                                                   noncompliance or uncorroborated             for reference and corroborating     country laws used for          implemented by factory
                                                                                   evidence of noncompliance                   evidence (e.g. worker interviews,   additional reference           management or Company
                                                                                                                               factory walkthrough, records
                                                                                                                               review, etc.)

H&S.20 Bodily Strain                                       Risk of noncompliance   Sitting position not easy. Stools without   Worker interviews, walkthrough      Section 44, sub section (2) of
                                                                                   back rest, bin between the feet, makes                                          Factories Act 1948 states: "If,
                                                                                   sitting uncomfortable and may lead to                                           in the opinion of the Chief
                                                                                   body strain.                                                                    Inspector, the workers in any
                                                                                                                                                                   factory engaged in a particular
                                                                                                                                                                   manufacturing process or
                                                                                                                                                                   working in a particular room
                                                                                                                                                                   are able to do their work
                                                                                                                                                                   efficiently in a sitting position,
                                                                                                                                                                   he may, by order in writing
                                                                                                                                                                   require the occupier of the
                                                                                                                                                                   factory to provide before a
                                                                                                                                                                   specified date such seating
                                                                                                                                                                   arrangements as may be
                                                                                                                                                                   practicable for all workers so
                                                                                                                                                                   engaged or working."
7. Freedom of Association and Collective Bargaining
Employers will recognize and respect the right of
employees to freedom of association and collective
FOA.1 General Compliance Freedom of Association     Noncompliance                  The management reported existence of    Workers interview, management
                                                                                   committees for grievances redressed.    interview
                                                                                   However some of the workers interviewed
                                                                                   were not aware of such committee.
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

HOW.1 General Compliance Hours of Work                     Noncompliance           No swipe cards to some of the workers       Worker interview, records review    Factories Act 1948
HOW.2 Rest Day                                             Noncompliance           Multiple set of attendance records were     Worker interviews, records review   Factories Act 1948
                                                                                   found. The workers' attendance register,
                                                                                   which is maintained manually showed
                                                                                   Sunday working. There was another
                                                                                   evidence of Sunday working in the
                                                                                   broken needle register as well. However,
                                                                                   management claimed that they did not
                                                                                   work on Sunday. It is difficult to conclude
                                                                                   whether overtime exceeded 12 hours in a
                                                                                   week, as the records were not matching
                                                                                   with each other. But obviously the workers
                                                                                   were not paid at double the rate for
                                                                                   Sunday working nor they were given an
                                                                                   alternative day off as required by law. The
                                                                                   facility observes Sunday as their weekly
                                                                                   day off.




                                                                                                                                                                                                                              3
FLA Code/Benchmark                                       Compliance Status   Describe noncompliance, risk of          List sources/documentation used     Cite and describe local and/or Describe notable features
                                                                             noncompliance or uncorroborated          for reference and corroborating     country laws used for          implemented by factory
                                                                             evidence of noncompliance                evidence (e.g. worker interviews,   additional reference           management or Company
                                                                                                                      factory walkthrough, records
                                                                                                                      review, etc.)

HOW.6 Time Recording System                              Noncompliance       The time record maintained is not          Record review                     Factories Act 1948
                                                                             authentic and accurate. In-time of workers
                                                                             as recorded by security guards, did not
                                                                             match with the swipe card timings. The
                                                                             mismatch was more than 2.5 hrs. In
                                                                             another case though workers were shown
                                                                             as present as per the manual time
                                                                             keeping system, they were shown as
                                                                             absent in swipe card. We found instances
                                                                             where the security guards had recorded
                                                                             arrival time of some workers which
                                                                             differed from the time recorded for the
                                                                             same worker under the punch card
                                                                             system and the difference was more than
                                                                             2 hrs. We can infer that as the time
                                                                             records were not properly maintained,
9. Wages, Benefits and Overtime Compensation                                 overtime hours are not in compliance with
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.
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.10 Premium/Overtime Compensation                       Noncompliance    During the worker interviews, it is       Worker interviews, record review   Factories Act 1948
                                                                             observed that they are aware that
                                                                             overtime payment is paid double, but they
                                                                             are not aware of the system of hours
                                                                             calculated. While reviewing the records
                                                                             multiple time records were found, which
                                                                             were not matching with each other. In
                                                                             some cases, out time was not recorded.
                                                                             Hour records were maintained
                                                                             electronically and manually as well. Also
                                                                             some of the workers were not issued the
WBOT.21 Record Maintenance                               Noncompliance       swiperecord maintained is inadequate,
                                                                             Time cards.                               Workers interview, record review   Factories Act 1948
                                                                             some workers do not have swipe cards.
WBOT.27 Wage Receipt                                  Noncompliance          Wage slips are not issued to workers.    Workers interview, record review    Factories Act 1948
10. Miscellaneous
Subcontracting, homework and other issues not covered
by above benchmarks and code requirements.




