Workplace Conditions Assessment Report Cup Factory Fair... · Time record system( s) used:...

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

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GENERAL INFORMATION

Report No: FJAR_104034 Audit Date: Dec 06, 2017 Last Audit: NA

City: Country: Auditors :

Redacted Taiwan Primary:

Barry Su

,A,,s:.cse,s.,.,sccm,,ec:n,.,.t., , ,·.c::o., ... ,... ,I,m,,· t ,,,ia,,l ........................................................................................... .................................................................. Secondary:.Johnson.Lin �cl:l(;(lt1J(;'J'yp(; : Announced Service Provider: Intertek

WORKPLACE PERFORMANCE INDEX AND SUMMARY Participating facilities: 26872

85-100% High Performance

71-84% Medium Performance

51-70%Low Performance

= !! - Overall Facility Score : 90%

Average Counlry Score: 83%

Average Industry Score: 78% Avero[le Globul Score: 73q,{;

'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.

Overall 4 4

0-50% Very low Performance

-

Labor

W�es&HtJtttS

Management Systems

Environment

Si I I I SU

•.. , ..

1,wa

78%

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Total Quality. Assured.

1

2

1 4

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Workplace Conditions Assessment Report Nr. FJAR_104034

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A. FACILITY PROFILE

Al. FACILI1Y INFORMATION

Facility Name:

Facility Legal Name:

Audit Location:

Country:

Contact Name:

ContaLt Title:

Industry:

Building Description:

Special building type:

Redacted

Redacted

Taiwan(R.O.C.)

Redacted

Taiwan

Mr. Steven Lee

Manager

Paper products

Facility Legal Status:

Year facility began operations:

Located in special economic zone:

Person responsible for overall social compliance issues:

Valid certificate for social compliance certification

Vendor Name:

Security systems in place:

In view of the facilities, there is 4 building in the facility.

Privately owned

1994

Yes

Mr. Steven Lee / Manager

None

Redacted

Yes There are three security guards in the facility directly for 24 hours. The security guard is just to guard the facility safety. The responsibilities of the security guards are to protect the staff, visitors, and other authorized person from harassment, assault, intimidation or threat against them and maintenance of peace and order.

The 1-3 building has occupied one 2-storey building, which is used as packing, warehouse and product; the 4 building has occupied one 6-storey building, which is used as production (lF), canteen (2F), ollice (3-SF). The facility is one building in location and original construction of the building is used as industrial facility. The total land and floor area occupied by the facility is about 36,619 square meters. The building material is included as cement, metal and concrete. There is one building in the dorrnitmy, the donnitory has occupied 3-storey building, the dormitory is about 10 - 15 minutes drive from the factmy. However, no multi-sto1y building with a ground floor marketplace and commercial shop or shared with other facilities/ enterprises under separate ownership. No kitchen (cooking) are available in the facility. There was no significant peak production month.

NA

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A2. PRODUCTION INFORMATION

Products manufactured/ Paper cup container Services

Production process/ Service elements:

Production capacity a week:

Total number of machines:

Main machine types:

Laminating, Slitting, Cutting, Printing and Forming.

8 Container

94

2 Laminating Machines, 2 Cutting Machines, 2 Slitting Machine, 19 Coating Machine, 69 Printing Machine.

Time record system( s) used:

Chemicals or hazardous materials on-site:

Current production/ Services for client:

Swipe Card system

Yes Mineral Spiri� Ethanol, lsopropyl Alcohol.

Yes

Shifts and Operating hours:

Employees work for 5 days a week from Monday to Friday. The working hour for office is from 08:00 to 17:00 with 60 minutes lunch break from 12:00 to 13:00. Three shift is from 07:00 to 15:00; 15:00 to 23:00; 23:00 to 07:00 at product department. There are 30 minutes of meal break for each shift.

A3. EMPLOYEE INFORMATION

Range of total number of 101-500 employees employees at the facility:

Union name:

Employs juvenile workers:

Hires through employment agent:

None

None

Yes The facility hired foreign of employees by employment agency in the facility.

Female Employees: . . ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Male Employees:

Mgmt Employees:

Production (NonManagement) Employees:

Local Employees:

Foreign/Migrant Employees:

138

302

46

394

379

61

Employee nationalities/ provinces:

There are 379 Taiwan workers and 61 Indonesia workers in the factory.

Languages spoken in the Mandarin Chinese, Taiwanese, Indonesia.

