Workplace Conditions Assessment Report - World … Straws Factory Fair Labor Audit Dec... · Workplace Conditions Assessment Report ... satisfied with this facility including working

Workplace Conditions Assessment Report Measured Results······· Improved Performance

Redacted

GENERAL INFORMATION

Report No : F JAR_l0 2464 City : Audit Date: Dec 08, 2017 Country:

CCNf)ff!OP.�S A:::,::n.::::,:>M!::MI a

Last Audit: NA Auditors :

Redacted Taiwan Primary: Steak Wang

,A,,s:.cse,s.,.,sccm,,ec:n,.,.t., , ,·.c::o., ... ,... ,I,m,,· t ,,,ia,,l ........................................................................................... .................................................................. Secondary: None

�cl:l(;(lt1J(;'J'yp(; : Announced Service Provider: Intertek

WORKPLACE PERFORMANCE INDEX AND SUMMARY Participating facilities: 26882

85-100% High Performance

71-84% Medium Performance

51-70%Low Performance

0-50% iii Very low -Performance

-�

Overall Facility Score : 89% •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••

Average Counlry Score: /!3%

Average Global Score: 78%

Average Industry Score: 75%

Overall

Labor

W�es&HtJtttS

Management Systems

Environment

11.1.1.1a

75%

111 t(:':rt� k This message contains information, which is confidential and the copyright of lntertek. Alf rights resen;ed

Total Quality. Assured.

3 7

1

2 5

2

Page1of15

Workplace Conditions Assessment Report Nr. FJAR_102464

redacted

A. FACILITY PROFILE

Al. FACILI1Y INFORMATION

Facility Name:

Facility Legal Name:

Audit Location:

Country:

Contact Name:

ContaLt Title:

Industry:

Building Description:

Special building type:

Redacted

Redacted

Redacted

Taiwan

Ms. Christina Huang

General Manager

Hardlines

Facility Legal Status:

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:

Privately owned

1990

No

Ms. Yi Ping, Chang

ISO 22000:2005 / HACCP Certificate body: afuor group Certificate No: TTF12046 / THH12046 Valid Date: 19 2018

World Centric

Yes One electronic security system in the facility directly for 24 hours. The security system is just to guard the facility safety.

In view of the facilities, there are two buildings in the facility. The first building has occupied one 2-storey building, which is used as office, the second building has occupied one 2-storey building, which is used as production and warehouse.

The total land and floor area occupied by the facility is about 2,930 square meters and 2,537 square meters. The building material is included as cement, metal and concrete. However, no multi-stmy building with a gcound floor marketplace and commercial shop or shared with other facilities/ enterprises under separate ownership. Another, no kitchen is available in the facility, but one canteen is available for employees to use. One 3-storey building is used as dormitory, which is occupied with 99 square meters. (Outside the facility) There was no significant peak production month.

NA

This message contains information, which is confidential and the copyright of lntertek. Alf rights resen;ed Page2of15


Redacted

A2. PRODUCTION INFORMATION

Products manufactured/ PLA STRAW Services

Production process/ Service elements:

Production capacity a week:

Total number of machines:

Main machine types:

Extrusion and packaging.

10,000,000 pieces

38

10 extruder, 28 Automatic packing machines.

Time record system( s) used:

Chemicals or hazardous materials on-site:

Current production/ Services for client:

Swipe Card system

Yes Alcohol, Water-based ink

No

Shifts and Operating hours:

Employees work for 5 days a week from Monday to Friday. The working hour for administration department the general working hour is from 08:00 to 16:30 with 30 minutes lunch break from 12:00 to 12:30. Two shift is from 08:00 to 16:30; 16:30 to 00:30 at production department. There are 30 minutes of meal break for each shift.

