supplier name: promol – indústria de velas, sa site ... · pdf filesupplier name:...

Audit company: Intertek Report reference: PRT-SMETA-102312 Date: 06/09/2012 1

Supplier name: Promol – Indústria de Velas, SA

Site country: Portugal

Site name: Promol – Indústria de Velas, SA

SMETA Audit Type: 2-Pillar 4-Pillar


Audit Company Name:

Intertek

Report Owner (payee):

Promol – Indústria de Velas, SA

Sedex Company Reference: (only available on Sedex System):

S

Sedex Site Reference: (only available on Sedex System)

P

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. Any exceptions to this must be recorded here (e.g. different sample size): this audit was conducted in one man-day, because second auditor assigned call in sic and it was not possible to replace it on a short notice. Audit sample was maintained, as per employees number. Auditor Name(s) (please list all including all interviewers): Role: Paula Costa, Auditor and Liliana Araújo Auditor Date: 22-10-2012


Audit Details

Audit Details

A: Report #: PRT-SMETA-105612

B: Date of audit: 22-10-2012

C: Time in and time out:

Time in:9.30pm Time out: 3.00pm

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

2 auditors during one day

E: Audit type:

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

F: Was the audit announced?

Announced Semi – announced Unannounced

G: Was the Sedex SAQ available for review?

Yes No

If no, why not? Not provided

I: Auditor name(s) and role(s): Paula Costa, Lead Auditor and Liliana Araújo, Auditor

J: Report written by: Paula Costa,Lead Auditor

K: Report reviewed by: Frank Metcalfe

L: Report issue date: 22-10-2012

M: Supplier name: Promol – Indústria de Velas, SA

N: Site name: Promol – Indústria de Velas, SA

O: Site country: Portugal

P: Site contact and job title: Hans Bopp, Administrator

Q: Site address: Rua José Libânio, Lote 12; Zona Industrial 2500-758 Caldas da Raínha

Site phone: + 351 262837140

Site fax: +351 262842120


Site e-mail:

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

Business license Nº SIRG (II) 3/19929

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

Decorative Candles

T: Audit results reviewed with site management?

Yes

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

Hans Bopp, Administrator

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

YES

W: Previous audit date: NA

SMETA 2-pillar SMETA 4-pillar Other

Full Initial

Periodic

Full Follow-Up Audit

Partial Follow-Up

Partial Other*

X: Previous audit type:

*If other, please define:


Audit Scope

Local Law (Please state legal requirement)

A: Standard work week: (total hours excluding overtime)

40 hours

B: Maximum allowed overtime hours: (please state per day, week, month)

2h hours/day;200hours/year

C: Minimum work age: 16 years

D: Minimum legal wage for standard hours: (please state per day, week, month)

485,00Euros/monthly

E: Minimum legal overtime wage: (please state per day, week, month)

3,50Euros/hour

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 Practices

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 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.


Non-Compliance Table

Area of Non-Conformity (Only check box when there is a non-conformity)

Record the number of issues by line*:

Issue

ETI Base Code

Local Law Additional Elements

NC Obs GE

0 Management systems and code implementation

1 Employment Freely Chosen

2 Freedom of Association

3 Safety and Hygienic Conditions 1

4 Child Labour

5 Wages and Benefits 2

6 Working Hours

7 Discrimination

8 Regular Employment

8A Sub-Contracting and Homeworking

9 Harsh or Inhumane Treatment

10A Entitlement to Work

10B2 Environment 2-Pillar

10B4 Environment 4-Pillar

10C Business Practices

*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.


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 not present please explain reasons why

No worker representatives at factory

E: If Union Representatives not present please explain reasons why:

No union representative at factory

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

Promol, located in Caldas da Rainha, Portugal and produces about 1 million candles per day.

Founded by Portuguese owners in 1976, it was bought by 2 German investors 4 years later.

Within a short time the factory was moved to the Industrial Zone of Caldas where production was expanded rapidly.

Candle consumption was increasing substantially in Northern Europe at that time and the owners established good relations with large German drug stores and discounters.

At the end of the eighties about 90% of Promol´s production was sold to ALDI in Germany.

Today Promol belongs to an International Swedish group – ALG, one of the leading groups in manufacturing and distribution of high quality candles. Candles are sold under the brands of GIES, ASP, Liljeholmens.

Facility is located in one industrial building, with a covered area of 31.000m

2 used for candles production and warehousing and 10.000

used for storage. and a total area of 60.000 m2

There is no dormitory, there is a canteen, but there is no kitchen


because food is not prepared on site.

Regular work schedule from 8:00am – 4.30pm with 30min lunch break. and 10 min break during morning and afternoon.

