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					FLA Audit Profile
Country                                                 Thailand
Name of Factory                                         310274540F
Independent External Monitoring Organization            Global Standards
Date(s) in Facility                                     June 22-23, 2007
FLA Affiliated Compan(ies)                              Cutter and Buck, Patagonia
Number of Workers                                       2648
Product(s)                                              shirts, tops, pullovers
Production Processes                                    knitting, dyeing, sewing

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 additional   implemented by factory
                                                                          evidence of noncompliance                     evidence (e.g. worker interviews,   reference                          management or Company
                                                                                                                        factory walkthrough, records
                                                                                                                        review, etc.)
1. Code Awareness
GEN 1: Establish and articulate clear, written          Risk of            Factory has posted a code and their agent Management and worker
workplace standards. Formally convey those              noncompliance      is responsible for educating the factory on interviews plus visual inspection
standards to Company factories as well as to                               FLA requirements. However, they are not
licensees, contractors and suppliers.                                      very clear on procedures of the FLA.



GEN 2: Ensure that all Company factories as well as Noncompliance          Workers do not demonstrate an                Worker interviews
contractors and suppliers inform their employees                           understanding of the code
about the workplace standards orally and through the
posting of standards in a prominent place (in the local
languages spoken by employees and managers) and
undertake other efforts to educate employees about
the standards on a regular basis.

GEN 3: Develop a secure communications channel, in Noncompliance           There is no way for workers to               Management and worker
a manner appropriate to the culture and situation, to                      communicate with the Company                 interviews plus visual inspection
enable Company employees and employees of
contractors and suppliers to report to the Company on
noncompliance with the workplace standards, with
security that they shall not be punished or prejudiced
for doing so.

2. Forced Labor
There will not be any use of forced labor, whether in
the form of prison labor, indentured labor, bonded
labor or otherwise.
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                                                     0
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.4 Discipline/Fair and Non-discriminatory            Noncompliance      If the worker cannot show worker ID card     Management and worker
Application                                                                or is late more than 10 minutes, the         interviews and document reviews
                                                                           supervisor or HR officer will make a
                                                                           decision on each case whether allowing
                                                                           workers to work on that day or not. If not
                                                                           then the worker will decide to take annual
                                                                           leave or day off without pay.

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 additional   implemented by factory
                                                                            evidence of noncompliance                   evidence (e.g. worker interviews,   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.
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.2 Document Maintenance/Worker Accessibility            Noncompliance    Some MSDS are only available in English. document review
and Awareness
H&S.4 Worker Consultation                                  Risk of          As there are no general level workers on    Worker interviews and records
                                                           noncompliance    the safety committee, but not sure how      review
                                                                            they can demonstrate compliance to this
                                                                            point.

H&S.6 Communication to Workers                            Risk of           There are health and safety trainings and worker interviews
                                                          noncompliance     announcements, however workers showed
                                                                            minimal knowledge of safety.

H&S.7 Notification and Record Maintenance                 Risk of           Accident records are not completely filled document review
                                                          noncompliance     out, no clear remediation plans.
H&S.9 Evacuation Requirements and Procedure               Noncompliance     Evacuation maps in several sections do      visual inspection
                                                                            not match floor plans or are not present in
                                                                            the new sewing building, knitting room #1
                                                                            and boiler room. Yellow painted lines worn
                                                                            and not available in many areas of the new
                                                                            sewing building. Many of the emergency
                                                                            lights are not well maintained: no charge,
                                                                            not plugged in or other technical problems.


H&S.12 Use of Personal Protective Equipment               Noncompliance     Many workers not wearing earplugs in      visual inspection
                                                                            dyeing area and generator room, forklift
                                                                            driver not wearing PPE in dyeing section,
                                                                            worker not wearing prescribed PPE during
                                                                            cleaning of chemical drums in dyeing
                                                                            section.
H&S.13 Chemical Management and Training                   Noncompliance     Found unmarked containers, which are        visual inspection and worker
                                                                            used for hazardous chemicals in sewing      interview
                                                                            section. Absence of explosion proof
                                                                            lighting and switches in chemical storage
                                                                            areas.
H&S.14 Material Safety Data Sheets/Worker Access          Noncompliance     Some MSDS are only available in English. visual inspection and worker
and Awareness                                                                                                        interview
H&S.17 Ventilation/Electrical/Facility Installation and   Noncompliance     Heavy amounts of dust throughout the     visual inspection
Maintenance                                                                 factory, some areas have poor electrical
                                                                            connections.
H&S.20 Bodily Strain                                      Risk of           At the nurse's station we found excessive records review and interviews with
                                                          noncompliance     records of workers suffering from physical nurses
                                                                            stress and pain.




