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									FLA Audit Profile
Country                                                   Thailand
Name of Factory                                           340074603F
Independent External Monitoring Organization              Kenan Institute Asia
Date(s) in Facility                                       November 1-2, 2007
FLA Affiliated Compan(ies)                                VF Corp
Number of Workers                                         810
Product(s)                                                Backpack, Language and Clothing
Production Processes                                      Cutting, Sewing Assembly, Finishing and Packing

FLA Code/Benchmark                                        Compliance Status Describe noncompliance, risk of               List sources/documentation used     Cite and describe local and/or country laws used for additional reference
                                                                            noncompliance or uncorroborated               for reference and corroborating
                                                                            evidence of noncompliance                     evidence (e.g. worker interviews,
                                                                                                                          factory walkthrough, records
                                                                                                                          review, etc.)
1. Code Awareness
GEN 2: Ensure that all Company factories as well as Risk of                  Most workers lacked of awareness in the Workers Interview and                    FLA Code of Conduct
contractors and suppliers inform their employees      noncompliance          element of code of conduct. They only    Management Interviews.
about the workplace standards orally and through                             knew about their basic right such as the
the posting of standards in a prominent place (in the                        basic wages and benefit.
local languages spoken by employees and
managers) and undertake other efforts to educate
employees about the standards on a regular basis.
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.
F.9 Employment Records                                Risk of                The factory did not provide the copy of      worker and management               FLA Code of Conduct
                                                      noncompliance          employment contract to the workers.          interview, personal file review
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.
Other
4. Harassment or Abuse                                   In compliance
Every employee will be treated with respect and
dignity. No employee will be subject to any physical,
sexual, psychological or verbal harassment of
abuse.
5. Non-Discrimination
No person will be subject to any discrimination in
employment, including hiring, salary, benefits,
advancement, discipline, termination or retirement,
on the basis of gender, race, religion, age, disability,
sexual orientation, nationality, political opinion, or
social or ethnic origin.
D.3 Recruitment and Employment Practices (Job            Risk of             The employment application contains          Employment application form         FLA Code of Conduct
Advertisements, Job Descriptions and Evaluation          noncompliance       question about nationality, race, religion   reviews.
Policies)                                                                    and military status.
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.
7. Freedom of Association and Collective
Bargaining
Employers will recognize and respect the right of
employees to freedom of association and collective
bargaining.
8. Hours of Work
Except in extraordinary business circumstances,
employees will (i) not be required to work more than
the lesser of (a) 48 hours per week and 12 hours
overtime or (b) the limits on regular and overtime
hours allowed by the law of the country of
manufacture or, where the laws of such country will
not limit the hours of work, the regular work week in
such country plus 12 hours overtime; and (ii) be
entitled to at least one day off in every seven day
period.




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FLA Code/Benchmark                                     Compliance Status Describe noncompliance, risk of             List sources/documentation used     Cite and describe local and/or country laws used for additional reference
                                                                         noncompliance or uncorroborated             for reference and corroborating
                                                                         evidence of noncompliance                   evidence (e.g. worker interviews,
                                                                                                                     factory walkthrough, records
                                                                                                                     review, etc.)
9. Wages, Benefits and Overtime Compensation

WAGES AND BENEFITS: Employers recognize that
wages are essential to meeting employees’ basic
needs. Employers will pay employees, as a base, at
least the minimum wage required by local law or the
prevailing industry wage, whichever is higher, and
will provide legally mandated benefits.
OVERTIME COMPENSATION: In addition to their
compensation for regular hours of work, employees
will be compensated for overtime hours at such
premium rate as is legally required in the country of
manufacture or, in those countries where such laws
will not exist, at a rate at least equal to their regular
hourly compensation rate.
WBOT.14 Voluntary Wage Deductions                         Noncompliance   Some workers who stay in the factory's     Payroll records review,             According to the Labor Protection Act B.E.2541 Section 76 ‘An employer is prohibited from making any deduction from basic pay, overtime pay,
                                                                          dormitory will be deducted their wage at   management and workers              holiday pay, holiday overtime pay, except for-
                                                                          30 Baht per month for the dormitory fee.   interview                           (1) Payment of income tax in an amount which the employee is obliged to pay, or other payments as specified by law;
                                                                                                                                                         (2) Payment of contributions to a labor union in accordance with the regulations of the labor union;
                                                                                                                                                         (3) Payment of debts to savings or other co-operative of the same nature as a savings co-operative, or debts which have been incurred for the
                                                                                                                                                         purpose of the welfare for the sole benefit of the employee, with the prior consent of the employee;
                                                                                                                                                         (4) A guarantee money as referred to in Section 10 or compensation paid to an employer due to a willful act or the gross negligence of the
                                                                                                                                                         employee, provided that the employee consents;
                                                                                                                                                         (5) An employee contribution under an agreement respecting the Employee Welfare Fund.’

