Company Having Employees Sign Letter to Work 32 Hours - Excel

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					Country                      CHINA
Factory name                 01001528C
IEM                          SGS                                                                                      adidas Comment: In 2006 the adidas-Group sold the
Date(s) in facility          DECEMBER 6-8, 2004                                                                       brand working with this factory. As a result of the sale,
PC(s)                        ADIDAS-SALOMON                                                                           the adidas-Group stopped having a business relationship
Number of workers            6528                                                                                     with this factory. Therefore, the SEA Team was unable to
Product(s)                   SHOES                                                                                    verify a successful completion of the remediation plan.
processes                    PACKING

                                                                                                        Findings                                                                                                                                      Remediation                                                                                                                                                                                Updates
 FLA Code/ Compliance             Country Law/Legal                            FLA Benchmark                                 Monitor's Findings           Documentation (If       Was                 Company Remediation plan                   Target     Factory         Company follow up (5        Documentatio      Company Update (June 2006)                 Documentation       Company follow up (Sept. 2006) Documenta            Company Update (August   Documentati   Company Update : August   Document     Company Update : March            Documentati
        issue                        Reference                                                                                                                finding was        Finding                                                       Completion Response           September 2005)                 n                                                                                                             tion                      2007)            on                    2008)             ation                2009)                     on
                                                                                                                                                         corroborated/verified Corroborate                                                        Date    (Optional)
                                                                                                                                                           through multiple     d? Yes or
                                                                                                                                                            sources, list all      No
1. Code Awareness
Worker/management                                           FLA Principle of Monitoring, Obligation of
awareness of Code                                           Companies: Ensure that all Company factories as
                                                            well as contractors and suppliers inform their
                                                            employees 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.

Confidential non-                                           FLA Principle of Monitoring, Obligation of                There was not a confidential non- Workers interview,    Yes            PC's staff has been distributing their contact    Ongoing                                                                  PC's staff has been distributing       Worker's call                                                                                                                                             A toll free number is               Bulletin
compliance reporting                                        Companies: Develop a secure communications                compliance reporting channel for management                            details during factory audits or visits or when                                                                            their contact details during factory                                                                                                                                                             announced to all workers of         board, poster
channel                                                     channel, in a manner appropriate to the culture and       employees to the PC company       interview and on site                they are approached by workers.                                                                                            audits or visits or when they are                                                                                                                                                                adidas suppliers. Workers can       of the adidas
                                                            situation, to enable Company employees and                                                  observation                                                                                                                                                     approached by workers. Workers                                                                                                                                                                   access the adidas SEA team          open letter to
                                                            employees of contractors and suppliers to report to                                                                                                                                                                                                         have used this method to                                                                                                                                                                         for help on any concerns            workers,
                                                            the Company on noncompliance with the workplace                                                                                                                                                                                                             communicate grievances to the                                                                                                                                                                    through this number.                complaints
                                                            standards, with security that they shall not be                                                                                                                                                                                                             SEA Team. For example, a                                                                                                                                                                         Anonymous complaints are            records.
                                                            punished or prejudiced for doing so.                                                                                                                                                                                                                        complaint call was received from                                                                                                                                                                 welcome and Confidentiality is
                                                                                                                                                                                                                                                                                                                        worker in 2006 regarding his                                                                                                                                                                     used when handling workers'
                                                                                                                                                                                                                                                                                                                        termination from factory. PC was                                                                                                                                                                 communication. The factory
                                                                                                                                                                                                                                                                                                                        able to properly follow up along                                                                                                                                                                 promoted the number in public
                                                                                                                                                                                                                                                                                                                        with the factory compliance team.                                                                                                                                                                areas for workers full access.

