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Audit company: Intertek Report reference: BGD-6298-03(69) Date: 19/01/2015

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Supplier name: Jamuna Apparels Ltd.

Site country: Bangladesh

Site name: Jamuna Apparels Ltd.

Parent Company name (of the site): Jamuna Apparels Ltd.

SMETA Audit Type: 2–Pillar 4–Pillar

Date of Audit 19/01/2015


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Audit Company Name:

Intertek

Report Owner (payee):

Jamuna Apparels Ltd.

Sedex Company Reference: (only available on Sedex System)

S 000000023669

Sedex Site Reference: (only available on Sedex System)

P 000000031438

Audit Conducted By

Commercial Purchaser

NGO Retailer

Trade Union Brand Owner

Multi–stakeholder Combined Audit (select all that apply)

Auditor Reference Number: (If applicable)

Not Applicable

SMETA Declaration

I declare that the audit underpinning the following report was conducted in accordance with SMETA Best Practice Guidance and SMETA Measurement Criteria. Any exceptions to this must be recorded here (e.g. different sample size): None Auditor Name(s) (please list all including all interviewers):

Lead auditor: Md. Anisuzzaman

Team auditor: Akter Hossain Tareq, Tarek Mohammad Moin and Shamia Rahman

Interviewers: Akter Hossain Tareq and Shamia Rahman

Date: 19/01/2015


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Non–Compliance Table

Issue (please click on the issue title to go direct to

the appropriate audit results by clause)

Area of Non–Conformity (Only check box when there is a non–conformity, and only in the box/es where the non–conformity

can be found)

Record the number of issues by line*:

ETI Base Code

Local Law

Additional Elements

(i.e. not part of ETI code )

NC Obs GE

0 Management systems and code implementation

0 0 0

1 Employment Freely Chosen 0 0 0

2 Freedom of Association 0 0 0

3 Safety and Hygienic Conditions 5 4 0

4 Child Labour 0 0 0

5 Wages and Benefits 0 0 6

6 Working Hours 2 0 0

7 Discrimination 0 0 0

8 Regular Employment 0 0 0

8A Sub–Contracting and Homeworking

0 1 0

9 Harsh or Inhumane Treatment 0 0 0

10A Entitlement to Work 0 0 0

10B2 Environment 2–Pillar 0 0 0

10B4 Environment 4–Pillar NA NA NA

10C Business Ethics NA NA

*Please note the table above records the total number of Non compliances (NC), Observations (Obs) and Good Examples (GE). This gives the reviewer an indication of problem areas but does not detail severities of each issue – Reviewers need to check audit results by clause.


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Summary of Findings

Summary of main findings: (positive and negative) (Please give a short summary of the main findings per clause)

Audit Process: This Initial audit was conducted by Intertek Bangladesh team. Four auditors in one day assessed and verified the facility’s operations based on the ETI Base Code and local legislations. The whole process of the audit was sample based.

Overview of opening meeting, facility management responses: Auditor team entered the facility at 8:45 am, then started an opening meeting according to the ETI Base Code. The facility management representatives Mr. Golam Kader Siddique – Manager, Admin, HR and Compliance, Mr. Sulaiman Kabir– Asst. Manager, Admin, HR and Compliance, Ms. Tamanna Begum – Jr. Officer, Welfare, Mr. Habib – Jr. Officer, Admin, Ms. Bithi – Participation Committee Member, Mr. Habibur - Participation Committee Member were present at the opening meeting. They agreed with ETI requirement and Intertek policy and informed that they would be cooperative with this audit.

There are 52 attendance records and payroll records from December 2014 (current 1

st month), November 2014

(current 2nd

month) and June 2014 (random month). All 52 employees were interviewed, including 16 male and 36 female. Summary of Findings: Positive: No non-compliance was found in the areas of Management systems and code implementation, Employment Freely Chosen, Freedom of Association, Child Labour, Discrimination, Regular Employment, Wages and Benefits, Harsh or Inhumane Treatment, Sub-Contracting, Entitlement to Work and Environment. Negative: Below non-compliances were found in the areas of Safety & Hygienic Condition and Working Hours

1. It was noted though facility tour that facility stored finished cartons more than 2.1 meters in finished goods store

located at 2nd

and 5th floor and stored unboxed garments more than 1 meter in wash garments store located at 2

nd

floor.

2. It was observed during facility visit that facility had assembly point in front of the facility which was found blocked

by covered van and cars.

3. It was noted through facility license review that facility “factory license” was found expired from 1st January 2015.

Note that facility had applied for the updated license on 24 December 2014 but yet not received the license.

4. It was noted through facility layout plan review that the facility layout of 5th floor and dining shed was found not

matched with current layout where finished goods store was found in 5th floor instead of dining .

5. It was noted through facility fire license review that facility dining shed did not included in facility fire license. Note

that facility management has applied to the concern authority on dated 21.12.2014 yet not received the fire license.

6. It was noted through employees salary sheet, job card, production record review, management and employees interview that the status of employees working hour was found as follows: a) 33 out of 52 employees tested record showed 73 to 79 hours of work in a week in the month of December, 2014


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(Current month). Maximum work in a day was found 19.50 hours (normal 8 hours + overtime 11.50 hours). b) 20 out of 52 employees tested record showed 73 to 85 hours of work in a week in the month of November, 2014

(Random month). Maximum work in a day was found 19.50 hours (normal 8 hours + overtime 11.50 hours). Note

that no excessive working hour was detected in the month of June 2014 (Random month)

7. It was noted through employees salary sheet, job card, production record review, management and employees interview that 7

th day rest of employees was not ensured after six (6) consecutive days of work due to following

reasons: In the month of November 2014, facility was open on facility weekly holidays (Saturday) as 8

th November 2014. So,

50 out of 52 tested employees were worked consecutively 13 days in this month

Negative: Below Observation was found in the area of Safety & Hygienic Condition and Sub-Contracting

1. It was noted through management interview, delivery and receive challan review that facility was using Dird

Washing Plant Ltd. located at 32, Kamal Atartuk Avenue, Banani, Dhaka; SNS Bright Sandblasting & Washing Ltd.

located at Section 11, Avenue 1, Block- D, Plot # 10, Khalshi Road, Pallabi, Mirpur, Dhaka for washing, Benzine

Embroidery located at House # 14, Block # B, Ward # 2, Kamarpara, Turag, Dhaka for embroidery and Rasel Print

Ltd. located at Mirpur, Dhaka for printing as they have no in-house embroidery, printing and washing facility for

client’s production, but facility management could not show any authorization letter from client to do so. As for

example, facility hand sent 547 sets of goods belong to client against challan # 67101, Style # EI 512325 to Rasel

Printing Ltd. on 2 January 2015 for printing and sent 1688 pieces of goods belong to client against challan # 66809,

Style # AG 239238 to Benzine Embroidery Ltd. on 15 January 2015 for embroidery process.

2. It was noted during facility visit that evacuation plans were found not updated as per floor lay out mezzanine, 2nd

and 5th floor. Moreover facility had no evacuation map at dining.

3. It was noted through facility tour that the facility management did not mark 4 out of 4 exit doors in facility dining

located at shed # 3 by illuminating exit signs.

4. It was noted through facility tour that no fire hose pipe coverage was found in finished goods store located at 2nd

and 5th floor and warehouse located at ground floor.

