Workplace Conditions Assessment Report - World … Factory-Fair Labor Audit-12.29... · No...

Workplace Conditions Assessment Report Measured Results -Improved Pe1forma11ce

-cutlery factory-

GENERAL INFORMATION

88%

Report No: FJAR_89371 City:

Audit Date: Dec 29, 2016 Country:

Last Audit: NA Auditors:

Assessment Stage : Initial

Schedule Type Announced Service Provider:

WORKPLACE PERFORMANCE INDEX AND SUMMARY

85-100%

High

Performance

71-84%

Medium Performance

51-70%

Low

Performance

0-50%

Very low Performance

-Ll..=

Overall Facility Score : 88%

Average Global Score: 78%

Average Industry Score: 77% Average Country Score: 76%

I overall

Labor

Wages & Hours

Health & Safety

Management Systems

Environment

WORKPLACE CONDITIONS ASSESSMENT

Primary: Danae Lu

Secondary: None

Intertek

Participating facilities: 23532 -

,., I 1 131 2 I - I+·111+ -

72% 2

··+ti -

74% 1 2

74% 1

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Workplace Conditions Assessment Report

Nr. F_IAR_89371

A. FACILITY PROFILE

Al. FACILITY INFORMATION

Facility Name:

Facility Legal Name:

Audit Location:

City:

Country:

Contact Name:

Contact Title:

Industry:

Building Description:

Facility Legal Status: Privately owned ·-·-«-·-----·-·-·--··-········-------···-·----·--·-·-··-------·-----................ .

Year facility began

operations:

Located in special

economic zone:

Person responsible

for overall social

compliance issues:

Valid certificate

for social compliance

certification program:

Vendor Name:

Security systems in

place:

April 2002

No

Mr. Yuan Changhua

IS09001: 2008, from August 14, 2014 to August 13, 2017. IS014001: 2004, from March 9, 2015 to March 8, 2018. Not provided. Yes Security guards were used

for controlling physical access of outsiders.

In view of the facilities, the facility consists of one flat (partial 2-storey) building for office, canteen, workshop and warehouse. No dormitory was available in the facility. Total Land area was 1800 m2 and total structure area was 2000 m2. Remark: The facility had rented one flat (partial 2-storey) building from other facility named -------------- used as warehouse, production and dormitory. Remark: Through facility tour, document review and management interview, both two facilities have independent business license, management and production process. The employees of the facilities also would not be borrowed in any case which was also confirmed through

_________ em_p_lo_y_e _e_interview. __ _ __ Special building type: NA

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Workplace Conditions Assessment Report Nr. FJAR_89371

A2. PRODUCTION INFORMATION

Products manufactured/ Services provided:

Production process/ Service elements:

Production capacity a

week:

Total number of

machines:

Main machine types:

Plastic product

Powdering, injection, inspection and packing

250,000 pieces.

15 sets.

Injection machines and

Crushing machines and etc.

Time record system(s) used:

Chemicals or hazardous

materials

on-site:

Current production/ Services for client:

Finger print


Yes Such as lubricating oil and etc.

NA

Shifts and

Operating hours: The normal workdays of office and package workshop were from Monday to Friday in one shift from 7:30 to 17:00 with 1.5 hour's lunch time from 12:00 to 13:30.

The normal workdays of other employees were from Monday to Friday in three shifts from 8:00 to 16:00, 16:00 to 00:00 and 00:00 to 8:00, they take turns for rest.

A3. EMPLOYEE INFORMATION

Range of total number of 0-100 employees

employees at the facility:

Union name:

Employs juvenile workers:

Hires through

employment agent:

Employee nationalities/

provinces:

None

None

No All employees were hired

directly by the facility.

No foreign employee was

hired, and migrant

employees mostly come from other provinces of China, such as Anhui Province.