A3. EMPLOYEE INFORMATION

Range of total number of 0-100 employees Female Employees: so

employees at the facility: Male Employees: 4 Union name: None Mgmt Employees: 6 Employs juvenile None Production (Non-workers: Management) Employees:

48

Hires through Yes The facility hired foreign Local Employees: 42 employment agent: of employees by employment

Foreign/Migrant Employees: 12 agency in the facility.

Employee nationalities/ There are 12 Vietnamese Languages spoken in the Taiwanese, Chinese and

provinces: workers and 42 Taiwanese Vietnamese.

workers in the facility. Management and employees Yes speak same language :

A4. SUBCONTRACTOR INFORMATION·····································································································································································································

No subcontractor information given



redacted

AS. GENERAL INFORMATION

During this audit, the facility was cooperative dming the facility tour, documents review, and photocopies of the reviewed documents were provided except payroll and attendance records due to confidentiality reason. Working conditions on the work floor were also acceptable. Through facility management interview, they are aware of the local labor laws and the relevant environmental laws. There is no child labor found in this facility. Through employees' interview, they are satisfied with this facility including working conditions, wages and benefits. No peak season in the facility. At the end of the audit, a closiog meeting was held with the facility management. All findings were discussed with Ms. Christina Huang/ General Manager, who agreed with the audit result.

Emergency Preparedness Summary

All firefighting equipment is kept clear, periodical inspection, clean and no fire evacuation exits and route has obstmcted. Auditor also checked the use of the emergency preparedness during the audit; and found out that they are working and is kept in normal status. The facility is fitted with sufficient firefighting equipment and has good control to manage emergency preparedness.

Based on facility tour and document review, the summary description of the existing fire equipment at the facility as below: 1. Fire alarms: 4 pieces.2. Fire Extinguishers: 22 pieces.3. Emergency exit lights: 8 pieces.4. Emergency lights: 17 pieces.5. Fire detector central control: 1 piece.6. Smoke detector: 86 pieces.7. Emergency directed light: 8 pieces.8. Fire Hose Reels: 4 pieces.9. Fire Hydrants: 4 pieces.

Based on dormitory tour and document review, the summary description of the existing fire equipment at the dormitory as below: 1. Fire Extinguishers: 6 pieces.2. Emergency exit lights: 2 pieces.3. Emergency lights: 4 pieces.4. Smoke detector: 5 pieces.

Based on document review the last two evacuation drills have conducted on 13 September, 2017 and 27 March, 2017.



redacted

A6. AUDIT PROCESS

Audit pay period provided for review

Records

12 Months

From

01-12- 2016

12 Months Attendance 01-12- 2016

To

30-11- 2017

30-11- 2017

Payroll and attendance records sampling

Employee interview sampling

Individual 6

Group

Total interviewed

0

6 employees were interviewed.

Period

Current Period

From

01-11-2017

To

30-11-2017

Peak Season

No

Records Reviewed

6

Period 1 01-07-2017

Period 2 01-03-2017

Total

Other records reviewed

Personnel records

Production records

Employment contracts

Social insurance documentation

Infirmary logs

31-07-2017 No

31-03-2017 No

Machine maintenance records

Non-Production records

Legal Permits

Employee leave register

Health examination records

3

3

12

This message contains information, which is confidential and the copyright of lntertek. Alf rights resen;ed Page 5 o/15


redacted

B. KEY PERFORMANCE METRICS

B1. COMPARISON BENCHMARK

Current performance Global average, Taiwan average, Hardlines average

Labor Wages & Hours Health & Safety Management Systems

100%

i \:if '),) 96 94

-----80%

•••• 60% ••••----

20%

0% iiii

!!! • 7iiiii •-

i

H9

• •-

i

f16 ;;; 7R

• • • •- -

I I

7(�

• • I I l,':',':',','I

! ! LI

B2. PERFORMANCE TREND ANALYSIS

Current Last First Section Name

(08-Dec-2017) (Not Applicable) (Not Applicable)