5. It was observed during facility visit that no aisles marking was found in finished goods store located at 2nd

floor.

Best Practices Observed:

1. Facility provides attendance bonus of all employees.

2. Facility provides festival bonus of all employees. 3. Facility provides daily production incentive for their employees. 4. Annual Picnic 5. Best performer award for both management and employees. 6. Zero Defect incentives for worker Additional Auditor Remark: None


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Audit Details

Audit Details

A: Report #: BGD-6298-03(69)

B: Time in and time out (SMETA Best Practice Guidance and Measurement Criteria recommends 9.00–17.00 hrs. if any different please state why in the SMETA declaration )

Day 1 Time in: 8:45 am Day 1 Time out: 5:00 pm

Day 2 Time in: N/A Day 2 Time out: N/A

Day 3 Time in: N/A Day 3 Time out: N/A

C: Number of Auditor Days Used: (number of auditor x number of days)

Four man-day (One day x Four auditors)

D: Audit type:

Full Initial Periodic Full Follow-up Partial Follow-Up Partial Other - Define

E: Was the audit announced? (AAG recommends a window of three weeks for semi–announced, this gives optimum results)

Announced Semi – announced: Window detail: 4 weeks Unannounced

F: Was the Sedex SAQ available for review?

Yes No

If No, why not? (Examples would be, site has not completed SAQ, site has not been asked to complete the SAQ.)

Not Applicable

G: Any conflicting information SAQ/Pre-Audit Info to Audit findings?

Yes No

If Yes, please capture detail in appropriate audit by clause

H: Auditor name(s) and role(s): Md. Anisuzzaman - Lead Auditor, Akter Hossain Tareq, Tarek Mohammad Moin and Shamia Rahman - Secondary Auditor

I: Report written by: Shamia Rahman

J: Report reviewed by: Tarek Mohammad Moin

K: Report issue date: 23 January, 2015

L: Supplier name: Jamuna Apparels Ltd.

M: Site name: Jamuna Apparels Ltd.

N: Site country: Bangladesh


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O: Site contact and job title: Mr. Golam Kader Siddique – Manager, Admin, HR and Compliance

P: Site address: (Please include full address)

94/95 (Old), 46 (New), Block – C, Tongi Industrial Area, Tongi, Gazipur, Bangladesh.

Site phone: 88 02 9801356

Site fax: 88 02 9802362

Site e–mail: [email protected]

Q: Applicable business and other legally required licence numbers: for example, business license no, and liability insurance

Factory License: 8575/Gazipur bearing ‘I’ category, issued by Bangladesh Govt. this is expired on 31 December 2014. Note that the facility has applied for renewal on 24 December 2014. Fire License: Dhaka/14815/2002 issued by Bangladesh Fire Service & Civil Defence Authority which is valid till 30 June 2015. Trade License: 91/14-15 issued by Gazipur City Corporation which is valid till 30

th June 2015.

R: Products/Activities at site, for example, garment manufacture, electricals, toys, grower

Garment manufacture – All kinds of woven items

S: Audit results reviewed with site management?

Yes

T: Who signed and agreed CAPR (Name and job title)

Mr. Golam Kader Siddique – Manager, Admin, HR and Compliance

U: Did the person who signed the CAPR have authority to implement changes?

Yes

V: Present at closing meeting (Please state name and position, including any workers/union reps/worker reps):

Mr. Golam Kader Siddique – Manager, Admin, HR and Compliance

Mr. Sulainman Kabir - Asst. Manager, Admin, HR and Compliance

Ms. Tamanna Begum - Jr. Welfare Officer

Mr. Habib - Jr. Admin Officer

Ms. Bithi - PC member

Mr. Habibur - PC member

W: What form of worker representation / union is there on site?

Union (name) Worker Committee Other (specify) None

X: Are any workers covered by Collective Bargaining Agreement (CBA)

Yes No

mailto:[email protected]


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Y: Previous audit date: 18/04/2014

Z: Previous audit type:

SMETA 2–pillar

SMETA 4–pillar

Other

Full Initial

Periodic

Full Follow–Up Audit

Partial Follow–Up

Partial Other*

*If other, please define: Not applicable


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Audit Scope/Actual Results

Criteria Local Law (Please state legal

requirement)

Actual at the Site

(Record site results against the law)

Is this part of a Collective Bargaining

Agreement?

A: Standard/Contracted work hours: (Maximum legal and actual required working hours excluding overtime, please state if possible per day, week and month)

Legal maximum: 8 hours per day and 48 hours per week

19.5 hours per day and 79 hours per week

Yes No

B: Legal Overtime hours: (Maximum legal and actual overtime hours, please state if possible per day, week and month)

Legal maximum: 2 hours per day, 12 hours per week

11.5 hours per day, 19.5 hours per week

Yes No

C: Legal age of employment: (Minimum legal and actual minimum age at site)

Legal minimum: Above 14 years (Limited hours work)

20 years

D: Legal minimum wage for standard/contracted hours: (Minimum legal and actual minimum wage at site, please state if possible per hr, day, week and month)

Legal minimum: BDT 5300 per month

BDT 5300 per month

Yes No

E: Legal minimum overtime wage: (Minimum legal and actual minimum overtime wage at site, please state if possible per hr ,day, week and month)

Legal minimum: BDT 28.85 per hour

BDT 28.85 per hour

Yes No

Audit Scope (Please select the code and additional requirements that were audited against during this audit)

2–Pillar Audit

10B4: Environment 4–Pillar

10C: Business Ethics

All groups of workers are included in the scope of this audit such as; Direct employees, Casual and agency workers, Workers employed by service providers such as security and catering staff as well as workers supplied by other contractors.

All are direct employees

Note: The main focus of this ethical audit is on the ETI Base Code and local law. The additional elements will not be audited in such depth or scope, but the audit process will still highlight any specific issues. This report provides a summary of the findings and other applicable information found/gathered during the social audit conducted on the above date only and does not officially confirm or certify compliance with any legal regulations or industry standards. The social audit process requires that information be gathered and considered from records review, worker interviews, management interviews and visual observation. More information is gathered during the social audit process than is provided here. The audit process is a sampling exercise only and does not guarantee that the audited site prior, during or post–audit, are in full compliance


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with the Code being audited against. The provisions of this Code constitute minimum and not maximum standards and this Code should not be used to prevent companies from exceeding these standards. Companies applying this Code are expected to comply with national and other applicable laws and where the provisions of law and this Code address the same subject, to apply that provision which affords the greater protection. The ownership of this report remains with the party who has paid for the audit. Release permission must be provided by the owner prior to release to any third parties.

Audit Overview

Audit Overview

Management Worker Representatives

Audit attendance Senior management Worker Committee representatives

Union representatives

A: Present at the opening meeting? Yes No Yes No Yes No

B: Present at the audit? Yes No Yes No Yes No

C: Present at the closing meeting? Yes No Yes No Yes No

D: If Worker Representatives were not present please explain reasons why (only complete if no worker reps present)

Not Applicable

E: If Union Representatives were not present please explain reasons why: (only complete if no union reps present)

There is no union in the facility.