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

HOW.1 General Compliance Hours of Work                     Noncompliance     Shift production (knitting, dyeing and        Manager and HR officers interview,
                                                                             chemical store). Some workers stated          worker interviews and document
                                                                             there are 3 hours overtime on night shift.    reviews.
                                                                             However, management stated that this is
                                                                             not correct. This requires further follow-up.

HOW.19 Sick Leave                                          Noncompliance     Some workers stated that the factory        Manager interviews, worker             Thai law states that a medical
                                                                             requires a medical certificate for 2 days   interviews and document reviews.       certificate is only required after 3
                                                                             sick leave.                                                                        days sick leave.
HOW.22 Suspension of Work                                  Noncompliance     When some workers arrive late they are      Manager interviews, worker
                                                                             suspended without pay for unspecified       interviews and document reviews.
                                                                             periods of time.

9. Wages, Benefits and Overtime Compensation

WAGES AND BENEFITS: Employers recognize that
wages are essential to meeting employees’ basic
needs. Employers will pay employees, as a base, at
least the minimum wage required by local law or the
prevailing industry wage, whichever is higher, and will
provide legally mandated benefits.
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.7 Payment for All Hours Worked                       Noncompliance      For night shift workers, some workers said Manager interviews, accountant
                                                                             they works 3 hours of overtime, according interviews, worker interviews and
                                                                             to the payroll this time was calculated at 2 document reviews.
                                                                             hours of overtime
WBOT.19 False Payroll Records                              Noncompliance     For night shift workers, some workers said Manager interviews, accountant
                                                                             they works 3 hours of overtime, but the    interviews, worker interviews and
                                                                             payroll calculated this time as 2 hours of document reviews.
                                                                             overtime




                                                                                                                                                                                                                                   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 additional   implemented by factory
                                                                  evidence of noncompliance         evidence (e.g. worker interviews,   reference                          management or Company
                                                                                                    factory walkthrough, records
                                                                                                    review, etc.)
WBOT.27 Wage Receipt                            Noncompliance     No pay slip provided              Manager interviews, accountant
                                                                                                    interviews, worker interviews and
                                                                                                    document reviews.

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




                                                                                                                                                                                                       4
FLA Audit Profile
Country                                           Thailand
Name of Factory                                   310274540F
Independent External Monitoring Organization      Global Standards
Date(s) in Facility                               June 22-23, 2007
FLA Affiliated Compan(ies)                        Cutter and Buck, Patagonia
Number of Workers                                 2648
Product(s)                                        shirts, tops, pullovers
Production Processes                              knitting, dyeing, sewing

FLA Code/Benchmark                                Compliance Status                                                                     Remediation
                                                                      Description of noncompliance, risk of            Company          Company Remediation Plan          Target        Factory Response   Company Follow-Up (cite            Documentation
                                                                      noncompliance or uncorroborated evidence         Internal Audit                                     Completion    (optional)         date of follow-up)
                                                                      of noncompliance.                                Findings                                           Date
                                                                                                                       (optional)

GEN 1: Establish and articulate clear, written    Risk of             Factory has posted the Company's Code of                          Patagonia will put together a Feb-08
workplace standards. Formally convey those        noncompliance       Conduct and their agent is responsible for                        communication piece about the
standards to Company factories as well as to                          educating the factory on FLA requirements.                        FLA and Patagonia's code of
licensees, contractors and suppliers.                                 However, the factory is not very clear on FLA                     conduct.
                                                                      procedures.