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)

June to September

I: Typical production level as a % of the total capacity by month (record below): Site declaration only – this has not been verified by auditor.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

70 70 70 70 70 100 100 100 100 70 70 70

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

Promol has the following industrial operations: Reception of raw materials (paraffin, dyes)-Moulding (pressing, dipping carrousels, tealight operation, automatic Jar-/Glass-Fill-Line, votive line (pressed votives and extruder press )- finishing –decoration- -Inspection- Packing. All equipment is in good order. These are adequate for the production of decorative candles..

K: 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

Majority of employees are working at facility for a long time and they are happy working there. For employees the main strengths of the facility are as follows: the willingness to pay wages, good working environment between workers, good working conditions.

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

The management demonstrated a great involvement regarding the organisation. In the closing meeting they demonstrated a positive attitude and interest towards the audit and audit overall conducted by auditor.


M: Summary of main findings: (positive and negative) (This is a summary not a repeat of the section detail)

Auditor realises a proper awareness of human resources department, for a rigorous analysis and validation of all the documentation submitted by employees, restricting the integration of children at work. Salaries are always paid on time and benefits are according to law. Auditor noted that all workers are treated equally in all matters and that there are adequate systems in place to ensure that no form of discrimination occurs either during recruitment or employment. Facility has good working conditions regarding health & safety and complies with general Portuguese and European Law regarding environment. No non compliances were raised during this audit.


Key Information

Key Information

A: Do all workers (including migrant workers) have contracts of employment?

Yes No

B: Were appropriate records available to verify hours of work and wages?

Yes No

C: Were any inconsistencies found? (if yes describe nature)

Yes Poor record keeping No Isolated incident

Repeated occurrence

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

D: For the lowest paid production worker, are wages paid for standard hours (excluding overtime) below or above the legal minimum? Below legal min

Meet Above

0% of workforce earning under min wage 0% of workforce earning min wage 100% of workforce earning above min wage

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

Not Applicable

F: Combined hours (standard and overtime) over 60 per week found?

Yes No

G: Are the correct overtime premiums paid? Yes No

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

Yes No

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

Not Applicable

J: Age of youngest worker found: 25

K: Workers under 18 subject to hazardous work assignments?

Yes __0___% of under 18’s at this site (out of total workers) No

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

Union (Chemical Union and Boilers Union) Worker Committee Other (specify) None

M: Is it a legal requirement to have a union? Yes No

N: Is It a legal requirement to have a workers committee?

Yes No


O: Is there any other form of effective worker/management communication channel? (Other than union/worker committee)

Yes No

Describe: open door policy

P: Are there any External Processes? Sub-Contracting Homeworking Other External Process (detail) No external processes

Management Systems:

Q: Nationality of Management German

R: Majority nationality of workers Portuguese

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

0 %

T: Were accurate records shown at the first request?

Yes No

If not, why not? Not Applicable

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

Yes No

Please describe:


Worker Analysis

Worker Analysis

Local Migrant

Permanent Temporary Agency Permanent Temporary Agency Home workers

Total

Worker numbers – male

19 2 21

Worker numbers –female

107 0 107

Total 126 2 128

Number of Workers interviewed

25 1 26

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

Not applicable

C: Are all contractor workers paid according to law: (please record evidence)

Not applicable

Migrant Workers: Please see SMETA Best Practice Guidance - Page 37

D: Originating Locations/Countries: Germany, and Ukraine

E: Work undertaken by migrant workers: The facility manager is German and worker from Ukraine performs regular production work

F: Were migrant workers recruited through an agency?

No

If yes, is there a contract with the agency? Provide details of agencies and

NA


contractual arrangements

G: Percentage of migrant workers in company provided accommodation:

NA


Audit Results by Clause

0: Management systems and code implementation:

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.

Evidence of Compliance and Current Status

Please Note: include evidence examined & description of current status.

Documents checked & comments: Review of company documents and procedures Description of Current Status:

Auditor found evidence that Promol strive for the sustainability of their business, based on 4 basic requirements:

• An ecologically correct attitude;

• An economically viable business;

• Socially equitable; and Culturally acceptable

Promol has no formal Management System for Social Accountability, however meets general requirement of a sustainable business.

Non-compliance:

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

Local law or ETI requirement: Not Applicable Recommended corrective action: Not Applicable

Objective evidence observed: Not Applicable


Observation

Description of observation: Not Applicable Local law or ETI requirement: Not Applicable Comments: Not Applicable


Good Examples observed:

Description of Good Example (GE): Not Applicable



1: Employment is Freely Chosen

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.

Evidence of Compliance and Current Status Please Note: include evidence examined & description of current status.

