Employee Contract Article by aia37607

VIEWS: 18 PAGES: 2

Employee Contract Article document sample

More Info
									FLA Audit Profile
Country                             TURKEY
Factory name                        010076227E                                                                              010076227EV
IEM                                 BUREAU VERITAS CONSUMER PRODUCTS SERVICES,                                              Level Works
                                    TURKEY
Date(s) in facility                 10-11 NOVEMBER 2005                                                                     May 5, 2008
PC(s)                               adidas AG                                                                               adidas AG
Number of workers                   868 + 690 workers of 9 in-house subcontractors
Product(s)                          SPORTSWEAR
Production processes                KNITTING, DYEING, CUTTING, SEWING, EMBROIDERY,

                                                                                                                                                                                                  IEM Findings                                                                                                                                                      Remediation                                                                                      [Status]       Updates (Cite Date of Follow up)                 Updates (Cite Date of Follow up)                [Status]         Updates (Cite Date of Follow up)     [Status]        Updates (Cite Date of Follow up)         [Status]                   Third-Party Verification: Level Works                                Company Verification Follow up
FLA Code/ Compliance issue          Country Law/Legal                FLA Benchmark                                          Non-compliance                              Risk of Non-compliance   Evidence of Non-   If not          Sources/Documentation   Notable        PC Internal PC Remediation plan (February 1, 2006)             Target Completion       Factory Response (Optional)                  Company follow up             Documentation         Completed; Company Follow up         Documentation          Company Follow up (Dec   Documentation (Dec         Completed;   Company Follow up (March Documentation   Completed; Company Follow up        Documentation        Completed;   External Verification (May 29, 2008)        Documentation                    Company Follow up (July 29th,    Documentation
                                    Reference                                                                                                                                                    compliance         corroborated,                           Features       audit                                                          Date                                                                 (March 24, 2006)                                    Pending; On- (June 2006)             (June 2006)            2006)                    2006)                      Pending; On- 2007)                     (March 2007)   Pending; On- (June 07 follow up)                         Pending; On-                                                                              2008)
                                                                                                                                                                                                 (uncorroborated)   explain why                             implemented by findings                                                                                                                                                                                going                                                                                                           going                                                 going                                                    going
                                                                                                                                                                                                                                                            Factory        (Optional)
                                                                                                                                                                                                                                                            Management or
1. Code Awareness                                                                                                                                                                                                                                           Company
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.
Employment Records                  According to Turkish Labor      Employers will maintain sufficient hiring and           There was missing employment                                                                                                                                HR manager has already gone through all           3/31/2006               The management explains that the             Factory management            Modified hiring       Completed                                                                                                                                                                                                                                    All the workers had employment agreement       Management and workers
                                    Law 4857, Article 8, there      employment records to demonstrate and verify            agreement on one worker personnel file.                                                                                                                     personnel files and completed all missing                                 external monitors had previously asked       included such                 policy which                                                                                                                                                                                                                                                       in their personnel files. The factory          interview, visual
                                    should be a written contract compliance with this Code provision.                       It was found through document review                                                                                                                        signatures. In order to avoid any missing                                 for the employment contract of security      procedures in their hiring    includes a section                                                                                                                                                                                                                                                 completed all missing signatures of            observation and
                                    between employee and                                                                    that there were missing signature in five                                                                                                                   employment agreements in personnel files or                               personnel and the HR manager had             policy and HR manager         regarding                                                                                                                                                                                                                                                          employment contracts. The factory              documentation review of
                                    employer including date of                                                              employment agreements (Three for                                                                                                                            signatures in employment agreements in the                                taken the employment contract of these       trained HR staff about        employment                                                                                                                                                                                                                                                         distributed employment contracts to each       personnel files
                                    hire, signature and wage                                                                workers and two for employees).                                                                                                                             future, factory should add such procedures in                             persons out of their employee files and      this procedure.               contracts and                                                                                                                                                                                                                                                      employee after the joining the company.
                                    details.                                                                                                                                                                                                                                            their hiring policy and HR manager should                                 submitted to the external monitors. Later                                  completion of the
                                                                                                                                                                                                                                                                                        also train HR staff about this procedure.                                 on, when external monitors checked                                         signatures.
                                                                                                                                                                                                                                                                                                                                                                  personnel files, they noticed that                                         Training
                                                                                                                                                                                                                                                                                                                                                                  employee contract of the security                                          documents and
                                                                                                                                                                                                                                                                                                                                                                  personnel were missing in those files.                                     signatures of the
                                                                                                                                                                                                                                                                                                                                                                                                                                             participants.




