anufacturer compliance evaluation report©—廠報告/cam/macy's 20130530/… · h. child...

This Manufacturer Compliance Evaluation Report is proprietary to Macy’s and should be considered confidential. It may not be shared with any third party without the written consent of an authorized Macy’s representative.

MMG-MCER 10.2012

SUPPLIER INFORMATION MMG Office: Taiwan Supplier ID: 24026

(If applicable)

Supplier Name: TAI YAR GARMENT INDUSTRY CO., LTD.

MANUFACTURING LOCATION Name of Manufacturer: TY FASHION (CAMBODIA) PLC

Manufacturer ID: 39614 For Aeropostale Orders : Yes No

(if applicable)

Factory Contact: Mr Ryne Du

Title: Compliance Supervisor

Email: [email protected]

Address: Rd No 51 Srah Po village, Phsardek Commune, Ponhealeu DIstrict, Kandal

City: Ponhealeu DIstrict State/Province: Kandal

Postal/Zip Code: Not provided Country: Cambodia

Telephone No.: +855 23369676 Fax No.: N/A

INITIAL / ANNUAL AUDIT Type of Audit: First Time Audit of New Factory

Annual Audit of Existing Factory

Last Visit Date: April 27, 2012 Done By: MMG UL-RS

Audit Date: May 30, 2013

Name of Evaluator: Abdul Caffar Yaseen Aroos Office: Taiwan

Initial / Annual Audit Result: Fully Compliant Waived Compliant with Improvement

Waived Compliant Areas of Concern Unacceptable

Next Audit Due: 3 months after this audit (MMG NY will advise next audit date for LDP programs)

FIRST VERIFICATION AUDIT (if applicable) 1st Verification Date:

Name of Evaluator: Office:

Verification Result: Fully Compliant Waived Compliant with Improvement


Next Audit Due: months after this audit (MMG NY will advise next audit date for LDP programs)

SECOND VERIFICATION AUDIT (if applicable) 2nd Verification Date:

Name of Evaluator: Office:

Verification Result: Fully Compliant Waived Compliant with Improvement


MANUFACTURER COMPLIANCE EVALUATION REPORT

Appendix 3


MMG-MCER 10.2012 1

PRIVILEGED & CONFIDENTIAL INFORMATION

TABLE OF CONTENTS Questions

I CONCLUSION i - iii

II BACKGROUND

A. MANUFACTURER PROFILE 1 - 9 B. PLANT AND MACHINES 10 - 11 C. SUBCONTRACTING 12 D. HOMEWORKERS 13 - 16 E. WORKFORCE PROFILE 17 - 22

III EMPLOYMENT POLICIES A. WORKER AWARENESS 23 - 28 B. FACTORY RECORDS 29 - 31 C. CHILD LABOR 32 - 38 D. FORCED LABOR 39 - 45 E. NON-DIRECT RECRUITING LABOR 46 - 57 F. FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 58 - 63 G. HARASSMENT OR ABUSE 64 - 67 H. DISCIPLINE AND TERMINATION 68 - 71 I. NONDISCRIMINATION 72 - 75 J. PREGNANCY 76

IV COMPENSATION AND HOURS A. WORK HOURS 77 - 83 B. WAGES AND BENEFITS 84 - 95 C. OVERTIME 96 - 102 D. PAY PRACTICES 103 - 106

V HEALTH AND SAFETY A. EMERGENCY EVACUATION AND FIRE SAFETY 107 - 120 B. MEDICAL CARE 121 - 125 C. SANITATION 126 - 133 D. WORKING CONDITIONS 134 - 138 E. PERSONAL PROTECTIVE EQUIPMENT 139 - 142 F. CHEMICAL SAFETY 143 - 148 G. EXPLOSIVE HAZARDS 149 - 152 H. CHILD SAFETY - BROKEN NEEDLE POLICY 153 - 157

VI ENVIRONMENTAL 158 - 164

VII DORMITORIES (If not applicable, check Box : ) A. BACKGROUND 165 - 171 B. EMERGENCY EVACUATION AND FIRE SAFETY 172 - 180 C. MEDICAL CARE 181 - 185 D. SANITATION 186 - 189 E. LIVING CONDITIONS 190 - 192

VIII COMPLIANCE AUDIT SUMMARY IX CORRECTIVE ACTION PLAN


MMG-MCER 10.2012 2

I. CONCLUSION i Were you restricted or unable to complete this report completely and

accurately due to management interference/uncooperativeness? Yes No

If yes, give specifics: N/A

ii Are all required photographs demonstrating the factory’s compliance efforts attached?

Yes No NA

If no, give specifics: N/A

iii How do you grade the results of this compliance evaluation?

Fully Compliant

For best practice recommendations, details are provided on the Corrective Action Plan form (Section IX)

Waived Compliant with Improvement

For minor non compliances on working hours, details are provide on the Corrective Action Plan form (Section IX)

Waived Compliant

For minor non compliances, details are provided on the Corrective Action Plan form (Section IX)

Areas of Concern

Specifics of each concern are provided on the Corrective Action Plan form (Section IX)

Unacceptable

Give specifics:


MMG-MCER 10.2012 3

II. BACKGROUND A. MANUFACTURER PROFILE 1 Date MMG commenced working with this manufacturer: April 12, 2012

2 No. of years the manufacturer has been operating out of this factory premise: 5 Years

3 a. Total no. of buildings (exclude dormitories) in factory/compound: 2

b. Number of floor levels of each building:

Single (Ground level)

c. No. of square feet (or meters) factory premise occupies:

28800 Square meters

4 Which current certifications or stakeholder initiatives does this factory hold or participate in:

WRAP SA8000 FLA ILO Better Factories/Better Work

Other NA

5 a. Production Capacity per month (estimate): 1.2 Million

b. Plant Specialties: Knitted garments of all types for men, women and children

6 Key customers/markets currently in process as reported by the manufacturer (with approx. %)

a) Carter - 30% b) H&M 30% c) C&A 30&

d) Macys 10% e) f)

7 Labels viewed on the workfloor while conducting the assessment (with approx. %):

a) Carter - 30% b) H&M 30% c) C&A 30%

d) e) f)

8 Products/Label this factory has/will produce for MMG:

9 Required Lead Time (placed order to shipment): 120 Days

B. PLANT AND MACHINES (only applicable for MMG NY’s LDP programs) 10 Plant Capabilities: (if “other”, please describe)

Cutting Sewing Injection Molding Welding

Pressing Trimming Rotocast Molding Painting

Embroidery Dyeing Blow Molding Sanding

Printing/Screening Packaging Plating Polishing

Washing Drying Die Casting Assembly

Other

11 Machine Breakdown: (if an actual is unavailable, an estimate must be provided.)

Total # Single Needle Double Needle Multi Needle

Blindstitch Overlock Buttonsew Buttonhole

Bartack Cutters Spreaders Pressers

Injection Molding Rotocast Molding Blow Molding Plating

Die Cast Welders Painting Sanders


MMG-MCER 10.2012 4

Other

C. SUBCONTRACTING 12 Subcontractor Profile

a. Subcontractor Name: Facility does not use sub-contractors for the client's production.