F: Site description: (Include size, location and age of site. Also include structure and number of buildings)

Jamuna Apparels Ltd. Is located at 94/95 (Old), 46 (New), Block – C, Tongi Industrial Area, Tongi, Gazipur, Bangladesh. The total land area occupied by the facility is about 20,000 square feet and production area is about 70,000 square feet. The facility has started its operations at this existing location since 1991. The facility consists of one six storey building and four sheds. The detail layout is as follows:

Production Building

Description Remark, if any

Ground Floor

Fabric store, accessories store, fabric inspection area, generator

None

Mezzanine Floor

Staff dining, leftover goods, fabric store, spare parts store and accessories store

None

1st Floor Office, cutting section and sample

room None

2nd

Floor Finishing and finished goods area None

3rd

Floor Cutting, sewing and finishing None

4th Floor sewing section None

5th Floor Sewing section and finished goods

area None


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Shed Description Remark, if any

Shed 1 Doctor, child care, fire control room None

Shed 2 Boiler room None

Shed 3 Dining None

Shed 4 Generator None

Currently, 1378 employees are working in the facility. The facility comprises 1119 production employees and 259 non-production employees. Among the 1378 employees, 896 employees are female and 482 employees are male. All of the employees are (local) Bangladeshi. Generally, the employees work for 6 days (Sunday to Friday) in a week. General working hours start from 8:00 am to 5:00 pm including one-hour lunch break from 01:00 pm to 2:00 pm. Overtime work is normally from 5:00 pm to 7:00 pm depending on actual work load. The payment method of the salary is cash within 07 working days. Employee’s wages are calculated on monthly basis.

G: Site function: Agent Factory Processing/Manufacturer Finished Product Supplier Grower Homeworker Labour Provider Pack House Primary Producer Service Provider Sub–Contractor

H: Month(s) of peak season: (if applicable)

As per management interview the facility produces same round the year

I: Process overview: (Include products being produced, main operations, number of production lines, main equipment used)

Product manufactured: All woven items

Main production process: Cutting → Sewing → Finishing → Packing Shipping. Production line: 12 sewing lines and per lines 45 machines Main equipment used: Single needle lock stitch, two needle lock stitch, over lock machine, kansai machine, feed of the arm, bar tack machine, button hole machine, button attach machine, cutting machine, boiler, vertical trimmer, snap button, thread sucker, fusing machine Chemical used: Spot remover, Diesel oil and Machine oil. Production capacity: 200,000 pieces per month

J: Attitude of workers: (Include their attitude to management, workplace and the interview process. Both positive and negative information should be included) Note: Do not document any information that could put workers at risk


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Employees’ interviews were conducted privately in a separate place. 52 employees were selected from different work floor and payroll sheet. In the interview process, the auditor asked employees about general information like trade union, minimum wage, working hours, benefits, training, good practices of the facility, health and safety condition, forced labour and environment. None of the interviewed employees reported about any kind of verbal or physical harassment. There is no discriminatory measure taken while hiring, increment and promotion.

K: Attitude of workers committee/union reps: (Include their attitude to management, workplace and the interview process. Both positive and negative information should be included) Note: Do not document any information that could put workers at risk

Participation Committee member interview were conducted in a separate place. The Participation Committee member replied naturally regarding their responsibilities as they can easily carryout their daily job without any difficulties. PC meetings were held on regular basis (Last meeting was conducted on 31 December 2014).

L: Attitude of managers: (Include attitude to audit, and audit process. Both positive and negative information should be included)

The facility management showed a positive attitude to this audit and during the whole audit process. Mr. Golam Kader Siddique – Manager, Admin, HR and Compliance of the facility along with his team was present though the audit process and co-operated the whole audit. Facility management respect clients requirement and allow auditor to take photographs of all production process, best practices and also non conformities. They also provide required documents photocopy and allow auditors to interact with the employees confidentially. At the closing meeting, the facility management accepted all findings and suggested corrective actions.


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Key Information

Key Information (click on the key information title to go to appropriate section of the report)

A: Do all workers (including migrant workers) have contracts of employment/employment agreements? (Go to clause 8 – Regular Employment)

Yes No

B: Are maximum standard/contracted working hours clearly defined in contract/employment agreements? (Go to clause 8 – Regular Employment)

Yes No

C: Were appropriate records available to verify hours of work and wages? (Go to clause 5 – Living Wage)

Yes No

D: Were any inconsistencies found? (if yes describe nature) (Go to Wages Table)

Yes Poor record keeping No Isolated incident

Repeated occurrence

E: For the lowest paid production workers, are wages paid for standard/contracted hours (excluding overtime) below or above the legal minimum? (Go to clause 5 – Living Wage)

Wages found: Please indicate the breakdown of workforce according to earnings:

Below legal min

Meet Above

____% of workforce earning under min wage __85__% of workforce earning min wage __15__% of workforce earning above min wage

F: % of piece rate workers: (if applicable)

0%

G: Do the standard/contracted hours stated in a contract/employment agreement exceed the law or 48 hours per week? (Go to clause 6 – Working hours)

Yes No

H: If yes, what are the standard/contracted hours per week as stated in the contract/employment agreement? (Go to clause 6 – Working hours)

___48__ hrs/week

Approx. __100 % of ALL workers on these contacted hours

I: Combined hours (standard/contracted plus overtime = total hours) over 60 per week found? (Go to Working Hours Analysis)

Yes No

J: Are workers provided with 1 day off in every 7-day-period, or 2 in 14-day-period (where the law allows)?

Yes No

If ‘No’, please explain:


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K: Are the correct legal overtime premiums paid? (Go to Wages Table)

Yes No N/A – there is no legal requirement to OT premium

L: Please state what actual OT is paid. (As a percentage of the workers standard rate) (Go to Working Hours Analysis)

Please give details of overtime premium as a % of standard wages: 0% 1% – 115% 116% – 124% 125% – 199% 200%+

Please give details: Employees were paid overtime payment as twice of their basic wage.

M: Is there any night production work at the site?

Yes No

N: % of workers living in site provided accommodation (if applicable):

Not applicable

O: Age of youngest worker found: (Go to clause 4 – Child labour)

20 years old

P: Workers under 18 subject to hazardous work assignments? (Go to clause 3 – Health and Safety)

Yes No

% of under 18’s at this site (of total workers) 0%

Q: What form of worker representation/union is there on site? (Go to clause 2 – Freedom of Association)

Union (name) Worker Committee Other (specify) None

R: Is it a legal requirement to have a union? (Go to clause 2 – Freedom of Association)

Yes No

S: Is It a legal requirement to have a workers committee? (Go to clause 2 – Freedom of Association)

Yes No

T: Is there any other form of effective worker/management communication channel? (Other than union/worker committee) (Go to clause 2 – Freedom of Association)

Yes No

Describe: Employees can communicate through 1. Suggestion box 2. PC committee 3. Welfare officer. 4. Top management

U: Are there any External Processes? (Go to clause 8A – Sub–contracting and Home working)

Sub–Contracting Homeworking Other External Process No external processes


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Management Systems

Management Systems:

A: Nationality of Management Bangladeshi

B: Gender breakdown of Management + Supervisors (Include as one combined group)

Male: __84% Female_16%

C: Majority nationality of workers Bangladeshi

D: Number of workers leaving in last 12 months as a % of average total number of workers on site over the year (annual worker turnover)

__05___ %

E: Were accurate records shown at the first request?

Yes No

F: If No, why not? N/A

G: In the last 12 months, has the site been subject to any fines/prosecutions for non–compliance to any regulations?