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.
Legal compliance for juvenile       According to Turkish Labor       Employers will comply with applicable laws that        There is one young worker who is                                                                                                                            Factory should prepare a policy for Juvenile      3/31/2006                                                            Factory management            Policy about         Completed                                                                                                                                                                                                                                     There were only 3 young workers, who       Management and workers
workers                             Law 4857, Article 71, young      apply to young workers, i.e., those between the        working nine hours a day and 45 hour                                                                                                                        Workers. Policy should include all the legal                                                                           prepared a policy for         “juvenile workers.”                                                                                                                                                                                                                                                were working in one of the subcontractors. interviews, visual
                                    workers who are between 15-      minimum working age and the age of 18,                 per week at the [subcontractor 1].                                                                                                                          requirements for juvenile workers like juvenile                                                                        juvenile workers.             Training given to                                                                                                                                                                                                                                                  Those workers were working 8 hours a day observation and
                                    18 shall work maximum eight      including regulations relating to hiring, working                                                                                                                                                                  workers should work max eight hours/day and                                                                            Trainings have been           the juvenile worker,                                                                                                                                                                                                                                               and 40 hours per week as per law, and      documentation review of
                                    hours per day, and 40 hours      conditions, types of work, hours of work, proof of                                                                                                                                                                 40 hours/week, they should have annual                                                                                 given.                        HR staff, middle                                                                                                                                                                                                                                                   those workers did not work overtime.       personnel files, payroll
                                    per week.                        age documentation, and overtime.                                                                                                                                                                                   health checks twice a year and they should                                                                                                           management and                                                                                                                                                                                                                                                                                                and time records
                                                                                                                                                                                                                                                                                        have at least 20 days of paid annual vacation.                                                                                                       supervisors with
                                                                                                                                                                                                                                                                                        Factory should ensure that OT procedures                                                                                                             their signatures of
                                                                                                                                                                                                                                                                                        include information that juvenile workers are                                                                                                        receipt.
                                                                                                                                                                                                                                                                                        not allowed to perform any OT work. Factory
                                                                                                                                                                                                                                                                                        should provide training to juvenile workers
                                                                                                                                                                                                                                                                                        about their additional rights. Factory should
                                                                                                                                                                                                                                                                                        provide training to HR staff, middle
                                                                                                                                                                                                                                                                                        management and supervisors on juvenile
                                                                                                                                                                                                                                                                                        worker rights.




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.
Monetary Fines and Penalties                                         Employers will not use monetary fines and              1) It was found through document review                                                                                                                     Factory should prepare a new disciplinary      3/31/2006                  The disciplinary policy checked by the       Factory prepared a new        Photocopy of the      Completed    Factory prepared a new      New disciplinary                                                                                                                                                                                    The Factory prepared a new disciplinary   Management and workers
                                                                     penalties for poor performance.                        that one monetary fine existed in the                                                                                                                       policy excluding monetary fines and penalties.                            external monitors was an old policy          disciplinary policy that      old disciplinary                   disciplinary policy. HR     policy and                                                                                                                                                                                          policy excluding monetary fines and       interview, and
                                                                                                                            personnel files.                                                                                                                                            Monetary fines will never be implemented.                                 prepared in 2000. The last financial         excludes monetary fines       policy, pay slip of                staff, management,          training                                                                                                                                                                                            penalties. Monetary fines were not        documentation review of
                                                                                                                            2) There was an article on the                                                                                                                              Factory should further develop procedures                                 penalty was given in 1999. There has         and penalties.                that worker from                   worker representatives      documents with                                                                                                                                                                                      implemented. The factory developed        personnel files and
                                                                                                                            Disciplinary rules and Procedure which                                                                                                                      and train HR staff, management, workers                                   been an audit by Ministry of Labor on        Developing procedures         October 1999.                      and workers are trained     participants                                                                                                                                                                                        procedures and trained staff, management, payrolls
                                                                                                                            states monetary fines.                                                                                                                                      representatives and workers about the new                                 12/26/2005 examining all issues for the      and training HR staff,        New disciplinary                   as of 05/29-30/2006.        signatures.                                                                                                                                                                                         workers representatives and workers about
                                                                                                                                                                                                                                                                                        disciplinary policy.                                                      past five years. The report indicates that   management, workers           policy. Trainings                                                                                                                                                                                                                                                  the new disciplinary policy.
                                                                                                                                                                                                                                                                                                                                                                  there has not been any monetary fines.       representatives and           will be given until
                                                                                                                                                                                                                                                                                                                                                                                                               workers about the new         05/31/2006.
                                                                                                                                                                                                                                                                                                                                                                                                               disciplinary policy will be
                                                                                                                                                                                                                                                                                                                                                                                                               completed until
                                                                                                                                                                                                                                                                                                                                                                                                               05/31/2006.




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.