Documents checked & comments: Hiring documents, employees files, and wages Description of current status: During the employees’ interview, it was noted that workers were working voluntarily and during the facility tour, workers did not appear to be under stress. All emergency fire exits are unlocked during working hours. Employees are free to leave the work area during working hours for justifiable cause with the appropriate permission of the section responsible party and had freedom of movement that was not impeded except for the protection of facility property and security of facility personnel. Through facility tour, documents review and employee interview, no concern in Forced Labour was noted. Facility has no guards; employees are free to leave once their shift ends and the employees’ freedom of movement during the work shift is not impeded. Facility maintains all hiring documents such as employee application, copy of ID card or Birth Certificate, Health Examination, document of labour bureau, and signed employee/employer labour contract in the employee’s personnel file. Reviewed hiring documents showed that applicants were seeking employment voluntarily. The payment of wages, which was in compliance with the local law, was issued directly to employees. The payment of wages clearly showed the employees direct control to the destination of his/her wages, and access to his/her wages.


Non-compliance:




Observation







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

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.

Evidence of Compliance and Current Status: Please Note: include evidence examined & description of current status.

Documents checked & comments: NA Description of current status: By interviews (management representatives and workers) we noted that workforce rights are recognized and that the workers have the right to belong to a Union, and they are free to do that if they want. In fact there are 22 employees affiliated to unions.

Non-compliance:

1. Description of non-compliance: Not Applicable NC against ETI NC against Local Law



Observation




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

Chemical Workers Union and Boilers Union

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

na

B: Is there any evidence that this is effective? Specify date of last meeting; topics covered; how minutes were communicated etc.

According to employees interviews is fair

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

Yes No

If yes what percentage by trade Union/worker representation

100% workers covered by Union CBA

__0__% workers covered by worker rep CBA

D: Does the Collective Bargaining Agreement (CBA) include rates of pay

Yes No No CBA





3: Working Conditions are Safe and Hygienic

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.


Documents checked & comments: Contracts for work medicine and health & safety services, MSDS, risk evaluation reports, emergency procedures Description of current status: Promol has internal and external services for health & safety management and provides work medicine to employees. Company keeps an accident log. Facility has a risk evaluation per job position. First aid kits are available on site. Facility performs fire drills twice a year, last one was in 1

st March 2012

Chemical products available (dyes, solvents), on site are properly stored and has MSDS. All production workshops have adequate number and appropriate types of fire extinguishers and hoses that are visible, accessible, checked annually and posted with an instruction. All escape routes were unblocked, unobstructed and conspicuously marked.

Non-compliance:

1. Description of non-compliance: Not Applicable

NC against ETI NC against Local Law Local law or ETI requirement: Not Applicable Recommended corrective action: Not Applicable

Objective evidence observed: Documents review


Observation

Description of observation: Not Applicable Local law or ETI requirement: Not Applicable. Recommended corrective action: Not Applicable



Description of Good Example (GE): Facility provides stretching lessons to all employees to help to help them improve their posture and health

Objective Evidence Observed: Employees interviews


4: Child Labour Shall Not Be Used

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.


Documents checked & comments: Employees files with copies of personal documents Description of current status: Promol is in compliance with National Laws, which state that the facility would not engage any persons less than 16 years of age. Age documentation such as ID card or Birth Certificate was required for review prior to hiring. Copies of age documentation are retained in employee personnel files.

The facility maintains Information in the file regarding how long the employee has been working at the Facility and assesses the authenticity of age documentation and makes comparisons with sample documents.

Facility ascertains the employee’s stated age through the interview process. The physical appearance of the employees selected is consistent with their age and employment history as documented in their personnel file. The facility documents the existence of an employment interview. Age and date of employment was stated clearly in employment application.

By employee’s interviews and personnel record the youngest worker found was 25 years old.

Non-compliance:





Observation







5: Living Wages are Paid

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.


Documents checked & comments: 26 wages for April 2012, 26 wages for June 2012 and 26 wages for September 2012. Social security certificate of non debts and taxes certificate of non debts. Description of current status: Employees are paid above the national minimum wage. It was verified that wages are properly calculated and meet the minimum wage for the period. All applicable withholdings are properly calculated, withheld and promptly paid over to the appropriate government agency within the specified timelines. There are no payroll deductions for employment broker fees, housing allowances, food allowances etc. Up to date and all legally mandatory allowances and benefits are provided to the employees. All employees are provided with a written and understandable statement of their pay for each pay period Those contracts are in line with the general law. According to employees interviews salaries are always paid on time.

Non-compliance:

1. Description of non-compliance: Not Applicable

NC against ETI/Additional Elements NC against Local Law Local law or ETI requirement: Not Applicable Recommended corrective action: Not Applicable



Observation




1.Facility provides a health insurance to all employees that can be extended to family; 2. Facility provides seniority bonus to employees: 1 holiday after 10 years with company; 125€ after 15 years; 250€ after 20 years and 500€ after 25 years with company.