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. 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        The clause 12 of China         Employment decisions will be made solely on the           The factory only hire workers      Document review        Yes          Hiring should be based on ability to perform        1-Jul-05              Factory has provided training to Management      Factory has provided training to       Training record           Review of factory hiring             Hiring
Practices                    Labor Law: The                 basis of education, training, demonstrated skills or      whose age not less than 18         and management                      the job. Factory shall not discriminate against                           supervisors/managers involved interview          supervisors/managers involved in                                 documentation and worker             documenta
                             employment decisions           abilities. All employment decisions will be subject to    years old, they don’t hire young   interview                           juvenile workers; identify risks for juvenile                             in hiring activities on non-                     hiring activities on non-                                        handbook and interview with          tion,
                             should no discrimination.      this provision. They include: hiring, job assignment,     workers.                                                               workers for each job and ensure supervision                               discrimination against juvenile                  discrimination against juvenile                                  factory management indicated         worker
                                                            wages, bonuses, allowances, and other forms of                                                                                   of juvenile workers as per law.                                           workers.                                         workers. Currently, there are no                                 factory does not conduct             handbook,
                                                            compensation, promotion, discipline, assignment of                                                                                                                                                                                                          juvenile workers working at the                                  discriminative practices in hiring   manageme
                                                            work, termination of employment, provision of                                                                                                                                                                                                               factory.                                                         process in 2006.                     nt interview
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
Health and Safety legal        Article 26 of Code on Health Employer will comply with applicable health and           The factory didn’t install drinking On site observation   Yes          Factory shall install drinking water facilities    1-Mar-05               Factory has installed drinking   visual          Factory has installed drinking       visual inspection
compliance                     and Safety At Factory:        safety laws and regulations. In any case where laws      water facility at each floor, they  and workers                        on each floor.                                                            water at workplace.              inspection,     water at workplace. There are at
                               Factories should provide      and codes are contradictory, the higher standards        use removable water carriage        interview                                                                                                                                     photo on file   least two drinking water stations on
                               adequate drinking water       will apply. The factory will possess all legally         provide drinking water to each                                                                                                                                                                    each floor, most of the time located
                               facilities at workplace.      required permits.                                        workshop twice per half day, and                                                                                                                                                                  on both sides of the floor.
                                                                                                                      some workers buy drinking
                                                                                                                      water from outside.

Evacuation Procedure         Article 7.4.7 of Fire          All applicable legally required or recommended            There was a door at polishing    On site observation      Yes          Factory shall ensure all exit doors are             1-Apr-05              Factory has redesigned the       visual          Factory has redesigned the door to visual inspection
                             Prevention Code on             elements of safe evacuation (such as posting of           workshop, a door at EMB                                                designed to open outwards.                                                door to open outwards.           inspection,     open outwards.
                             Building Design: The doors     evacuation plans, unblocked aisles/exits, employee        [embroidery] workshop and a                                                                                                                                                       photo on file
                             should installed opening       education, evacuation procedures, etc.) shall be          door at printing workshop were
                             outward when there are         complied with and workers shall be trained in proper      installed opening inward instead
                             more 60 person inside.         safety, first aid, and evacuation procedures              of outward.

PPE                          Article 54 of China Labour     Workers shall wear appropriate protective                 Some EMB workers did not wear On site observation         Yes          Factory shall take every effort to reduce the       1-Jul-05              Factory provided ear           visual            Factory provided ear plugs/hearing visual inspection; training
                             Law: the facilities should     equipment (such as gloves, eye protection, hearing        earplugs, and no suitable PPE    and workers                           risk from workplace accidents. Provide                                    plugs/hearing protection to    inspection,       protection to workers at the noisy record
                             provide suitable PPE for the   protection, respiratory protection, etc.) to prevent      for the bootlace pulling workers interview                             workers with correct PPE for the job, train                               workers at noisy area but some photo on file     area and gloves at booklacing
                             necessary workers in daily     unsafe exposure (such as inhalation or contact with       to protect their fingers.                                              workers in the correct use of PPE,                                        workers are not wearing it                       area. Factory has regular training
                             use.                           solvent vapors, noise, dust, etc.) to hazardous                                                                                  supervisors should ensure workers use PPE                                 properly. Management to                          programs for workers on how to
                                                            elements including medical waste.                                                                                                at all times.                                                             reinforce to use of PPE.                         use PPE. In addition, factory has
                                                                                                                                                                                                                                                                       Workers were provided with                       internal SoE team to check at
                                                                                                                                                                                                                                                                       gloves at booklacing area.                       regular intervals the wearing of
                                                                                                                                                                                                                                                                       Factory has regular training                     PPE at work.
                                                                                                                                                                                                                                                                       programs to workers on how to
                                                                                                                                                                                                                                                                       use PPE.