Is subcontractor used/planned for MMG production? Yes No

Plant Specialty:

Address:

City: State/Province:

Postal/Zip Code: Country:

b. Subcontractor Name:

Is subcontractor used/planned for MMG production? Yes No

Plant Specialty:

Address:



D. HOMEWORKERS 13 Does the facility employ homeworkers? Yes No

14 Are homeworkers used on the client production? Yes No

15 Does the facility maintain appropriate wage and hour records for homeworkers?

Yes No NA

16 Does the facility maintain age documentation for the home workers? Yes No NA


MMG-MCER 10.2012 5

E. WORKFORCE PROFILE 17 Total number of employees (workers plus office staff): 2253

18 Total number of production workers at the factory: 2229 Number of work shifts per day: 1

19 Language(s)/dialect(s) spoken by workforce: Khmer

20 How are workers recruited? (check all that apply)

Newspaper Advertisement Employment Agent/Broker

Employee Referral Government

Vacancy Posting Outside Factory Other

21 Number of apprentices or trainees employed: Nil

22 a. Does the facility workforce include any of the following?

Foreign Imported Workers Contract Workers

Domestic Migrant Workers Seasonal or Temporary Workers

b. Are there any non-citizen / non-legal permanent resident employees (excluding office staff) employed at this factory?

Yes No

If yes, list nationalities and their job level.

Nationalities Number Job Level


MMG-MCER 10.2012 6

III. EMPLOYMENT POLICIES A. WORKER AWARENESS 23 Does the factory have the Macy’s Code of Conduct in all the native

language(s) of the work force? Yes No NA

Applicable Language(s):

Khmer

24 Does the factory prominently display the Macy’s Code of Conduct? Yes No NA

Location(s) of Poster Display:

production floor

25 a. Is it legally required to post labor laws or have the labor law books kept in the factory for workers perusal?

Yes No

b. If yes, are local labor laws / labor law books prominently posted / kept in the factory?

Yes No NA

26 Does the factory maintain written personnel policies? Yes No

If yes, do the policies cover:

Wages Yes No

Benefits and Deductions Yes No

Vacations and Leave Yes No

Regular Working Hours Yes No

Overtime Hours Yes No

Overtime Rates Yes No

Discipline and Termination Yes No

Grievance Procedures Yes No

Personal and Sick Leave Yes No

Harassment and Abuse Yes No

27 Is a copy of all these policies routinely distributed to all workers in their native language?

Yes No NA

28 Are all these personnel policies prominently posted/displayed where workers have easy and comfortable access?

Yes No NA

B. FACTORY RECORDS 29 a. Is it legally required for the factory to have a written

employment agreement with every worker? Yes No

b. If yes, does the factory maintain a written employment agreement with every worker?

Yes No NA


MMG-MCER 10.2012 7

B. FACTORY RECORDS 30 a. Does the factory maintain official documentation on site that verifies all

worker’s date of birth? Yes No

b. Provide specific name of documents maintained for local workers:

1. National ID Cards

and / or (circle one)

2. Family Books


3. Birth Certificates


4.


5.


c. Provide specific name of documents maintained for foreign workers:

(If not applicable, check Box: )

1.


2.


3.


4.


5.


31 Did you find any evidence of intentional falsification of age documents at the factory?

Yes No


MMG-MCER 10.2012 8

C. CHILD LABOR No person shall be employed at an age younger than 15 (or 14 where the governing law allows such employment), or younger than the age for completing compulsory education if the age in the country of manufacture is greater than 15.

32 Youngest age of workers employed in the factory: 18 Years

33 a. The legal minimum working age mandated in this country:

With Restrictions 15 years Without Restrictions 18 years

b. Number of workers whose age falls within that of “with restrictions”: 0

34 Restrictions Required* (Check legal restrictions that apply)

Is the Factory in Compliance?

Work Hours/Days Yes No NA

Night Work Yes No NA

Parental/ Government Permission Yes No NA

Type of Work Yes No NA

Doctor’s Certificate Yes No NA

35 Are records for workers whose age falls within that of “with restrictions” kept separately for monitoring?

Yes No NA

36 Did the factory employ any child labor in the past one year? Yes No

37 Do you find any children present on the work floor at the time of evaluation visit?

Yes No

38 If yes for Q.37, are the children working on the work floor? Yes No NA

D. FORCED LABOR There shall not be any use of forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise.

39 Are there any workers in this facility that are prisoners or indentured labor? Yes No

40 Are there any workers in this facility that have been assigned to the facility by the military or any branch of government?

Yes No

41 Are there any workers employed who do not receive wages for their work in the factory?

Yes No

42 Will workers be penalized if they do not meet their minimum daily quota? Yes No

If yes, by what means? Mandatory overtime

Work at regular rates

Work without any pay

Below minimum wages payment

Forbidden from leaving the factory

Other

43 Are workers allowed to leave the factory at the end of the work day / shift schedule when work is incomplete?

Yes No


MMG-MCER 10.2012 9

D. FORCED LABOR 44 Is freedom of workers being restricted? (e.g. restricted restroom break, water

breaks, etc) Yes No

45 a. Are original personal identification documents being kept by the factory?

Yes No

b. If yes, is it at the consent of the workers? Yes No NA

E. NON-DIRECT RECRUITING LABOR NA 46 Number of workers employed at this factory:

47 Nature of Contract with:

Labor Broker Labor Contractor Other

Information of Labor Brokers / Contractors:

a. Name:

Address:



Telephone No.: Fax No.:

Email:

b. Name:

Address:



Telephone No.: Fax No.:

Email:

48 a. Did the factory pay a fee to the labor broker/contractor? Yes No NA

b. Did the factory receive a commission/rebate from the labor broker/contractor?