Female Employees:

Male Employees:

Mgmt Employees:

Production (Non

Management) Employees:

Local Employees:

Foreign/Migrant Employees:

Languages spoken in the

facility:

Management and employees speak same language

46

14

2

58

20

40

Mandarin

Yes

A4. SUBCONTRACTOR INFORMATION---------------

No subcontractor information given



Nr. F_IAR_89371

AS. GENERAL INFORMATION


1. At 9:20 on December 29, 2016, auditor entered the facility then held an opening meeting according to WCA Program,

the facility management Mr. Yuan Changhua/ General Manager and HR staff were present in the meeting. They stated that

the facility would be co-operative with this audit.

2. Attitude of workers: Interviewees were comfortable during interview. All employees were satisfied with the facility and no negative information was raised. They are satisfied with the working condition and management system.3. Attitude of management: The management showed a positive attitude to this audit during the whole process. All

documentation requested for review was provided timely. Locked areas encountered during the audit were unlocked timely. At the end of the audit, all the findings were accepted by the facility management.4. Peak seasons were not obvious in the facility.

5. The facility gives everybody equal opportunity and salary.6. Auditor found that the facility had two production area.Site A: address: No 3 ----------------; main product: Plastic product; responsible person: Mr. Yuan Changhua/ General managerSite B: address: No. 16 ---------------- main product: moldings; responsible person: Mr. Gu Linfu/ General managerBoth two facilities have independent management and production process. The employees of the facilities also would not be borrowed in any case which was also confirmed through employee interview.Site A - every audit process can be carried out.Site B - every audit process is denied as privacy policy.

Emergency Preparedness Summary

1. Through facility tour and employees interview, the facility had a good control of manage emergency preparedness,which stated how to deal with some accident. According to the procedure, firstly, the employees, who found the accident,should push the fire alarm button and then call the responsible person Mr. Yuan Changhua communicated with theirresponsible persons to resolve the accident. If someone injured, some responder should call 120 first and at the same timethe first aid responder would conduct first aid.

2. The facility had conducted training for employees about fire safety when they joined in. The trained firefighter was alsoavailable for each workshop in the facility. Firefighting equipment installed in the facility, including fire extinguishers

including type A, B, C, fire hydrants and fire alarms, all these fire equipments were kept in good condition and weremonthly checked. All fire equipment including fire extinguishers and fire hydrants were kept clearly. Evacuation maps arealso posted in each floor with emergency team, emergency plan position of firefighting equipment, and photo of fire team,emergency routes are clearly marked on the floor which can lead employees to emergency exit, exit sign are posted at exitdoors, all fire exits were kept open during working time.

3. The facility conducted the fire evacuation drills twice per year. Through document review and employees interview, thelatest fire evacuation drills was conducted for all the employees on November 2016.


Workplace Conditions Assessment Report Nr. F_IAR_89371


A6. AUDIT PROCESS--------------------

Audit pay period provided for review

Records From

12 Months Payroll 2015-12-01

12 Months Attendance 2015-12-01

Special Comments N/A

To

2016-11-30

2016-12-28

Employee interview sampling

Individual

Group

Total interviewed

Total 6 employees were interviewed individually including 1 male employee and 5 female employees

0

Total 6 employees were interviewed, which included 6 individuals and 0 group.

Payroll and attendance records sampling

Period

Current Period

Period 1

Period 2

Total

From

2016-11-01

2016-09-01

2016-04-01

Other records reviewed

Personnel records

Security log book

Non-Production records

Legal Permits

Employee leave register

Health examination records

To

2016-11-30

2016-09-30

2016-04-30

Peak Season

No

No

No

Machine maintenance records

Production records

Records Reviewed

6

3

3

12

·-----------

Employment contracts

Social insurance documentation -----·Infirmary logs

·----- --------


Workplace Conditions Assessment Report Nr. F JAR_89371


B. KEY PERFORMANCE METRICS

Bl. COMPARISON BENCHMARK

Current performance - Global average, China average, Accessories average

Labor Wages & Hours

100%--100 95 96 95

80%-----·- _ ..J_Z_ JL_. __ 71 ___ _ 62

0%

Health & Safety

100

78 77 77

Management Systems

74 75 71, 71,

Environment

74 BO 75 76

B2. PERFORMANCE TREND ANALYSIS

Section Name

Labor

Wages & Hours

Health & Safety

Management Systems

Environment

Overall Score

Current Last First Change Change

(29-Dec-2016) (Not Applicable) (Not Applicable) (Current-Last) (Current-First)