7. Freedom of Association and Collective Bargaining
Employers will recognize and respect the right of employees to freedom of association and collective
                                                         FLA Comment: The Chinese constitution                                                                                                                                                                                                                                                                                                                                                                                                                           adidas Group SEA has an
                                                         guarantees Freedom of Association; however, the                                                                                                                                                                                                                                                                                                                                                                                                                 essential element of adidas
                                                         Trade Union Act prevents the establishment of trade                                                                                                                                                                                                                                                                                                                                                                                                             Key Performance Indicator
                                                         unions independent of the sole official trade union –                                                                                                                                                                                                                                                                                                                                                                                                           (KPI) assessment, effective
                                                         the All China Federation of Trade Unions (ACFTU).                                                                                                                                                                                                                                                                                                                                                                                                               worker-management
                                                         According to the ILO, many provisions of the Trade                                                                                                                                                                                                                                                                                                                                                                                                              communication mechanism is
                                                         Union Act are contrary to the fundamental principles                                                                                                                                                                                                                                                                                                                                                                                                            required to be established and
                                                         of freedom of association, including the non-                                                                                                                                                                                                                                                                                                                                                                                                                   run systematically in all the key
                                                         recognition of the right to strike. As a consequence,                                                                                                                                                                                                                                                                                                                                                                                                           suppliers. Field monitors will
                                                         all factories in China fall short of the ILO standards                                                                                                                                                                                                                                                                                                                                                                                                          regularly review the
                                                         on the right to organize and bargain collectively.                                                                                                                                                                                                                                                                                                                                                                                                              effectiveness of the system in
                                                         Recently, however, the government has introduced                                                                                                                                                                                                                                                                                                                                                                                                                each KPI audit.
                                                         The Amended Trade Union Act of October 2001                                                                                                                                                                                                                                                                                                                                                                                                                     With the launch of the new
                                                         does stipulate that union committees have to be                                                                                                                                                                                                                                                                                                                                                                                                                 China Employment Contract
                                                         democratically elected at members’ assemblies and                                                                                                                                                                                                                                                                                                                                                                                                               Law (ECL), trade unions have
                                                         trade unions must be accountable to their members.                                                                                                                                                                                                                                                                                                                                                                                                              been given more
                                                         The trade union has the responsibility to consult with                                                                                                                                                                                                                                                                                                                                                                                                          responsibilities on collective
                                                         management on key issues of importance to their                                                                                                                                                                                                                                                                                                                                                                                                                 bargaining, e.g. collective
                                                         members and to sign collective agreements. It also                                                                                                                                                                                                                                                                                                                                                                                                              contract decree etc. A checklist
                                                         grants the trade union an enhanced role in dispute                                                                                                                                                                                                                                                                                                                                                                                                              of all trade union function was
                                                         resolution. In December 2003,the Collective                                                                                                                                                                                                                                                                                                                                                                                                                     developed and is widely used
                                                         Contracts Decree introduced the obligation for                                                                                                                                                                                                                                                                                                                                                                                                                  in performance audit of
                                                         representative trade unions and employers to                                                                                                                                                                                                                                                                                                                                                                                                                    existing suppliers to make sure
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

                                                                                                          Findings                                                                                                                             Remediation                                                                                                                                                                                     Updates
 FLA Code/ Compliance             Country Law/Legal                               FLA Benchmark                                Monitor's Findings         Documentation (If       Was                Company Remediation plan             Target     Factory          Company follow up (5          Documentatio      Company Update (June 2006)               Documentation            Company follow up (Sept. 2006) Documenta           Company Update (August           Documentati     Company Update : August          Document     Company Update : March            Documentati
        issue                        Reference                                                                                                                finding was        Finding                                                Completion Response            September 2005)                   n                                                                                                                tion                     2007)                    on                      2008)                    ation                2009)                     on
                                                                                                                                                         corroborated/verified Corroborate                                                 Date     (Optional)
                                                                                                                                                           through multiple     d? Yes or
                                                                                                                                                            sources, list all      No
Wage Benefits Awareness                                         Employers will communicate orally and in writing to     Most workers didn’t know how to Workers interview      No          Factory shall re-train the workers on           1-Jul-05              Factory has developed and          Training plan   Factory continues to provide       Training plan, training          Factory has set up annual           Training     Training on wage payment
                                                                all employees in the language of the worker the         calculate their production bonus                                   production bonus calculation and monitor the                          implemented training plan in       and training    training on wage/bonus calculation record                           training plan to cover trainings    plan,        calculation is conducted
                                                                wages, incentive systems, benefits and bonuses to                                                                          training effectiveness.                                               2005 to provide training on pay    records,        to workers, which is incorporated                                   on wage & bonus calculation         training     regularly in 2007. Workers
                                                                which all workers are entitled in that company and                                                                                                                                               system and bonus calculation to    management      into factory annual training plan.                                  and such training has been          record       interviewed stated that they
                                                                under the applicable law                                                                                                                                                                         worker representatives.            interview,                                                                          conducted on a monthly basis                     understand the basic
                                                                                                                                                                                                                                                                 Representatives to                 worker                                                                              during 2006.                                     principles of minimum wage
                                                                                                                                                                                                                                                                 communicate pay and bonus          interview                                                                                                                            and overtime payment, and
                                                                                                                                                                                                                                                                 calculation to workers in their                                                                                                                                         are aware of the productivity
                                                                                                                                                                                                                                                                 area. Those trained are aware                                                                                                                                           bonus scheme in the factory.
                                                                                                                                                                                                                                                                 of pay/bonus calculation
                                                                                                                                                                                                                                                                 method. Management to
                                                                                                                                                                                                                                                                 provide ongoing training to
                                                                                                                                                                                                                                                                 workers on pay and bonus
                                                                                                                                                                                                                                                                 calculation and include training
                                                                                                                                                                                                                                                                 in new employee orientation.