                                                                                                                                                                                                                     4
FLA Audit Profile
Country                                         India
Name of Factory                                 070232631F
Independent External Monitoring                 International Resources For Fairer Trade
Organization
Date(s) in Facility                             July 19 & 20, 2007
FLA Affiliated Compan(ies)                      Nike, Inc. & Puma AG
Number of Workers                               961
Product(s)                                      Sports Shoes
Production Processes                            Cutting and Stitching

            FLA Code/Benchmark                  Compliance Status                                                                          Remediation                                                                                                                                       Status
                                                                    Description of noncompliance, risk of    Company Internal Audit   Company Remediation             Target Completion   Factory Response (optional) Company Follow-Up                          Documentation         Completed,
                                                                    noncompliance or uncorroborated          Findings (optional)      Plan                            Date                                            (25/02/08)                                                       Pending, On-
                                                                    evidence of noncompliance                                                                                                                                                                                          going
GEN 2: Ensure that all Company factories as      Risk of            Code is posted on the notice board on                             Briefing of new employees April 2008                All the workers at the time ofAwareness regarding Code of              Training records,     Ongoing
well as contractors and suppliers inform their   noncompliance      the shop floor, which is communicated to                          shall include the elements                          hire will be trained on Code  Conduct is not evident according         worker interviews
employees about the workplace standards                             the workers by way of displaying it.                              of the Code of Conduct                              of Conduct and other          to worker interviews and also the
orally and through the posting of standards in a                    However some of the new workers                                   including the reporting                             noncompliance issues in       training records show only one
prominent place (in the local languages spoken                      interviewed were not aware of the Code.                           channel for non-compliance                          addition to booklet given to  training on Code of Conduct
by employees and managers) and undertake                                                                                              issues indicated on the                             workers written in local      without any pictures or dates. The
other efforts to educate employees about the                                                                                          Code of Conduct posters.                            language describing           orientation sheet which is given to
standards on a regular basis.                                                                                                                                                             company's policy and          the workers at time of hire also
                                                                                                                                                                                          security issues.              does not mention any Nike Code
                                                                                                                                                                                                                        of Conduct.
F.9 Employment Records                          Noncompliance       No confirmation letters, wage slip not                            1. Issue confirmation letter                        1.All the workers who join us Confirmation letters still not given     Swipe cards, personnel Ongoing
                                                                    issued, time in and out records not                               in local language to                                are issued appointment        to the workers. Wage slip given to       files, worker interviews
                                                                    proper.                                                           employee upon                                       letter initially and          all the workers is in local language
                                                                                                                                      regularization of                                   confirmation letter after 3   with details of worked hours,
                                                                                                                                      employment with a copy of                           months. New workers are       trainings and wage deductions.
                                                                                                                                      the letter kept on                                  given appointment letter      Swipe cards have been issued to
                                                                                                                                      employee's personnel file.                          after three days.             all the workers.
                                                                                                                                      2. Provide each employee a                          2.All workers are given
                                                                                                                                      copy of the wage slip in                            salary slip in local language
                                                                                                                                      local language with details                         up to 5th of every month.
                                                                                                                                      of worked hours, earnings                           Salary slips display working
                                                                                                                                      and wage deductions.                                days, earning basic, HRA,
                                                                                                                                      3. Issue individual time                            C.A, overtime hours, P.F. &
                                                                                                                                      cards or electronic swipe                           ESI deduction, total salary
                                                                                                                                      cards to all employees                              payable.
                                                                                                                                      which will be under their                           3.All workers are issued
                                                                                                                                      control for recording their                         swipe ID card except
F.15 Personal Worker Identification and Other   Noncompliance       No identity cards are issued to                                   Factory out entries.
                                                                                                                                      time in / needs to streamline                       trainees and new workers
                                                                                                                                                                                          Every worker is issued ID                                  Swipe cards
                                                                                                                                                                                                                        All the workers have been issued                               Completed
Documents                                                           employees, except for the time in and out                         the process and ensure all                          swipe card. It contains     swipe ID cards.
                                                                    swipe card, which is also not issued to all                       employees are given                                 details about workers name,
                                                                    the employees.                                                    ID/swipe cards.                                     father's name, employee
                                                                                                                                                                                          code, date of joining,
                                                                                                                                                                                          department and date of
                                                                                                                                                                                          birth with employee and
                                                                                                                                                                                          employers signature.
                                                                                                                                                                                          Separate ID swipe cards not
H&A.6 Discipline/Worker Awareness and           Noncompliance       The facility has a Code of Conduct                                Post at every production   April 2008               required.
                                                                                                                                                                                          The names of the workers The Code of Conduct is displayed Worker interviews,                 Pending
Participation of Workers                                            entitled ‘Philosophy of Management’                               section the names and                               forum has been posted on on the production floor but       workers forum
                                                                    displayed on the shop floor, in both                              pictures of the members of                          workers notice board along awareness regarding the same is
                                                                    English and Hindi (the language                                   the Workers Committee as                            with minutes of the monthly not there. The joint worker
                                                                    understood by the workers). The facility                          well as the duties and                              meeting. Henceforth, all    management forum is there with
                                                                    has workers committee to address their                            responsibilities of the                             new workers will be         no photographs of members as
                                                                    grievances, but some of the workers we                            committee.                                          informed of members of the well as no duties and
                                                                    spoke to are not aware of the existence of                        Provide briefing to all                             workers forum. Names and responsibilities of the committee
                                                                    such a committee.                                                 employees about the                                 photographs of the workers members and there is no
                                                                                                                                      committee.                                          forum will be displayed     awareness regarding the same.
                                                                                                                                                                                          across the factory.