100

72

100

74

74

88

Not Applicable Not Applicable Not Applicable Not Applicable




Not Applicable Not Applicable Not Applicable Not Applicable -- -·-------------------


Advancers - Constant .. Decliner

PERFORMANCE RATING

Very Low (0% - 50%) Low (51%- 70%) Medium (71 % - 84%) High (85% - 100%)

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Nr. F_IAR_89371

B3. WORKING HOURS AND WAGES

Average total hours worked weekly

I Normal Work Hours I overtime Work Hours

120 hrs

100 hrs -1481--80 hrs

-- -J 481 -1401--

60hrs -----·--·-----·-------·-·-·---------..-----·----·---------·---·-· ·-·" .. 60


f'i' 5.]

40 hrs

20 hrs

0 hrs-------

- - lnternatio,ial Standard: GO

2016-11-01 2016-11-30

Average

• • • • Chrna avf.:rogP: S:!

Average wages paid in local currency (RMB)

2500RMB - -

2000 RMB----·--

1500 RMB---

1000 RMB --

500 RMB - -----

2016-09-01 2016-09-30

Average

2016-04-01 2016-04-30

Average

- - fl;:Jfd i !:-1;;i. rhrsJ(u:i/i:_i· 4.f;

2147 2003

This Facility Minimum Wage Province Average Country Average

Special wage circumstances: The local minimum wage standard was RMB 1680 per month equivalent to RMB 9.66 (1680/21.75/8) per hour before January 1, 2016, and RMB 1820 per month equivalent to RMB 10.46 (1820/21.75/8) per hour since January 1, 2016.

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Nr. F_IAR_89371


Wages and hours summary: 1. Through document review, all the employees were paid above the minimum wage. Wages of all employees were calculated by hourly rated basis. 2. Through payroll records and employees interview, the facility paid the employee's overtime at200% of normal rate on rest days. No overtime hours were arranged on normal workdays andholidays.3. Through employee interview, all the employees stated that they worked overtime on voluntarybasis and used electronic attendance system.

4. Legal required benefit such as annual leave, sick leave, nursing leave, etc. had been provided for

legal employees and relevant leave records and policy records had been provided for review.

However, no policy for paternity leave was noted in this audit.5. 12 months' production records such as daily production records, inspection records, and materialdelivery records were provided for review, no inconsistencies were found after crosschecked withprovided attendance records.

6. Based on documents provided by the facility, 1) For November 2016 (current month), the averagenumber of hours worked in a week for the 6 selected samples were 48 per week. Maximum workinghours per week were 48 (all 6 randomly selected samples). Maximum monthly overtime hours were 24 (all 6 randomly selected samples); 2) For September 2016 (random month), the average number of hours worked in a week for the 3 selected samples were 48 hours per week. Maximum workinghours per week were 48 (all 3 randomly selected samples). Maximum monthly overtime hours were 24 (all 3 randomly selected samples); 3) For April 2016 (random month), the average number ofhours worked in a week for the 3 selected samples were O hours per week. Maximum working hoursper week were 40 hours (all 3 randomly selected samples). Maximum monthly overtime hours were

0 hours (all 3 randomly selected samples).

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Nr. F_IAR_89371

C. PERFORMANCE DETAILS

Current (29-Dec-2016)


Cl. Labor --------------------------Nimti

100

80

40

100

Current Last

100 100

Current Last Current

100 100 100

Last Current Last Current Last CutTent Last

L _J L _J L J LDisciplinc,_J L

_J L _JChild Forced Harassment Fre:�orn Employment Labor Labor Discrimination or Contracts

PERFORMANCE RATING

Abuse Association

Very Low (0% - 50%) Low (51%-70%) Medium (71%- 84%) High (85% - 100%)



Nr. F_IAR_89371

C2. Wages & Hours

100

100

80

60

40

20

0 Current

Working Hours

NA

Last

·-··--5.8

Current Last

Wages �--- and ---�

Benefits

Sub Section: Wages and Benefits

Moderate

150.00 : Auditor was unable to verify if the facility provides social security, pensions, healthcare and/ or other insurance to employees as per legal requirement.

