Findings by mifei

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									FLA Audit Profile
Country                                                          Dominican Republic
Name of Factory                                                  050019635F
Independent External Monitoring Organization                     ALGI
Date(s) in Facility                                              July 2-3, 2007
FLA Affiliated Compan(ies)                                       Liz Claiborne, Inc.
Number of Workers                                                687
Product(s)                                                       T-shirts, polo shirts
Production Processes                                             Sewing, Finishing, Packing

FLA Code/Benchmark                                               Compliance Status




1. Code Awareness
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
Every employee will be treated with respect and dignity. No
employee will be subject to any physical, sexual,
psychological or verbal harassment of abuse.
5. Non-Discrimination
No person will be subject to any discrimination in
employment, including hiring, salary, benefits, advancement,
discipline, termination or retirement, on the basis of gender,
race, religion, age, disability, sexual orientation, nationality,
political opin
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.14 Material Safety Data Sheets/Worker Access and              Noncompliance
Awareness
H&S.18 Machinery Maintenance and Worker Training              Noncompliance




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
HOW.2 Rest Day                                                  Noncompliance




HOW.6 Time Recording System                                   Noncompliance




HOW.10 Overtime/Calculation over Period Longer than One       Noncompliance
Week
HOW.18 Annual Leave/Wage Payments                          Noncompliance




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 p
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
WBOT.5 Holidays, Leave, Legal Benefits and Bonuses          Noncompliance



WBOT.7 Payment for All Hours Worked                        Noncompliance




WBOT.18 Accurate Length of Service Calculation             Noncompliance




10. Miscellaneous
Subcontracting, homework and other issues not covered by
above benchmarks and code requirements.
Contracts   Noncompliance
 an Republic
635F

, 2007
borne, Inc.

 polo shirts
 Finishing, Packing

               Describe noncompliance, risk   List                       Cite and describe local and/or
               of noncompliance or            sources/documentation      country laws used for additional
               uncorroborated evidence of     used for reference and     reference
               noncompliance                  corroborating evidence
                                              (e.g. worker interviews,
                                              factory walkthrough,
                                              records review, etc.)




               Chemicals for stain removing   Walkthrough                Dominican Republic Health and
               area were not marked properly.                            Safety Regulations, Art. 123: All
                                                                         chemical or toxic substances
                                                                         containers should be labeled and
                                                                         should have safety information.
                                                                         MSDS should be posted at the
                                                                         area where the material is being
                                                                         used and/or stored.
10% of safety pulley guards in     Walkthrough              Dominican Republic Health and
machines in sewing area are                                 Safety Regulations, Article 96 &
missing.                                                    100: machines used for
                                                            production will be equipped with
                                                            safety devices for the protection
                                                            of the worker. Pulleys will be
                                                            always protected, unless their
                                                            installation offers no risk to the
                                                            operator.




Occasionally, janitors work on     Employee interviews      Article 163 of the DR Labor Code
Sundays and do not get their                                states that all employers are
rest day.                                                   required to provide employees
                                                            with thirty-six (36) hours of
                                                            consecutive rest each week.

Facility has designated            Reviewed payroll,        Article 150 DR Labor Code:
mechanics, janitors and            management interviews,   employees exempt from overtime
warehouse employees as             employee interviews      compensation are managers,
salaried employees (exempt),                                employees of direction and
who under this structure are not                            supervisors.
entitled to log hours of work or
to receiving overtime
compensation.
It was observed that cleaning      Employee and             Art. 155 of the DR Labor Code
employees overtime exceeds         management interviews.   states that in case of prolonging
what is permitted by law. They                              the normal hours to overtime, the
do approximately 10 overtime                                limitation shall be no more that 80
hours a week (40 /month),                                   overtime hours per quarter.
exceeding the maximum of 80
OT hours allowed by local
regulations.
Facility changed its practices of Reviewed payroll,          Article 177 of the DR Labor Code:
not renewing labor contracts 4 management interviews,        employees working for one to 5
years ago and from this period employee interviews.          years will have 14 business days
forward, facility counts                                     vacation. Employees working
accumulated benefits                                         more than 5 years will have 18
(vacation). Under the DR labor                               business days vacation.
regulation, employees with over                              Employees working less than a
5 years of employment at same                                year will have proportional pay
facility are entitled to 4                                   (see Art. 180), but no less than a
additional vacation days.                                    week.
Facility does not credit
employees whose employment
history exceeds 5 years.




