Contract Embroidery Pricing Chart - Download as PDF

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					The factual information set forth on the Tracking Charts was submitted to the FLA by each Independent External Monitor and Participating Company and reviewed by FLA staff. It is being made
available to the public pursuant to the FLA Charter in order to strengthen the monitoring process. The FLA Charter provides for regular public disclosure of the factual results of independent
monitoring and the resulting specific actions taken by Participating Companies.

What is a Tracking Chart?

Compliance is a process, not an event. A Tracking Chart outlines the process involved in FLA independent external monitoring and remediation. It is used by the accredited independent external
monitor, the participating company and the FLA staff to do the following:

        Record Findings: The independent external monitor uses the Tracking Chart to report noncompliance with FLA Code standards. The monitor should also cite the specific Code
        benchmark or national/local law that was used to measure compliance.
        Report on Remediation: The FLA participating company uses the Tracking Chart to report on the remediation program that was implemented in order to resolve the noncompliance and
        prevent any future violations.
        Evaluate Progress: The FLA uses the Tracking Chart for purposes of collecting and analyzing information on the compliance situation of a particular factory and for publication on our
        website. This information is updated on an ongoing basis.

What a Tracking Chart is NOT -

        An exhaustive assessment of factory conditions

        Working conditions - in any type of workplace - are dynamic. Each Tracking Chart represents a survey of the factory’s conditions on a specific day. Over time, a fuller picture emerges as
        we compile information from various sources to track the compliance progress of a factory.

        A pass or fail evaluation

        The Tracking Charts do not certify whether or not factories are in compliance with the FLA Code. Monitoring is a measurement tool. The discovery of noncompliance issues is therefore not
        an indication that the participating company should withdraw from a factory. Instead, the results of monitoring visits are used to prioritize capacity building activities that will lead to
        sustainable improvements in the factory’s working conditions.

    •   A one-time event

        Each monitoring visit is followed by a remediation program, further monitoring and remediation in an ongoing process. The Tracking Charts are updated accordingly.
Note on Language
Please be advised that because FLA independent external monitors are locally-based and English is generally not their native language, the language presented may at times appear unclear to a
reader who is a native English speaker. In order to preserve the integrity of the transparency process and the information we receive, our policy is to publish the original text from the monitor and
participating company. However, the reader will note that we have taken the precaution to remove any identifying information about the factory that was monitored or the workers interviewed.

For example, in cases where monitors and/or participating companies have cited the actual number of workers in reference to a noncompliance issue, in order to protect the workers’ identities, we
have replaced the numbers with generic wording in brackets (i.e. “[some]”, “[worker interviews revealed that]”,etc.).

We do not disclose the name of the factory that was monitored in order to ensure that the FLA’s efforts to encourage and reward transparency do not have detrimental consequences for the
factory and the workers.

Instructions for Printing
The information contained in the Tracking Charts is organized by columns and rows in a table format. Due to the number and width of the columns, the charts have been formatted for legal size
(8.5 x 14in.) paper. To print the charts, please make sure to select “legal” size paper from Print properties.
FLA Audit Profile
Country                       MEXICO
Factory name                  07005006C
IEM                           COTECNA QUALITY RESOURCES INC.
Date of audit                 18-19 AUGUST, 2004
Days in the facility          2
PC(s)                         NIKE
Number of workers             188