GEN 2: Ensure that all Company factories as well as Noncompliance     Workers do not demonstrate an                                     Patagonia will develop a          Feb-08
contractors and suppliers inform their employees                      understanding of the Company's Code of                            communication plan for
about the workplace standards orally and through the                  Conduct.                                                          management about
posting of standards in a prominent place (in the local                                                                                 Patagonia's code of conduct
languages spoken by employees and managers) a                                                                                           and the FLA to be
                                                                                                                                        communicated to workers.
GEN 3: Develop a secure communications channel, Noncompliance         A method for the workers to communicate                           Patagonia is developing new       Feb-08
in a manner appropriate to the culture and situation,                 non-compliance issues of concern with the                         code of conduct posters that
to enable Company employees and employees of                          Company has not been communicated.                                will include an email address
contractors and suppliers to report to the Company                                                                                      for workers to contact
on noncompliance with the workplace standards, with                                                                                     Patagonia directly.
secur
H&A.4 Discipline/Fair and Non-discriminatory      Noncompliance       If a worker cannot show their worker ID card,                     Factory cannot use monetary Sep-07                                 Factory has entered into
Application                                                           or is late by more than 10 minutes, the                           fines as a form of discipline.                                     discussions with SA8000
                                                                      supervisor or human resource officer makes                        "No work No pay" is in violation                                   auditors to verify policy is OK.
                                                                      a decision for each case whether to allow                         with the Thai Labor code,                                          SA8000 has validated this
                                                                      that worker to work that day. If not, then the                    Factory shall use a different                                      and shown written policy is
                                                                      worker has to decide to take annual leave or                      from of disciplinary measures                                      consistent with Thai labor
                                                                      a day off without pay.                                            for tardiness.                                                     code. This issues occurs
                                                                                                                                                                                                           primarily with habitually late
                                                                                                                                                                                                           employees.




H&S.2 Document Maintenance/Worker Accessibility   Noncompliance       Some MSDS are only available in English.                          As per our meeting it is          Starting                         Verification requested. 9/07       (Feedback from
and Awareness                                                                                                                           understood that there are often   immediately                                                         factory): We have
                                                                                                                                        new chemicals that do not         going                                                               both English and
                                                                                                                                        have MSDS available in Thai.      forward                                                             Thai on MSDS
                                                                                                                                        Key clauses that relate to                                                                            posted in the
                                                                                                                                        handling of the chemical,                                                                             factory now.
                                                                                                                                        storage, use and disposal                                                                             Please find
                                                                                                                                        should be translated and                                                                              attached .JPEG
                                                                                                                                        posted where the chemical is                                                                          for
                                                                                                                                        stored and used. Cutter & Buck                                                                        reference.10/07
                                                                                                                                        will verify that appropriate
                                                                                                                                        MSDS information has been
                                                                                                                                        translated and posted.




                                                                                                                                                                                                                                                              5
FLA Code/Benchmark                            Compliance Status                                                                     Remediation
                                                                  Description of noncompliance, risk of            Company          Company Remediation Plan        Target          Factory Response   Company Follow-Up (cite           Documentation
                                                                  noncompliance or uncorroborated evidence         Internal Audit                                   Completion      (optional)         date of follow-up)
                                                                  of noncompliance.                                Findings                                         Date
                                                                                                                   (optional)

H&S.4 Worker Consultation                     Risk of             As there are no general level workers on the                      Factory should include general Aug-07                              The factory will ensure that
                                              noncompliance       safety committee, but not sure how they can                       level workers on the safety                                        general level workers are
                                                                  demonstrate compliance to this point.                             committee. It is also                                              included in safety committee,
                                                                                                                                    recommended to have workers                                        and reflect participation in
                                                                                                                                    responsible for the safety of                                      meeting minutes and log
                                                                                                                                    their area. Cutter & Buck will                                     attendees. Past meeting
                                                                                                                                    verify general level workers are                                   minutes verified. 9/07
                                                                                                                                    involved in the Safety
                                                                                                                                    Committee.


H&S.6 Communication to Workers                Risk of             There are health and safety trainings and                         Factory should make sure that Starting with                        Verification requested 9/07       Feedback from
                                              noncompliance       announcements, however workers showed                             workers have a good             new trainings                                                        the factory): We
                                                                  minimal knowledge of safety.                                      understanding of the health and                                                                      have arranged
                                                                                                                                    safety trainings and                                                                                 the training on
                                                                                                                                    announcements that are made.                                                                         how to use PPE
                                                                                                                                    This can be done through                                                                             and safety
                                                                                                                                    demonstrations or workshops.                                                                         awareness for
                                                                                                                                                                                                                                         dyeing and
                                                                                                                                                                                                                                         knitting sections.
                                                                                                                                                                                                                                         We have invited
                                                                                                                                                                                                                                         the trainer from
                                                                                                                                                                                                                                         Ministry of Public
                                                                                                                                                                                                                                         Health. Please
                                                                                                                                                                                                                                         find attached
                                                                                                                                                                                                                                         .PDF files for
                                                                                                                                                                                                                                         reference. 10/07