Some employees in finishing         Management and           Article 182 of the DR Labor Code:
area worked 1 to 4 days during      employee interviews.     vacation time period can not be
their vacations in December                                  compensated.
2006.
Mechanics /janitors /               Reviewed Payroll,        Article 151 of the DR Labor Code,
warehouse employees are paid        management and           states that all hours worked by
a monthly salary with no            employee interviews.     employees are subject to
compensation for hours                                       compensation.
exceeding the regular shift.
Facility changed its practices of   Management interviews,   As per D.R. Dep. Of Labor
not renewing labor contracts 4      documents reviewed       communication (2004), the
years ago and from this period                               practice of ending contracts at the
forward, facility counts                                     end of the year to rehire the
accumulated years of service.                                employee few days or weeks
It does not include years                                    later, is a violation inflicted on the
worked before those 4 years.                                 employees' rights to use their
                                                             length of service to increase their
                                                             benefits calculations.
[Factory] used to exist with      Reviewed personnel files,   Dominican Labor Law Article 24
another name and when the         management interviews.      (3rd): The written work contract
present name was adopted, the                                 will state the wage rate and type
contracts were not updated.                                   of pay (hourly, piece, salary, etc.)
More than 50% of personnel                                    It must be signed by both parties.
files reviewed contained this old
contracts.
Describe notable
features implemented
by factory
management or
Company
FLA Audit Profile
Country                                                          Dominican Republic
Name of Factory                                                  050019635F
Independent External Monitoring Organization                     ALGI
Date(s) in Facility                                              July 2-3, 2007
FLA Affiliated Compan(ies)                                       Liz Claiborne, Inc.
Number of Workers                                                687
Product(s)                                                       T-shirts, polo shirts
Production Processes                                             Sewing, Finishing, Packing

FLA Code/Benchmark                                               Compliance Status




H&S.14 Material Safety Data Sheets/Worker Access and Awareness   Noncompliance




H&S.18 Machinery Maintenance and Worker Training                 Noncompliance




HOW.2 Rest Day                                                   Noncompliance




HOW.6 Time Recording System                                      Noncompliance
HOW.10 Overtime/Calculation over Period Longer than One Week   Noncompliance




HOW.18 Annual Leave/Wage Payments                              Noncompliance




WBOT.5 Holidays, Leave, Legal Benefits and Bonuses             Noncompliance




WBOT.7 Payment for All Hours Worked                            Noncompliance




WBOT.18 Accurate Length of Service Calculation                 Noncompliance
Contracts   Noncompliance
 Republic
5F

007
ne, Inc.

olo shirts
nishing, Packing


            Description of noncompliance, risk Company Internal Audit
            of noncompliance or                Findings (optional)
            uncorroborated evidence of
            noncompliance
            Chemicals for stain removing
            area were not marked properly.



            10% of safety pulley guards in
            machines in sewing area are
            missing.



            Occasionally, janitors work on
            Sundays and do not get their rest
            day.




            Facility has designated mechanics,
            janitors and warehouse employees
            as salaried employees (Exempt),
            who under this structure are not
            entitled to log hours of work or to
            receiving overtime compensation.
It was observed that cleaning
employees overtime exceeds what
is permitted by law. They do
approximately 10 overtime hours a
week (40 /month), exceeding the
maximum of 80 OT hours allowed
by local regulations.




Facility changed its practices of not
renewing labor contracts 4 years
ago and from this period forward,
facility counts accumulated
benefits (vacation). Under the DR
labor regulation, employees with
over 5 years of employment at
same facility are entitled to 4
additional vacation days. Facility
does not credit employees whose
employment history exceeds 5
years.
Some employees in finishing area
worked 1 to 4 days during their
vacations in December 2006.