H&A.11 Discipline/Verbal Abuse                  Noncompliance       The supervisor was found abusing the                              Provide training to        April 2008               All the supervisors will         The training records do show                                Pending
                                                                    workers on production floor (stitching                            supervisors and other                               undergo behavioral training.     some trainings but are not
                                                                    area) right in front of the monitors during                       managerial staff on                                 It will be emphasized that no    consistent, also no photographs
                                                                    the visit.                                                        harassment and abuse and                            supervisor should verbally       and no dates. Factory has been
                                                                                                                                      the sanctions against such                          abuse any worker.                advised to formulate a new training
                                                                                                                                      acts.                                                                                calendar and do the trainings in
                                                                                                                                                                                                                           the same manner. Also to draft a
                                                                                                                                                                                                                           policy on harassment/abuse and
                                                                                                                                                                                                                           create awareness.




                                                                                                                                                                                                                                                                                         5
            FLA Code/Benchmark                    Compliance Status                                                                          Remediation                                                                                                                                       Status
                                                                      Description of noncompliance, risk of    Company Internal Audit   Company Remediation           Target Completion   Factory Response (optional) Company Follow-Up                          Documentation           Completed,
                                                                      noncompliance or uncorroborated          Findings (optional)      Plan                          Date                                            (25/02/08)                                                         Pending, On-
                                                                      evidence of noncompliance                                                                                                                                                                                          going
D.3 Recruitment and Employment Practices         Risk of              The Broad Employment Policy mentions                              Formulate policies and        April 2008          Under discussion. Will be        The employee handbook does not Employee handbook              Pending
(Job Advertisements, Job Descriptions and        noncompliance        the category of workers, casual workers,                          implement guidelines on                           done by the target date.         mention retrenchment/termination.
Evaluation Policies)                                                  application and age proof, working time                           termination and                                                                    It has been communicated by the
                                                                      with lunch/tea breaks, weekly holiday,                            retrenchment. Inform all                                                           factory that they will formulate the
                                                                      overtime, leave with pay, attendance and                          employees on the new                                                               policy by March 15, 2008. The
                                                                      wage payment, but nothing about                                   policies and guidelines.                                                           Standing Order which the
                                                                      termination/retrenchment.                                         Include in the briefing                                                            company follows is not their own;
                                                                                                                                        materials for incoming                                                             only follows model standing order.
                                                                                                                                        employees.