Yes No NA

49 Workers are paid by

Factory Labor Broker Labor Contractor Other

50 a. Did the workers pay any fees, taxes, deposits or bonds for the purpose of recruitment or placement?

Yes No

b. If yes, to whom?


51 Are workers in debt due to recruitment or placement? Yes No

52 Were workers deceived about their terms of employment at the time of recruitment?

Yes No

53 Were workers pressured, coerced, or threatened in any way into accepting the job?

Yes No


MMG-MCER 10.2012 10

E. NON-DIRECT RECRUITING LABOR 54 Has anyone threatened or coerced workers to maintain them in employment

(e.g. threat of denunciation to authorities, law enforcement)? Yes No

55 a. Are there any restrictions on workers’ freedom to terminate employment?

Yes No

b. If yes, the restrictions are :

Breach of contract penalties Cost of transportation back to home town

Passport retained by factory Other

56 a. Are workers’ original personal identification documents such as passport being kept by themselves?

Yes No

b. If no, it is retained by


57 a. Are all workers paid minimum wage or higher as per their contract terms?

Yes No

b. Are deductions taken from the workers’ pay? Yes No

c. If yes, are deductions withheld by


F. FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING Suppliers should respect the rights of employees to lawfully associate or not to associate with groups of their choosing, as long as such groups are legal in the country where the merchandise is manufactured. Suppliers should not interfere with, obstruct or prevent legitimate related activities.

58 a. Are employees free to join unions or other worker organizations?

Yes No NA

b. If no, why not? N/A

c. Does senior management interfere with other legal means of organizing and bargaining?

Yes No NA

59 a. Is the facility associated with a Union or Trade Association? Yes No NA

b. If yes, name of organization : Shops Stewards

60 Does senior management consult with employee representatives in establishing working conditions for the well being of workers?

Yes No NA

61 Is there one or more workers’ representative at the facility? Yes No NA

62 Are union or worker organization meeting held on the premises? Yes No NA

63 a. Does management have regular meetings with worker representatives?

Yes No NA

b. If yes, how often? Once a week


MMG-MCER 10.2012 11

G. HARASSMENT OR ABUSE Workers shall be treated with respect and dignity. Workers shall not be subject to any physical, verbal, sexual or psychological harassment or abuse in connection with their employment.

64 Does the factory maintain a formal written anti-harassment and abuse policy? Yes No

65 Have the contents and procedures of this policy been communicated to all workers?

Yes No NA

If yes, by what means? Posted on notice board

Included on worker employment agreement/policy

Policy copy given to all workers

Other

66 Does the factory maintain a complaint / incident report record? Yes No

67 Is there any evidence or report of harassment at the factory? Yes No H. DISCIPLINE AND TERMINATION 68 Is there any evidence that the factory uses corporal punishment of any type? Yes No

69 a. Has the factory established and standardized written procedures for disciplining and firing workers?

Yes No

If yes, disciplinary measures include:

Verbal Warnings Written Warnings Punitive Wage Deductions

b. Have disciplinary procedures been communicated to all workers?

Yes No NA

70 Are terminations compliant with local law? Yes No

71 Does the factory maintain a record of all disciplinary notices in each worker’s personnel file?

Yes No

I. NONDISCRIMINATION Workers should be employed and compensated based upon their ability to perform their job, rather than on the basis of gender, race, religious or cultural beliefs.

72 Does the factory maintain a formal written anti-discrimination policy? Yes No 73 Has the policy been communicated to all workers? Yes No NA

If yes, by what means? Posted on notice board

Included on worker employment agreement/policy

Policy copy given to all workers

Other

74 Does the factory maintain a complaint / incident report record? Yes No 75 Is there any evidence or report of discrimination at the factory? Yes No J. PREGNANCY 76 During the period of employment, does the factory require any female

workers to undergo pregnancy testing? Yes No


MMG-MCER 10.2012 12

IV. COMPENSATION AND HOURS A. WORK HOURS As part of normal business hours, suppliers’ factories should be working toward achieving a 60-hour work week on a regular basis. Employees shall not work more than 72 hours or more than a maximum total of 14 hours per a continuous 24 hour period and should limit this to peak periods. Workers shall not be asked or required to take work home or off premises and must be permitted one full day off per each seven day week.

77 Factory’s regular workweek policy:

Weekday : From 7:00 AM To 4:00 PM

Weekend : From AM To PM

Break periods provided to all workers:

A.M. Minutes

Lunch 60 Minutes

P.M. Minutes

Number of working hours per week (exclusive of breaks) is 48 hours.

When is the peak season months (if any) for the factory : Non seasonal

(Up to a maximum of 4 months)

78 Are workers given at least one day off in seven? Yes No 79

a. During the last three months, were there instances where employees worked in excess of six consecutive days?

Yes No

b. If yes, does this appear to be non-systemic or based upon seasonal production schedules or other factors?

Yes No NA

Give specifics, if yes :

80 Are manual time records or electronic time cards physically present and being used to record both “in” and “out” time?

Yes No

If no, give specifics on how work time is being recorded: N/A

81 Do all workers including those on piece rate sign or punch themselves in? Yes No

82 Are falsified payroll registers and time records found at the factory? Yes No

83 Are workers asked or required to take work home or off premises? Yes No


B. WAGES AND BENEFITS Employers should recognize that wages are essential to meeting their employees basic needs. Employers shall pay workers for all work completed and shall pay at least the minimum wage required by law or the prevailing industry wage, whichever is higher, and shall provide legally mandated benefits.

84 How are workers paid? Salary per Hour Piece Rate Salary per Day

(Check all that apply) Salary & Bonus Piece Rate & Bonus Other

85 Does the factory maintain payroll records on file to all employees? Yes No

86 Do payroll records contain all details such as hours worked, overtime hours, rate of pay, legal deductions etc. to sustain the wage payment as legally required?