Labor 100 Not Applicable Not Applicable

Wages & Hours 100 Not Applicable Not Applicable

Health & Safety 95 Not Applicable Not Applicable

Management Systems 63 Not Applicable Not Applicable

Environment 75 Not Applicable Not Applicable

Overall Score 89 Not Applicahle Not Applicable

Advancers r.m:::: Constant �� Decliner

PERFORMANCE RATING

cc ,!i

Change

,---,

I I 0 I

i i LJ

(Current-Last)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Environment

f]() 82 7,'i

Change

(Current-First)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Low(51% 70}'.:) Medium (71 % 1141/) High (85% I Oil/)

This message contains information, which is confidential and the copyright of lntertek. All rights rese1Ved Page 6 of15


redacted

B3. WORKING HOURS AND WAGES

Average total hours worked weekly

Normal Work Hours

120 hrs

100 hrs

80 hrs

60 hrs

.tQ hrs

20 hrs

0 hrs

"""'Overtime Work Hours

::::::::::::::::::: 6 ·:,

01-11-2017

30·11·2017Average

lnternaUonal Standard: 60 Taiwan average: 46

Average wages paid in local currency (NTD)

30000 .VTD

25000 :--iTO 21020 21009

20000 �nD

15000 �TD

10000 'ITD

01-07-2017

:n-o?-2017Average

''''''''''''''''''' 5 ''

01-03-2017

:n-03-2017Average

Highest hours this faciliry: 47

£6:;75

24262

This Facifit;y Minimum Wuge Province Average Country Average

Special wage circuntstances: No any special circumstances related to minimum wage/ agreed wage in the facility.



redacted

Wages and hours summary: Payment day is on a monthly basis and are bank auto-pay to all of the employees' accounts on the 5thof each month.

The three months [November 2017, July 2017 and March 2017) of attendance and payroll records are drawn from three months period. (Reviewed record from December 2016 to November 2017)

The wage, regular working hours and overtime hour statistics were the following: 1. Total daily regular working hours are 8 hours and weekly regular working hours are 40 hours.[Legal weekly regular working hours are 40 hours after January 01. 2016.)

2. Maximum daily overtime hours are 3 hour: and maximum monthly overtime hours are 46 hours.All of them meet legal requirement ( 46 hours a month)

3. The actual minimum wage for the facility is NTD 21,009 per month that meet legal requirement[Legal minimum wage is NTD 21,009 per month or NTD 133 per hour after 01 January, 2017.)



redacted

C. PERFORMANCE DETAILS

Current (08-Dec-2017)

Cl. Labor

!OU

l3(,.

60.

40 --

20 1111

o-

NA

!! • --

!!! NA

!! • --

!!! NA

C2. Wages & Hours

100

8(1 !!!

:I NA

0 -::;;r::cr LJst

PERFORMANCE RATING

!!!

I NA

\:,.'a/;.::, '--- �t'.-'! __ __,

fkr::li'.s

• • --

!!!!

Low(51% 70}'.:)

• • --

!!!

Medium (71 % 1141/)

• • --

!! NA

High (85% I Oil/)

This message contains information, which is confidential and the copyright of lntertek. All rights rese1Ved Page9of15


redacted

C3. Health & Safety

NA NA NA NA NA NA

l:JlT:'JCt cu·1c-1:;·

L'i,:'i'_J L inu;.,,; J L >,,r,ti.dj LM h(v_J L •;,.;y _J L '''.:::" _J L D,w'.n. 1.u: _,EC -

'.".,c'i'L;· Prep;i!\:'(Ff;,';i 11\P'.'Y YJ:t::y ili!ZT'(>; )!·1;-n:nm M;<;,,.n;0],; C'.:;,-:�-�·-1