Objective Evidence Observed: Documents review

Wages analysis:

A: Sample size: (number of wages checked and which weeks or months – please see BPG)

26 wages for April 2012, 26 wages for June 2012 and 26 wages for September 2012

B: Legal minimum wage for standard time: (excluding OT - please include time period e.g. hour/week/month)

485,00€ monthly

C: Are there different legal minimum wage grades? If yes, please specify all.

Yes No

If yes, please give details:

D: Where there are different legal minimum wage grades are all workers graded correctly?

Yes No

If no, please give details:

E: What deductions are required by law:

Social Security (11%) and income taxes

F: Have all of these deductions been made?

yes

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

NA

H: Legal overtime premium for weekdays: (please include time period e.g. hour/week/month)

+ 25% first hour and + 37,5% the following hours


I: Legal overtime premium for rest days: (please include time period e.g. hour/week/month)

+ 50% than regular working hour

J: Legal overtime premium for holidays: (please include time period e.g. hour/week/month)

+ 50% than regular working hour


Worker Type Process Operator (Highest paid)

Process Operator (Average paid)

Process Operator (Lowest paid)

Select one worker’s records from each “Worker Type” and populate the boxes. Ensure comparison is made for same pay period (peak) and only uses full-time workers. See SMETA Best Practice Guidance for completing this:

A: Pay period (please include time period e.g.

hour/week/month):

September 2012 September 2012 September 2012

B: Anonymous Employee Reference/Dept.

A/ Samples Supervisor B/ Production Operator C/ Production Operator

C: Employee Gender Female Female Female

D: Contracted wage ( please include time period e.g.

hour/week/month):

monthly monthly monthly

E: Standard working hours (excluding OT - please include time period e.g.

hour/week/month):

8/day; 40/week 8/day; 40/week 8/day; 40/week

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

900,00 570,00 544,50

G: Standard day overtime – hours (please include time

period e.g. hour/week/month):

0 0 0

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

0 0 0

I: Rest day overtime – hours (please include time


0 0 0

J: Rest day overtime – wage

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

0 0 0

K: Statutory Holiday overtime – hours (please

include time period e.g. hour/week/month):

0 0 0

L: Statutory holiday OT - wages (please include time


0 0 0

M: Total overtime hours 0 0 0


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

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

102,35 57,85 97,90

O: Gross wages (please

include time period e.g. hour/week/month):

1002,35 627,85 642.40

P: Social insurance and other deductions

190,00 62,70 57,13

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

812,35 565,15

585,27

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

Employee A earns a bigger wage, because she is a supervisor, B is a specialized worker and employee C earns the minimum wage paid at facility.

R: Is there a defined living wage: This is not normally legal wage. If answered Y please state amount and source of info: Please see BPG)

Yes No

Please specify amount/time period:

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

Yes No

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

Yes No

Details:

U: How are workers paid: Cash Cheque Bank Transfer

If not explain:

Actual overtime premium paid in sample for…

V: Weekdays: + 25% first hour and + 37,5% the following hours

W: Rest days: + 50% than regular working hour

X: Holidays: + 50% than regular working hour


6: Working Hours are not Excessive

ETI 6.1 Working hours comply with national laws and benchmark industry standards, whichever affords greater protection. 6.2 In any event, workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off for every 7 day period on average. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a premium rate.


Documents checked & comments: 26 attendance lists for April 2012, 26 attendance lists for June 2012 and 26 attendance lists for September 2012; Description of current status: Regular work schedule from 8:00am – 4.30pm with 30 MIN lunch break and a 10 min break during morning and afternoon

Through employees interviews it was noted that facility performs overtime rarely, in peak production and this usually involves working no more than 2 hours per day.

Auditor noted an accurate record of work hours, by a swipe card system.

Non-compliance:

1. Description of non-compliance: Not Applicable NC against ETI NC against Local Law



Observation

Description of observation: Not Applicable Objective evidence


Local law or ETI requirement: Comments:

observed: Not Applicable



Objective Evidence Observed: Not Applicable

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

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

Swipe card

B: Sample size checked (number of workers): Please see BPG

26 attendance lists for April 2012, 26 attendance lists for June 2012 and 26 attendance lists for September 2012

C: Legal standard work week (hours): (Excluding OT - please include time period e.g. hour/week/month).