Yes No

Please describe: The site has not been subjected to any fines for non compliance for the last 12 months.

H: Do policies and/or procedures exist that reduce the risk of forced labour, child labour, discrimination, harassment & abuse?

Yes No

Please describe: Policies exist for Forced labour, child labour, discrimination, harassment and abuse.

I: If Yes, is there evidence (an indication) of effective implementation? Please give details.

The facility communicates all social policy and procedures through employee’s orientation training, notice board and hand book.

J: Have managers and workers received training in the standards for forced labour, child labour, discrimination, harassment & abuse?

Yes No

Please describe: The facility have policy on forced labour, child labour, discrimination, harassment & abuse. The facility provides regular training to all Manager and Supervisors.

K: If Yes, is there evidence (an indication) that training has been effective e.g. training records etc.? Please give details

Yes, Manager and Supervisors get regular training.

L: Are there published, anonymous and/or open channels available for reporting any violations of Labour standards and H&S or any other grievances to a 3

rd party?

Yes No

Please describe: No 3rd

party is used.

M: If Yes, are workers aware of these channels? Please give details.

N/A


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N: Have health and safety risks been identified e.g. through internal audits, formal risk analysis process, worker involvement etc.?

Yes No

Please describe: Fire safety assessment, accident injury analysis.

O: If Yes, has effective action been taken to reduce or eliminate these risks?

Fire safety assessment, accident injury analysis

P: Are accidents recorded? Yes No

Please describe: Last injury occurs on 12 November 2014 by finger cut through sewing machine.

Q: Has the auditor made a simple calculation to compare capacity with workers’ work load in order to identify possible unrecorded work hours?

Yes No

Please describe Not Applicable

R: Does the site have all required land rights licenses and permissions (see SMETA Measurement Criteria)?

Yes the site has all required land rights licenses and permissions. Factory License: 8575/Gazipur bearing ‘I’ category, issued by Bangladesh Govt. this is expired on 31 December 2014. Note that the facility has applied for renewal on 24 December 2014. Fire License: Dhaka/14815/2002 issued by Bangladesh Fire Service & Civil Defence Authority which is valid till 30 June 2015. Trade License: 91/14-15 issued by Gazipur City Corporation which is valid till 30

th June 2015.

S; Does the site have any internationally recognised system certifications e.g. ISO 9000, 14000, OHSAS 18000, SA8000 (or other social audits). Please detail (Number and date).

No

T: Is there a Human Resources manager/department? If Yes, please detail.

Yes No

Please describe: There is a Human Resources Department; Mr. Golam Kader Siddique – Manager, Admin, HR and Compliance Mr. Sulaiman Kabir– Asst. Manager, Admin, HR and Compliance Ms. Tamanna Begum – Jr. Officer, Welfare Mr. Habib – Jr. Officer Admin


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Worker Analysis

Worker Analysis

Local Migrant Total

Permanent Temporary Agency Permanent Temporary Agency

Home workers

Worker numbers – male

482 0 0 0 0 0 0 482

Worker numbers –female

896 0 0 0 0 0 0 896

Total 1378 0 0 0 0 0 0 1378

Number of Workers interviewed

52 0 0 0 0 0 0 52

Contractors: (Individuals supplying workers to site with the workers paid by contractors, not by site)

A: Any contractors on site? Yes No

B: If Yes, how many workers supplied by contractors

N/A

C: Are all contractor workers paid according to law?

Yes No

Not Applicable

If Yes, Please give evidence for contractor workers being paid according to law:

N/A

Migrant Workers: (Please see SMETA Best Practice Guidance and Measurement Criteria for definitions of migrant workers)

D: Originating Locations/Countries:

No migrant workers were recruited.

E: Type of work undertaken by migrant workers :

Not applicable

F: Were migrant workers recruited through an agency?

Yes No


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If yes, please give details. Please describe: N/A

If Yes, is there a contract with the agency? Provide details of agencies and contractual arrangements including any fees lodged during the recruitment process.

Not applicable

G: Does the site have a system for checking labour standards of agencies? If yes, please give details.

Yes No

Please describe:

H: Percentage of migrant workers in company provided accommodation:

Not applicable


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Audit Results by Clause

0: Management systems and Code Implementation

0: Managements system and Code Implementation (click here to return to NC Table)

0.1 Suppliers are expected to implement and maintain systems for delivering compliance to this Code. 0.2 Suppliers shall appoint a senior member of management who shall be responsible for compliance with the Code. 0.3 Suppliers are expected to communicate this Code to all employees. 0.4 Suppliers should communicate this code to their own suppliers and, where reasonably practicable, extend the principles of this Ethical Code through their supply chain.

Current Systems and Evidence Examined To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to

understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant

procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any

documentary or verbal evidence shown to support the systems.

Current systems:

The factory implements and maintains systems for delivering compliance to this Code.

Mr. Golam Kader Siddique – Manager, Admin, HR and Compliance is responsible for compliance with the Code.

The factory communicates this Code to all employees by training as confirmed by orientation training records and workers interview.

The factory communicates this code of conduct through notice board to their employee only.

Evidence examined – to support system description & Documents examined & relevant comments. Include renewal/expiry date where appropriate):

Factory code of conduct record

Orientation training record

Best practice record

Non–compliance:

1. Description of non-compliance: NC against ETI/Additional Elements NC against Local Law

None Observed Local law or ETI requirement: Not Applicable Recommended corrective action: Not Applicable

Objective evidence observed: Not Applicable

Observation:


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Description of observation: None Observed Local law or ETI requirement: Not Applicable Comments: Not Applicable


Good Examples observed:

Description of Good Example (GE): None Observed



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1: Employment is Freely Chosen

1: Employment is Freely Chosen (Click here to return to NC–table)

ETI

1.1 There is no forced, bonded or involuntary prison labour. 1.2 Workers are not required to lodge “deposits” or their identity papers with their employer and are free to leave their employer after reasonable notice.

Current Systems and Evidence Examined To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to

support the systems.

Current systems:

The factory does not limit the employees’ freedom.

There is no forced, bonded or involuntary prison labor.

Employees are free to leave their employer after reasonable notice.


Forced labor policy review

Personnel files

Contracts to establish notice periods

Security guard job description.

Non–compliance:

1. Description of non-compliance: NC against ETI NC against Local Law:

None Observed Local law or ETI requirement Not Applicable Recommended corrective action: Not Applicable


Observation:

Description of observation: None Observed

Objective evidence observed:


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Local law or ETI requirement: Not Applicable Comments: Not Applicable

Not Applicable





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2: Freedom of Association and Right to Collective Bargaining are Respected

2: Freedom of Association and Right to Collective Bargaining are Respected (Click here to return to NC–table)

(Click here to return to Key Information)

ETI 2.1 Workers, without distinction, have the right to join or form trade unions of their own choosing and to bargain collectively. 2.2 The employer adopts an open attitude towards the activities of trade unions and their organisational activities. 2.3 Workers’ representatives are not discriminated against and have access to carry out their representative functions in the workplace. 2.4 Where the right to freedom of association and collective bargaining is restricted under law, the employer facilitates, and does not hinder, the development of parallel means for independent and free association and bargaining.



Current systems:

Through the factory management interview and workers’ interview, it was noted that there wasn’t union in the factory.