Sub Section: Safety Hazards

Moderate 232.00 : Special appliances such as boilers, unfired pressure vessels, and furnaces have 84%

not been registered and affixed with a registration certification Auditor's comment In accordance with the Building Act: A1ticle 77�4, The elevating equipments and mechanical parking facilities may not be used before the usage permit is obtained after passing the completion inspection. Based on document review and facility tour, it was noted that the one elevating equipment has no a registration certification. Labor Safety and Health Act: Chapter 2, Article 8 Employers shall be not permitted to utilize machinery or equipment determined to be potentially dangerous by the competent authority of the central government, without first passing inspection by an inspection agency or designated inspection organizations appointed by the said authorities. Employers shall not continue utilizing such machinery or equipment past specified expiration dates without re�inspection and further approval. "Dangerous machinery'' shall include: (1) Fixed cranes, [2) Mobile cranes, [3) Crank arms, [4) Elevators, [5) Construction Lifts, [6) Gondola and, (7) All other machinery as specified by the competent authority of the central government

PERFORMANCE RATING

Low(51% 70}'.:) Medium (71 % 1141/) High (85% I i!ilf)

This message contains information, which is confidential and the copyright of lntertek. All rights rese1Ved Page 10 of 15


redacted

C4. Management Systems

lOO

80

40

20 NA

0

Sub Section: Management Systems

• Minor

e Minor

Moderate

• Minor

296.07: The facility has comprehensive employee safety 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 established policies and procedures, the monitoring system may not be effective or policies are incomplete thus resulting to lapses of implementation with the finding: Based on document review and facility tour, it was noted that the one elevating equipment has no a registration certification.

299.00 : The facility has not implemented any internal accountability standards and procedutesfor tuigtantemployees(domestically and/ orintematiooolly) at the facility and within suppliers/ sub-contractors that evaluate and address the risks of human trafficking and slavery. Auditor's comment Based·on- management interview and document -review, indicated·thatthe facility does not have a policy and did not conduct evaluation to monitor its suppliers and subcontractors against human trafficking and slavery.

300.00 : The facility does not conduct periodic assessments (including internal audit) of its management system in order to identify improvement opportunities Auditor's comment Based on management interview, it was noted that the facility did not conduct assessments regarding social compliance in the past.

31J'l,IJIJ :Thdaci]ity .do"s n<>t t:ike apprqpriate andprnventatiye action to stqp a recmTence of the same or similarlabor or health & safety problem Auditor's comment Based on management interview, it was noted that the facility did not implement a system to does the facility take appropriate and preventative action to stop a recurrence of the same or similar social compliance problem in the past. Occupational safety and health Organization Management and Automatic Inspection Rule, Chapter2,Article 10 When employees in organization is higher than 100 persons, employer shall establish labor safety and health management rule. The rule must be prescribed with reference to the following particulars: (1) The labor health and safety management system and the power and responsibility

' •·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•· 1 ofevery levelunitforthe enterprise:(Z)Maintenance and inspectionofequiprnent:(3) Occupational health and safety standards; [ 4] Education and training: (5) First aid and emergency rescue; (6_) Preparation, maintenance and use of safety equipment; (7_) Informing and reporting of accident: and (8) All other items related to health and safety.

PERFORMANCE RATING

54%

76%

75%

82%




redacted

Sub Section: Management Systems

• Minor

• Minor

302.00 : There are no written records (correspondence, report, meeting minutes, etc) of a regular management review of the social compliance system Auditor's comment Based on management interview, there is no written record for reviewing system

303.00 : The facility does not have appropriately defined and documented responsibilities and authorities for managers, supervisors and employees

Auditor's comment Based on management interview, it was noted that the facility does not have appropriately defined and documented responsibilities and authorities for managers, supervisors and employees for social compliance. Labor Safetyand.Health.Act: Chaplet: 3,Artkle 14 Employer shall, according to the scope and nature of its enterprise, put safety and health

1

• • ••• ••• ••• ••• ••• ••• ••• ••• •••••• ••• • • ' iriahaiieirient:iri place, arid accoi'diri!ifothespecfficalioriofthe cofopeterifauthOdWofthe ceritiat government, establish labor safety aod health organization, and staffing. Employer shall establish self-inspection plans and carryout self-inspection for machinery and equipment, and its operation