40

D: Contracted standard work week this site (hours) (excluding OT - please include time period e.g. hour/week/month)::

40

E: Actual standard work week averaged over sample for full time workers: (excluding OT - please include time period e.g. hour/week/month)

40

F: Lowest standard hours worked (excluding OT - please include time period e.g. hour/week/month)

40 hours/week

G: Highest standard hours worked (excluding OT - please include time period e.g. hour/week/month)

40 hours/week

H: Percentage workers on part-time contracts

0 % age

I: Legal permitted overtime hours (please include time period e.g. hour/week/month)

2 perday/10 week/150 year


J: Any local waivers or permission for annualised hours for this site:

No

K: Actual overtime hours: (averaged over sample) (please include time period

e.g. hour/week/month)

No overtime

L: Range of overtime hours over all workers: (quote highest and lowest please

include time period e.g. hour/week/month)

No overtime hour/ month and 2 hours/month

M: approx % of workers on highest overtime hours:

1% during September 2012

N: Peak season(s): months

From June to September

Comments: (Please state here any specific reasons/circumstances that explain the highest working hours)

According to employees and managers interviews overtime hours are rare and only performed during peak production.


7: No Discrimination is Practiced

ETI 7.1 There is no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.


Documents checked & comments: employment documents(hiring, wages, benefits) Description of current status: Promol procedures are in compliance with local Laws and Collective industry Agreements, which stated that workers should be employed on the basis of their ability to do the job, rather than on the basis of gender, age, disability, sexual orientation, racial characteristics, cultural or religious beliefs or similar factors. The facility recognised and respected cultural differences, employment (hiring, wages, benefits, advancement, termination, and retirement) shall be based on the worker’s ability, not on personal characteristics.

Non-compliance:




Observation




8: Regular Employment Is Provided

ETI 8.1 To every extent possible work performed must be on the basis of recognised employment relationship established through national law and practice. 8.2 Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour-only contracting, sub-contracting, or home-working arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided through the excessive use of fixed-term contracts of employment.


Documents checked & comments: Employees contracts Description of current status: The company has a history of maintenance and guarantee of employees work. Employment contract follows the general law. According to management the facility uses temporary workers during peak season, but these employees are legally hired. At time of audit there were no temporary workers at facility. Auditor noted that employees have a general knowledge of the conditions of the contract (remuneration, and working hours).

Non-compliance:




Observation

Description of observation: Not applicable

Objective evidence observed: Not applicable


Local law or ETI /additional elements requirement: Not applicable Comments: Not applicable

Good examples observed:

Description of Good Example (GE): Not applicable

Objective Evidence Observed: Not applicable


8A: Sub-Contracting and Homeworking:

8A.1. There should be no sub-contracting unless previously agreed with the main client. 8A.2. Systems and processes should be in place to manage sub-contracting, homeworking and external processing.

Note to auditor on homeworking: Report on whether it is direct or via agents. How many workers, relationship with site and what control systems are

in place.


Documents checked & comments: Not applicable Description of current status: According to manager, Promol doesn’t subcontract any production. There is no Home work

Non-compliance:

1. Description of non-compliance: Not applicable NC against ETI/Additional Elements NC against Local Law



Observation

Description of observation: not applicable Local law or ETI/Additonal elements requirement: not applicable Comments: Not applicable

Objective evidence observed: not applicable



Description of Good Example (GE): not applicable

Objective Evidence Observed: not applicable

Summary of sub-contracting – if applicable

A: Number of sub-contractors/agents used

Not applicable

B: Is there a site policy on sub-contracting?

Yes No

If yes, summarise details:

C: What checks are in place to ensure no child labour is being used and work is safe?

Not applicable

D: What processes are sub-contracted?

Not applicable

Summary of homeworking – if applicable

E: Number of homeworkers Male: Female: Total:

F: Are homeworkers employed direct or through agents?

Directly Through Agents

G: If through agents, number of agents

H: Is there a site policy on homeworking?

Yes No

I: How does site ensure worker hours and pay meet local laws for homeworkers?

J: What processes are carried out by homeworkers?

K: Are written agreements in place for homeworkers that include regular employment?

Yes No

L: Are full records available at the site?

Yes No


9: No Harsh or Inhumane Treatment is Allowed

ETI 9.1 Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation be prohibited.


Documents checked & comments: facility rules Description of current status: According to Portuguese labour law Dl 7/2009 the employer can apply disciplinary measures such as the following, ordered from the soft to the extreme: Oral censure, written censure, disciplinary process, suspension from work without remuneration, loss of holiday days, and dismissal as the more extreme. The facility respects the provisions of National Laws, which includes Prohibition of Harassment or Abuse principle and encouraged employees to report instances of harassment or abuse without fear of retribution directly to Management. In fact Management demonstrated respect for workers’ mental, emotional and physical well-being with regard to any disciplinary action necessary.

In case of need the facility will follow Portuguese law regarding disciplinary practices.