H&S.7 Notification and Record Maintenance     Risk of             Accident records are not completely filled                        Accurate accident records       Immediately                        Accident Report was verified
                                              noncompliance       out, no clear remediation plans.                                  should be kept and remediation                                     and accident stats are kept. It
                                                                                                                                    plans documented. This                                             was observed that some info
                                                                                                                                    should be the responsibility of                                    was not as complete as it
                                                                                                                                    the Health and Safety                                              could be, the factory will work
                                                                                                                                    Manager. Cutter & Buck will                                        to make more complete going
                                                                                                                                    verify that any accidents                                          forward. 9/07
                                                                                                                                    occurring between July-August
                                                                                                                                    07 are being accurately
                                                                                                                                    documented.
H&S.9 Evacuation Requirements and Procedure   Noncompliance       Evacuation maps in several sections do not                        Factory will address the          Aug-07                           Sep-07
                                                                  match floor plans or are not present in the                       highlighted findings outlined by
                                                                  new sewing building, knitting room #1 and                         the auditor. In addition the
                                                                  boiler room. Yellow painted lines worn and                        factory should schedule a bi-
                                                                  not available in many areas of the new                            annual Health and Safety walk
                                                                  sewing building. Many of the emergency                            through of the facility to update
                                                                  lights are not well maintained: no charge, not                    any issues that get found.
                                                                  plugged in or other technical problems.                           Cutter & Buck will verify
                                                                                                                                    findings outlined by auditor
                                                                                                                                    have been sufficiently
                                                                                                                                    addressed.




                                                                                                                                                                                                                                                              6
FLA Code/Benchmark                                        Compliance Status                                                                   Remediation
                                                                              Description of noncompliance, risk of          Company          Company Remediation Plan          Target        Factory Response   Company Follow-Up (cite           Documentation
                                                                              noncompliance or uncorroborated evidence       Internal Audit                                     Completion    (optional)         date of follow-up)
                                                                              of noncompliance.                              Findings                                           Date
                                                                                                                             (optional)

H&S.12 Use of Personal Protective Equipment               Noncompliance       Many workers not wearing earplugs in dyeing                     Factory shall provide PPE and Aug-07                               Factory provides all workers      Feedback from
                                                                              area and generator room, forklift driver not                    training for workers so that                                       with appropriate PPE at time      the factory): We
                                                                              wearing PPE in dyeing section, worker not                       they understand the                                                of hire, workers do not like to   have arranged
                                                                              wearing prescribed PPE during cleaning of                       importance of protecting                                           wear them. The factory does       the training on
                                                                              chemical drums in dyeing section.                               themselves while at work.                                          provides Safety Training for      how to use PPE
                                                                                                                                              Cutter & Buck will verify PPE is                                   new employees, but has            and safety
                                                                                                                                              being properly utilized                                            agreed to provide additional      awareness for
                                                                                                                                              throughout the facility.                                           training for workers in           dyeing and
                                                                                                                                                                                                                 affected areas within 30 days.    knitting sections.
                                                                                                                                                                                                                 9/07                              We have invited
                                                                                                                                                                                                                                                   the trainer from
                                                                                                                                                                                                                                                   Ministry of Public
                                                                                                                                                                                                                                                   Health. Please
                                                                                                                                                                                                                                                   find attached
                                                                                                                                                                                                                                                   .PDF files for
                                                                                                                                                                                                                                                   reference. 10/07


H&S.13 Chemical Management and Training                   Noncompliance       Found unmarked containers, which are used                       All chemicals shall be properly Immediately                        Verification Requested 9/07
                                                                              for hazardous chemicals in sewing section.                      marked and stored. Cutter &
                                                                              Absence of explosion proof lighting and                         Buck will verify all chemical
                                                                              switches in chemical storage areas.                             containers are marked and
                                                                                                                                              properly stored.