Workers can raise their concerns through workers’ representatives, telephone, complain box, meeting and their team leader or above.

There is Participation Committee (PC) as parallel means for trade union.

Verified and confirmed through records review and interview process that the facility does not discriminate any of the workers such as workers representatives also.

PC member’s photo posted in the notice board.

Factory has a policy where is no restriction imposed to the workers formation of trade union.

There was no trade union present in the facility.

PC (Participation Committee) where representatives both from employees and senior management are member and take part in various meeting relating employee welfare issues.

PC meeting held on regular basis and discuss various issues such as reduce the working hours, housekeeping issues, working environment, items to be increased in lunch and productivity of the facility.

Last meeting was held on 31 December 2014 and discussed regarding annual cultural program, earn leave encashment, new curtain for child care room.

Participation Committee election held on 27 June 2013. There are total 21 members including 6 from management and 15 from workers side.

The employers display no negative attitude to organizational members of the committee. No discrimination is practiced in the facility and worker representatives are not discriminated.


Policy review

Complain box register

PC meeting records

Grievance handling procedure


24

Non–compliance:

1. Description of non-compliance: NC against ETI NC against Local Law:

None Observed Local law or ETI requirement Not Applicable Recommended corrective action: Not Applicable


Observation:



A: Name of union and union representative, if applicable:

N/A No trade union

Is there evidence of free elections? Yes No N/A

B: If no union what is parallel means of consultation with workers e.g. worker committees?

Participation Committee Is there evidence of free elections? Yes No N/A

C: Were worker representatives/union representatives interviewed

Yes No If Yes, please state how many:

D: State any evidence that union/workers committee is effective? Specify date of last meeting; topics covered; how minutes were communicated etc.

Yes, PC meeting was held in regular basis. Last meeting was held on 31 December 2014 and discussed regarding annual cultural program, earn leave encashment, new curtain for child care room. The committee communicate the meeting minutes to employees through notice board and PA (public address) system.

E: Are any workers covered by Collective Bargaining Agreement (CBA)

Yes No

F: If Yes what percentage by trade Union/worker representation

___0_% workers covered by Union CBA

___0_% workers covered by worker rep CBA


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G: If Yes, does the Collective Bargaining Agreement (CBA) include rates of pay

Yes No





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3: Working Conditions are Safe and Hygienic

3: Working Conditions are Safe and Hygienic (Click here to return to NC–table)


ETI 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. 3.2 Workers shall receive regular and recorded Health & Safety training, and such training shall be repeated for new or reassigned workers. 3.3 Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage shall be provided. 3.4 Accommodation, where provided, shall be clean, safe, and meet the basic needs of the workers. 3.5 The company observing the code shall assign responsibility for Health & Safety to a senior management representative.



Current systems:

The facility maintained a comfortable temperature, sufficient lighting system and there is well ventilation with sufficient exhaust fan of all the production floors in this facility

All switches in the electrical control panels have been labelled with danger sign marks and were found in good condition.

The factory posted the evacuation plans on work floors, which indicated escape routes. Exit signs and emergency lights were installed.

PPE such as masks and gloves were provided to workers and PPE usage instruction posted each production floor.

Drinkable water facility provided in each production floor and water test result was found suitable for drinking as per comments of the water test report. Last test done on 10 September 2014 from Institute of Public Health.

Medical facility available in the facility located at separate shed with sick bed and sufficient medicine.

Child care located at separate shed with well decorated and wash facility.

The facility has done maintenance of the machines on regular basis confirmed through the documents reviewed. Machine maintenance card hang on each machine and preventive machine maintenance carried out regularly. Last machine maintenance carried on 15 January 2015.

The facility fire extinguishers are renewed for current period and last inspection date of fire extinguisher is 7 January 2015.

The facility has total 476 trained fire fighters including 120 from Fire Service and Civil Defense Authority, 83 from the BGMEA (Bangladesh Garments Manufacturers and Exporters Association) and 273 trained internally.

Unannounced fire drill training was held on every month and last drill conducted on 30 December 2014 and it took 3.30 minutes to evacuate the whole facility, numbers of participants were 1359 and fire drill conducted by Admin, HR and Compliance department of the facility.

Sufficient first aid kits stocked with necessary supplies are provided in all production floors. The total no. of first aid box were 14 and trained first aider 28.

The facility has toilets with good washing installations which are clean and safe. Total number of toilet is 39 for male and 49 for female which meets legal requirements.


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Facility has valid fire license and boiler license. Firefighting equipments meets as per fire license conditions.

Facility regularly maintained boiler and generator and keep record. Last generator conducted on 15 January 2015. Last boiler maintained conducted on 15 January 2015.

Electric maintenance done on daily and weekly basis and keep record accordingly. Last electric maintenance done on 07 January 2015.

Facility has EHS committee and last meeting held on 03 December 2014. Manager (Admin, HR and Compliance) is overall responsible for health and safety of the facility.

Facility firefighting equipment details:

Fire Equipment name Total Fire Equipment name Total

Fire Extinguisher, ABC type 200 Hose pipe 13 Fire Extinguisher, CO2 type 38 Gas Mask 60 Fire Fog Light 21 Fire helmet 14 Fire Alarm Switch 19 Emergency lights 47 Fire Alarm 19 Blanket 24 Smoke Detector 249 Lock Cutter 6 Stretcher 12 Fire Bitter 13 Fire Hook 13 Fire Bucket 6 Dram 6 Hand Gloves 12 Manila Rope 5 First Aid Box 14

Facility training details

Sl. No Training Type Date Participant Trainer

1. First Aid training 15 September 2014 28 Facility doctor

2. Orientation training 30 December 2014 51 Jr. Officer Welfare

3. Environment, Health & Safety

03 December 2014 15 Facility Nurse

4. Fire training 02 January 2015 13 Officer Fire Safety

5. Management training 24 December 2014 19 Manager Admin, HR & compliance

6. PPE training 30 December 2014 25 Jr. Officer Welfare


License review (Factory license, Fire license, Trade license, Boiler License)

Building Construction Approval Plan and Machine Layout Approval Plan

Group insurance

Drinking water test report

Injury record and analysis report

Machine and electric maintenance record

Risk assessment report

Training record (Fire training, First aid training, PPE training, induction training and Health and safety training)

Fire drill record

Health and safety committee record


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Non–compliance:

1. Description of non-compliance: NC against ETI NC against Local Law

It was noted though facility tour that facility stored finished cartons more than 2.1 meters in finished goods store located at 2

nd and 5

th floor and stored unboxed

garments more than 1 meter in wash garments store located at 2nd

floor. Local law or ETI requirement: In accordance with the ETI Base Code, point: 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. In accordance with the client fire safety standard, Facility should store unboxed goods less than 1 meter height and boxed goods less than 2.1 meters height. Recommended corrective action: It is recommended that facility should store finished cartons less than 2.1 meter height and unboxed garments less than 1 meter height. Action by: Mr. Golam Kader Siddique - Manager (Admin, HR and Compliance) Timeframe: 30 days 2. Description of non-compliance:

NC against ETI NC against Local Law It was observed during facility visit that facility had assembly point in front of the facility which was found blocked by covered van and cars. Local law or ETI requirement: In accordance with the ETI Base Code, point: 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. In accordance with the Bangladesh National Building Code 2006 Table 3.1.1 (E), Facility shall have a safe assembly point for the employees to take shelter in case of fire. It is necessary that a facility will have a safe area where, in case of fire or emergency, employees can gather safely. Recommended corrective action: It is recommended that the facility should arrange a safe assembly point for gathering of the employees after any emergency. Action by: Mr. Golam Kader Siddique - Manager (Admin, HR and Compliance) Timeframe: 180 days

Objective evidence observed: 1. Facility tour (Photo reference number 3) 2. Facility tour (Photo reference number 2)


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3. Description of non-compliance:

NC against ETI NC against Local Law It was noted through facility license review that facility “factory license” was found expired from 1

st January 2015. Note that facility had applied for the updated license on

24 December 2014 but yet not received the license. Local law or ETI requirement: In accordance with the ETI Base Code, point: 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. In accordance with the Factory Rules, 1979, Sec: 5 5. (1) Every license for a factory shall, on the payment of the fees specified in the Schedule below, be granted by the Chief Inspector in Form No. 3: Recommended corrective action: It is recommended that the facility should renew factory license on time. Action by: Mr. Golam Kader Siddique - Manager (Admin, HR and Compliance) Timeframe: 90 days 4. Description of non-compliance:

NC against ETI NC against Local Law It was noted through facility layout plan review that the facility layout of 5

th floor and

dining shed was found not matched with current layout where finished goods store was found in 5

th floor instead of dining .

Local law or ETI requirement: In accordance with the ETI Base Code, point: 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. In accordance with Bangladesh Labour Law 2006, section - 326: (1) The Government may- (a) require that previous permission in writing be obtained in the prescribed manner from the chief Inspector for the construction or extension of any factory or class of factories; (b) require registration and licensing of factories or any class of factories and payment of fees for such registration and licensing or for the renewal of licenses, in the proscribed manner. Recommended corrective action: It is recommended that the facility should take layout approval from factory inspector for their current layout. Action by: Mr. Golam Kader Siddique - Manager (Admin, HR and Compliance)

3. Facility license review 4. Facility layout plan review


30

Timeframe: 90 days 5. Description of non-compliance:

NC against ETI NC against Local Law It was noted through facility fire license review that facility dining shed did not included in facility fire license. Note that facility management has applied to the concern authority on dated 21.12.2014 but yet not received the fire license. Local law or ETI requirement: In accordance with the Bangladesh Fire Service & Civil Defence Ordinance 1959, Section-10 Every factory shall have a Fire License issued by Fire Service & Civil Defence. Recommended corrective action: It is recommended that the facility should include all areas in facility fire license. Action by: Mr. Golam Kader Siddique - Manager (Admin, HR and Compliance) Timeframe: 90 days

5. facility fire license review

Observation:

1. Description of observation: It was noted during facility visit that evacuation plans were found not updated as per floor lay out mezzanine, 2

nd and 5

th floor. Moreover facility had no evacuation map at

dining. Local law or ETI requirement: In accordance with the ETI Base Code, point: 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. In accordance with the Factories Rules, 1979, Section-52 (11), The Manager of the factory shall prepare a detailed 'Fire Safety Plan' for proper enforcement of fire safety rules and for actions to be taken, in proper sequence, in the case of a fire in the factory. Comments: It is recommended that the facility management should provide clear evacuation plan at each floor in local language for better understanding of the employees as per their current layout. Corrective action taken: It was noted that facility had provided evacuation maps in mentioned areas. 2. Description of observation: It was noted through facility tour that the facility management did not mark 4 out of 4

Objective evidence observed: 1. Facility tour (Photo reference number 6) 2. Facility tour (Photo


31

exit doors in facility dining located at shed # 3 by illuminating exit signs. Local law or ETI requirement: In accordance with the ETI Base Code, point: 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. In accordance with Bangladesh Labour Law 2006 Section 62 (4), In every establishment every window, door, or other exit affording means of escape in case of fire, other than the means of exit in ordinary use, shall be distinctively marked in Bengali and in red letters of adequate size or by some other effective and clearly understood sign. Comments: It is recommended that the facility management should mark all exits with illuminating exit signs. Corrective action taken: It was noted that facility had provided exit signs in mentioned areas. 3. Description of observation: It was noted through facility tour that no fire hose pipe coverage was found in finished goods store located at 2

nd and 5

th floor and warehouse located at ground floor.

Local law or ETI requirement: In accordance with the ETI Base Code, point: 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. In accordance with facility fire license, Facility should install fire hose in both sides of the floor. Comments: It is recommended that the facility management should extended the length of fire hose pipes to cover the areas Corrective action taken: It was noted that facility had extended the length of fire hose pipes to cover the areas. 4. Description of observation: It was observed during facility visit that no aisles marking was found in finished goods store located at 2

nd floor.

Local law or ETI requirement: In accordance with the ETI Base Code, point: 3.1

reference number 7) 3. Facility tour 4. Facility tour (Photo reference number 4 and 5)


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A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. In accordance with the Bangladesh Labour Law 2006, Section 72(c) and 62 (6), All floors, ways and stairways shall be clean, wide and clear of all obstructions. A free passage-way giving access to each means of escape in case of fire shall be maintained for the use of all workers in every room of the establishment. Comments: It is recommended that the facility should mark aisles in mentioned section. Corrective action taken: It was noted that facility had provided aisles mark in mentioned areas.



Objective Evidence Observed: Not Applicable

4: Child Labour Shall Not Be Used

4: Child Labour Shall Not Be Used (Click here to return to NC–table)


ETI 4.1 There shall be no new recruitment of child labour. 4.2 Companies shall develop or participate in and contribute to policies and programmes which provide for the transition of any child found to be performing child labour to enable her or him to attend and remain in quality education until no longer a child. 4.3 Children and young persons under 18 shall not be employed at night or in hazardous conditions. 4.4 These policies and procedures shall conform to the provisions of the relevant ILO Standards.



Current systems:

The factory establishes a policy that will never employ and use any child labour.

The factory will verify all workers’ original national ID cards, birth certificate, school certificate etc at the


33

time of recruitment and keep the photocopies of workers’ ID cards, birth certificate in the personnel files.

Factory verify the workers age through registered doctors.

Sampling basis employees’ personal files has taken for review. Each employee file includes a bio-data sheet, recent photo, birth registration certificate / photo copied national identification card.


Child labour policy

Child labour remediation policy

Personal file

Age verification documents

Non–compliance:




Observation:







34

5: Living Wages are paid

5: Living Wages are Paid (Click here to return to NC–table)

(Click here to return to Key information)

ETI 5.1 Wages and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmark standards, whichever is higher. In any event wages should always be enough to meet basic needs and to provide some discretionary income. 5.2 All workers shall be provided with written and understandable information about their employment conditions in respect to wages before they enter employment and about the particulars of their wages for the pay period concerned each time that they are paid. 5.3 Deductions from wages as a disciplinary measure shall not be permitted nor shall any deductions from wages not provided for by national law be permitted without the expressed permission of the worker concerned. All disciplinary measures should be recorded.



Current systems:

All workers are provided appoint letter during recruitment mentioning their salary structure, grade, employment conditions, benefits.

Benefits such as social insurance, casual leave, sick leave and maternity leave are provided to workers as per law.

Factory provides cash directly to the workers.

No illegal deduction from employees has been identified through document reviewed and confirmed workers during the interviewed.