Non-compliance:




Observation

Description of observation: Not applicable Local law or ETI /additional elements requirement: Not applicable Comments: Not applicable



10. Other Issue areas: 10 A: Entitlement to Work and Immigration

Additional Elements 10A1 Only workers with a legal right to work shall be employed or used by the supplier. 10A2 All workers, including employment agency staff, must be validated by the supplier for their legal right to work by reviewing original documentation. 10A3 employment agencies must only supply workers registered with them. 10A4 the supplier shall implement processes to enable adequate control over agencies with regards the above points and related legislation.


Documents checked & comments: Employees list Description of current status: Facility has 2 migrant workers, from Germany and Ukraine, these are legal workers that belong to facility staff and receive all legal benefits and wages. There are no temporary or agency workers.

Non-compliance:




Observation

Description of observation: Not applicable Local law or ETI /additional elements requirement: Not applicable Comments: Not applicable



10. Other issue areas 10 B 2: Environment 2-pillar

To be completed for a 2-Pillar SMETA Audit, and remove the following page which is 10B4 environment 4 pillar

10B2. 1 Suppliers must comply with the requirements of local and international laws and regulations including having necessary permits. 10B2. 2 The supplier should be aware of and comply with their end clients’ environmental requirements. Note for auditors and readers , This is not a full environmental assessment but a check on basic systems and management approach.


Documents checked & comments: Solid waste records, Monitoring report of air emissions, water resources authorization Description of current status: Facility complies with all national and European laws and regulations. Facility has recycling practices: all the waste is segregated internally (paper, plastic, card, metal scrap, used oils,

Obsolete equipment and contaminated waste is sent for recycling or proper disposal.

Facility has performed all mandatory air emissions, as they have 2 exhaustion sources to exterior; parameters measured were within the law

Non-compliance:




Observation

Description of observation: Not applicable



Local law or ETI /additional elements requirement: Not applicable Comments: Not applicable





Worker Interview Summary Worker Interview Summary

A: Were workers aware of the audit? Yes No

B: Were workers aware of the code? Yes No

C: Number of group interviews: Please specify number and size of groups. Please see BPG

4 groups of 5 workers

D: Number of individual interviews Please see BPG

Male: 2 Female: 4

E: Number of interviewed workers Please see BPG

Male:8 Female: 18

F: Interviews were done in private and the confidentiality of the interview process was communicated to the workers?

Yes No

G: In general, what was the attitude of the workers towards their workplace?

Favourable Non-favourable Indifferent

H: What was the most common worker complaint?

None

I: What did the workers like the most about working at this site?

Good work environment, wages are always paid on time

J: Any additional comment(s) regarding interviews:

None

Agency Workers (workers sourced from a local agent who are not directly paid by the site)

A: Number of agencies used (average):

And names if available: Not applicable

B: Were agency workers’ age/pay/hours included within scope of this audit

Yes No


Other findings

Other Findings Outside the Scope of the Code

Not Applicable

Community Benefits (Please list below any specific community benefits that the site management stated that they were involved in, for example, HIV programme, education, sports facilities)

Promol is a benevolent company supporting regularly some community institutions with money and donations.


Photo Form No pictures were allowed

Your feedback on your experience of the SMETA audit you have observed is extremely valuable. It will help to make improvements to future versions.

You can leave feedback by following the appropriate link to our questionnaire:

Click here for A & AB members:

http://www.surveymonkey.com/s.aspx?sm=riPsbE0PQ52ehCo3lnq5Iw_3d_3d

Click here for B members: http://www.surveymonkey.com/s.aspx?sm=d3vYsCe48fre69DRgIY_2brg_3d_3d

Your feedback on your experience of the SMETA audit you have observed is extremely valuable.

It will help to make improvements to future versions.


Click here for A & AB members: http://www.surveymonkey.com/s.aspx?sm=riPsbE0PQ52ehCo3lnq5Iw_3d_3d

Click here for B members:

http://www.surveymonkey.com/s.aspx?sm=d3vYsCe48fre69DRgIY_2brg_3d_3d DISCLAIMER:

"This report is for the exclusive use of the client of Intertek named in this report (“Client”) and is provided pursuant to an agreement for services between Intertek and Client (“Client Agreement”). This report provides a summary of the findings and other applicable information found/gathered during the audit conducted at the specified facilities on the specified date only. Therefore, this report does not cover, and Intertek accepts no responsibility for, other locations that may be used in the supply chain of the relevant product or service. Further, as the audit process used by Intertek is a sampling exercise only, Intertek accepts no responsibility for any non-compliant issues that may be revealed relating to the operations of the identified facility at any other date. Intertek's responsibility and liability are also limited in accordance to the terms and conditions of the Client Agreement. Intertek assumes no liability to any party, for any loss, expense or damage occasioned by the use of this information other than to the Client and in accordance with the Client Agreement and these disclaimers. The disclaimer should be read in conjunction with the Terms and Conditions of Intertek.”