Moderate

Labor Safety and HealthAct:ChUpter 3; Article i5 Employers shall employ only those personnel who have passed training approved by the competent authority of the central government, or whose technical competence has been cet'tifled, to operate machinery or equipment determined to be potentially dangerous by the competent authority of the central government

309.00 : The facility does not establish, maintain or document appropriate procedures to evaluate and select suppliers and/or subcontractors based on their pe1formance and commitment towards social compliance Auditor's comment Based on management interview, it w as noted that the facility does not establish, maintain or document appropriate procedures to evaluate and select suppliers and/or subcontractors.

PERFORMANCE RATING

66%

81%

72%




redacted

CS. Environment 75%

lOO

80

40

20 NA

0

(UTvC':

L-r.nvi-nr,r,1,-n___J

Sub Section: Environment

• Minor 321.00: The facility does not have a nominated individual( or depending on the size of 92% the enterprise, a team) responsible for coordinating the site's efforts to improve environmental performance

Auditor's comment The facility does not have a nominated individual responsible for coordinating the site's efforts to improve environmental performance.

Labor Safety and Health Act: Chapter 3, Article 14 Employer shall, according to the scope and nature of its enterprise, put safety and health management, in place, and according to the specification of the competent authorily of the central government, establish labor safety and health organization, and staffing.

·e· 'MillOT" ...... ... ... .. . ...... 322�0(f:"tiie"tacntty ·does· 11oihave·any·e11Vfr011tnei1ta1 ·managemetit ·sys1·em·iti .. p1ace· ............ "'"'"'"'73%"'"'"'"'

Auditor's comment No any environmental management system in place,

% 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

Low(51% 70}'.:)

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

• Zero Tolerance: Take immediate action to makenecessary improvements.

Medium (71 % 1141/) High (85% I Oil/)



redacted

D. STRENGTHS AND CHALLENGES

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

The facility has comprehensive working hour and wages management processes and procedures in a written manual that support adherence to social compliance requirements and are being properly implemented

The facility provides social security, pensions, healthcare and/ or other insurance to employees as per legal requirement.

The facility does not have a nominated individual[ or depending on the size of the enterprise, a team) responsible for coordinating the site's efforts to improve environmental performance

Special appliances such as boilers, unfired pressure vessels, and furnaces have not been registered and affixed with a registration certification

The facility does not take appropriate and preventative action to stop a recurrence of the same or similar labor or health & safety problem

The facility does not have appropriately defined and documented responsibilities and authorities for managers, supervisors and employees

The facility has not implemented any internal accountabilily standards and procedures for migrant employees [ domestically and/ or internationally] at the facility and within suppliers/ sub-contractors that evaluate and address the risks of human trafficking and slavery.

The facility does not conduct periodic assessments (including internal audit) of its management system in order to identify improvement opportunities

The facility does not have any environmental management system in place

The facility does not establish, maintain or document appropriate procedures to evaluate and select suppliers and/or subcontractors based on their performance and commitment towards social compliance

There are no written records (correspondence, report, meeting minutes, etc) of a regular management review of the social compliance system

Minor

Moderate

Minor

Moderate

Minor

Minor

Minor

Moderate

Minor

Moderate

Minor

This message contains information, which is confidential and the copyright of lntertek. Alf rights resen;ed

51%

57%

92%

84%

82%

81%

76%

75%

73%

72%

66%

Page 14 of 15


redacted

DISCLAIMER

This report is for the exclusive use of the client oflntertek named in this report ("Client"] and is provided pursuant to an agreement for services between lntertek 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 infonuation 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, Intertek 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 te1ms 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.

This message contains information, which is confidential and the copyright of lntertek. Alf rights resen;ed Page 15 of 15

Documents

Workplace Conditions Assessment Report - World … Straws Factory Fair Labor Audit Dec... · Workplace Conditions Assessment Report ... satisfied with this facility including working