Yes No


MMG-MCER 10.2012 13

B. WAGES AND BENEFITS 87 a. The legal minimum wage mandated in this country: 61 US$/Month

b. Are all workers paid in accordance with minimum wage laws? Yes No

88 Do piece rate workers receive at least the legal minimum wage no matter how many pieces they produce?

Yes No NA

89 Are all workers provided all the benefits to which they are legally entitled?

Yes No

90 Do female workers receive all maternity leave and benefits that they are legally entitled to?

Yes No

91 Does the factory pay employee mandated withholdings to the appropriate government agency?

Yes No

92 Are any workers paid lower wages during probation or training? Yes No If yes, give specifics: N/A

93 Does the management of misconduct or poor performance include fines?

Yes No

94 Are any wages after fine deductions less than the minimum wage laid down by law?

Yes No NA

95 Are workers paid on time as legally required? Yes No C. OVERTIME It is understood that overtime is often required in the manufacturing process. In addition to compensation for regular hours of work, workers must be compensated for overtime hours at such a premium rate as legally required or, in countries where there is no legal standard, at industry standards. In no event shall this be at a rate less than the regular hourly rate. Factories shall carry out operations in ways that limit overtime to a level that ensures productive and humane working conditions.

96 The legal limit of overtime hours(H)/days(D) in this country:

• For men 2 per day 12 per week per month per year

• For women 2 per day 12 per week per month per year

• For juveniles per day per week per month per year

97 The legal overtime rates in this country:

On Workweek 1.5 times regular wages

On Sunday 2 times regular wages

On Public Holiday 2 times regular wages

98 Are workers paid overtime as required by law? Yes No 99 Is all overtime voluntary? Yes No 100 Is overtime tracked by a time card? Yes No

If no, give specifics on how time is being verified: N/A


MMG-MCER 10.2012 14

C. OVERTIME 101 a. During the last three months, were there instances where

employees working hours exceeded the legal maximum or 60 hours a week (if there is no legal maximum set)?

Yes No

b. If yes, does this appear to be non-systemic or based upon seasonal production schedules or other factors?

Yes No NA

Give specifics, if yes :

102 Does the factory obtain written waivers from Government authorities in the event that the number of planned work hours for a

Yes No NA

given week exceeds the legal maximum? (If the factory’s working hours never exceed the legal limit, check the box NA)

D. PAY PRACTICES 103 For each pay period, does the factory provide workers with a clear and

understandable Wage Statement that includes days worked, wage or piece Yes No

rate earned per day, hours of overtime at each specific rate, bonuses, allowances and legal or contractual deductions?

If no, please explain: N/A

104 a. Are there deductions from workers wages for any of the following items?

Meals Yes No

Accommodation Yes No

Agency Fee Yes No

Uniform Yes No

Transport Yes No

Personal Protective Equipment Yes No

Other

b. Are the deductions compliant with local law? Yes No

105 a. Do workers receive their full compensation directly from the factory? Yes No

b. If no, please explain: N/A

106 a. What is the frequency of payroll?

Weekly, please specify

Bi-weekly, please specify

Monthly, please specify

Employees are paid on or before the 10th of the following month

Other, please specify

b. How are workers paid?

Cash Check Auto Pay Other


MMG-MCER 10.2012 15

V. HEALTH AND SAFETY Employers shall provide a safe and sanitary working environment in order to avoid preventable work-related accidents and injuries.

A. EMERGENCY EVACUATION AND FIRE SAFETY 107 a. Are there any aisles, exits and stairwells blocked? Yes No


b. Will this obstruct the orderly evacuation of workers? Yes No NA

108 Do stairways with four or more steps have a secure handrail? Yes No NA

If no, give specifics: N/A

109 Are stairwells, corridors and aisles at least 22” wide? Yes No

110 Is every workstation within 200 feet from an exit? Yes No

111 Do all exits meet the requirements below?

• Unlocked Yes No

• Clearly Marked Yes No

• Minimum Width of 33” Yes No

• Equipped with battery operated emergency lights Yes No

• Lead to ground level exits Yes No

112 Are there sufficient number of exits provided in the work floor? Yes No

113 a. Does the factory have emergency evacuation diagrams posted on the work floor?

Yes No

b. Are the emergency evacuation diagrams accurately drawn and clearly visible to employees?

Yes No NA

114 Are all electrical cables and wiring encased and not exposed so as to be a fire hazard?

Yes No

115 Are all control/electrical panels covered and labeled? Yes No

116 Do all types of fire extinguishers meet the requirements listed below?

a) Properly maintained and inspected annually with the date of last inspection

Yes No

b) Clear of obstacles Yes No

c) Clearly marked and visible to workers Yes No

d) Mounted on wall and columns throughout the factory Yes No

If not mounted, how are they placed? Give specifics: N/A

e) Easily accessible to workers Yes No

Total number of fire extinguishers in the factory premise: 210


MMG-MCER 10.2012 16

A. EMERGENCY EVACUATION AND FIRE SAFETY 117 Is sufficient number of fire extinguisher provided and within 75 feet of each

worker’s work station? Yes No

118 a. Does the factory carry out a fire drill at least once per year? Yes No

b. If yes, provide date last fire drill was conducted: January 7, 2013

c. Does the factory keep a record of the result of this drill? Yes No NA

119 Have at least 10% of the workforces been provided with hands-on training on the use of a fire extinguisher?

Yes No

120 Does the factory have the following recommended fire prevention/ evacuation equipment?

• Fire Hoses Yes No

• Overhead Sprinklers Yes No

• Audible Fire Alarm System Yes No

• Photoluminescent exit routes marked on the floor (yellow line or arrows leading towards the exits)

Yes No

B. MEDICAL CARE 121 Does the factory maintain sufficient first aid kit? Yes No

If yes, provide specifics of number of first aid kits in the factory: 30

122 Is the first aid kit visible and easily accessible? Yes No NA 123 Do first aid kits include the following supplies?

Bandages Yes No

Sterile Gauze / Cotton Balls Yes No

Adhesive Tape / Plasters Yes No

Disinfecting / Antiseptic Agent Yes No

Antibacterial Ointment Yes No

Sterile / Surgical Gloves Yes No

Forceps (tweezers) Yes No

Disposable Gloves Yes No

Tourniquet Yes No

Other Scissor

124 a. Does the factory maintain a sick bay in the factory? Yes No

b. If yes for question a), does the factory maintain a sick bay with medical personnel on duty during all working hours?

Yes No NA

c. If no for question a), does the factory have first aid certified person on site?