Pregnancy Risk                      As per Article 10 of             Employers will ensure that pregnant women are          Pregnant workers are working nine hours                                                                                                                     The factory should find out how many           3/31/2006                                                               The list of pregnant      List of pregnant   Pending             This issue was                                 The management has         Verified by interviews   Completed                                                          The factory            Working hour         Completed     In two of the subcontractors there were 2      Management and workers       After the FLA audit, the parent
                                    regulation issued on Official    not engaged in work that creates substantial risk      per day.                                                                                                                                                    pregnant workers are there in the factory. The                                                                         workers have been         workers. Policy                        completed in April;                            trained all pregnant       with pregnant workers    but this issue                                                     management further     records and worker                 pregnant workers, who worked 2 to 4 times      interview, visual            company requested all
                                    Newspaper dated 14.07.04         to the health of the pregnant woman.                                                                                                                                                                               factory should develop a policy regarding                                                                              prepared. The factory     regarding pregnant                     however, May and June                          workers, supervisors and   from different           will be still                                                      improved their         interviews                         8.5 hours or 9 hours per day in the month      observation,                 subcontractors to report on a
                                    referring to Turkish Labor                                                                                                                                                                                                                          pregnant workers in compliance with the labor                                                                          developed a policy for    workers.                               have been peak periods                         middle management to       departments on           followed                                                           implementation, and                                       of April 2008.                                 documentation review of      monthly basis the list of pregnant
                                    Law 4857, Article 88,                                                                                                                                                                                                                               law. The working hours and shifts of the                                                                               pregnant workers in                                              and the factory has                            ensure that pregnant       12/07/2006. This         during future                                                      instead of arranging                                                                                     personnel files, time card   workers. HR department of the
                                    pregnant, new and/or                                                                                                                                                                                                                                pregnant workers should be arranged                                                                                    compliance with the labor                                        failed to comply with the                      women are given longer     issue is also            audits.                                                            longer breaks for the                                                                                    details and payrolls         parent company is now tracking
                                    breastfeeding mothers shall                                                                                                                                                                                                                         according to the law.                                                                                                  law. Working hours are                                           relevant laws. Factory                         breaks during the day      discussed during the                                                                        pregnant workers, they                                                                                                                their working hours and ensuring
                                    not work in excess of 7.5                                                                                                                                                                                                                                                                                                                                                  arranged.                                                        management has been                                                       worker-management                                                                           changed the working                                                                                                                   that the pregnant workers are
                                    hours per day.                                                                                                                                                                                                                                                                                                                                                                                                                              given until 09/30/2006                                                    meeting of                                                                                  hours of pregnant                                                                                                                     working within the legal limits.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                to complete this action                                                   11/28/2006. The                                                                             worker. They now leave                                                                                                                Sustainability will be checked during
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                item. In the                                                              management once                                                                             at 16:00 after working                                                                                                                the next visit.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                remediation, factory                                                      more announced to                                                                           for net 7.5 hours as
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                management must                                                           all the workers in                                                                          indicated by the law.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                include a plan that                                                       writing that pregnant
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                addresses how it will                                                     women must be
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                ensure pregnant                                                           given longer breaks,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                workers do not work OT                                                    and they are not
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                in peak months.                                                           supposed to work
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          more than 7.5 hours
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          per day. Minutes this
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          meeting are posted
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          on the notice boards.
6. Health and Safety
Employers will provide a safe and healthy working environment to prevent accidents and injury to health arising out
of, linked with, or occurring in the course of work or as a result of the operation of employer facilities.

PPE                                                                  Workers shall wear appropriate protective              The workers in dyeing section were using                                                                                                                    The Subcontractor factory should train their   3/31/2006                  Factory has full automated dye kitchen       Subcontractor factory         Training             Completed                                                                                                                                                                                                                                     The factory provided all necessary             Management and workers
                                                                     equipment (such as gloves, eye protection,             inappropriate masks (dust masks), the                                                                                                                       employees regarding PPE material. Factory                                 and there are no direct worker contact       trained their workers and     documents with the                                                                                                                                                                                                                                                 personal protective equipment and posted       interview, visual
                                                                     hearing protection, respiratory protection, etc.) to   workers in printing section should wear                                                                                                                     management should also train their                                        with chemicals and therefore there is no     supervisors at printing       signatures of                                                                                                                                                                                                                                                      warning signs on the walls in dye-house        observation,
                                                                     prevent unsafe exposure (such as inhalation or         personal protective equipment for Tenax                                                                                                                     supervisors and other middle management                                   need for carbon masks. Dust masks is         about PPE. PPE and            participants.                                                                                                                                                                                                                                                      and printing sections including                documentation review of
                                                                     contact with solvent vapors, noise, dust, etc.) to     2000 dust remover and the workers in                                                                                                                        because it is important for the workers to see                            distributed by the management to the         machine guard usage           Internal audit plan.                                                                                                                                                                                                                                               subcontractors. The factory also trained       training records
                                                                     hazardous elements including medical waste.            cutting section shall wear masks for spot                                                                                                                   their superiors also using the PPE. The                                   workers at the brushing section.             items are added in H&S        PPE usage                                                                                                                                                                                                                                                          those workers.
                                                                                                                            cleaner. The subcontractor works for                                                                                                                        trainings should be continuous and the factory                                                                         policy. Main supplier         procedures.
                                                                                                                            printing do not use PPE.                                                                                                                                    should measure the effectiveness of these                                                                              factory prepared and
                                                                                                                                                                                                                                                                                        trainings and document them. In order to                                                                               sent internal audit plan
                                                                                                                                                                                                                                                                                        avoid future non-compliances, factory should                                                                           for their subcontractors.
                                                                                                                                                                                                                                                                                        include PPE and machine guard usage                                                                                    PPE and MSDS training
                                                                                                                                                                                                                                                                                        section in the Health and Safety Policy and                                                                            was given to workers
                                                                                                                                                                                                                                                                                        track implementation. Main supplier should do                                                                          who work with adhesive
                                                                                                                                                                                                                                                                                        internal audits at subcontractor to check the                                                                          sprays like Tenax 2000
                                                                                                                                                                                                                                                                                        situation.                                                                                                             and trainings are
                                                                                                                                                                                                                                                                                                                                                                                                               continuously given to
                                                                                                                                                                                                                                                                                                                                                                                                               workers at spot removing
                                                                                                                                                                                                                                                                                                                                                                                                               section.