                                                                                          Findings                                                                                                                   Remediation                                                                               Updates
  FLA Code/ Compliance         Legal Reference                         FLA Benchmark                        Monitor's Findings Documentatio        Best           PC remediation plan              Target       Factory Response               PC follow up                 Documentation Factory Response   PC follow up   Documentation
         issue                                                                                                                      n            Practice                                        Completion                                    (06/14/2005)                                                  (12/02/2005)
1. Code Awareness                                                                                                                                                                                   D t
Worker/management                                 FLA Principle of Monitoring, Obligation of                Although the Nike      Workers                  Provide training to new hires on        12/3/2004                      Human Resources staff provides
awareness of Code                                 Companies: Ensure that all Company factories as well      Code of Conduct        interviews.              the Nike Code of Conduct and                                           regular training on the Nike COC to
                                                  as contractors and suppliers inform their employees       has been published                              provide ongoing refresher training                                     all employees playing a recording
                                                  about the workplace standards orally and through the      and a copy given to                             to current employees on a                                              daily over the loudspeaker. Training
                                                  posting of standards in a prominent place (in the local   the workers, they are                           regularly scheduled basis.                                             is also provided by HR personnel to
                                                  languages spoken by employees and managers) and           not familiar with                                                                                                      new hires through the internal
                                                  undertake other efforts to educate employees about the    Code elements. No                                                                                                      handbook that is issued and
                                                  standards on a regular basis.                             indication of training                                                                                                 explained to them at the moment of
                                                                                                            was shown to                                                                                                           hiring. This was verified during a
                                                                                                            auditors.                                                                                                              compliance visit that took place after
                                                                                                                                                                                                                                   the FLA audit.
Confidential non-compliance                       FLA Principle of Monitoring, Obligation of                 Manager stated he    Manager                   Nike’s objective is to strengthen
reporting channel                                 Companies: Develop a secure communications channel, did not know about          Interview.                contract manufacturers’ internal
                                                  in a manner appropriate to the culture and situation, to   any confidential                               grievance systems, so that direct
                                                  enable Company employees and employees of                  communication                                  involvement by Nike in their
                                                  contractors and suppliers to report to the Company on      channel to Nike                                employee grievances should be
                                                  noncompliance with the workplace standards, with                                                          considered a last resort. In
                                                  security that they shall not be punished or prejudiced for                                                alignment with Nike’s objective to
                                                  doing so.                                                                                                 strengthen contract
                                                                                                                                                            manufacturers’ internal grievance
                                                                                                                                                            processes, two pilot educational
                                                                                                                                                            programs facilitated by local Non-
                                                                                                                                                            Governmental Organizations are
                                                                                                                                                            underway currently in Indonesia
                                                                                                                                                            and China. In addition, Nike
                                                                                                                                                            Compliance staff spend time
                                                                                                                                                            listening to factory employees
                                                                                                                                                            during one-on-one confidential
                                                                                                                                                            interviews during in-depth
                                                                                                                                                            Management Audits. More than
                                                                                                                                                            8,850 factory employees were
                                                                                                                                                            confidentially interviewed by Nike
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.

                                                                                             Findings                                                                                                                        Remediation                                                                                   Updates
  FLA Code/ Compliance          Legal Reference                          FLA Benchmark                             Monitor's Findings Documentatio        Best           PC remediation plan              Target       Factory Response                  PC follow up             Documentation Factory Response         PC follow up   Documentation
         issue                                                                                                                             n            Practice                                        Completion                                       (06/14/2005)                                                    (12/02/2005)
Verbal abuse                                        Employers will prohibit screaming, threatening, or             Workers said        Workers                     Factory must conduct a thorough         D t
                                                                                                                                                                                                          12/17/2004 Factory sent a written The factory has conducted an         Written statement
                                                    demeaning verbal language                                      Supervisor X        interviews.                 investigation about these                         statement explaining investigation and applied disciplinary from factory:
                                                                                                                   verbally harasses                               complaints and apply appropriate                  the results of the     measures to solve differences
                                                                                                                   the workers.                                    disciplinary sanctions for this type              investigation and      between the workers and the HR
                                                                                                                   Workers said HR                                 of behavior to those responsible                  action taken.          employee X, and the Supervisor X.
                                                                                                                   employee X verbally                             to prevent abuse from re-                                                This process was documented and
                                                                                                                   harasses the                                    occurring. Results of the                                                explained to the PC through a letter
                                                                                                                   workers.                                        investigation must be                                                    from the factory, and directly by X,
                                                                                                                                                                   documented. Provide training on                                          the person responsible for
                                                                                                                                                                   No Harassment & Abuse policy to                                          compliance at the factory. Also, the
                                                                                                                                                                   management and workers.                                                  No Harassment & Abuse Polic y has
                                                                                                                                                                                                                                            been developed and sent to us for
                                                                                                                                                                                                                                            revision in order to be posted and
                                                                                                                                                                                                                                            communicated to all employees
                                                                                                                                                                                                                                            including the two people mentioned
                                                                                                                                                                                                                                            above. The Policy was accepted and
                                                                                                                                                                                                                                            therefore, posted on the main
                                                                                                                                                                                                                                            corridor. Training on this has also
5. Nondiscrimination
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.