Yes No NA

125 Does the factory maintain an injury log? Yes No


MMG-MCER 10.2012 17

C. SANITATION 126 Does the factory provide free, potable water for all workers? Yes No

127 Does the water supply appear sufficient for the size of the workforce? Yes No

128 Do workers have reasonable access to potable water at all times? Yes No

129 Does the factory provide sufficient toilet facilities for each sex? Yes No

130 Are toilet facilities separated by gender? Yes No

131 Are toilet facilities private, clean/sanitary and in working order? Yes No

132 Do workers have reasonable access to toilet facilities at all times? Yes No

133 Please advise worker to toilet ratio 1 Toilet : 25 Workers

D. WORKING CONDITIONS 134 Do mezzanines have guardrails present to prevent falling? Yes No NA

135 Does the factory have sufficient windows, fans, air conditioners or heaters in all work areas for adequate circulation, ventilation and temperature control?

Yes No

136 Are any workers exposed to excessive noise for extended periods of time?

Yes No

137 Is protective ear equipment required for use by all workers exposed to excessive noise levels for extended periods of time?

Yes No NA

138 Is the work surface lighting sufficient for the safe performance of production activities?

Yes No

E. PERSONAL PROTECTIVE EQUIPMENT 139 Is all machinery properly maintained and equipped with operational

safety devices? Yes No NA

140 Does the factory supply appropriate personal protective equipment to workers?

Yes No NA

If yes, provide specifics of all the types of equipment provided to workers in this facility:

1. Face masks 2. Metal mesh gloves

3. 4.

141 Are there signs or diagrams in appropriate local language indicating the importance of appropriate personal protective equipment use?

Yes No NA

142 Do the workers utilize the provided Personal Protective Equipments? Yes No NA


MMG-MCER 10.2012 18

F. CHEMICAL SAFETY Toxic chemicals/hazardous materials, include flammable or combustible liquids present in the factory such as spot remover, dyes for printing, glues, chemical used for store washing/sand-blasting, etc.

143 Are areas where toxic chemicals/hazardous materials used or stored posted with safety and warning signage?

Yes No NA

144 Are the personnel who handle, store and dispose of such materials trained?

Yes No NA

145 Are Material Safety Data Sheet (MSDS) in local language available for employee review?

Yes No NA

146 Are all containers properly labeled and secondarily contained? Yes No NA

147 Are eye rinse facilities available to minimize damage from chemical splashes and contaminants?

Yes No NA

148 Is an eyewash station available within 100 feet or 10 seconds walking distance from the potential hazard area?

Yes No NA

G. EXPLOSIVE HAZARDS 149 Does the factory store explosive hazards in secure and ventilated

area? Yes No NA

150 Does the factory provide the following prevention equipment at the explosive hazardous storage area?

• Personal Protective Equipment Yes No NA

• Secondary Containment Yes No NA

151 Are these explosive hazards properly labeled and posted with warning signs?

Yes No NA

152 Is boiler in too close a proximity to work stations? Yes No NA

H. CHILD SAFETY - BROKEN NEEDLE POLICY 153 Does the factory produce youthwear currently OR intend to produce

youthwear in near future? Yes No

If no, please check box ‘NA’ for the rest of the questions under this section.

154 Does the factory maintain a written broken needle policy? Yes No NA

155 Does the policy require the worker to identify and return the broken needle before a new replacement needle is given?

Yes No NA

156 Does the factory have metal detectors in place? Yes No NA

If yes, what are the types?

Stationary Machine Handheld Scanner

157 Are youthwear from sizes newborn through 6X / 7 scanned before shipment?

Yes No NA


MMG-MCER 10.2012 19

VI. ENVIRONMENTAL Macy’s will favor those suppliers that share its commitment to preserving our environment by reducing, re-using and recycling. Macy’s encourages suppliers to reduce excess packaging and to use non-toxic, environmentally friendly materials whenever possible.

158 According to management, the factory generates which of the following waste products? (check all that apply)

a. Paper / Cardboard Yes No NA

b. Plastic Yes No NA

c. Fabric Scraps Yes No NA

d. Scrap Metals Yes No NA

e. Hazardous or Potentially - Hazardous Process Waste Yes No NA

f. Chemical Waste Yes No NA

g. Waste Oil Yes No NA

h. Other

159 Does the facility maintain all current permits, as required by law for waste disposal, waste storage, and / or air emissions?

Yes No NA

160 a. Are there written procedures for the proper handling and storage of hazardous waste?

Yes No NA

b. Are only specially trained employees allowed to handle hazardous waste?

Yes No NA

161 Are waste storage containers in good condition, properly marked, and segregated based on level of hazard?

Yes No NA

162 How is waste transported off-site?

Private Carrier Government Transporter Factory’s Own Transport NA

163 Does facility send any waste products to be recycled or reused? Yes No NA

164 According to management, does factory consider environmental impact when sourcing materials and / or packaging?

Yes No


MMG-MCER 10.2012 20

VII. DORMITORIES A. BACKGROUND 165 Maximum number of workers that the dormitory can accommodate:

166 Number of workers currently residing in the dormitory:

167 a. Total number of buildings for dormitories:

b. Number of floor levels of each building:

168 Number of square feet (or meters) living space occupies:

169 Number of workers living in each sleeping quarter:

170 Approximate Sq. ft.: Sq. ft. per sleeping quarter; Sq. ft. per worker

171 Is dormitory located in a building separate from production and storage activities?

Yes No

B. EMERGENCY EVACUATION AND FIRE SAFETY 172 Do all exits meet the requirements below?

• Unlocked Yes No

• Clearly Marked Yes No

• Minimum Width of 33” Yes No

• Equipped with battery operated emergency lights Yes No

• Lead to ground level exits Yes No

173 Are there sufficient number of exits provided in the dormitory facility? Yes No

174 a. Are there any aisles, exits and stairwells blocked? Yes No

If yes, give specifics:

b. Will this obstruct the orderly evacuation of workers? Yes No NA

175 a. Does the dormitory have emergency evacuation diagrams posted? Yes No

b. Are the emergency evacuation diagrams accurately drawn and clearly visible to employees?