H&S.9 Evacuation Requirements and                Noncompliance        Found blocked aisles in stores. The fire                          1. Enforce observance of         Nov. 30, 2007    1. All the gangways are          1. Aisles were clear. Some minor Photos                       Completed
Procedure                                                             exit staircase for stores is dangerous and                        clear aisles at all times.                        being made clear.                issues noted in the pathways
                                                                      needs to be changed. It is not a regular                          2. Make the ladder stable                         2. Ladder will be stabilized.    inside the warehouse, but exits
                                                                      staircase but a ladder with width of about                        and replace with steps of                         3. An assembly area has          were clear.
                                                                      5 inches per step. There is a risk of falling                     normal width to make its                          been created with board          2. Ladders have been provided
                                                                      at the time of emergency and otherwise                            use easy especially during                        displaying different             with the rails and this has been
                                                                      as well. No evacuation drills, fire safety or                     emergency.                                        department. All the workers      firmly placed.
                                                                      use of fire extinguishers training provided                       3. All employees should                           will assemble at that            3. Fire drill records reviewed, head
                                                                      to the workers from stores as observed                            participate in fire drills to be                  particular place during fire     count initiated. Advised the same
                                                                      by worker interview. Access was blocked                           conducted regularly and be                        drill. Board for stores has      to be carried out in night shift.
                                                                      for one fire extinguisher. Some of the fire                       provided with training on                         been placed. Fire fighting       4. Noted some minor issues where
                                                                      extinguishers had surpassed the                                   fire safety and the use of                        training is been given to        2 extinguishers were blocked. It is
                                                                      expiration date and an attempt was made                           fire extinguishers.                               them.                            an ongoing effort by the factory to
                                                                      to change the dates during the 2 days                             4. Ensure that access to all                      4. Obstructions shall be         ensure these kind of issues are
                                                                      that the monitors were present in the                             fire extinguishers are free at                    removed from in front of all     noted and addressed.
                                                                      factory. No records were made available                           all times and that aside                          fire extinguishers. Store
                                                                      during the audit on any assessment                                from the regular in-house                         workers are instructed to
                                                                      conducted in the factory to identify ESH                          inspection, all fire fighting                     not store cartons near fire
                                                                      hazards and the appropriate response to                           units must be inspected at                        extinguishers. Annual
                                                                      such risks.                                                       least once a year by an                           inspection will be done by
                                                                                                                                        outside professional agency                       outside professional
                                                                                                                                        or government agency                              agency.
                                                                                                                                        concerned.

H&S.13 Chemical Management and Training          Noncompliance        Diesel barrels storage inadequate. There                          1. Provide secondary           Nov. 30, 2007      1. Secondary containment         1. Factory has made the          Photos                       Completed
                                                                      is no secondary containment to catch                              containment to diesel                             has been made with dead          secondary containments to the
                                                                      spillage. MSDS are not posted at the                              barrels and other liquid                          drain in two areas storing       diesel barriers.
                                                                      storage area. The workers working in the                          chemicals. MSDS to be                             diesel/oil. MSDS will be         2. MSDS has been placed in local
                                                                      boiler area especially are not provided                           placed in workplace.                              placed and PPE will be           language for all the chemicals.
                                                                      with the required PPEs. The labels are in                         Provide adequate PPE for                          provided.                        3. PPE has been provided for the
                                                                      English and not in Hindi (the language                            workers working.                                  2. MSDS board and book           workers. Trainings has been
                                                                      understood by majority of workers).                               2. Post copies of MSDS in                         has been kept at areas           imparted to the workers.
                                                                                                                                        local language at points of                       storing chemicals. MSDS
                                                                                                                                        storage and use of                                will be displayed at all areas
                                                                                                                                        chemicals. Provide briefing                       where oil and chemicals.
                                                                                                                                        on MSDS to workers
                                                                                                                                        involved in chemical
                                                                                                                                        handling. All labels on
                                                                                                                                        chemicals and other safety
                                                                                                                                        signs must be in local
                                                                                                                                        language.
                                                                                                                                        3. Provide the necessary
                                                                                                                                        protective equipment to
                                                                                                                                        workers in the boiler area
                                                                                                                                        and brief them on the
H&S.17 Ventilation/Electrical/Facility Installation Noncompliance     Proper ventilation is required on 1st floor                       Provide necessary opening April 2008              More fans and coolers will       Factory plans to move the screen      Factory clarified that    Pending
and Maintenance                                                       of the stores department. There is no                             to allow free inflow / outflow                    be provided in upper store,      printing area into new location.      the 3rd party will set up
                                                                      cross ventilation due to the design.                              of air and install additional                     better design for proper         Firm has been contacted and they      screen printing area,
                                                                      Moreover, the fans are few and there is                           fans as may be necessary                          ventilation will be provided.    would come and set up the screen      and provide better
                                                                      no wind flow, making the floor extremely                          to improve the ventilation.                                                        printing layout with better exhaust   ventilation
                                                                      hot.                                                                                                                                                 and ventilation.
H&S.20 Bodily Strain                             Risk of              Sitting position not easy. Stools without                         Review height of machines April 2008              1. Factory to provide        Stools with increased heights are                                 Ongoing
                                                 noncompliance        back rest, bin between the feet, makes                            and stools and the working                        adjustable stools to workers there. We have got some stools
                                                                      sitting uncomfortable and may lead to                             space around each unit in                         engaged in the work.         already ready and given to
                                                                      body strain.                                                      the section concerned and                                                      workers.
                                                                                                                                        make adjustments as
                                                                                                                                        needed to ensure that there
                                                                                                                                        will be no undue discomfort
                                                                                                                                        and physical strain to
                                                                                                                                        workers.