Auditor's comment The compliance status of social insurance participated could not be verified in this audit. During document review, the facility could not provide the social Insurance receipts and the name list of the social insurance participated, so the audit could not verify the compliance status of social insurance participated.

154.00 : Employees are not given sufficient legally mandated paid time off

Auditor's comment No policy for paternity leave. During document review, auditor found that there should be 15 days of paternity leave as per the new updated legal requirement on March 30, 2016. But no paternity leave policy was established in the facility. And no relevant record was provided for review.

Regulations on Employee's Paid Annual Leave Article 3

The Regulations on Employee's Paid Annual Leave article 3, employees who work full 1 year but less than 10 years have annual leave with 5 days. For those who work full 10 years but less than 20 years have annual leave with 10 days, and for those who work full 20 years have annual leave with 15 days. State statutory holidays and rest days are excluded from annual leave.

C3. Health & Safety

100 100 100 100 100 100

100

80

60

40

20

0

WORKPLACE

CONDITIONS

ASSESSMENT

72%

58%

93%

11111#1 100

Current Last Current Last Current Last Current Last Current Last Current Last Current Last

LGeneral_J L Emergency _J L Occupational _J LMachine_j L Safety _J Work

Facility Preparedness Injury Safety Hazards

PERFORMANCE RATING

Very Low (0% - 50%) Low (51"1/'o - 70%) Medium (71 % - 84%)

L Chemical _Jand

Hazardous Materials

L Dormitory and -

Canteen

High (85% - 100%)


Workplace Conditions Assessment Report ·Nr. F_IAR_89371

C4. Management Systems------------------

100 --74 ---------

80 ----·-------··----

60-�

40

2: •.. .

Current Last

L__ Management __J Systems

Sub Section: Management Systems

• Major

• Minor

• Minor

291.00 : The facility does not have a valid business license/ registration/ permit to

operate

Auditor's comment Information of business license was not updated. Through facility tour, auditor found that the facility actual address was No 3 ----------- Through manager interview, the facility moved from -----to No 3 Building----- and they did not update the address of buisness license.

296.04: The facility has comprehensive working hour and wages management processes and procedures in a written manual that support adherence to social compliance requirements but they are not all being properly implemented

Auditor's comment The facility has established working hour and wages management procedures, but they are not all being properly implemented. Some findings were noted in the audit, such as the compliance status of social insurance participated could not be verified and etc.

I - -

' 305.00 : The facility does not provide appropriate training for managers on how to implement its social compliance policies and procedures.

Auditor's comment No qualification certificate for the principal in charge or persons for the management of work safety in the facility. During document review, auditor found that the facility could not provide the qualification certificate of the principal in charge to review.

PERFORMANCE RATING


74%

Yo Global freq o ompliance

96%

55%

72%

Very Low (0% - 50%) Low (51% - 70%) Medium (71 % - 84%) High (85% - 100%)

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Nr. F_IAR_89371


CS. Environment 74%

100

74 80 --- ---

60

40

20

0

NA

Current Last

L__ Environment___J

Sub Section: Environment

Status Findings � Global freq o

_-_..,..: � . _ -� _ . ___ .:.,,,_. .,.. ... -... ---� .... �-·-_ ... �...:..-1-.i11.:.W.. ... _ ,,,. .. : •. � •. -·:.,�_ • . .. ... _ ... _ ompliance

Moderate 331.00 : The air emissions do not meet the discharge limits for regulated constituents Auditor's comment The facility did not perform monitoring tests for pollutants. During facility tour, auditor found that the waste gas was generated from injection workshop. However, the facility could not provide monitoring report of waste gas for review. Law of the People's Republic of China on the Prevention and Control of

; Atmospheric Pollution Article 18 • When a construction project that is going to be built will have an impact on atmosphericenvironment, enterprises, public institutions, and other production and business entitiesshall conduct environmental impact assessments and publicize the documents onenvironmental impact assessment according to the law; when discharging pollutants tothe atmosphere, they shall conform to the atmospheric pollutant discharge standardsand comply with the requirements of total emission volume control for the discharge of

; key atmospheric pollutants.