Yes No NA

176 Do all types of fire extinguishers meet the requirements listed below?

a) Properly maintained and inspected annually with the date of last inspection

Yes No

b) Clear of obstacles Yes No

c) Clearly marked and visible to workers Yes No

d) Mounted on wall and columns throughout the dormitory Yes No

If not mounted, how is it placed? Give specifics:

e) Easily accessible to workers Yes No


MMG-MCER 10.2012 21

B. EMERGENCY EVACUATION AND FIRE SAFETY 177 Does the dormitory meet the required standard of one fire extinguisher per

1,000 sq. ft. of living space? Yes No

Total number of fire extinguishers in the dormitory:

Fire Extinguishers Ratio 1 Fire Extinguisher : Sq. Ft.

178 a. Does the dormitory carry out a fire drill at least once per year? Yes No

b. If yes, provide date last fire drill was conducted:

c. Does the dormitory keep a record of the results of this drill? Yes No NA

179 Have at least 10% of the workers residing in the dormitory been provided hands-on training on the use of a fire extinguisher?

Yes No

180 Does the dormitory have the following recommended fire prevention/ evacuation equipment?

• Fire Hoses Yes No

• Overhead Sprinklers Yes No

• Audible Fire Alarm System Yes No

C. MEDICAL CARE 181 Does the dormitory maintain sufficient first aid kit? Yes No

If yes, provide specifics of number of first aid kits in the dormitory:

182 Is the first aid kit visible and easily accessible? Yes No

183 Do first aid kits include the following supplies?

Bandages Yes No

Sterile Gauze / Cotton Balls Yes No

Adhesive Tape / Plasters Yes No

Disinfecting / Antiseptic Agent Yes No

Antibacterial Ointment Yes No

Sterile / Surgical Gloves Yes No

Forceps (Tweezers) Yes No

Disposable Gloves Yes No

Tourniquet Yes No

Other

184 a. Does the factory maintain a sick bay in the dormitory? Yes No

b. If yes for question a), does the dormitory maintain a sick bay with medical personnel on duty during all working hours?

Yes No NA

c. If no for question a), does the dormitory have first aid certified person on site?

Yes No NA

185 Does the dormitory maintain an injury log? Yes No


MMG-MCER 10.2012 22

D. SANITATION 186 Is free potable water provided and facility to boil water available to

dormitory residents for use without restriction? Yes No

187 Does the water supply appear sufficient for the size of the workers residing in the dormitory?

Yes No

188 Does the dormitory provide reasonably free access to toilet and shower facilities?

Yes No

189 Are the toilet and shower facilities private, clean/sanitary and in working order?

Yes No

E. LIVING CONDITIONS 190 Are there sufficient windows, fans, air conditioners and/or heaters in all

sleeping areas for adequate circulation, ventilation and temperature control? Yes No

191 Are living spaces segregated by gender? Yes No

192 Does the dormitory provide each worker any of the following?

• Individual mat or bed Yes No

• At least 50 square feet of space exclusive of common areas Yes No


MMG-MCER 10.2012 23

VIII. COMPLIANCE AUDIT SUMMARY Audit Finding

Initial Onsite Audit Finding

IVA. 78&79. The employees are not provided with a seventh day of rest in February, March and April, 2013.

During the provided time records and other records indicated that 5 out of 6 in the month of April, (7th, 21st & 28th), 2013, 4 out of 5 in the month of March (17th & 31st) and 1 out of 4 in the month of February, (24th) 2013 sampled employees have worked at least 1 to 3 Sundays. These employees have worked 13 days consecutively. These employees were from sewing, packing, Quality and labeling departments. This is in violation of Cambodia Labor Law (1997), Art. 146 & 147. It was advised the facility to provide a rest day after 6 days of employment. The management was receptive and stated that that some urgent client’s requirement led to work on rest days. They further stated that they would make necessary arrangement not to employ works on rest days.

IVA. 101. Excessive daily overtime hours exceeded more than 2 hours per day and weekly working hours exceeded 60 hours per week.

During the time record review, it was observed that the employees have conducted excessive daily overtime hours up to 5 hours. 6 out of 6 sample employees in April, 5 out of 5 sample employees in March and 4 out of the 4 sample employees in February have worked more than 2 hours/day in each month reviewed up to 5 hours/day. These employees have worked 6 to 13 days in April, 3 to 7 days in March and 1 to 2 days in February, 2013. These workers are from the Cutting, sewing, packing, Ironing and quality department.

Further it was observed that 6 out of 6 in April, 5 out of 5 in march and 3 out of 4 in February have conducted more than 60 hours in 1 to 3 weeks in the above months. Maximum hours observed are 78 hours in March and April, 2013. This is in violation of Cambodia Labor Law (1997), Art. 140. It was advised the facility to limit the overtime hours to 2 hours per day and weekly hours to 60 hours per week. The management was very receptive and stated that due to the delay of incoming fabric and some urgent client’s requirement led to work over time. They further stated that they would try their best to limit the overtime hours to comply with the law.

VA. 115. Electrical panel boards in the compressor room missing inner cover and the breakers were not labeled During the facility walkthrough it was observed that 3 electrical panel boards in the compressor room missing inner cover and the breakers were not labeled. It was recommended to provide inner cover and mark the entire breakers ass per their individual functions. The management was very receptive and stated they have provided inner cover and marked all the panel boards in the production floor and some were missed out. They further stated that they would inform the maintenance department to rectify the same at the earliest.

VA. 120. Facility does not have overhead sprinklers. During the facility walkthrough and management interview, it was confirmed that the facility has not installed overhead sprinklers in the work floors. It was recommended to provide overhead sprinklers where necessary.

VA. 123. The first aid kit in the sewing department lacks essential supplies.

During the facility walkthrough it was observed that the first aid kit in the sewing department lacks essential supplies such as antiseptic cream, burn cream, Forceps, tourniquets and scissors. It was


MMG-MCER 10.2012 24

recommended to stock all required items in the first aid box. The management was very receptive and stated that they would stock the necessary items in first aid boxes.

VA. 124. A doctor is not available at least 8 hours during an 8 hour shift.

During the facility walkthrough, management and employee interview it was noted that as per the requirement of the law there shall be over 2000 workers, 2 permanent nurses and 1 doctor are required for at least 8 hours during an 8 hour shift. It was observed that the facility has two nurses available throughout the shift. However, the doctor is not available during the facility walkthrough. This is in violation of Joint Prakas No. 330 on the Enterprises Infirmary Arrangement (2000), Art. 3. It was advised the facility to ensure that a Doctor should be present at least 8 hours during an 8 hour shift. The management stated that normally Doctor comes to the facility around 11:30 am after visiting their sister concern facility nearby and stays till 4:00 pm in the facility.