Chemical Management                                                  All chemicals and hazardous substances should          The barrel for chemical “RUKOF IN HSV”                                                                                                                      Factory should post a written announcement.                    2/1/2006                                                Barrel removed          A copy of the               Completed                                                                                                                                                                                                                                    The barrel for chemical “RUKOF IN HSV”         Management and workers
                                                                     be properly labeled and stored in accordance with was placed at warehouse to reserve the                                                                                                                           Factory should include this topic in their                                                                             immediately.            announcement.                                                                                                                                                                                                                                                            was removed at warehouse section.              interview, visual
                                                                     applicable laws. Workers should receive training, water which is dropping from the air                                                                                                                             wastes policy. All employees dealing with                                                                              Management informed all Revised wastes                                                                                                                                                                                                                                                                                                          observation,
                                                                     appropriate to their job responsibilities, in the safe condition.                                                                                                                                                  chemicals should be trained.                                                                                           supervisors and workers policy.                                                                                                                                                                                                                                                                                                                 documentation review of
                                                                     use of chemicals and other hazardous                                                                                                                                                                                                                                                                                                      not to use any chemical                                                                                                                                                                                                                                                                                                                         training records
                                                                     substances.                                                                                                                                                                                                                                                                                                                               barrels/drums for other
                                                                                                                                                                                                                                                                                                                                                                                                               purposes




Sanitation in Dining Area                                            All food preparation shall be prepared, stored,        There were no drinking glasses for                                                                                                                          The factory should develop a written                           2/1/2006 All workers have also got their own small      More glasses are bought. Revised policy.            Completed                                                                                                                                                                                                                                    The factory provided enough number of          Management and workers
                                                                     and served in a sanitary manner in accordance          workers at sewing section.                                                                                                                                  procedure to collect used glasses and to bring                          water bottles.                                 The system for           Trainings                                                                                                                                                                                                                                                               cupboard in each section, and there were       interview, and visual
                                                                     with applicable laws. Safe drinking water should                                                                                                                                                                   new glasses to the cupboards and train the                                                                             cleaning/bringing new    documents and                                                                                                                                                                                                                                                           used glasses and clean glasses.                observation
                                                                     be available in each building.                                                                                                                                                                                     responsible staff accordingly.                                                                                         glasses is improved in   signatures
                                                                                                                                                                                                                                                                                                                                                                                                               the section. The
                                                                                                                                                                                                                                                                                                                                                                                                               procedure was revised.
                                                                                                                                                                                                                                                                                                                                                                                                               Responsible staff is
                                                                                                                                                                                                                                                                                                                                                                                                               trained.

Management System                                                                                                                                                                                                                                                                                                                                                                                              New Finding: During the                                                                                                                                                                                                                                                                          New Finding: During the verification audit it Visual Observation            a) The blockage has been
                                                                                                                                                                                                                                                                                                                                                                                                               verification audit it was                                                                                                                                                                                                                                                                        was noted that a) in two of the                                             eliminated immediately after the
                                                                                                                                                                                                                                                                                                                                                                                                               noted that                                                                                                                                                                                                                                                                                       subcontractors the exit routes were                                         audit. The parent company informed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                obstructed b) in one of the subcontractors                                  that they will repeat the emergency
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                stain remover worker was using dust mask                                    training and emphasize once more
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                instead of a fume mask c) in two of the                                     the importance of keeping the exit
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                subcontractors, despite the warning signs,                                  routes clear (Oct 30th, 2008).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                workers were not using the personnel                                        b) Fume mask is provided and PPE
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                protective equipment d) There was open                                      training is given to the relevant
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                wire at one of the subcontractors e) in one                                 worker.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                of the printing sections, there were big                                    c) Parent company has analyzed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                barrels, but no warning signs or content                                    the root cause of this issue and the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                labels were available.                                                      outcome was that the masks
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            provided are not compatible with the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            work environment; therefore after
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            discussing with 3M, the PPEs have
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            been changed with appropriate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            ones. The PPE training will be
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            repeated (July 31st, 2008).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            d) The open wire has been
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            removed. It was a phone line and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            was kept for the purpose of re-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            installing a new phone hand set.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            c) After the FLA audit the facility
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            has given a new 6S training to the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            workers and conducted a 6S audit.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            The unnecessary barrels were
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            removed and the others have been
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            labeled.


7. Freedom of Association and Collective Bargaining
Employers will recognize and respect the right of employees to freedom of association and collective bargaining.