Mechanics /janitors / warehouse
employees are paid a monthly
salary with no compensation for
hours exceeding the regular shift.




Facility changed its practices of not
renewing labor contracts 4 years
ago and from this period forward,
facility counts accumulated years
of service. It does not include
years worked before those 4 years.
[Factory] used to exist with another
name and when the present name
was adopted, the contracts were
not updated. More than 50% of
personnel files reviewed contained
this old contracts.
Remediation
Company Remediation Plan                               Target Completion   Factory Response (optional)
                                                       Date


PC will work with factory management to ensure that    1-Sep               The work station was
all chemicals are labeled properly and that they                           marked. The MSDS where
communicate the importance to worker safety.                               placed. Person
                                                                           Responsible: *******,
                                                                           Maintenance Dept.
PC will work with factory management to ensure that 1-Sep                  All pulley guards have been
all machines in sewing area have pulley guards                             installed on all sewing
installed and that they communicate the importance of                      machines effective 15
pulley guards to worker safety.                                            October 2007. Person
                                                                           Responsible: *******,
                                                                           Maintenance Dept.
PC spoke with factory's compliance manager about       ongoing             We have a policy of not
the importance of granting a day off. Factory reported                     exceeding the overtime
occasional overtime and also reported that workers                         hours of work recommended
are paid proper overtime.                                                  by law . Every area
                                                                           supervisor checks the time
                                                                           card records of their
                                                                           employees every
                                                                           Wednesday to determine
                                                                           the hours that have been
                                                                           worked and organize the
                                                                           rest of the working hours

PC's external monitor had interviewed the workers at   ongoing             We received the employees
another facility where the same situation appeared                         rejection due to the fact, that
and reported that workers felt that they had better                        a fixed salary is more
earning potential than hourly workers.                                     beneficial than a salary per
                                                                           hours because they will
                                                                           keep receiving their salary
                                                                           even if they are absent or
                                                                           incapacitated. Actually, we
                                                                           are evaluating alternatives to
                                                                           resolve this.
PC will work with factory to make sure that workers       ongoing   We have a policy of not
don’t exceed the maximum hours of OT. Factory                       exceeding the overtime
needs to improve the scheduling and staffing of                     hours of work recommended
cleaning personnel.                                                 by law. Every area
                                                                    supervisor checks the time
                                                                    card records of their
                                                                    employees every
                                                                    Wednesday to determine
                                                                    the hours that have been
                                                                    worked and organize the
                                                                    rest of the working hours

PC will work with factory to make sure that workers                 See attachment with 87-07
that exceed 5 years of employment are credited the                  law.
additional 4 days vacation as required by law.




PC will instruct factory to credit the affected workers   1-Oct     By November 16th 2007 all
the number of days worked during their December                     workers will have enjoyed
vacation.                                                           the corresponding days. All
                                                                    were compensated in
                                                                    December 2006.
PC's external monitor had interviewed the workers at                We received the employees
another facility where the same situation appeared                  rejection due to the fact, that
and reported that workers felt that they had better                 a fixed salary is more
earning potential than hourly workers.                              beneficial than a salary per
                                                                    hours because they will
                                                                    keep receiving their salary
                                                                    even if they are absent or
                                                                    incapacitated. Actually, we
                                                                    are evaluating alternatives to
                                                                    resolve this.