No workers were found getting below minimum wage. Evidence examined – to support system description & Documents examined & relevant comments. Include renewal/expiry date where appropriate):

Salary sheet review

Overtime payment record review

Job card review

Attendance register review

Payslip review

Production record review

Maintenance register review

Maternity benefit register review

Leave record review

Final settlement record review

Non–compliance:


35




Observation:




Description of Good Example (GE): 1. Facility provides attendance bonus of all employees.

2. Facility provides festival bonus of all employees. 3. Facility provides daily production incentive for their employees. 4. Annual Picnic 5. Best performer award for both management and worker 6. Zero Defect incentives for worker

Objective Evidence Observed: Documents review, management and employees interview

Wages analysis:

Wages analysis: (Click here to return to Key Information)

A: Sample Size Checked (State number of worker records checked and from which weeks/months – should be current, peak and random/low. Please see SMETA Best Practice Guidance and Measurement Criteria)

52 samples from December 2014 (Current 1st month)

52 samples from November 2014 (Current 2nd

month) 52 samples from June 2014 (random month)

B: Are there different legal minimum wage grades? If Yes, please specify all.

Yes No

If yes, please give details: Bangladesh Government Gazette 2013, December, 5 for Garments Industry Grade-1: Basic salary- Tk. 8500, House rent-


36

Tk. 3400, Medical- Tk. 250, Conveyance allowance 200, food allowance 650 Total- Tk. 13000.00 Grade-2: Basic salary- Tk. 7000, House rent- Tk.2800, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.10900.00 Grade-3: Basic salary- Tk. 4075, House rent- Tk.1630, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.6805 Grade-4: Basic salary- Tk. 3800, House rent- Tk. 1520, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.6420.00 Grade-5: Basic salary- Tk. 3530, House rent- Tk.1412, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.6042.00 Grade-6: Basic salary- Tk. 3270, House rent- Tk.1308, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.5678.00 Grade 7: Basic salary- Tk.3000, House rent- Tk. 1200, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.5300.00

C: If there are different legal minimum grades, are all workers graded correctly?

Yes No N/A

If No, please give details:

D: What deductions are required by law e.g. social insurance? Please state all types:

Deduction for unauthorized absent and stamp.

E: Have all of these deductions been made? Please list all deductions that have/have not been made.

Yes No

If Yes, Please list all deductions that have been made: Unauthorized absent and stamp.

If No, please give details on any deductions which have not been made:

F: Industry norm for this region: (please include time period e.g. hour/week/month)

There is no industry norm for this region at present.

Wages table (Click here to return to Key information)

Worker Type Process Operator (Lowest paid)

Process Operator (Average paid)

Process Operator (Highest paid)

Select from individual worker records one worker from, lowest, average and highest wages and populate the boxes. Ensure comparison is made for same pay period and only uses full–time workers. See SMETA Best


37

Practice Guidance and Measurement Criteria for completing this:

A: Pay period: (State month selected)

December 2014 December 2014 December 2014

B: Anonymous Employee Reference/Dept.

Employee# 1 Sewing section

Employee# 2 Finishing section

Employee# 3 Finishing section

C: Employee Gender Female Male Female

D: Contracted/Standard working hours: (excluding OT – please include time period e.g. hour/week/month)

8 hours per day/48 hours per week



E: Contracted /Standard work pay rate: (excluding OT – please include time period e.g. hour/week/month)

BDT 7137 per month BDT 5773 per month BDT 5300 per month

F: Standard day overtime – hours: (please include time period e.g. hour/week/month)

Maximum 4 hours per day/ 24 hours per week



G: Standard day overtime – wage: (please include time period e.g. hour/week/month)

BDT 41.44 per hour BDT 32.09 per hour BDT 28.84 per hour

H: Rest day overtime – hours: (please include time period e.g. hour/week/month)

Nil Nil Nil

I: Rest day overtime – wage: (please include time period e.g. hour/week/month)

Nil Nil Nil

J: Statutory Holiday overtime – hours: (please include time period e.g. hour/week/month)

Nil Nil Nil

K: Statutory holiday OT – wages: (please include time period e.g. hour/week/month)

Nil Nil Nil

L: Total overtime hours: (please include time period e.g. hour/week/month)

81 hours per month 39 hours per month 80 hours per month

M: Incentives/Bonus/ Attendance bonus BDT Attendance bonus BDT Attendance bonus BDT


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Allowances etc.: (please include time period e.g. hour/week/month)

350 per month

350 per month

300 per month

N: Gross wages: (please include time period e.g. hour/week/month)

BDT 9303 per month

BDT 7452 per month BDT 6694 per month

O: Social insurance and other deductions; please list which and amount.

Stamp deduction BDT 10

Stamp deduction BDT 10 Stamp deduction BDT 10

P: Actual wage paid after deduction: (please include time period e.g. hour/week/month)

BDT 9293 per month

BDT 7442 per month BDT 6684 per month

Comments: (Please state here any specific reasons/circumstances that explain the lowest and highest gross wages)

Above wage calculation analysis based on the provided record. Senior operator is getting the highest wage and helper is getting the lowest wage.

Q: Is there a defined living wage: This is not normally minimum legal wage. If answered Yes please state amount and source of info: Please see SMETA Best Practice Guidance and Measurement Criteria.

Yes No

Please specify amount/time period:

R: Are workers paid in a timely manner in line with local law?

Yes No

S: Is there evidence that equal rates are being paid for equal work:

Yes No

Details: Same grade operators are getting the same wage.

T: How are workers paid: Cash Cheque Bank Transfer Other

If other explain: Not applicable


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6: Working Hours are not Excessive

6: Working Hours are not Excessive (Click here to return to NC–table)


ETI 6.1 Working hours must comply with national laws, collective agreements, and the provisions of 6.2 to 6.6 below, whichever affords the greater protection for workers. Sub–clauses 6.2 to 6.6 are based on international labour standards. 6.2 Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48 hours per week. 6.3 All overtime shall be voluntary. Overtime shall be used responsibly, taking into account all the following: the extent, frequency and hours worked by individual workers and the workforce as a whole. It shall not be used to replace regular employment. Overtime shall always be compensated at a premium rate, which is recommended to be not less than 125% of the regular rate of pay. 6.4 The total hours worked in any 7 day period shall not exceed 60 hours, except where covered by clause 6.5 below. 6.5 Working hours may exceed 60 hours in any 7 day period only in exceptional circumstances where all of the following are met:

– this is allowed by national law; – this is allowed by a collective agreement freely negotiated with a workers’ organisation representing a significant portion of the workforce; – appropriate safeguards are taken to protect the workers’ health and safety; and – The employer can demonstrate that exceptional circumstances apply such as unexpected production peaks, accidents or emergencies.

6.6 Workers shall be provided with at least one day off in every 7 day period or, where allowed by national law, 2 days off in every 14 day period.



Current systems:

Through employees’ interview, overtime is voluntary.

All overtime is compensated at a premium rate.