                                                                                                                                                                                                                                                                                            6
           FLA Code/Benchmark            Compliance Status                                                                         Remediation                                                                                                                                      Status
                                                             Description of noncompliance, risk of   Company Internal Audit   Company Remediation             Target Completion   Factory Response (optional) Company Follow-Up                         Documentation         Completed,
                                                             noncompliance or uncorroborated         Findings (optional)      Plan                            Date                                            (25/02/08)                                                      Pending, On-
                                                             evidence of noncompliance                                                                                                                                                                                        going
FOA.1 General Compliance Freedom of      Noncompliance       The management reported existence of                             Post at every production                            The names of the workers         There is a workers                   Workers interviews,   Pending
Association                                                  committees for grievances redressed.                             section the names and                               forum has been posted on         forum/grievance committee about      grievance committee
                                                             However some of the workers interviewed                          pictures of the members of                          workers notice board along       which awareness is not there in      minutes
                                                             were not aware of such committee.                                the Workers Committee as                            with minutes of the monthly      workers. Also, the grievance
                                                                                                                              well as the duties and                              meeting.                         procedure is not effective and the
                                                                                                                              responsibilities of the                             Henceforth all the new           supervisor does not listen to the
                                                                                                                              committee.                                          workers will be informed         grievances. So channel of
                                                                                                                              Provide briefing to all                             about members of the             communication of workers should
                                                                                                                              employees about the                                 workers forum. Also names        be strengthened.
                                                                                                                              committee.                                          and photographs of the
                                                                                                                                                                                  workers forum will be
                                                                                                                                                                                  displayed across the
                                                                                                                                                                                  factory.
HOW.1 General Compliance Hours of Work   Noncompliance       No swipe cards to some of the workers                            Individual time cards or    April 2008              Swipe cards have been            Swipe cards have been given to all Worker interviews,  Ongoing
                                                                                                                              electronic swipe cards of                           issued to all workers. New       the workers. They are given        management response
                                                                                                                              employees must be under                             workers get their swipe          weekly rest day for which they are
                                                                                                                              their control for recording                         cards after 3 days of their      compensated.
                                                                                                                              their time in / out entries                         joining.
                                                                                                                              and the resultant
                                                                                                                              attendance records shall be
                                                                                                                              the basis for payroll
                                                                                                                              preparation. Ensure weekly
                                                                                                                              rest day for all employees.
HOW.2 Rest Day                           Noncompliance       Multiple set of attendance records were                          Factory to have all the work                        Swipe cards have been            Multiple set of records as           Worker interviews,  Pending
                                                             found. The workers' attendance register,                         hours recorded in one time                          issued to all workers. New       communicated by the workers.         management response
                                                             which is maintained manually showed                              keeping system that                                 workers get their swipe          Sunday work is being
                                                             Sunday working. There was another                                includes overtime and                               cards after 3 days of their      compensated by comp off in next
                                                             evidence of Sunday working in the                                Sunday work hours. Ensure                           joining. Therefore, each         two-three days as communicated
                                                             broken needle register as well. However,                         working hours on Sunday                             worker's attendance shall        by worker interviews and also
                                                             management claimed that they did not                             are paid as per legal                               be recorded and payments         management response. Overtime
                                                             work on Sunday. It is difficult to conclude                      requirements.                                       will be made as per the          has been exceeded in quarter for
                                                             whether overtime exceeded 12 hours in a                                                                              legal requirements.              Oct-Dec as communicated by the
                                                             week, as the records were not matching                                                                                                                management in the closing
                                                             with each other. But obviously the                                                                                                                    meeting. Awaiting documents for
                                                             workers were not paid at double the rate                                                                                                              the above.
                                                             for Sunday working nor they were given
                                                             an alternative day off as required by law.
                                                             The facility observes Sunday as their
HOW.6 Time Recording System              Noncompliance       weekly day off. maintained is not
                                                             The time record                                                  Issue individual time cards                         Swipe cards have been            The time record maintained does      Worker interviews     Pending
                                                             authentic and accurate. In-time of workers                       or electronic swipe cards to                        issued to all workers. New       not show any variation. But
                                                             as recorded by security guards, did not                          all employees which will be                         workers get their swipe          through worker interviews we
                                                             match with the swipe card timings. The                           under their control for                             cards after 3 days of their      came to know that there were OT
                                                             mismatch was more than 2.5 hrs. In                               recording their time in / out                       joining. Therefore, each         done which is paid by voucher
                                                             another case though workers were shown                           entries.                                            worker's attendance shall        payments. Documents for the
                                                             as present as per the manual time                                                                                    be recorded.                     same are awaited.
                                                             keeping system, they were shown as
                                                             absent in swipe card. We found instances
                                                             where the security guards had recorded
                                                             arrival time of some workers which
                                                             differed from the time recorded for the
                                                             same worker under the punch card
                                                             system and the difference was more than
                                                             2 hrs. We can infer that as the time
                                                             records were not properly maintained,
WBOT.10 Premium/Overtime Compensation    Noncompliance       overtime hours are not in compliance with
                                                             During the worker interviews, it is                              Workers' briefing shall                             All the workers at the time of   During worker interviews it was      Worker interviews     Ongoing
                                                             observed that they are aware that                                include discussion on the                           hiring are given orientation     noticed that the OT is paid double
                                                             overtime payment is paid double, but they                        system of calculating the                           sheet which displays             and how it is calculated. But
                                                             are not aware of the system of hours                             wages and the                                       calculation of overtime in       excessive OT was found out
                                                             calculated. While reviewing the records                          corresponding overtime                              local language. Sample           during the interview.
                                                             multiple time records were found, which                          rates. Post sample                                  sheet will be posted on
                                                             were not matching with each other. In                            computation of wages on                             notice board. The new
                                                             some cases, out time was not recorded.                           bulletin boards.                                    workers during orientation
                                                             Hour records were maintained                                                                                         will be taught overtime
                                                             electronically and manually as well. Also                                                                            calculation
WBOT.21 Record Maintenance               Noncompliance       Time record maintained is inadequate,                            Issue individual time cards April 2008              Swipe cards have been            Swipe cards have been given to all Worker interview,   Pending
                                                             some workers do not have swipe cards.                            or electronic swipe cards to                        issued to all workers. New       the workers so their attendance is management response
                                                                                                                              all employees which will be                         workers get their swipe          marked from the beginning.
                                                                                                                              under their control for                             cards after 3 days of their
                                                                                                                              recording their time in / out                       joining. Therefore, each
                                                                                                                              entries                                             worker's attendance shall
                                                                                                                                                                                  be recorded.