PC will work with factory to make sure that workers                 See attachment with 87-07
that exceed 5 years of employment are credited the                  law.
additional 4 days vacation as required by law.
PC will work with factory management to ensure that    1-Oct   In the work contract the
all work contracts are updated to show the factory's           employee accepts that the
new name.                                                      company can transfer them
                                                               temporally or definitely to
                                                               any affiliated factory of
                                                               Grupo M. In each factory
                                                               there is a document from the
                                                               board of directors where it
                                                               specifies which are the
                                                               factories of Grupo
                                       Status
Company Follow- Documentation          Completed, Pending,
Up (cite date of                       On-going
follow-up)

                    digital pictures   Completed




                    digital pictures   Completed




                                       Completed




Workers affected:                      Completed
13 mechanics, 12
general services
employees, 5
warehouse
employees
                                    Completed




                    copy of local   Completed
                    laws




                                    Completed




workers affected:                   Completed
13 mecanics, 12
general services
employees, 5
warehouse
employees




                                    Completed
Completed
FLA Audit Profile
Country                                                   Dominican Republic
Name of Factory                                           050019635F
Independent External Monitoring Organization              ALGI
Date(s) in Facility                                       July 2-3, 2007
FLA Affiliated Compan(ies)                                Liz Claiborne, Inc.
Number of Workers                                         687
Product(s)                                                T-shirts, polo shirts
Production Processes                                      Sewing, Finishing, Packing

FLA Code/Benchmark                                        Compliance Status [Status]          Description of noncompliance, risk of    Updates (Cite Date of Follow-Up)           Third-Party Verification
                                                                            Completed,        noncompliance or uncorroborated evidence Company Follow-Up          Documentation   External              Documentation
                                                                            Pending, On-going of noncompliance                                                                    Verification (Date)

H&S.14 Material Safety Data Sheets/Worker Access and      Noncompliance        Completed       Chemicals for stain removing area were
Awareness                                                                                      not marked properly.
H&S.18 Machinery Maintenance and Worker Training          Noncompliance        Completed       10% of safety pulley guards in machines in
                                                                                               sewing area are missing.
HOW.2 Rest Day                                            Noncompliance        Completed       Occasionally, janitors work on Sundays and
                                                                                               do not get their rest day.
HOW.6 Time Recording System                               Noncompliance        Completed       Facility has designated mechanics, janitors
                                                                                               and warehouse employees as salaried
                                                                                               employees (exempt), who under this
                                                                                               structure are not entitled to log hours of
                                                                                               work or to receiving overtime compensation.

HOW.10 Overtime/Calculation over Period Longer than One   Noncompliance        Completed       It was observed that cleaning employees
Week                                                                                           overtime exceeds what is permitted by law.
                                                                                               They do approximately 10 overtime hours a
                                                                                               week (40 /month), exceeding the maximum
                                                                                               of 80 OT hours allowed by local regulations.

HOW.18 Annual Leave/Wage Payments                         Noncompliance        Completed       Facility changed its practices of not
                                                                                               renewing labor contracts 4 years ago and
                                                                                               from this period forward, facility counts
                                                                                               accumulated benefits (vacation). Under the
                                                                                               DR labor regulation, employees with over 5
                                                                                               years of employment at same facility are
                                                                                               entitled to 4 additional vacation days.
                                                                                               Facility does not credit employees whose
                                                                                               employment history exceeds 5 years.

WBOT.5 Holidays, Leave, Legal Benefits and Bonuses        Noncompliance        Completed       Some employees in finishing area worked 1
                                                                                               to 4 days during their vacations in
                                                                                               December 2006.
WBOT.7 Payment for All Hours Worked                       Noncompliance        Completed       Mechanics /janitors / warehouse employees
                                                                                               are paid a monthly salary with no
                                                                                               compensation for hours exceeding the
                                                                                               regular shift.
WBOT.18 Accurate Length of Service Calculation            Noncompliance        Completed       Facility changed its practices of not
                                                                                               renewing labor contracts 4 years ago and
                                                                                               from this period forward, facility counts
                                                                                               accumulated years of service. It does not
                                                                                               include years worked before those 4 years.

Contracts                                                 Noncompliance        Completed       [Factory] used to exist with another name
                                                                                               and when the present name was adopted,
                                                                                               the contracts were not updated. More than
                                                                                               50% of personnel files reviewed contained
                                                                                               this old contracts.
Company Verification Follow-Up
Company Follow-Up (cite Documentation
date of planned or follow-
up visit, if appropriate)

								
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