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.
Record Maintenance                                                   All compensation records will be maintained            Complete 12 months of the time card                                                                                                                         Factory should contact the IT company                         3/31/2006 There has been a computer system               There will be regular         Photocopy from IT Completed                                                                                                                                                                                                                                        The factory provided all workers with in/out   Management and workers
                                                                     accurately and should be acknowledged by the           records were not made available to check                                                                                                                    responsible for time card records and should                            breakdown at that time and the past            monthly back-ups and all      company and the                                                                                                                                                                                                                                                    time records for the last 12 months            interview, and review
                                                                     employee as accurate.                                  the compliance of working hours before                                                                                                                      ask them the reason why it happened and                                 records cannot be reached. This is             data from January 2005        maintenance                                                                                                                                                                                                                                                        including subcontractors. The electronic       records of time card
                                                                                                                            January 2005.                                                                                                                                               what the factory should do in order the same                            verified by subcontractor factory.             onwards will always be        document dated                                                                                                                                                                                                                                                     barcode system was working properly.           details
                                                                                                                                                                                                                                                                                        thing not to happen again. Factory should take                                                                         available for review.         01/21/2005.
                                                                                                                                                                                                                                                                                        regular back-ups.                                                                                                      Back-ups will be kept for     Document
                                                                                                                                                                                                                                                                                                                                                                                                               the last 24 months.           explaining the
                                                                                                                                                                                                                                                                                                                                                                                                                                             possible reasons
                                                                                                                                                                                                                                                                                                                                                                                                                                             of the system
                                                                                                                                                                                                                                                                                                                                                                                                                                             default.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    1
                                                                                                                                                                                                      IEM Findings                                                                                                                                                Remediation                                                                                [Status]       Updates (Cite Date of Follow up)              Updates (Cite Date of Follow up)                     [Status]         Updates (Cite Date of Follow up)           [Status]        Updates (Cite Date of Follow up)         [Status]                   Third-Party Verification: Level Works                                  Company Verification Follow up
FLA Code/ Compliance issue         Country Law/Legal                FLA Benchmark                                            Non-compliance                                Risk of Non-compliance    Evidence of Non-   If not          Sources/Documentation   Notable        PC Internal PC Remediation plan (February 1, 2006)          Target Completion    Factory Response (Optional)               Company follow up          Documentation         Completed; Company Follow up         Documentation       Company Follow up (Dec   Documentation (Dec              Completed;   Company Follow up (March Documentation         Completed; Company Follow up        Documentation        Completed;   External Verification (May 29, 2008)        Documentation                      Company Follow up (July 29th,    Documentation
                                   Reference                                                                                                                                                         compliance         corroborated,                           Features       audit                                                       Date                                                           (March 24, 2006)                                 Pending; On- (June 2006)             (June 2006)         2006)                    2006)                           Pending; On- 2007)                     (March 2007)         Pending; On- (June 07 follow up)                         Pending; On-                                                                                2008)
                                                                                                                                                                                                     (uncorroborated)   explain why                             implemented by findings                                                                                                                                                                    going                                                                                                             going                                                       going                                                    going
                                                                                                                                                                                                                                                                Factory        (Optional)
                                                                                                                                                                                                                                                                Management or
Legal benefits                     As per Article 15 of                                                                      Some female workers need crèche for                                                                                                Company                    Factory should activate crèche and inform all             6/1/2006   The factory has already provided crèche The decision is taken by     Mail from the    Pending           Factory decided to work Offers from the     Crèche was opened on Nov Verified by physical            Completed                                                                                                                          Crèche was opened. External child care           Management and workers
                                   regulation issued on Official                                                             their children. Créche is in the process of                                                                                                                   female workers. The factory will also develop a                      facility at the factory premises, but it is the top management to    management about                   with an external          external          1. The management agreed observation on                                                                                                                                                     company is serving the facility. During the      interview, and visual
                                   Newspaper dated 14.07.04                                                                  being established as explained by                                                                                                                             policy for the crèche.                                               not functioning.                            activate the crèche on   the decision of                    administrator to run the administrators.    to work with an external      07/12/2006. Verified                                                                                                                                          factory floor visit, around 60 children were     observation
                                   referring to Turkish Labor                                                                management.                                                                                                                                                                                                                                                                    the target completion    activating the                     child care facility. They                   child care administrator      by documentation.                                                                                                                                             in Crèche.
                                   Law 4857, Article 88, the                                                                                                                                                                                                                                                                                                                                                date. A policy will be   crèche as of                       are going to select one                     who also owns a well known
                                   facility with 100-150 female                                                                                                                                                                                                                                                                                                                                             developed and an         06/01/2006.                        of them. New deadline                       child care facility in Bursa.
                                   workers shall have breast                                                                                                                                                                                                                                                                                                                                                announcement will be                                        is 08/31/2006.                              The factory's new child
                                   feeding rooms separate from                                                                                                                                                                                                                                                                                                                                              made to the workers.                                                                                    care facility provides its
                                   production site and maximum                                                                                                                                                                                                                                                                                                                                                                                                                                                      services inside the social
                                   250m away. The facility with                                                                                                                                                                                                                                                                                                                                                                                                                                                     activities building. Factory
                                   150 or more female workers                                                                                                                                                                                                                                                                                                                                                                                                                                                       management has also
                                   shall have nursery maximum                                                                                                                                                                                                                                                                                                                                                                                                                                                       developed written
                                   250m away. If the nursery is                                                                                                                                                                                                                                                                                                                                                                                                                                                     procedures for creche
                                   farther than 250 m, then the                                                                                                                                                                                                                                                                                                                                                                                                                                                     management and trained
                                   factory shall provide free                                                                                                                                                                                                                                                                                                                                                                                                                                                       the relevant personnel.
                                   transportation to/from
                                   nursery. If the Employer
                                   can't provide a breastfeeding
                                   room and/or a nursery, they
                                   shall have a contract with an
                                   external organization.