Hiring Discrimination                               Employment decisions will be made solely on the basis of In the job application Personal files                 Contractor should modify the          12/3/2004 Factory sent the new    The job application form has been       Job application
Practices                                           education, training, demonstrated skills or abilities. All form used there is a records review.                current job application form to                 format of the job       modified and the question about         form
                                                    employment decisions will be subject to this provision.    question about past                                 exclude the question about                      application.            applicant's past and current Union
                                                    They include: hiring, job assignment, wages, bonuses,      worker Union                                        applicant's past and current                                            affiliation was removed.
                                                    allowances, and other forms of compensation, promotion, affiliation.                                           Union affiliation.
                                                    discipline, assignment of work, termination of
                                                    employment, provision of retirement

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
Evacuation Procedure                                All applicable legally required or recommended elements        The three            Facility walk              Contractor must modify the exit     12/17/2004 To compensate for the    Factory will modify the exit doors to                     On 07/21/2005,     The factory      Evidence
                                                    of safe evacuation (such as posting of evacuation plans,       emergency exits      through                    doors to open outwards and                     narrow width of the      open outwards. Nonetheless, the                           the factory        modified the     pictures
                                                    unblocked aisles/exits, employee education, evacuation         open inwards and                                verify the width complies with                 existing doors, the      width can not be modified as per the                      showed PC the      emergency exit
                                                    procedures, etc.) shall be complied with and workers           are too narrow. They                            local regulation.                              factory is considering   structure of the building. However,                       copy of an         door, and it now
                                                    shall be trained in proper safety, first aid, and evacuation   should be at least                                                                             to make a new door       evacuation drills are conducted                           invoice for        opens outwards.
                                                    procedures                                                     44"wide.                                                                                       wide enough. Location    regularly and all employees are                           contracted         Two additional
                                                                                                                                                                                                                  is being pondered.       evacuated within the time                                 services to        emergency exit
                                                                                                                                                                                                                  The factory is pricing   requirements (less than 3 min.). We                       modify the         doors were built
                                                                                                                                                                                                                  the necessary            have requested this be completed by                       existing door to   (2.40mX2.10m =
                                                                                                                                                                                                                  materials, and           August 16, 2005.                                          open outwards,     7.9ftX6.9ft =
                                                                                                                                                                                                                  deciding upon                                                                      and the project    94.5"X82.7").
                                                                                                                                                                                                                  possible dates for                                                                 of building two
                                                                                                                                                                                                                  construction. Please                                                               more doors to
                                                                                                                                                                                                                  note that timing is                                                                work as
                                                                                                                                                                                                                  crucial for this                                                                   emergency exits.
                                                                                                                                                                                                                  operation, since
                                                                                                                                                                                                                  breaking a wall would
                                                                                                                                                                                                                  produce a lot of dust,
                                                                                                                                                                                                                  which would
                                                                                                                                                                                                                  contaminate the
                                                                                                                                                                                                                  clothing pieces.

