Workplace Conditions Assessment Report Measured Resulʦ -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 -L l 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 1 3 1 2 I - I +· o+ - 72% 2 ··+ - 74% 1 2 74% 1 lntertek This message contains information, which is confidential and the copyright of lntertek. All rights reserved Page 1 of 13
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Workplace Conditions Assessment Report - World … Factory-Fair Labor Audit-12.29... · No dormitory was available in the ... Workplace Conditions Assessment Report Nr. F_IAR ...
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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
WORKPLACE CONDITIONS ASSESSMENT
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
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Workplace Conditions Assessment Report
Nr. F_IAR_89371
AS. GENERAL INFORMATION
WORKPLACE CONDITIONS ASSESSMENT
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.
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Workplace Conditions Assessment Report Nr. F_IAR_89371
WORKPLACE CONDITIONS ASSESSMENT
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
·----- --------
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Workplace Conditions Assessment Report Nr. F JAR_89371
WORKPLACE CONDITIONS ASSESSMENT
B. KEY PERFORMANCE METRICS
Bl. COMPARISON BENCHMARK
Current performance - Global average, China average, Accessories average
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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Workplace Conditions Assessment Report
Nr. F_IAR_89371
WORKPLACE CONDITIONS ASSESSMENT
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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Workplace Conditions Assessment Report
Nr. F_IAR_89371
C. PERFORMANCE DETAILS
Current (29-Dec-2016)
WORKPLACE CONDITIONS ASSESSMENT
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%)
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Workplace Conditions Assessment Report
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%)
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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
WORKPLACE CONDITIONS ASSESSMENT
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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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%)
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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.