H&S.14 Material Safety Data Sheets/Worker Access Noncompliance                Some MSDS are only available in English.                        As per our meeting it is          Starting                         Verification Requested 9/07       (Feedback from
and Awareness                                                                                                                                 understood that there are often   immediately                                                        the factory): We
                                                                                                                                              new chemicals that do not         and                                                                have both English
                                                                                                                                              have MSDS available in Thai.      continuing                                                         and Thai on
                                                                                                                                              Key clauses that relate to        going                                                              MSDS posted in
                                                                                                                                              handling of the chemical,         forward.                                                           the factory now.
                                                                                                                                              storage, use and disposal                                                                            Pls. find attached
                                                                                                                                              should be translated and                                                                             .JPEG for
                                                                                                                                              posted where the chemical is                                                                         reference.10/07
                                                                                                                                              stored and used. Cutter & Buck
                                                                                                                                              will verify that appropriate
                                                                                                                                              MSDS information has been
                                                                                                                                              translated and posted.

H&S.17 Ventilation/Electrical/Facility Installation and   Noncompliance       Heavy amounts of dust throughout the                            The factory should schedule a Aug-07                               Verification Requested 9/07
Maintenance                                                                   factory, some areas have poor electrical                        bi-annual Health and Safety
                                                                              connections.                                                    walk through of the facility to
                                                                                                                                              update any issues that get
                                                                                                                                              found. Specifically Health &
                                                                                                                                              Safety officer should pay
                                                                                                                                              attention to issues like dust and
                                                                                                                                              electrical. Cutter & Buck will
                                                                                                                                              verify that the next bi-annual
                                                                                                                                              H&S walk through has been
                                                                                                                                              scheduled.




                                                                                                                                                                                                                                                                        7
FLA Code/Benchmark                       Compliance Status                                                                     Remediation
                                                             Description of noncompliance, risk of            Company          Company Remediation Plan          Target        Factory Response   Company Follow-Up (cite            Documentation
                                                             noncompliance or uncorroborated evidence         Internal Audit                                     Completion    (optional)         date of follow-up)
                                                             of noncompliance.                                Findings                                           Date
                                                                                                              (optional)

H&S.20 Bodily Strain                     Risk of             At the nurse's station we found excessive                         Factory shall monitor the type    Immediately                      Health & Safety Committee
                                         noncompliance       records of workers suffering from physical                        and number of incidents that                                       will increase awareness of
                                                             stress and pain.                                                  come through the nurse's                                           cases of physical stress and
                                                                                                                               station and investigate root                                       will investigate root causes.
                                                                                                                               causes for issues. Cutter &                                        9/07
                                                                                                                               Buck will dialogue with nurses
                                                                                                                               and management about the
                                                                                                                               possible root causes for
                                                                                                                               chronic health issues affecting
                                                                                                                               workers.
HOW.1 General Compliance Hours of Work   Noncompliance       Shift production (knitting, dyeing and                            Workers should be trained on Aug-07                                Factory will investigate further
                                                             chemical store). Some workers stated there                        how their overtime is calculated                                   and advise course of action.
                                                             are 3 hours overtime on night shift. However,                     to ensure that workers                                             Follow up in one month.
                                                             management stated that this is not correct.                       understand their wages and                                         Verification requested 9/07
                                                             This requires further follow-up.                                  hours. Cutter & Buck will verify                                   and 10/07
                                                                                                                               that a training on wage
                                                                                                                               calculation has taken place or
                                                                                                                               that there is one scheduled.


HOW.19 Sick Leave                        Noncompliance       Some workers stated that the factory                              Thai law states that a medical Immediately                         The factory follows Thai law
                                                             requires a medical certificate for 2 days sick                    certificate is only required after                                 as policy, but in some cases
                                                             leave                                                             3 days sick leave. Factory shall                                   workers bring certificates
                                                                                                                               adjust sick leave to reflect this.                                 even though they have not
                                                                                                                               Cutter & Buck will dialogue with                                   been required to. In other
                                                                                                                               management about the                                               cases, workers have chronic
                                                                                                                               importance of allowing 3 days                                      attendance issues and may
                                                                                                                               sick leave for all employees                                       be required to provide
                                                                                                                               without a medical certificate, as                                  additional certificate if absent
                                                                                                                               consistent with local law.                                         often. 9/07




HOW.22 Suspension of Work                Noncompliance       When some workers arrive late they are                            Factory cannot use monetary Immediately                            Siam has entered into
                                                             suspended without pay for unspecified                             fines as a form of discipline.                                     discussions with SA8000
                                                             periods of time.                                                  "No work No pay" is in violation                                   auditors to verify policy is OK.
                                                                                                                               with the Thai Labor code,                                          SA8000 has validated this
                                                                                                                               Factory shall use a different                                      and shown written policy is
                                                                                                                               from of disciplinary measures                                      consistent with Thai labor
                                                                                                                               for tardiness. Cutter & Buck will                                  code. This issues occurs
                                                                                                                               dialogue with management to                                        primarily with habitually late
                                                                                                                               ensure that alternative forms of                                   employees. 9/07
                                                                                                                               discipline are being utilized.