                                                                                                                                                         Deductions made pursuant to (2), (3), (4) and (5) shall not in each case exceed 10 per cent and shall, in the aggregate, not exceed one-fifth of
                                                                                                                                                         the money which the employee is entitled to receive at the time of payment specified in Section 70, unless the employee otherwise consents.

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




                                                                                                                                                                                                                                                                                                     2
Describe notable features
implemented by factory
management or Company




                            3
Describe notable features
implemented by factory
management or Company




                            4
FLA Audit Profile                                                                                                   Following the follow-up audit by the FLA CPPC announced that the factory was being acquired by EaglePack. As of January 1, 2008 this acquistion was completed. Below is information VF has been able to ascertain reg
Country                                           Thailand                                                          The CPPC building is now being leased out by EaglePack. The production taking place is this facility is for domestic production.
Name of Factory                                   340074603F                                                        Out of the 810 employees of CPPC, 486 accepted a transfer to EaglePack. The employees received a support payment based upon years of service during the transition period. This payment was not required by Thai Labo
Independent External Monitoring Organization      Kenan Institute Asia
Date(s) in Facility                               November 1-2, 2007
FLA Affiliated Compan(ies)                        VF Corp
Number of Workers                                 810
Product(s)                                        Backpack, Language and Clothing
Production Processes                              Cutting, Sewing Assembly, Finishing and Packing

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

GEN 2: Ensure that all Company factories as well    Risk of           Most workers lacked awareness in the
as contractors and suppliers inform their employees noncompliance     element of code of conduct. They only
about the workplace standards orally and through                      knew about their basic right such as the
the posting of standards in a prominent place (in                     basic wages and benefit.
the local languages spoken by employees and
managers) a


F.9 Employment Records                            Risk of             The factory did not provide the copy of
                                                  noncompliance       employment contract to the workers.


D.3 Recruitment and Employment Practices (Job     Risk of             The employment application contains
Advertisements, Job Descriptions and Evaluation   noncompliance       question about nationality, race, religion
Policies)                                                             and military status.

WBOT.14 Voluntary Wage Deductions                 Noncompliance       Some workers who stay in the factory's
                                                                      dormitory will be deducted their wage at 30
                                                                      Baht per month for the dormitory fee.




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been able to ascertain regarding the transition.

ot required by Thai Labor Law. In addition, employment terms and conditions at EaglePack remain the same as well as maintaining previous years of service.




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FLA Audit Profile
Country                                Thailand
Name of Factory                        340074603F
Independent External Monitoring        Kenan Institute Asia
Organization
Date(s) in Facility                    November 1-2, 2007
FLA Affiliated Compan(ies)             VF Corp
Number of Workers                      810
Product(s)                             Backpack, Language and Clothing
Production Processes                   Cutting, Sewing Assembly, Finishing and Packing

FLA Code/Benchmark                     Compliance Status [Status]     Description of noncompliance, risk of Updates (Cite Date of Follow-Up)          Third-Party Verification     Company Verification Follow-Up
                                                         Completed, noncompliance or uncorroborated          Company Follow-Up        Documentation   External     Documentation   Company Follow-Up (cite      Documentation
                                                         Pending, On- evidence of noncompliance                                                       Verification                 date of planned or follow-up
                                                         going                                                                                        (Date)                       visit, if appropriate)
GEN 2: Ensure that all Company         Risk of                        Most workers lacked of awareness in
factories as well as contractors and   noncompliance                  the element of code of conduct. They
suppliers inform their employees                                      only knew about their basic right such
about the workplace standards orally                                  as the basic wages and benefit.
and through the posting of standards
in a prominent place (in the local
languages spoken by employees and
managers) a




F.9 Employment Records                 Risk of                         The factory did not provide the copy of
                                       noncompliance                   employment contract to the workers.


D.3 Recruitment and Employment        Risk of                          The employment application contains
Practices (Job Advertisements, Job    noncompliance                    question about nationality, race,
Descriptions and Evaluation Policies)                                  religion and military status.
WBOT.14 Voluntary Wage                 Noncompliance                   Some workers who stay in the
Deductions                                                             factory's dormitory will be deducted
                                                                       their wage at 30 Baht per month for
                                                                       the dormitory fee.




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