Voluntary Use of Benefits                                       All workers have a right to use or not to use           During Monday to Saturday, the     Workers interview    Yes       Develop written policy informing workers of      1-Jul-05              Factory has developed a written    Management      Factory has started to outsource     Management interview,          Workers are allowed to dine in      Manageme     Workers are not given full                       Currently, workers have the                   The factory continues the food
                                                                employer provided services, such as housing or          workers have to use factory        and management                 the option to use on site canteen or any other                         policy on workers catering         interview;      the canteen service to a             worker interview               or out of factory canteen over      nt           freedom of dining in/out of                      choice to eat their breakfast                 service practice as before.
                                                                meals                                                   canteen for lunch and supper       interview                      dining facilities of their choice, communicate                         services and communicated to       worker          professional caterer. Workers have                                  weekends. For weekdays, they        interview,   factory, i.e. for weekdays, they                 and dinner inside or not.                     Workers’ investigation
                                                                                                                        (total food fee are RMB135 per                                    policy to all workers.                                                 workers. Additional                interview       to take meals in factory canteen                                    still have to dine in the factory   canteen      have to dine in factory canteen                  However, they have to eat                     indicated that the workers
                                                                                                                        month)                                                                                                                                   canteen/dining options will be                     during weekdays, and have the                                       canteen, as no improvement in       manageme     for lunch and dinner (in case of                 inside for lunch.                             would like to take lunch in the
                                                                                                                                                                                                                                                                 available in January 2006.                         choices of dining in/out over                                       community food vendors was          nt policy    overtime work), although they                    - Factory management is                       factory canteen rather than go
                                                                                                                                                                                                                                                                                                                    weekends. Recently, factory                                         observed. Factory                                are free to dine/out for                         taking into serious                           outside. The reasons include:
                                                                                                                                                                                                                                                                                                                    management gave workers the                                         Management has included this                     breakfast and weekends.                          consideration the problems of                 There are big concerns about
                                                                                                                                                                                                                                                                                                                    choice of dining in/out of factory                                  issue in their Compliance                        Factory management has                           food hygiene of the street                    the food hygiene of the street
                                                                                                                                                                                                                                                                                                                    canteen during the week.                                            Strategic Plan as outside                        been in contact with local                       vendors operating around the                  vendors operating around the
                                                                                                                                                                                                                                                                                                                    However, because there were                                         vendors have shown to not have                   government office on food                        factory, and the shortage of the              factory; the shortage of the
                                                                                                                                                                                                                                                                                                                    some cases of food poisoning                                        the proper conditions to prepare                 hygiene of street vendors                        food and drink supply outside                 meal supply outside for the
                                                                                                                                                                                                                                                                                                                    caused by street vendors, factory                                   food.                                            operating around factory                         for the thousands of workers.                 thousands of workers at noon;
                                                                                                                                                                                                                                                                                                                    management has for the time                                                                                          premises. However,                               After investigation, most                     there is only 1 hour of lunch
                                                                                                                                                                                                                                                                                                                    being discontinued to allow                                                                                          government officers failed to                    workers would like to take lunch              break so it is not convenient for
                                                                                                                                                                                                                                                                                                                    workers to eat outside of the                                                                                        provide adequate control over                    in factory rather than to go                  workers to go outside to have
                                                                                                                                                                                                                                                                                                                    factory canteen during the week.                                                                                     the issue. Factory compliance                    outside.                                      lunch and get back to have
                                                                                                                                                                                                                                                                                                                    Factory management has been                                                                                          manager is still making the                                                                    short rest. But the factory is
                                                                                                                                                                                                                                                                                                                    negotiating with local government                                                                                    efforts to convince factory                                                                    now taking action to improve
                                                                                                                                                                                                                                                                                                                    in controlling food service vendors                                                                                  management team on the fully                                                                   the food quality and service
                                                                                                                                                                                                                                                                                                                    around the community, in order to                                                                                    free choice of meals for                                                                       (for example, it has provided
                                                                                                                                                                                                                                                                                                                    allow workers the freedom of                                                                                         workers.                                                                                       more range of regional
                                                                                                                                                                                                                                                                                                                    dining in/out once the outside food.                                                                                                                                                                                flavors/types food and has a
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        food committee to monitor the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        food service quality and follow
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        up with action plans for