                                                                                          Findings                                                                                                                         Remediation                                                                                 Updates
  FLA Code/ Compliance         Legal Reference                        FLA Benchmark                            Monitor's Findings Documentatio           Best           PC remediation plan              Target      Factory Response                  PC follow up              Documentation Factory Response      PC follow up   Documentation
         issue                                                                                                                         n               Practice                                        Completion                                       (06/14/2005)                                                 (12/02/2005)
PPE                                               Workers shall wear appropriate protective equipment          In the embroidery    Facility walk                 Contractor must require the             D t
                                                                                                                                                                                                         12/17/2004 Factory sent pictures The factory offers different types of Evidence Pictures
                                                  (such as gloves, eye protection, hearing protection,         section the workers through and                    employees in the embroidery area                  as evidence.          hearing protection (adequate for the
                                                  respiratory protection, etc.) to prevent unsafe exposure     were repeatedly      workers                       wear the appropriate hearing                                            noise level), to the employees in the
                                                  (such as inhalation or contact with solvent vapors, noise,   found not wearing    interview.                    protection for the level of noise at                                    embroidery area. Also, HR along with
                                                  dust, etc.) to hazardous elements including medical          hearing protection,                                all times. Reinforce proper use of                                      the Supervisors require employees to
                                                  waste.                                                       although they had                                  PPE. Factory to also provide                                            use the PPE at all times. Its use has
                                                                                                               the protective                                     alternate ear plugs.                                                    been reinforced through a training on
                                                                                                               equipment they did                                                                                                         the negative consequences of not
                                                                                                               not wear them                                                                                                              using PPE, which was given to
                                                                                                               because they                                                                                                               employees during the first months of
                                                                                                               claimed they were                                                                                                          2005. In addition, employees have
                                                                                                               too uncomfortable.                                                                                                         signed a written compromise to use
                                                                                                               They said they would                                                                                                       the PPE. The correct use of hearing
                                                                                                               rather have ear                                                                                                            protection has also been included in
7. Freedom of Association and Collective Bargaining
Employers will recognize and respect the right of employees to freedom of association and collective
Right to Freely Associate                         Workers will have the right to establish and, subject only   Workers are           Workers                      The Mexican Federal law states         12/17/2004 Factory sent a copy of Factory has included an explanation Internal
                                                  to the rules of the organization concerned, to join          automatically         interview and                that all employees from a factory                 the internal handbook. on the deduction of the Union fee in Handbook
                                                  organizations of their own choosing without previous         affiliated to the     records review.              should be affiliated to the same                                         the internal handbook. It is now a
                                                  authorization. The right to freedom of association begins    Union as they are                                  Union at the time of hiring, due to                                      current practice to explain this to new
                                                  at the time that a worker seeks employment, and              hired. They get to                                 that the employees do not have                                           hires during the induction training. All
                                                  continues through the course of employment                   know about it when                                 the option to freely associate or                                        the new hires are required to sign for
                                                                                                               they find a deduction                              not to associate, neither the                                            receiving the handbook with this
                                                                                                               for Union fees from                                factory have the possibility of                                          information.
                                                                                                               their payment.                                     offering that option. However,
                                                                                                               Auditors did not find                              factory have new hires sign a
                                                                                                               any written                                        written notification explaining that
                                                                                                               authorization signed                               upon hire, they will belong to the
                                                                                                               by workers                                         acknowledged union at [the
                                                                                                               accepting to become                                factory], and Union fees will be
                                                                                                               members of the                                     deducted from their pay
8. 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
Payroll Reporting                                 Accurate and reliable payroll reporting, including pay       Checking the pay      Records                      Contractor must add the following      12/17/2004 Factory response is      Please note that even though this                 On 05/20/2005,       On 07/29/2005, Revised wage
                                                  stubs will be provided                                       slips it was found    review, pay                  information to the wage slips                     that the current payroll has not been corrected, regular                   the factory          we received a      slips.
                                                                                                               that no indication of slips.                       according to the Nike CLS’s:                      system can't be          working hours and OT is being paid                requested three      wage slip from
                                                                                                               regular hours or                                   number of working Hours                           modified to add this     in accordance to the law, as this has             more months to       the factory (week
                                                                                                               overtime hours was                                 (regular) & overtime hours                        information so they will been verified by PC auditors in a                 modify the           of July 18-24).
                                                                                                               shown. However,                                    worked.                                           consider a new           previous audit. We have requested a               existing system,     The wage slip
                                                                                                               auditors did not find                                                                                system in the future     new assessment of payroll systems,                as buying a new      has been
                                                                                                               evidence of short                                                                                    that can include the     and expect to have a response from                one would be         corrected by the
                                                                                                               payments.                                                                                            number of hours          the factory by July 14, 2005.                     very expensive       factory to include
                                                                                                                                                                                                                    worked in the wage                                                         and the factory is   regular 8h
                                                                                                                                                                                                                    slip. The factory has                                                      not financially      working days
                                                                                                                                                                                                                    already assessed new                                                       capable at this      and overtime
                                                                                                                                                                                                                    systems, but none to                                                       time to make this    hours as well.
                                                                                                                                                                                                                    their entire                                                               investment.          This was verified
                                                                                                                                                                                                                    satisfaction: their main                                                   Please note the      later upon
                                                                                                                                                                                                                    concern is that                                                            factory is paying    request of wage
                                                                                                                                                                                                                    information could be                                                       total worked time    slips at other
                                                                                                                                                                                                                    lost upon migration to                                                     (including OT) in    dates of 2005
                                                                                                                                                                                                                    the new system, since                                                      perfect              (weeks of July
                                                                                                                                                                                                                    they have cumulative                                                       accordance to        25-31 and
                                                                                                                                                                                                                    payroll records.                                                           the law, and         November 21-
                                                                                                                                                                                                                                                                                               does not go          27).
                                                                                                                                                                                                                                                                                               above the
                                                                                                                                                                                                                                                                                               60h/week Nike

9. Hours of Work

                                                                                          Findings                                                                                                  Remediation                                                     Updates
  FLA Code/ Compliance         Legal Reference                         FLA Benchmark                           Monitor's Findings Documentatio     Best     PC remediation plan     Target     Factory Response   PC follow up   Documentation Factory Response   PC follow up   Documentation
         issue                                                                                                                         n         Practice                         Completion                      (06/14/2005)                                    (12/02/2005)
Except in extraordinary business circumstances, employees will (i) not be required to work more than the                                                                             D t
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

10. Overtime
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.



Description: Contract Embroidery Pricing Chart document sample