                                                                                                                                                                                                                                                                                7
          FLA Code/Benchmark   Compliance Status                                                                       Remediation                                                                                                                            Status
                                                   Description of noncompliance, risk of   Company Internal Audit Company Remediation         Target Completion   Factory Response (optional) Company Follow-Up                   Documentation         Completed,
                                                   noncompliance or uncorroborated         Findings (optional)    Plan                        Date                                            (25/02/08)                                                Pending, On-
                                                   evidence of noncompliance                                                                                                                                                                            going
WBOT.27 Wage Receipt           Noncompliance       Wage slips are not issued to workers.                        Provide each employee a                           All workers are given salary   Wage slips were provided to all   Wage slips, worker   Completed
                                                                                                                copy of the wage slip in                          slip in local language up to   the workers and also they were in interviews
                                                                                                                local language with details                       5th of every month. Salary     local language with details of
                                                                                                                of worked hours, earnings                         slips display working days,    worked hours, earnings and wage
                                                                                                                and wage deductions.                              earning basic, HRA, C.A.,      deductions and only their names
                                                                                                                                                                  overtime hours, P.F. & ESI     were in English.
                                                                                                                                                                  deduction, and total salary
                                                                                                                                                                  payable.




                                                                                                                                                                                                                                                          8
FLA Audit Profile
Country                                         India
Name of Factory                                 070232631F
Independent External Monitoring                 International Resources For Fairer Trade
Organization
Date(s) in Facility                             July 19 & 20, 2007
FLA Affiliated Compan(ies)                      Nike, Inc. & Puma AG
Number of Workers                               961
Product(s)                                      Sports Shoes
Production Processes                            Cutting and Stitching

FLA Code/Benchmark                              Compliance      [Status]            Description of noncompliance, risk of Updates (Cite Date of Follow-Up) Third-Party Verification           Company Verification Follow-Up
                                                Status          Completed,          noncompliance or uncorroborated       Company         Documentation External Verification Documentation   Company Follow- Documentation
                                                                Pending, On-going   evidence of noncompliance             Follow-Up                        (Date)                             Up (cite date of
                                                                                                                                                                                              planned or follow-
                                                                                                                                                                                              up visit, if
                                                                                                                                                                                              appropriate)
GEN 2: Ensure that all Company factories as    Risk of          Ongoing             Code is posted on the notice board on
well as contractors and suppliers inform their noncompliance                        the shop floor, which is
employees about the workplace standards orally                                      communicated to the workers by way
and through the posting of standards in a                                           of displaying it. However some of the
prominent place (in the local languages spoken                                      new workers interviewed were not
by employees and managers) and undertake                                            aware of the Code.
other efforts to educate employees about the
standards on a regular basis.
F.9 Employment Records                         Noncompliance    Ongoing             No confirmation letters, wage slip not
                                                                                    issued, time in and out records not
                                                                                    proper.
F.15 Personal Worker Identification and Other   Noncompliance   Completed           No identity cards are issued to
Documents                                                                           employees, except for the time in and
                                                                                    out swipe card, which is also not
                                                                                    issued to all the employees.
H&A.6 Discipline/Worker Awareness and           Noncompliance   Pending             The facility has a Code of Conduct
Participation of Workers                                                            entitled ‘Philosophy of Management’
                                                                                    displayed on the shop floor, in both
                                                                                    English and Hindi (the language
                                                                                    understood by the workers). The
                                                                                    facility has workers committee to
                                                                                    address their grievances, but some of
                                                                                    the workers we spoke to are not
                                                                                    aware of the existence of such a
                                                                                    committee.