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               According to Turkish Labor       Except in extraordinary business circumstances,          Workers are not provided 11 hours                                                                                                                              The factory should develop a policy regarding          3/31/2006 All workers are provided 11 hours            Policy regarding           Policy regarding   Completed                                                                                                                                                                                                                                                All workers are working in shift mode           Management and workers       All workers need to be employed
                                   Law 4857, Article 69, 11         employees will (i) not be required to work more          consecutive rest who are working in shift                                                                                                                      pregnant workers which is in compliance with                     consecutive rest who are working in shift    pregnant workers is        pregnant workers.                                                                                                                                                                                                                                                          allowed 11 hours consecutive rest. No            interview, visual            within the daily (11 hrs), weekly (60
                                   consecutive rest shall provide   than the lesser of (a) 48 hours per week and 12          mode. Workers worked without one day                                                                                                                           the law. The factory should make sure that                       mode. This was only one specific case at     developed. Working         Revised working                                                                                                                                                                                                                                                            workers worked on any rest days. The total       observation,                 hrs) and yearly (270 hrs - OT)
                                   between 2 shifts for workers.    hours overtime or (b) the limits on regular and          off in seven. Combined regular and                                                                                                                             workers are provided 11 hours consecutive                        cutting who replaced his colleague on        hours policy is revised    hours and overtime                                                                                                                                                                                                                                                         breaks are 60 minutes. Most of the workers       documentation review of      working hour limits. The parent
                                   As per Turkish Labor Law         overtime hours allowed by the law of the country         overtime hours exceeds 57 hours (45                                                                                                                            rest who are working in shift mode. Please                       that day only.                               and trainings are given.   policy. Training                                                                                                                                                                                                                                                           worked maximum 11 hours per day and 60           personnel files, time card   company informed that they are
                                   4758, Article 46, at least 24    of manufacture or, where the laws of such                hours national working hours per week                                                                                                                          train the responsible HR staff, middle                           There is consecutive seven-day work in       Breaks are arranged.       documents.                                                                                                                                                                                                                                                                 hours per week in most months. However,          details and payrolls         planning to establish a central time
                                   hours consecutive rest will be   country will not limit the hours of work, the regular    and plus 12 hours FLA COCA per week).                                                                                                                          management and workers accordingly. The                          the factory. There has only been one                                                                                                                                                                                                                                                                                                               in two of the subcontractors in few days in                                   card recording system to prevent
                                   provided in every seven day      work week in such country plus 12 hours                  Workers having 30 minute break in 9                                                                                                                            factory should make sure all workers get one                     case for two kitchen workers who came                                                                                                                                                                                                                                                                                                              few sections, workers worked until 22.00                                      such noncompliances. To do this
                                   period.                          overtime; and (ii) be entitled to at least one day off   hours period per day instead of 60 minute                                                                                                                      day off in seven. Factory’s working hours                        to work in October for cleaning purposes.                                                                                                                                                                                                                                                                                                          pm, 23.00 pm or 01.45 am and worked in                                        they will purchase a separate server
                                   According to Turkish Labor       in every seven day period. An extraordinary              break.                                                                                                                                                         policy should clearly state that. Please train                   Breaks are 60 minutes since 11/14/2005.                                                                                                                                                                                                                                                                                                            one week more than 60 hours per week.                                         which will be dedicated solely to
                                   Law 4857, Article 68,            business circumstance is a temporary period of           The workers who are working for                                                                                                                                the responsible HR, middle management and                                                                                                                                                                                                                                                                                                                                                                                                                                                         recording of time cards which will
                                   factory shall provide at least   extra work that could not have been anticipated or       [subcontractor 1] and [subcontractor 2]                                                                                                                        supervisors accordingly. The factory should                                                                                                                                                                                                                                                                                                                                                                                                                                                       have inputs from all different
                                   60 min. break if the daily       alleviated by other reasonable efforts.                  were worked 12 hours a day which is non-                                                                                                                       make sure that weekly working hours should                                                                                                                                                                                                                                                                                                                                                                                                                                                        satellites (October 30th, 2008).
                                   working hours over 7.5 hour                                                               compliance with Turkish Labor Law.                                                                                                                             not exceed the limit required by FLA COCA.
                                   .         According to                                                                                                                                                                                                                                   Breaks should be arranged as indicated in the
                                   Turkish Labor Law 4857,                                                                                                                                                                                                                                  law. Daily working hours should not exceed 11
                                   Article 63, daily combined                                                                                                                                                                                                                               hours unless there are forced reasons of
                                   working hours (regular +                                                                                                                                                                                                                                 extraordinary conditions.
                                   overtime) shall not exceed 11
                                   hours.
Legal compliance with protected    As per Article 10 of             The factory will comply with all applicable laws Pregnant workers are working regular                                                                                                                                   The factory should find out how many                   3/31/2006                                              The list of pregnant      List of pregnant   Pending          This issue was                              The management has              Verified by interviews   Completed                                                                The factory            Working hour         Completed     In two of the subcontractors there were 2        Management and workers       The parent company informed that
workers                            regulation issued on Official    governing work hours, including those regulating nine hours per day.                                                                                                                                                    pregnant workers are there in the factory. The                                                                workers has been          workers. Policy                     completed in April;                         trained all pregnant            with pregnant workers    but this issue                                                           management further     records and worker                 pregnant workers, who worked in 2 to 4           interview, visual            they have requested all
                                   Newspaper dated 14.07.04         or limiting the nature and volume of work                                                                                                                                                                               factory should develop a policy regarding                                                                     prepared. The factory     regarding pregnant                  however, May and June                       workers, supervisors and        from different           will be still                                                            improved their         interviews                         times 8.5 hours or 9 hours per day in the        observation,                 subcontractors to report on a
                                   referring to Turkish Labor       performed by women or workers under the age of                                                                                                                                                                          pregnant workers in compliance with the labor                                                                 developed a policy for    workers.                            have been peak periods                      middle management to            departments on           followed                                                                 implementation, and                                       month of April 2008.                             documentation review of      monthly basis the list of pregnant
                                   Law 4857, Article 88,            18.                                                                                                                                                                                                                     law. The working hours and shifts of the                                                                      pregnant workers in                                           and the factory has                         ensure that pregnant            12/07/2006. This         during future                                                            instead of arranging                                                                                       personnel files, time card   workers. HR department of the