WBOT.7 Payment for All Hours Worked      Noncompliance       For night shift workers, some workers said                        Workers should be trained on Immediately                           Factory will investigate further
                                                             they works 3 hours of overtime, according to                      how their overtime is calculated                                   and advise course of action.
                                                             the payroll this time was calculated at 2                         to ensure that workers                                             Follow up in one month.
                                                             hours of overtime                                                 understand their wages and                                         Verification requested 9/07,
                                                                                                                               hours. Cutter & Buck will verify                                   10/07
                                                                                                                               that a training on wage
                                                                                                                               calculation has taken place or
                                                                                                                               that there is one scheduled.




                                                                                                                                                                                                                                                     8
FLA Code/Benchmark              Compliance Status                                                                 Remediation
                                                    Description of noncompliance, risk of        Company          Company Remediation Plan     Target        Factory Response   Company Follow-Up (cite         Documentation
                                                    noncompliance or uncorroborated evidence     Internal Audit                                Completion    (optional)         date of follow-up)
                                                    of noncompliance.                            Findings                                      Date
                                                                                                 (optional)

WBOT.19 False Payroll Records   Noncompliance       For night shift workers, some workers said                    Workers should be trained on Immediately                      Sep-07
                                                    they works 3 hours of overtime, but the                       how their overtime is calculated
                                                    payroll calculated this time as 2 hours of                    to ensure that workers
                                                    overtime                                                      understand their wages and
                                                                                                                  hours. Cutter & Buck will
                                                                                                                  dialogue with management to
                                                                                                                  ensure that alternative forms of
                                                                                                                  discipline are being utilized.




WBOT.27 Wage Receipt            Noncompliance       No pay slip provided                                          Factory shall provide workers Sep-07                          Verification requested. 10/07
                                                                                                                  with pay slips and train them on
                                                                                                                  how to read it so they can keep
                                                                                                                  track of their wages and
                                                                                                                  benefits.




                                                                                                                                                                                                                                9
Status
Completed, Pending,
On-going



Pending




Pending




Pending




Ongoing




Completed




                      10
Status
Completed, Pending,
On-going



Ongoing




Completed




Completed




                      11
Status
Completed, Pending,
On-going



Completed




Pending




Completed




Pending




                      12
Status
Completed, Pending,
On-going



Ongoing




Pending




Pending




Completed




Pending




                      13
Status
Completed, Pending,
On-going




Pending




                      14
FLA Audit Profile
Country                                     Thailand
Name of Factory                             310274540F
Independent External Monitoring             Global Standards
Organization
Date(s) in Facility                         June 22-23, 2007
FLA Affiliated Compan(ies)                  Cutter and Buck, Patagonia
Number of Workers                           2648
Product(s)                                  shirts, tops, pullovers
Production Processes                        knitting, dyeing, sewing

FLA Code/Benchmark                          Compliance Status [Status]       Description of noncompliance, risk of       Updates (Cite Date of Follow-Up)         Third-Party Verification     Company Verification Follow-Up
                                                              Completed,     noncompliance or uncorroborated             Company Follow-Up          Documentation External     Documentation   Company Follow-Up (cite      Documentation
                                                              Pending, On-   evidence of noncompliance                                                            Verification                 date of planned or follow-up
                                                              going                                                                                               (Date)                       visit, if appropriate)
GEN 1: Establish and articulate clear,                        Pending        Factory has posted the Company's
written workplace standards. Formally                                        Code of Conduct and their agent is
convey those standards to Company                                            responsible for educating the factory on
factories as well as to licensees,                                           FLA requirements. However, the
contractors and suppliers.                                                   factory is not very clear on FLA
                                                                             procedures.
GEN 2: Ensure that all Company                                 Pending       Workers do not demonstrate an
factories as well as contractors and                                         understanding of the Company's Code
suppliers inform their employees about                                       of Conduct.
the workplace standards orally and
through the posting of standards in a
prominent place (in the local languages
spoken by employees and managers)
a
GEN 3: Develop a secure                                        Pending       A method for the workers to
communications channel, in a manner                                          communicate non-compliance issues of
appropriate to the culture and situation,                                    concern with the Company has not
to enable Company employees and                                              been communicated.
employees of contractors and
suppliers to report to the Company on
noncompliance with the workplace
standards, with secur