H&A.11 Discipline/Verbal Abuse                  Noncompliance   Pending             The supervisor was found abusing the
                                                                                    workers on production floor (stitching
                                                                                    area) right in front of the monitors
                                                                                    during the visit.
D.3 Recruitment and Employment Practices (Job Risk of           Pending             The Broad Employment Policy
Advertisements, Job Descriptions and Evaluation noncompliance                       mentions the category of workers,
Policies)                                                                           casual workers, application and age
                                                                                    proof, working time with lunch/tea
                                                                                    breaks, weekly holiday, overtime,
                                                                                    leave with pay, attendance and wage
                                                                                    payment, but nothing about
                                                                                    termination/retrenchment.




                                                                                                                                                                                                                               9
FLA Code/Benchmark                                    Compliance      [Status]            Description of noncompliance, risk of Updates (Cite Date of Follow-Up) Third-Party Verification           Company Verification Follow-Up
                                                      Status          Completed,          noncompliance or uncorroborated       Company         Documentation External Verification Documentation   Company Follow- Documentation
                                                                      Pending, On-going   evidence of noncompliance             Follow-Up                        (Date)                             Up (cite date of
                                                                                                                                                                                                    planned or follow-
                                                                                                                                                                                                    up visit, if
                                                                                                                                                                                                    appropriate)
H&S.9 Evacuation Requirements and Procedure Noncompliance             Completed           Found blocked aisles in stores. The
                                                                                          fire exit staircase for stores is
                                                                                          dangerous and needs to be changed.
                                                                                          It is not a regular staircase but a
                                                                                          ladder with width of about 5 inches
                                                                                          per step. There is a risk of falling at
                                                                                          the time of emergency and otherwise
                                                                                          as well. No evacuation drills, fire
                                                                                          safety or use of fire extinguishers
                                                                                          training provided to the workers from
                                                                                          stores as observed by worker
                                                                                          interview. Access was blocked for
                                                                                          one fire extinguisher. Some of the fire
                                                                                          extinguishers had surpassed the
                                                                                          expiration date and an attempt was
                                                                                          made to change the dates during the
                                                                                          2 days that the monitors were present
                                                                                          in the factory. No records were made
                                                                                          available during the audit on any
                                                                                          assessment conducted in the factory
                                                                                          to identify ESH hazards and the
H&S.13 Chemical Management and Training               Noncompliance   Completed           Deisel barrels storage inadequate.
                                                                                          There is no secondary containment to
                                                                                          catch spillage. MSDS are not posted
                                                                                          at the storage area. The workers
                                                                                          working in the boiler area especially
                                                                                          are not provided with the required
                                                                                          PPEs. The labels are in English and
                                                                                          not in Hindi (the language understood
                                                                                          by majority of workers).
H&S.17 Ventilation/Electrical/Facility Installation   Noncompliance   Pending             Proper ventilation is required on 1st
and Maintenance                                                                           floor of the stores department. There
                                                                                          is no cross ventilation due to the
                                                                                          design. Moreover, the fans are few
                                                                                          and there is no wind flow, making the
                                                                                          floor extremely hot.
H&S.20 Bodily Strain                                  Risk of         Ongoing             Sitting position not easy. Stools
                                                      noncompliance                       without back rest, bin between the
                                                                                          feet, makes sitting uncomfortable and
                                                                                          may lead to body strain.