End of report.


Supplier name: Promol – Indústria de Velas, SA

Site country: Portugal

Site name: Promol – Indústria de Velas, SA

SMETA Audit Type: 2-Pillar 4-Pillar


Audit Company Name:

Intertek

Report Owner (payee):

Promol – Indústria de Velas, SA

Sedex Company Reference: (only available on Sedex System):

S

Sedex Site Reference: (only available on Sedex System)

P

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


Audit Details

Audit Details

A: Report #: PRT-SMETA-105612

B: Date of audit: 22-10-2012

C: Time in and time out: Please see Best Practice Guidance page

Time in: 9.30pm Time out: 2.00pm

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

2 auditors during one day

E: Audit type:

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

F: Was the audit announced?

Announced Semi – announced Unannounced

G: Was the Sedex SAQ available for review?

Yes No

If no, why not? Not provided

I: Auditor name(s) and role(s): Paula Costa, Lead Auditor and Liliana Araújo Auditor

J: Report written by: Paula Costa, Auditor

K: Report reviewed by: NA

L: Report issue date: 22-10-2012

M: Supplier name: Promol – Indústria de Velas, SA

N: Site name: Promol – Indústria de Velas, SA

O: Site country: Portugal

P: Site contact and job title: Hans Bopp, Administrator

Q: Site address: Rua José Libânio, Lote 12; Zona Industrial 2500-758 Caldas da Raínha

Site phone: + 351 262837140

Site fax: +351 262842120

Site e-mail: [email protected]


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

Business license Nº SIRG (II) 3/19929

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

Decorative Candles

T: Audit results reviewed with site management?

Yes

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

Hans Bopp, Administrator

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

YES

W: Previous audit date: NA

SMETA 2-Pillar SMETA 4-Pillar Other

Full Initial

Periodic

Full Follow-Up Audit

Partial Follow-Up

Partial Other*

X: Previous audit type:

*If other, please define:


Guidance:

The Corrective Action Plan Report summarises the site audit findings and a corrective, and preventative action plan that both the auditor and the site manager believe is reasonable to ensure conformity with the ETI Base Code, Local Laws and additional audited requirements. After the initial audit, the form is used to re-record actions taken and to categorise the status of the non-compliances. N.B. observations and good practice examples should be pointed out at the closing meeting as well as discussing non-compliances and corrective actions. To ensure that good practice examples are highlighted to the supplier and to give a more ‘balanced’ audit a section to record these has been provided on the CAPR document (see following pages) which will remain with the supplier. They will be further confirmed on receipt of the audit report.

Root cause (see column 4)

Note: it is not mandatory to complete this column at this time.

Root cause refers to the specific procedure or lack of procedure which caused the issue to arise. Before a corrective action can sustainably rectify the situation it is important to find out the real cause of the non-compliance and whether a system change is necessary to ensure the issue will not arise again in the future.

See Appendix 2.5 for more explanation of “root cause’’.

Next Steps:

1. The site shall request, via Sedex, that the audit body upload the audit report, non-compliances, observations and good examples. If you have not already received instructions on how to do this then

please visit the web site www.sedexglobal.com.

2. Sites shall action its non-compliances and document its progress via Sedex.

3. Once the site has effectively progressed through its actions then it shall request via Sedex that the audit

body verify its actions. Please visit www.sedexglobal.com web site for information on how to do this.

4. The audit body shall verify corrective actions taken by the site by either a "Desk-Top” review process via Sedex or by Follow-up Audit (see point 5).

5. Some non-compliances that cannot be closed off by “Desk-Top” review may need to be closed off via a “1 Day Follow Up Audit” charged at normal fee rates. If this is the case then the site will be notified after its submission of documentary evidence relating to that non-compliance. Any follow-up audit must take place within twelve months of the initial audit and the information from the initial audit must be available for sign off of corrective action.

6. For changes to wages and hours to be correctly verified it will normally require a follow up site visit. Auditors will generally require to see a minimum of two months wages and hours records, showing new rates in order to confirm changes (note some clients may ask for a longer period, if in doubt please check with the client).