H&A.4 Discipline/Fair and Non-                                 Ongoing       If a worker cannot show their worker ID
discriminatory Application                                                   card, or is late by more than 10
                                                                             minutes, the supervisor or human
                                                                             resource officer makes a decision for
                                                                             each case whether to allow that worker
                                                                             to work that day. If not, then the worker
                                                                             has to decide to take annual leave or a
                                                                             day off without pay.

H&S.4 Worker Consultation                                                    As there are no general level workers
                                                                             on the safety committee, but not sure
                                                                             how they can demonstrate compliance
                                                                             to this point.
H&S.6 Communication to Workers                                               There are health and safety trainings
                                                                             and announcements, however workers
                                                                             showed minimal knowledge of safety.

H&S.7 Notification and Record                                                Accident records are not completely
Maintenance                                                                  filled out, no clear remediation plans.




                                                                                                                                                                                                                                            15
FLA Code/Benchmark                       Compliance Status [Status]     Description of noncompliance, risk of    Updates (Cite Date of Follow-Up)           Third-Party Verification     Company Verification Follow-Up
                                                           Completed, noncompliance or uncorroborated            Company Follow-Up          Documentation   External     Documentation   Company Follow-Up (cite      Documentation
                                                           Pending, On- evidence of noncompliance                                                           Verification                 date of planned or follow-up
                                                           going                                                                                            (Date)                       visit, if appropriate)
H&S.9 Evacuation Requirements and                                       Evacuation maps in several sections do
Procedure                                                               not match floor plans or are not present
                                                                        in the new sewing building, knitting
                                                                        room #1 and boiler room. Yellow
                                                                        painted lines worn and not available in
                                                                        many areas of the new sewing building.
                                                                        Many of the emergency lights are not
                                                                        well maintained: no charge, not plugged
                                                                        in or other technical problems.

H&S.12 Use of Personal Protective                                         Many workers not wearing earplugs in
Equipment                                                                 dyeing area and generator room, forklift
                                                                          driver not wearing PPE in dyeing
                                                                          section, worker not wearing prescribed
                                                                          PPE during cleaning of chemical drums
                                                                          in dyeing section.
H&S.13 Chemical Management and                                            Found unmarked containers, which are
Training                                                                  used for hazardous chemicals in sewing
                                                                          section. Absence of explosion proof
                                                                          lighting and switches in chemical
                                                                          storage areas.

H&S.17 Ventilation/Electrical/Facility                                    Heavy amounts of dust throughout the
Installation and Maintenance                                              factory, some areas have poor
                                                                          electrical connections.
H&S.20 Bodily Strain                                                      At the nurse's station we found
                                                                          excessive records of workers suffering
                                                                          from physical stress and pain.

HOW.1 General Compliance Hours of                                         Shift production (knitting, dyeing and
Work                                                                      chemical store). Some workers stated
                                                                          there are 3 hours overtime on night
                                                                          shift. However, management stated
                                                                          that this is not correct. This requires
                                                                          further follow-up.
HOW.19 Sick Leave                                                         Some workers stated that the factory
                                                                          requires a medical certificate for 2 days
                                                                          sick leave

HOW.22 Suspension of Work                                                 When some workers arrive late they
                                                                          are suspended without pay for
                                                                          unspecified periods of time.

WBOT.7 Payment for All Hours                                              For night shift workers, some workers
Worked                                                                    said they works 3 hours of overtime,
                                                                          according to the payroll this time was
                                                                          calculated at 2 hours of overtime

WBOT.19 False Payroll Records                                             For night shift workers, some workers
                                                                          said they works 3 hours of overtime,
                                                                          but the payroll calculated this time as 2
                                                                          hours of overtime

WBOT.27 Wage Receipt                                                      No pay slip provided




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