Time-recording system                                           Time worked by all employees, regardless of             No working hour records for new Workers interview       Yes       Factory shall strengthen working hour            1-Jul-05              Factory has provided time          Time card       Time card records are in good        Time card records,             Time card records are in good       Time card    Time card swiping policy is in
                                                                compensation system, will be documented by time         workers during the first 7 days in and management                 management by controlling access to                                    cards to new workers and           records;        compliance with PC requirement.      interview with management,     compliance with PC                  records,     place and properly
                                                                cards or other accurate and reliable recording          the factory (X).                   interview, time                workshop during lunch/dinner break and                                 regularly monitors the             management      Factory compliance team and          workers and compliance         requirement. Factory                interview    implemented. Factory
                                                                systems such as electronic swipe cards                                                     records and payrolls           educating all supervisors and workers on                               effectiveness of time card         interview,      worker committee are actively        staff                          compliance team and worker          with         management and compliance
                                                                                                                                                           review                         time card swiping policy. Factory to provide                           punching system. Factory has       worker          implementing floor inspection on a                                  committee are actively              manageme     team still exercise adequate
                                                                                                                                                                                          time cards to new workers as well. Factory to                          strengthened working hour          interview;      daily basis to ensure workers are                                   implementing floor inspection       nt and       control over working hours.
                                                                                                                                                                                          provide training to all workers on regular                             management by cutting power        working hour    punching in and out. In addition,                                   on daily basis to ensure workers    compliance   Time card records for new
                                                                                                                                                                                          working hours and time card checking                                   during meal breaks and             report; daily   factory management has set up                                       are properly applying time card     team         hires and seasoned workers
                                                                                                                                                                                          policies.                                                              exercising regular inspection in   inspection      authorization procedure in                                          punching system. In addition,                    are well kept as per PC
                                                                                                                                                                                                                                                                 production floors.                 record          approving overtime work.                                            factory management has set up                    requirement.
                                                                                                                                                                                                                                                                                                                                                                                        authorization procedure for
                                                                                                                                                                                                                                                                                                                                                                                        approving overtime work.

Legal benefits               Article 73 of China Labour Employers will provide all legally mandated benefits            The factory (X) provided Injury    Social insurance     Yes       Factory shall cover all workers under                                  Due to restrictions from local     Social          Factory is covering all workers      Social insurance enrollment Factory has been providing             Social       Currently, 66% of the                            Currently 52% workers                         Through the governmental
                             Law: Labourers shall, in     to all eligible workers                                       insurance for about 20% of         invoice review and             insurance schemes to provide the benefits                              social insurance bureau, factory   insurance       under social or private insurance    records, private insurance work injury and medical                 insurance    workforce receives work-injury                   receiving the work-injury and                 social insurance scheme and
                             accordance with the law,                                                                   workers, and retirement, medical   management                     legally required.                                                      has difficulty in enrolling all    enrollment      scheme.                              plan                        insurances to all workers in           enrollment   insurance, and 16% medical                       medical insurance, and 16% of                 the commercial insurance that
                             enjoy social insurance                                                                     and unemployment insurance for     interview                                                                                             workers under social insurance     records &                                                                        2006.                                  records,     insurance through social                         workers receiving the work-                   the factory provided, the
                             benefits under the following                                                               about 15% of workers, not                                                                                                                scheme. Since May 2005,            private                                                                                                                 private      security system. In addition,                    injury, medical and retirement                coverage rates of the 5
                             circumstances:                                                                             provided for all workers.                                                                                                                factory provided private           insurance                                                                                                               insurance    private insurer contracted by                    insurance; the rest 32% are                   insurances are:
                             • (1) retirement;                                                                                                                                                                                                                   insurances to ensure all           plan;                                                                                                                   plan         factory covers the additional                    covered by a commercial                       work-injury and medical
                             • (2) illness or injury;                                                                                                                                                                                                            workers are protected against      management                                                                                                                           34% of workers with work-                        insurance for work-injury and                 insurances, 100%;
                             • (3) disability caused by                                                                                                                                                                                                          work accidents and/or medical      interview;                                                                                                                           injury insurance, and 84% with                   medical which are according to                maternity and unemployment,
                             work-related injury or                                                                                                                                                                                                              expenses.                          worker                                                                                                                               medical insurance. For female                    the regulations of social                     87%;
                             occupational disease;                                                                                                                                                                                                                                                  interview                                                                                                                            workers, they are entitled to                    insurance. Additionally, the                  pension, 28%;
                             • (4) unemployment; and                                                                                                                                                                                                                                                                                                                                                                                     paid maternity leave and                         female workers may receive                    All female workers are entitled
                             • (5) child bearing.                                                                                                                                                                                                                                                                                                                                                                                        maternity allowance.                             maternity leave with pay and                  to paid maternity leave and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          the nutrition allowance of                    maternity allowance.