                                   pregnant, new and/or                                                                                                                                                                                                                                     pregnant workers should be arranged                                                                           compliance with the labor                                     failed to comply with the                   women are given longer          issue is also            audits.                                                                  longer breaks for the                                                                                      details and payrolls         parent company will track their
                                   breastfeeding mothers shall                                                                                                                                                                                                                              according to the law.                                                                                         law. Working hours are                                        relevant laws. Factory                      breaks during the day.          discussed during the                                                                              pregnant workers, they                                                                                                                  working hours and ensure that the
                                   not work in excess of 7.5                                                                                                                                                                                                                                                                                                                                              arranged.                                                     management has been                                                         worker-management                                                                                 changed the working                                                                                                                     pregnant workers are working within
                                   hours per day.                                                                                                                                                                                                                                                                                                                                                                                                                       given until Sept. 30 to                                                     meeting of                                                                                        hours of pregnant                                                                                                                       the legal limits.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        complete this action                                                        11/28/2006. The                                                                                   worker. They now leave                                                                                                                  Parent company informed that this
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        item. In the                                                                management once                                                                                   at 16:00 after working                                                                                                                  has been implemented immediately
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        remediation, factory                                                        more announced to                                                                                 for net 7.5 hours as                                                                                                                    after the FLA audit. Sustainability
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        management must                                                             all the workers in                                                                                indicated by the law.                                                                                                                   will be checked during the next visit.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        include a plan that                                                         writing that pregnant
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        addresses how it will                                                       women must be
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        ensure pregnant                                                             given longer breaks,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        workers do not work OT                                                      and they are not
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        in peak months.                                                             supposed to work
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    more than 7.5 hrs per
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    day. Minutes this
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    meeting are posted
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    on the notice boards.
Other                                                                                                                                                                      There were                                                                                                       Factory should revise their overtime policy.           3/31/2006 Supervisor used the voluntary overtime       The overtime policy is     Revised policy,       Completed      Workers and               Training        Training has been provided This is verified
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Verified by              Completed        ###################### Training documents. Completed                                                              There were no inconsistencies between the Management and workers
                                                                                                                                                                           inconsistencies between                                                                                          The voluntary over time request procedures                       form which indicated that the OT is until    revised. Training is       training              but this       supervisors were          documentation   to supervisors and workers. interviews. Verified         but this issue                          Voluntary overtime                                                                         payroll records, time card details and the    interview and
                                                                                                                                                                           overtime records and                                                                                             will be mentioned clearly and in details. Forms                  21:00, however, this was not the real        given. Additionally, the   documents, forms      issue will be provided voluntary OT                      Voluntary overtime forms        by documentation         will be still                           form procedure.                                                                            production and overtime lists. All the actual documentation review of
                                                                                                                                                                           payments with voluntary                                                                                          should be corrected. All supervisors and                         case. The workers left at 20:00. The         top management             from the              still followed training.                                 have been re-drafted            during the visit on      followed                                                                                                                           hours were reflected.                         time card details,
                                                                                                                                                                           overtime records.                                                                                                workers should be trained to avoid any                           supervisor forgot to change the written      circulated an              supervisors, time     during future                                            indicating that overtime can 12/07/2006.                 during future                                                                                                                                                                    payrolls, pay slips,
                                                                                                                                                                                                                                                                                            inconsistencies.                                                 time in this form. The factory explained     announcement that all      records, service      audits.                                                  be worked maximum until                                  audits.                                                                                                                                                                          production records and
                                                                                                                                                                                                                                                                                                                                                             that Voluntary Overtime Forms are not        kinds of OT will be        buses' leaving time                                                            20:30 so that there is no                                                                                                                                                                                                                 overtime lists
                                                                                                                                                                                                                                                                                                                                                             forms that are created to show the real      implemented only after     records on that                                                                chance of working more
                                                                                                                                                                                                                                                                                                                                                             working hours. They just indicate the        top management             date.                                                                          than 2 hrs over time a day.
                                                                                                                                                                                                                                                                                                                                                             potential overtime hours and that the real   approval.                                                                                                 The wording also made it
                                                                                                                                                                                                                                                                                                                                                             working hours can be different. The                                                                                                                    clear that the OT will not last
                                                                                                                                                                                                                                                                                                                                                             supervisors did not correct this form if                                                                                                               until 20:30, but has only the
                                                                                                                                                                                                                                                                                                                                                             there was a change between the                                                                                                                         possibility to last maximum
                                                                                                                                                                                                                                                                                                                                                             voluntary overtime form and the real OT                                                                                                                until 20:30. This will remove
                                                                                                                                                                                                                                                                                                                                                             hours because the filled form with the                                                                                                                 the inconsistency.
                                                                                                                                                                                                                                                                                                                                                             workers signatures had already been
                                                                                                                                                                                                                                                                                                                                                             sent to the HR department to arrange
                                                                                                                                                                                                                                                                                                                                                             food and service buses.




Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           New Finding: During the verification audit it    Management and workers       All workers need to be employed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                was noted that in one of the subcontractors      interview and                within the daily (11 hrs), weekly (60
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                one of the workers worked until 22.00pm in       documentation review of      hrs) and yearly (270 hrs - OT)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                May 2008, but provided time cards showed         time card details,           working hour limits. The parent
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                that this worker worked until 20.30pm and        payrolls, pay slips,         company informed that they are
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                the deficit 1.5 hours overtime is reflected in   production records and       planning to establish a central time
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                another day in same month. The total             overtime lists               card recording system to prevent
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                weekly and monthly overtime hours are not                                     such noncompliances. To do this
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                changed, but total daily hours are                                            they will purchase a separate server
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                guaranteed 11 hours per day maximum as                                        which will be dedicated solely to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                per law requirement.                                                          record time cards which will have
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              inputs from all different satellites
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (October 30th, 2008). They have
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              also informed all subcontractors that
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              the records should only reflect the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              reality and that falsification of
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              records will not be tolerated.

10. Overtime Compensation
In addition to their compensation for regular hours of work, employees will be compensated for overtime hours at
such premium rate as is legally required in the country of manufacture or, in those countries where such laws will
not exist, at a rate at least equal to their regular hourly compensation rate.

Other                                                                                                                                                                      There were                                                                                                       Factory should revise their over time policy.          3/31/2006 Supervisor used the voluntary overtime       The overtime policy is     Revised policy.       Completed      Workers and               Training        Training has been provided        Verified by            Completed        ###################### Training documents. Completed                                                              There were no inconsistencies between the Management and workers
                                                                                                                                                                           inconsistencies between                                                                                          The voluntary over time request procedures                       form which indicated that the OT is until    revised. Training is       Training              but this       supervisors were          documentation   to supervisors and workers.       interviews. Verified   but this issue                          Voluntary overtime                                                                         payroll records, time card details and the    interview and
                                                                                                                                                                           overtime records and                                                                                             will be mentioned clearly and in details. Forms                  21:00, however, this was not the real        given. Additionally, the   documents. Forms      issue will be provided voluntary OT                      Voluntary overtime forms          by documentation       will be still                           form procedure.                                                                            production and overtime lists. All the actual documentation review of
                                                                                                                                                                           payments with voluntary                                                                                          should be corrected. All supervisors and                         case. The workers left at 20:00. The         top management             from the              still followed training.                                 have been re-drafted              during the visit on    followed                                                                                                                           hours were reflected.                         time card details,
                                                                                                                                                                           overtime records.                                                                                                workers should be trained to avoid any                           supervisor forgot to change the written      circulated an              supervisors. Time     during future                                            indicating that overtime can      12/07/2006.            during future                                                                                                                                                                    payrolls, pay slips,
                                                                                                                                                                                                                                                                                            inconsistencies.                                                 time in this form. The factory explained     announcement that all      records. Service      audits.                                                  be worked maximum until                                  audits                                                                                                                                                                           production records and
                                                                                                                                                                                                                                                                                                                                                             that Voluntary Overtime Forms are not        kinds of OT will be        buses' leaving time                                                            20:30 so that there is no                                                                                                                                                                                                                 overtime lists
                                                                                                                                                                                                                                                                                                                                                             forms that are created to show the real      implemented only after     records on that                                                                chance of working more
                                                                                                                                                                                                                                                                                                                                                             working hours. They just indicate the        top management             date.                                                                          than 2 hrs over time a day.
                                                                                                                                                                                                                                                                                                                                                             potential overtime hours and that the real   approval                                                                                                  The wording also made it
                                                                                                                                                                                                                                                                                                                                                             working hours can be different. The                                                                                                                    clear that the OT will not last
                                                                                                                                                                                                                                                                                                                                                             supervisors did not correct this form if                                                                                                               until 20:30, but has only the
                                                                                                                                                                                                                                                                                                                                                             there was a change between the                                                                                                                         possibility to last maximum
                                                                                                                                                                                                                                                                                                                                                             voluntary overtime form and the real OT                                                                                                                until 20:30. This will remove
                                                                                                                                                                                                                                                                                                                                                             hours because the filled form with the                                                                                                                 the inconsistency.
                                                                                                                                                                                                                                                                                                                                                             workers signatures had already been
                                                                                                                                                                                                                                                                                                                                                             sent to the HR department to arrange
                                                                                                                                                                                                                                                                                                                                                             food and service buses.




Miscellaneous




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2

								
To top