Excessive working hour was found in December 2014 (current 1st month) and November 2014 (current 2

nd

month). Evidence examined – to support system description & Documents examined & relevant comments. Include renewal/expiry date where appropriate):

Salary sheet

Overtime payment record

Job card

Attendance register

Payslip record


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Production record

Maintenance register

Needle issue register

Goods inspection record

Leave record

Working No. of No. of Records of % of

workers

Highest number Highest Highest

section workers Sampled which month worked of days number of number of

in the workers continuousl

y

worked OVERTIME total hours

section in the 7 days consecutively hours worked in a

section without rest worked in a day

day day

Cutting 62 7 14-Dec 0 6 11.5 19.5

Sewing 856 28 14-Dec 0 6 11.5 19.5

Finishing 145 8 14-Dec 0 6 11.5 19.5

Quality 154 9 14-Dec 0 6 11.5 19.5

Cutting 64 7 14-Nov 40 13 11.5 19.5

Sewing 829 28 14-Nov 45 13 11.5 19.5

Finishing 156 8 14-Nov 65 13 11.5 19.5

Quality 152 9 14-Nov 65 13 11.5 19.5

Cutting 59 7 14-Jun 0 6 2 10

Sewing 861 28 14-Jun 0 6 2 10

Finishing 148 8 14-Jun 0 6 2 10

Quality 149 9 14-Jun 0 6 2 10

Maximum total weekly working hours: 33 out of 52 randomly selected employees were worked 73 to 79 hours per

week in December 2014. (Current 1st month)

Maximum total weekly working hours: 20 out of 52 randomly selected employees were worked 73 to 85 hours per

week in November 2014. (Current 2nd

month)

Note that no excessive working hour was found in the month of June 2014 (random month)

Non–compliance:


41


It was noted through employees salary sheet, job card, production record review, management and employees interview that the status of employees working hour was found as follows: a) 33 out of 52 employees tested record showed 73 to 79 hours of work in a week in the month of December, 2014 (Current month). Maximum work in a day was found 19.50 hours (normal 8 hours + overtime 11.50 hours). b) 20 out of 52 employees tested record showed 73 to 85 hours of work in a week in the month of November, 2014 (Random month). Maximum work in a day was found 19.50 hours (normal 8 hours + overtime 11.50 hours). Note that no excessive working hour was detected in the month of June 2014 (Random month) Local law or ETI requirement: In accordance with ETI base code 6.1 Working hours must comply with national laws, collective agreements, and the provisions of 6.2 to 6.6 below, whichever affords the greater protection for workers. Sub–clauses 6.2 to 6.6 are based on international labour standards. In accordance with The Bangladesh Labour Law, Section-100 and 102 No adult worker shall generally be required or allowed to work in an establishment for more than eight hours in any day. Provided that, subject to the provisions of section 108 an adult worker may also work up to ten hours a day in an establishment. (1) No adult worker shall ordinarily be required or allowed to work in an establishment for more than forty-eight hours in any week. (2) Subject to the provisions of section 108, an adult worker may work for more than forty-eight hours in any week: Recommended corrective action: It is recommended that the facility should maintain maximum overtime hour controlled as per requirement. Action by: Mr. Golam Kader Siddique - Manager (Admin, HR and Compliance) Timeframe: 90 days 2. Description of non-compliance:

NC against ETI NC against Local Law It was noted through employees salary sheet, job card, production record review, management and employees interview that 7

th day rest of employees was not ensured

after six (6) consecutive days of work due to following reasons: In the month of November 2014, facility was open on facility weekly holidays (Saturday) as 8

th November 2014. So, 50 out of 52 tested employees were worked

consecutively 13 days in this month. Local law or ETI requirement: In accordance with the ETI Base Code 6.2 Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48 hours per week.

Objective evidence observed: 1. Eemployees salary sheet, job card, production record review, management and employees interview 2. Eemployees salary sheet, job card, production record review, management and employees interview


42

In accordance with the Bangladesh Labour Law 2006, Section 103 An adult worker employed in an establishment- Which is a shop or commercial establishment, or industrial establishment, shall be allowed in each week one and half day’s holiday and in factory and establishment one day in a week; Recommended corrective action: It is recommended that the facility management should ensure 7

th day rest after six (6)

consecutive days. Action by: Mr. Golam Kader Siddique - Manager (Admin, HR and Compliance) Timeframe: 90 days

Observation:






Working hours analysis

Working hours analysis Please include time period e.g. hour/week/month

(Go back to Key information)

Systems & Processes

A. What timekeeping systems are used: time card etc.

Electronic

B: Sample Size Checked (State number of worker records checked and from which weeks/months and type – should be current, peak and random/low: See SMETA Best Practice Guidance and

Measurement Criteria)

52 samples from December 2014 (Current 1st month)

52 samples from November 2014 (Current 2nd

month) 52 samples from June 2014 (random month)


43

C: Do ALL workers have contracts/employment agreements?

Yes No

If NO, state which type of workers do NOT have contracts/employment agreements:

Not applicable

D: Are standard/contracted working hours defined in all contracts/employment agreements?

Yes No

If NO, please state which type of workers do NOT have standard hours defined in contracts/employment agreements.

Not applicable

E: Are there any other types of contracts/employment agreements used?

Yes No

If YES, Please complete as appropriate:

0 hrs Part time Variable hrs Other

If “Other”, Please define:

Not applicable

Standard/Contracted Hours worked

F: Do standard/contracted standard hours ever exceed the law or 48 hours per week?

Yes No

If YES give details and comparison (local law/48 hrs week)

Not applicable

G: What are the actual standard/contracted hours worked in sample (State per week/month)

Highest hours: 208 hours per month in December 2014 (Current 1st

month) 200 hours per month in November 2014 (Current 2

nd

month) 208 hours per month in June 2014 (Random month)

Lowest hours: 136 hours per month in December 2014 (Current 1st


nd


H: Any local waivers/local law or permissions which allow averaging/annualised hours for this site?

Yes No

If YES, Please give details

Facility can do 4 hours overtime in a day and 24 hours overtime in a week with the consent of employees which is valid till 16 April 2015.

Overtime Hours

I: Actual overtime hours worked in sample (State per day/week/month)

Highest OT hours:

129 hours per month in December 2014 (Current 1st

month) 122.50 hours per month in November 2014 (Current 2

nd

month)


44

120.50 hours per month in June 2014 (Random month)

Lowest OT hours:

51 hours per month in December 2014 (Current 1st


nd


J: Range of overtime hours over all workers/or as large a sample as possible. (State per week/month and details)

51 -129 hours per month in December 2014 (Current 1st month)

40 - 122.50 hours per month in November 2014 (Current 2nd

month) 4 - 120.50 hours per month in June 2014 (Random month)

K: Approximate percentage of workers on highest overtime hours

__70___%

L: Is overtime voluntary? Yes No Conflicting

Information

Please detail evidence e.g. Wording of contract/employment agreement/handbook/worker interviews/refusal arrangements:

Confirm through employee contract, handbook, working hour policy and employees interview.

Overtime Premiums

M: Is overtime paid at a premium? Yes No

Please give details of normal day overtime premium as a % of standard wages:

0%

1 – 115%

116 – 124%

125 – 149%

150 –199%

200%+

Any other comments: No overtime work in all randomly selected three months

N: ETI Code requires a prevailing standard to give greatest worker protection. If a site pays less than 125% OT premium and this is allowed under local law, are there other considerations? Please complete the boxes where relevant. Multi select is possible.

No Consolidated pay (May be standard wages above minimum legal wage, with

no/low overtime premium) Collective Bargaining agreements Other

Not applicable

Please explain any checked boxes in N above e.g. detail of consolidated pay CBA or Other.

Not applicable