VE. 139. Missing safety guards and provided safety guards are not in use During the facility walkthrough it was observed that approximately 60% of the machines are equipped with inappropriate needle guards, 10 observed sewing machines are missing needle guards, at least 2 observed sewing machines’ missing upper pulley guards. Further at least 3 high speed machines are missing eye guards and at least 40% of the over lock and hi-speed machine operators are not using provided eye guards for protection. This is in violation of Cambodia Labor Law (1997), Art. 230. It was advised the facility to provide appropriate safety guards to all the machines and ensure that they are using the same during the working hours. The management was very receptive and stated that they would look into these concerns and rectify the same at the earliest.

VE. 142. PPEs not provided and provided face masks not in use.

During the facility walkthrough, it was observed that PPEs (Personal protective equipment) like face mask not provide in dust generating area (production floor). Further, it was observed that 80% of the over lock machine operators are not using provided face masks in the production area. This is in violation of Prakas No. 125, Art. 3. It was advised the facility to provide appropriate PPEs on all the areas and shall ensure that they are wearing the same during the working hours. The management was very receptive and stated that they have provided face masks to all the applicable employees and some employees are not using them during the operation. They further stated that they would provide proper training on PPEs to all the employees.

VF. 146. Secondary containments to diesel, lubricants and other chemicals stored in the generator room

During the facility walkthrough, it was observed that the facility has not provided secondary containments to diesel, lubricants and other chemicals stored in the generator room. It was recommended to provide secondary containments to all the chemicals. The management was very receptive and agreed to do so.

Wages Information

The Auditors reviewed the February through April 2013 records and April 2013 records were considered as primary sample.

Average wage: USD100.08 Net per month. (April 2013)


MMG-MCER 10.2012 25

Employee Interview

During the current assessment, the auditor selected 15 employees representing both sexes, and from all sections representing all worker categories (Fire trained, First aid trained, CTPAT trained Employees), including young looking employees from 2404 employees who are present today. As per the client's requirement, the first 6 were interviewed individually, while the last 9 employees were interviewed in a group of 3 each.

The facility regular working hours are from 7.00 am to 4.00 pm with 01 hour for rest and break. The workers earn minimum wages. They are also provided with attendance bonus, seniority bonus, food allowance of 2000 riels when they conduct overtime work. Overtime is a regular feature for all the departments. 2 to 5 hours a day for 2 to 3 days a week. Overtime hours and the total working hours a week are more than 60 hours and go up to 78 hours a week in March and April, 2013. Average monthly overtime hours is about 60 hours a month and differs from department to department.

The workers conducted work on 1 to 3 Sundays in February, March and April. Workers do not receive a seventh day of rest.

The facility compensated overtime work at 1.5 time regular wage as required by the law.

All interviewed employees reported that they have signed the letter of employment which includes terms and condition of their employment on their own will and voluntarily. Further they confirmed they are made aware of the company policies and rules during the induction program. All interviewed employees confirmed that they are in receipt of an original copy of the employment contract. In addition, it was noted during the private employees’ interview that the facility does not demand or accept any form of deposit upon hiring. Moreover, it was noted during the employees’ interview that the overtime work is voluntary and the employees are free to leave their work station at the end of the normal shift. All employees confirmed that though they are given a target to achieve depending on the area of work, there is no quota system imposed on them. Furthermore they stated that they are having unrestricted access to drinking water and rest room facility. None of the employees interviewed reported any instance of involuntary or forced labor practice in the facility.

All interviewed employees stated that they are treated equally and paid equally for the same work done irrespective of their sex. Further they stated that they are not discriminated based on their sex, cast, creed, religion or color and they are not aware of any other employee is been discriminated based on any of the above criteria. They stated that all are treated equally and with dignity and respect. Further they stated that their supervisors and other management personnel treat them fairly without yelling or using physical force. They further stated that they are happy with the present working condition in the facility. The management stated that all the workers are hired, promoted, and terminated based on their ability to perform and not on any personal grounds. The facility’s policy is to treat all employees equally regardless of their race, gender, religion, or social/political beliefs

All of the interviewed employees reported that they are not restricted of any personal liberty.


MMG-MCER 10.2012 26

Overall, the employees stated that they have freedom of association with other employees.

During the review it is observed that facility is using bar code scanning system to record attendance of employees. Further it is noted that their salary month is from 1st to 30th of. The review highlighted that time record is showing in and out time for all days, further it is itemized with daily and monthly over time hours.

All the workers reported that their wages are paid on or before 10th of every month. Further they stated that they are provided with a wage slip every month.

All the employees were observed to be happy working with the facility.

First Verification Audit Findings

Second Verification Audit Findings

MANUFACTURER COMPLIANCE

EVALUATION REPORT

MMG-MCER 10.2012 27

To : Beth MO Fax : 852-2979 2400 Email : [email protected]

Supplier Name : TAI YAR GARMENT INDUSTRY CO., LTD.

Manufacturer Name : TY FASHION (CAMBODIA) PLC Contact Person : Mr Ryne Du / Compliance Supervisor

Tel : +855 23369676

Address : Rd No 51 Srah Po village, Phsardek Commune, Ponhealeu DIstrict, Kandal, cambodia Fax : N/A

Initial / Annual Audit Date : May 30, 2013

Arrival Time : 9:00 am Departure Time : 4:00 pm Last Payroll Date : May 10, 2013 Next Payroll Date : June 10, 2013

Initial / Annual Audit

Auditor(s): Please complete sections A through C.

Manufacturer: Please complete sections D and E, and fax within 7 days of the inspection date to UL-RS.

Section A Section B Section C Section D Section E

Section #

Question #

R - Recommended

N - Non-Compliance

V - Violation Corrective Action Required

Suggested Time Frame

Corrective Action Plan To Be Taken By The Manufacturer

Approximate Completion

Date R N V Please explain below

IVA 78&79 During the provided time records and other records indicated that 5 out of 6 in the month of April, (7th, 21 & 28), 2013, 4 out of 5 in the month of March 17th & 31st) and 1 out of 4 in the month of February, (24th) 2013 sampled employees have worked at least 1 to 3 Sundays. These employees have worked 13 days consecutively. These employees were from sewing, packing, Quality and labeling departments. Cambodia Labour Law (1997), Art. 146.