9. 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

Overtime Limitations         Article 41of China Labour Law:     Except in extraordinary business circumstances,         1. The factory has obtained        Time records and     Yes       Factory shall control the working hours to       1-Jul-05              Factory has strengthened           Management      Factory management keeps good        working hour report, daily     Factory management keeps            working
                             The employing unit may extend      employees will (i) not be required to work more than    Consolidated Working Hours         payrolls review,               comply with China Labor laws and PC Codes                              working hour control by            interview;      control over working hours and       inspection record, interview   good control over working hours     hour
                             working hours due to the           the lesser of (a) 48 hours per week and 12 hours        Approval from local government     management and                 of Conduct. Develop working hours                                      improving coordination with        worker          keeps sending in working hour        with management and            and keeps sending in working        report,
                             requirements of its production     overtime or (b) the limits on regular and overtime      based on the period of 6 month,    workers interview              (including overtime hours) plan; create                                production planning department     interview;      reports to PC on a monthly basis.    workers                        hour reports to PC on a monthly     daily
                             or business after consultation
                                                                hours allowed by the law of the country of              which defined that the overtime                                   overtime hours report and check daily that                             and managed to reduce              monthly         Daily floor inspection has been                                     basis. Daily floor inspection has   inspection
                             with the trade union and
                             labourers, but the extended
                                                                manufacture or, where the laws of such country will     hours can not exceed 216 hours                                    working hours do not exceed local law.                                 overtime work by                   working hour    implemented by management,                                          been implemented by                 record
                             working hour for a day shall       not limit the hours of work, the regular work week in   per half year, but based on the                                   Consult with production planning department                            supervisors/managers strictly      report; daily   compliance team.                                                    management compliance team
                             generally not exceed one hour;     such country plus 12 hours overtime; and (ii) be        time cards from Jan to June                                       to coordinate working hours and production                             exercising controls over working   inspection                                                                          to ensure workers are properly
                             if such extension is called for    entitled to at least one day off in every seven day     2004, found the workers OT are                                    needs effectively and as per law.                                      hours. Management has              record                                                                              punching cards.
                             due to special reasons, the        period. An extraordinary business circumstance is a     20-80 hours a month, totally 234                                                                                                         stressed company policy to all
                             extended hours shall not           temporary period of extra work that could not have      to 371 hours and exceed legal                                                                                                            supervisors/managers of
                             exceed three hours a day under     been anticipated or alleviated by other reasonable      limit 216 hours requirement, it                                                                                                          complying with PC CoC and
                             the condition that the health of   efforts                                                 violated the clause 41 of China                                                                                                          local law requirement. Factory
                             labourers is guaranteed.
                                                                                                                        Labor Law.                                                                                                                               has been providing monthly
                             However, the total extension in
                                                                                                                                                                                                                                                                 working hour reports to PC and
                             a month shall not exceed 36
                             hours.                                                                                                                                                                                                                              keeping files of daily floor
                                                                                                                                                                                                                                                                 inspection record.

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.

Illegal subcontracting                                                                                                  Nil
Possible homework                                                                                                       Nil


Description: Company Having Employees Sign Letter to Work 32 Hours document sample