FOA.1 General Compliance Freedom of                   Noncompliance   Pending             The management reported existence
Association                                                                               of committees for grievances
                                                                                          redressed. However some of the
                                                                                          workers interviewed were not aware
                                                                                          of such committee.
HOW.1 General Compliance Hours of Work                Noncompliance   Ongoing             No swipe cards to some of the
                                                                                          workers




                                                                                                                                                                                                                                     10
FLA Code/Benchmark                      Compliance      [Status]            Description of noncompliance, risk of Updates (Cite Date of Follow-Up) Third-Party Verification           Company Verification Follow-Up
                                        Status          Completed,          noncompliance or uncorroborated       Company         Documentation External Verification Documentation   Company Follow- Documentation
                                                        Pending, On-going   evidence of noncompliance             Follow-Up                        (Date)                             Up (cite date of
                                                                                                                                                                                      planned or follow-
                                                                                                                                                                                      up visit, if
                                                                                                                                                                                      appropriate)
HOW.2 Rest Day                          Noncompliance   Pending             Multiple set of attendance records
                                                                            were found. The workers' attendance
                                                                            register, which is maintained manually
                                                                            showed Sunday working. There was
                                                                            another evidence of Sunday working
                                                                            in the broken needle register as well.
                                                                            However, management claimed that
                                                                            they did not work on Sunday. It is
                                                                            difficult to conclude whether overtime
                                                                            exceeded 12 hours in a week, as the
                                                                            records were not matching with each
                                                                            other. But obviously the workers were
                                                                            not paid at double the rate for Sunday
                                                                            working nor they were given an
                                                                            alternative day off as required by law.
                                                                            The facility observes Sunday as their
                                                                            weekly day off.
HOW.6 Time Recording System             Noncompliance   Pending             The time record maintained is not
                                                                            authentic and accurate. In-time of
                                                                            workers as recorded by security
                                                                            guards, did not match with the swipe
                                                                            card timings. The mismatch was
                                                                            more than 2.5 hrs. In another case
                                                                            though workers were shown as
                                                                            present as per the manual time
                                                                            keeping system, they were shown as
                                                                            absent in swipe card. We found
                                                                            instances where the security guards
                                                                            had recorded arrival time of some
                                                                            workers which differed from the time
                                                                            recorded for the same worker under
                                                                            the punch card system and the
                                                                            difference was more than 2 hrs. We
                                                                            can infer that as the time records
                                                                            were not properly maintained,
                                                                            overtime hours are not in compliance
WBOT.10 Premium/Overtime Compensation   Noncompliance   Ongoing             with code. worker interviews, it is
                                                                            During the
                                                                            observed that they are aware that
                                                                            overtime payment is paid double, but
                                                                            they are not aware of the system of
                                                                            hours calculated. While reviewing the
                                                                            records multiple time records were
                                                                            found, which were not matching with
                                                                            each other. In some cases, out time
                                                                            was not recorded. Hour records were
                                                                            maintained electronically and
                                                                            manually as well. Also some of the
                                                                            workers were not issued the swipe
                                                                            cards.
WBOT.21 Record Maintenance              Noncompliance   Pending             Time record maintained is
                                                                            inadequate, some workers do not
                                                                            have swipe cards.
WBOT.27 Wage Receipt                    Noncompliance   Completed           Wage slips are not issued to workers.




                                                                                                                                                                                                                       11

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:11
posted:2/24/2010
language:English
pages:11