Corrective Action Plan

Corrective Action Plan – non-compliances

Non-Compliance

Number The reference number of the

non-compliance

from the Audit Report,

for example, Discrimination

No.7

New or Carried Over

Is this a new non-compliance identified at the follow-up or one carried over (C)

that is still outstanding

Details of Non-Compliance

Details of Non-Compliance

Root cause (completed by the

site)

Preventative and Corrective Actions Details of actions to be

taken to clear non-compliance, and the system

change to prevent re- occurrence (agreed

between site and auditor)

Timescale (Immediate,

30, 60, 90,180,365)

Verification Method Desktop / Follow-Up

[D/F]

Agreed by Management and Name of Responsible

Person: Note if management

agree to the non-compliance, and

document name of responsible person

Verification Evidence and Comments

Details on corrective action evidence

Status Open/Closed or comment

----- ----- ----- ----- ----- ----- ----- ----- ----- -----


Corrective Action Plan – Observations

Non-Compliance

Number The reference number of the observation

from the Audit Report,

for example, Discrimination

No.7

New or Carried Over

Is this a new observation

identified at the follow-up or one carried over (C)

that is still outstanding

Details of Observation Details of Observation

Root cause (completed by the

site)

Preventative and Corrective Actions Details of actions to be

taken to clear non-compliance, and the system

change to prevent re- occurrence (agreed

between site and auditor)

Timescale (Immediate,

30, 60, 90,180,365)

Verification Method Desktop / Follow-Up

[D/F]

Agreed by Management and Name of Responsible

Person: Note if management

agree to the non-compliance, and

document name of responsible person

Verification Evidence and Comments

Details on corrective action evidence

Status Open/Closed or comment

----- ----- ----- ----- ----- ----- ----- ----- ----- -----

Good examples

Good example Number

The reference number of the non-compliance from the

Audit Report, for example,

Discrimination No.7

Details of good example noted

Any relevant Evidence and Comments

Wages & Benefits Facility provides a health insurance to all employees that can be extended to family Documents review

Wages & Benefits Facility provides seniority bonus to employees: 1 holiday after 10 years with company; 125€ after 15 years; 250€ after 20 years and 500€ after 25 years with company

Documents review

Health & safety Facility provides stretching lessons to all employees to help to help them improve their posture and health Employees interviews


Confirmation


Appendix 2.5. Guidance on Root Cause

Explanation of the Root Cause Column If a non-compliance is to be rectified by a corrective action which will also prevent the non-compliance re-occurring, it is necessary to consider whether a system change is required. Understanding the root cause of the non-compliance is essential if a site is to prevent the issue re-occurring. The root cause refers to the specific activity/ procedure or lack of activity /procedure which caused the non-compliance to arise. Before a corrective action can rectify the situation it is important to find out the real cause of the non-compliance and whether a system change is necessary to ensure the issue will not arise again in the future. Since this is a new addition, it is not a mandatory requirement to complete this column at this time. We hope to encourage auditors and sites to think about Root Causes and where they are able to agree, this column may be used to describe their discussion. Some examples of finding a “root cause“ Example 1 where excessive hours have been noted the real reason for these needs to be understood, whether due to production planning, bottle necks in the operation, insufficient training of operators, delays in receiving trims, etc. Example 2 A non-compliance may be found where workers are not using PPE that has been provided to them. This could be the result of insufficient training for workers to understand the need for its use; a lack of follow-up by supervisors aligned to a proper set of factory rules or the fact that workers feel their productivity (and thus potential earnings) is affected by use of items such as metal gloves. Example 3 A site uses fines to control unacceptable behaviour of workers. International standards (and often local laws) may require that workers should not be fined for disciplinary reasons. It may be difficult to stop fines immediately as the site rules may have been in place for some time, but to prevent the non-compliance re- occurring it will be necessary to make a system change. The symptom is fines, but the root cause is a management system which may break the law. To prevent the problem re-occurring it will be necessary to make a system change for example the site could consider a system which rewards for good behaviour Only by understanding the underlying cause can effective corrective actions be taken to ensure continuous compliance. The site is encouraged to complete this section so as to indicate their understanding of the issues raised and the

actions to be taken.


Your feedback on your experience of the SMETA audit you have observed is extremely valuable. It will help to make improvements to future versions.


Click here for A & AB members:

http://www.surveymonkey.com/s.aspx?sm=riPsbE0PQ52ehCo3lnq5Iw_3d_3d

Click here for B members: http://www.surveymonkey.com/s.aspx?sm=d3vYsCe48fre69DRgIY_2brg_3d_3d

Disclaimer

Any proposed Corrective Action Plan (CAP) closed utilizing a Desktop Review is limited by the evidential

documentation provided by the facility in order to correct the non conformance. The intent of this service is to

provide assurance that the facility is on the correct path with its proposed or completed corrective actions. Intertek

cannot be held responsible for the falsification of evidence or the effective implementation of the proposed

corrective actions, which in many instances may only be truly validated by an onsite Audit visit owing to the

limitations of the desktop review process. The facilities shall be wholly responsible for the correct and effective

implementation of their proposed CAP.

Intertek nor any of its affiliates shall be held liable for any direct, indirect, threatened, consequential, special,

exemplary or other damages that may result including but not limited to economic loss, injury, illness, or death

arising from the inability of a facility to implement its CAP.