86%

I

% Global Frequency of Compliance: Represents the implementation percentage performance of all suppliers participating in the WCA Community globally for each issue

Identification numbers: Represents the finding ID associated with each checklist question , ____ - -------

RECOMMENDATION FOR IMPROVEMENT PLAN TIMELINE

• Minor Take action within O - 6 months to makenecessary improvements.

Moderate: Take action within O - 3 months to makenecessary improvements.

PERFORMANCE RATING

Very Low (0% - 50%) Low(Slo/o-70%)

• Major: Take action within O - 1 month to makenecessary improvements.

• Zero Tolerance: Take immediate action to makenecessary improvements.

Medium (71%- 84%) High (85% - 100%)



Nr. F_IAR_89371

D. STRENGTHS AND CHALLENGES


�-...�...._.__�,. I"�'" -- ..-..a :.::.-..:.•-.:,,-�� "It-. ., ._,_.,......_,_y-y_ .,._,._<l__"ll!IA�......::��-"'"'I:

......_ 'L'"V'-·�----� , - .. :,:--T.·� � , f""' � 'I:,' ..-•j '

Facility Strengths: Facilitypi:r.for��.e r��.l�-!lJ�top,p!r�entjle �[the population · · -. ·: ' �a_ti_ng:iGlobal Freq. ofand/or has implemented a best practice P._roces� � :--��; r ·-_-: ·, � .: . :-• • · · 1 I Compliance%

Total overtime hours are within allowable limits under applicable law or agreement.

The facility has comprehensive employee safety processes and procedures in a written manual that support adherence to social compliance requirements and are being properly implemented

Challenges: Facility performance ranks in the bottom percentile of the population

The facility does not have a valid business license/ registration/ permit to operate

Employees are not given sufficient legally mandated paid time off

The air emissions do not meet the discharge limits for regulated constituents

The facility does not provide appropriate training for managers on how to implement its social compliance policies and procedures.

DISCLAIMER

Moderate

Minor

Major

Moderate

Moderate

Minor

11,

50%

58%

. .

96%

93%

86%

72%

I

This report is for the exclusive use of the client of Intertek named in this report ("Client") and is provided pursuant to an agreement for services between Intertek and Client ("Client agreement"). No other person may rely on the terms of this

report. This report provides a summary of the findings and other applicable information found/gathered during the audit conducted at the specified facilities on the specified date only. Therefore, this report does not cover, and Intertek accepts no responsibility for, other locations that may be used in the supply chain of the relevant product or service. Further, as the audit process used by Intertek is a sampling exercise only, lntertek accepts no responsibility for any non-compliant issues

that may be revealed relating to the operations of the identified facility at any other date. Intertek's responsibility and

liability are also limited in accordance to the terms and conditions of the Client Agreement. Intertek assumes no liability to any party, for any loss, expense or damage occasioned by the use of this information other than to the Client and in accordance with the Client Agreement and these disclaimers. In case there is any conflict between the disclaimers stated herein and the applicable terms and conditions of lntertek incorporated into the Client Agreement, then these disclaimers shall prevail.

- --· ""·- --- -----··---------- -------··-······- · - - - ·-· -·-····· -··· -· ···-··········-····················· ·- -·-··---·--·--··-- - . - - · ·· - · · ········-······--····-- ·--··········. ·-- -- . --···-·····- --··-·--·------- ·- · ···········-··- · · ····--·-·-----·-·-·-----··---·--·-· ·---··---- ---···-········································ ················'


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