Facility shall provide a rest day after 6 days of employment.

3 Months


EVALUATION REPORT

MMG-MCER 10.2012 28

IVA 101 The employees have conducted excessive daily overtime hours up to 5 hours. 6 out of 6 sample employees in April, 5 out of 5 sample employees in March and 4 out of the 4 sample employees in February have worked more than 2 hours/day in each month reviewed up to 5 hours/day. These employees have worked 6 to 13 days in April, 3 to 7 days in March and 1 to 2 days in February, 2013. These workers are from the Cutting, sewing, packing, Ironing and quality department.

Further it was observed that 6 out of 6 in April, 5 out of 5 in march and 3 out of 4 in February have conducted more than 60 hours in 1 to 3 weeks in the above months. Maximum hours observed are 78 hours in March and April, 2013.

Facility shall limit the overtime hours to the maximum of 2 hours per day and weekly hours to 60 hours per week.

3 Months

VA 115 During the facility walkthrough it was observed that 3 electrical panel boards in the compressor room missing inner cover and the breakers were not labeled.

Facility shall provide inner cover and breakers hall be marked as per their individual functions.

1 Month

VA 120 Facility does not have overhead sprinklers. It is recommended to have overhead sprinklers where necessary.

Recommended

VA 123 The first aid kit in the sewing department lacks essential supplies such as antiseptic cream, burn cream, Forceps, tourniquets and scissors.

Facility shall stock all required items in the first aid box.

Recommended

VA 124 As per the requirement of the law there shall be over 2000 workers, 2 permanent nurses and 1 doctor are required for at least 8 hours during an 8 hour shift. It was observed that the facility has two nurses available throughout the shift. However, the doctor is not available during the facility walkthrough. (Joint Prakas No. 330 on the Enterprises Infirmary Arrangement (2000), Art. 3)

Facility shall ensure that a Doctor shall be present at least 8 hours during an 8 hour shift.

3 Months


EVALUATION REPORT

MMG-MCER 10.2012 29

VE 139 During the facility walkthrough it was observed that approximately 60% of the machines are equipped with inappropriate needle guards, 10 observed sewing machines are missing needle guards, at least 2 observed sewing machines’ missing upper pulley guards. Further at least 3 high speed machines are missing eye guards and at least 40% of the over lock and hi-speed machine operators are not using provided eye guards for protection. (Cambodia Labor Law (1997), Art. 230.)

Facility shall provide appropriate safety guards to all the machines and ensure that they are using the same during the working hours

1 Month

VE 142 PPE (Personal protective equipment) like face mask not provide in dust generating area (production floor). Further, it was observed that 80% of the over lock machine operators are not using provided face masks in the production area. (Prakas No. 125, Art. 3).

Facility shall provide appropriate PPEs on all the areas and shall ensure that they are wearing the same during the working hours.

Recommended

VF 146 During the facility walkthrough, it was observed that the facility has not provided secondary containments to diesel, lubricants and other chemicals stored in the generator room.

Facility shall provide secondary containments to all the chemicals.

Recommended

Initial / Annual Audit

A signature on this CAP signifies your agreement and understanding to the above findings and corrective action plans.

You should also understand that this Manufacturer Compliance Evaluation Report is proprietary to Macy’s and should be considered confidential. It may not be shared with any third party without the written consent of an authorized Macy’s representative.

Factory Contact : Mr Ryne Du Title : Compliance Supervisor Signature : Signed on file Date : May 30, 2013


EVALUATION REPORT

MMG-MCER 10.2012 30

Name (Print)

Evaluator : Abdul Caffar Yaseen Aroos

Title : Auditor Signature : Signed on file Date : May 30, 2013

Name (Print)

For MMG Management Review & Sign-Off

General Manager : Signature : Date :

Name (Print)


EVALUATION REPORT

MMG-MCER 10.2012 31


Supplier Name :

Manufacturer Name : Contact Person : Tel :

Address : Fax :

Initial / Annual Audit Date : First Verification Audit Date :

Arrival Time : Departure Time : Last Payroll Date : Next Payroll Date :

First Verification Audit Auditor(s): Please complete sections A through D.

Manufacturer: Please complete sections E and F and fax within 7 days of the inspection date to UL-RS.

Section A Section B Section C Section D Section E Section F

Section #

Question #

N- Non-Compliance

V - Violation Previous Non-Compliance /

Violation

Rectification

C - Corrected N - Non-Compliance V - Violation

Corrective Action Required Suggested Time Frame

Corrective Action Plan To Be

Taken By The Manufacturer


Date

N V C N V Please explain below

First Verification Audit A signature on this CAP signifies your agreement and understanding to the above findings and corrective action plans. You should also understand that this Manufacturer Compliance Evaluation Report is proprietary to Macy’s and should be considered confidential. It may not be shared with any third party without the written consent of an authorized Macy’s representative.

Factory Contact : Title : Signature : Date :

Name (Print)

Evaluator : Title : Signature : Date :

Name (Print)


EVALUATION REPORT

MMG-MCER 10.2012 32



Name (Print)


Supplier Name :

Manufacturer Name : Contact Person : Tel :

Address : Fax :

Initial / Annual Audit Date : First Verification Audit Date : Second Verification Audit Date :

Arrival Time : Departure Time : Last Payroll Date : Next Payroll Date :

Second Verification Audit Auditor(s): Please complete sections A through C.

Manufacturer: Please complete sections D and E and fax within 7 days of the inspection date to UL-RS.

Section A Section B Section C Section D Section E

Section #

Question #

N- Non-Compliance

V - Violation Previous Non-Compliance /

Violation

Rectification

C - Corrected N - Non-Compliance V - Violation

Corrective Action Required Reason For Non-

Rectification


Date

N V C N V Please explain below

Second Verification Audit A signature on this CAP signifies your agreement and understanding to the above findings and corrective action plans. You should also understand that this Manufacturer Compliance Evaluation Report is proprietary to Macy’s and should be considered confidential. It may not be shared with any third party without the written consent of an authorized Macy’s representative.

Factory Contact : Title : Signature : Date :

Name (Print)


EVALUATION REPORT

MMG-MCER 10.2012 33

Evaluator : Title : Signature : Date :

Name (Print)



Name (Print)

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