A4. SUBCONTRACTOR INFORMATION

No subcontractor information given

Management and employees speak same language :

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Yes

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AS. GENERAL INFORMATION

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

Emergency Preparedness Summary

All firefighting equipment is kept clear, periodical inspection, clean and no fire evacuation exits and route has obstmcted. Auditor also checked the use of the emergency preparedness during the audit; and found out that they are working and is kept in normal status. The facility is fitted with sufficient firefighting equipment and has good control to manage emergency preparedness. Based from facility tour and document review, the summary description of the existing fire equipment at the facility as below: 1. Fire alarms: 188 pieces2. Fire Extinguishers: 117 pieces3. Emergency exit lights: 60 pieces4. Emergency lights: 264 pieces5. Fire detector central control: 1 piece6. Smoke detector: 758 pieces7. Emergency directed light: 384 pieces8. Fire Hose Reels: 33 pieces9. Fire Hydrants: 33 pieces.

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A6. AUDIT PROCESS

Audit pay period provided for review

Records From

12 Months Attendance 1-12- 2016

To

30-11-2017

30-11-2017

Payroll and attendance records sampling

Employee interview sampling

Individnal 20

Group

Total interviewed

2 group of 5.

30 employees were interviewed.

Period

Current Period

From

01-11-2017

To

30-11-2017

Peak Season

No

Records Reviewed

20

Period 1 01-10-2017

Period 2 01-04-2017

Total

Other records reviewed

Personnel records

Security log book

Non-Production records

Legal Permits

Employee leave register

Health examination records

31-10-2017 No

30-04-2017 No

Machine maintenance records

Production records

Employment contracts

Social insurance documentation

Infirmary logs

5

5

30

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B. KEY PERFORMANCE METRICS

B1. COMPARISON BENCHMARK

Current performance Global average, Taiwan average, Paper products averczqe

Labor Wages & Hours Health & Safety Management Systems

100%

80%

60%

20%

0%

i \:if 'Lf 96 96

llliiiii==

•••• ••••----

iiii

90

11!1 71 • 7!

• •- -

- 7R

• •-

• 77

n I I• •

i i LI

B2. PERFORMANCE TREND ANALYSIS

Current Last First Section Name

(06-Dec-2017) (Not Applicable) (Not Applicable)

Labor 100 Not Applicable Not Applicable

Wages & Hours 85 Not Applicable Not Applicable

Health & Safety 90 Not Applicable Not Applicable

Management Systems 78 Not Applicable Not Applicable

Environment 100 Not Applicable Not Applicable

Overall Score 90 Not Applicable Not Applicable

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

PERFORMANCE RATING

-·,!i

71:i

Change

!!!

• •-

(Current-Last)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Environment

f]() 82 ,'33

Change

(Current-First)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

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

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B3. WORKING HOURS AND WAGES

Average total hours worked weekly

Normal Work Hours

120 hrs

100 hrs

80 hrs

60 hrs

.tQ hrs

20 hrs

0 hrs

"""'Overtime Work Hours

::::::::::::::::::: 6 ·,

01-11-201730·11·2017

Average

lnternaUonal Standard: 60 Taiwan average: 46

Average wages paid in local currency (NTD)

35000 .VTD

30000 VTD

25000 :-;TD

20000 :'4TD

15000 •,TD

l 0000 ,TD

5000 NTD ···································

0 :"iTD ······································································

01-10-2017:Jl-10-2017

Average

::::::::::::::::::: d ·,

01-04-2017:J0-0·1·2017

Average

Highest hours this faciliry: 56

Z6+2E

24t:27

This Facifit;y Minimum Wuge Province Average Country Average

Special wage circumstances: Wages and hours summary: Payment day is on a monthly basis and are bank auto-pay to all of the employees' accounts on the 6th

of each month.

The three months (November, October and April, 2017) of attendance and payroll records are drawn from twelve-month period (From December 2016 to November 2017). The wage, regular working hours and overtime hour statistics were the following: 1. Total daily r egular working hours are 8 hours and weekly regular working hours are 40 hours.2. Maximum daily overtime hours are 4 hour; and maximum monthly overtime hours are 67.5 hours.3. The actual minimum wage for the factory is NTD 21,009 per month that meet legal requirement.[Legal minimum wage is NTD 21.009 per month/ 133 per hour.] after July 1 ,2017.

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C. PERFORMANCE DETAILS

Current (06-Dec-2017)

Cl. Labor

!OU

l3(,.

60.

40 --

20 1111 o-

NA

!! • --

!!!

PERFORMANCE RATING

NA

!! • --

!!! NA

• • --

!!!!

Low(51% 70}'.:)

• • --

!!!

Medium (71 % 1141/)

• • --

!! NA

High (85% I Oil/)

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C2. Wages & Hours

lOO

80

40

20 NA

0

Sub Section: Working Hours

Moderate 122.00 : Total overtime hours exceeds allowable limits uuder applicable law or agreement.

Auditor's comment In accordance with the Labor Standards Act: Chapter 4, Article 32 (Working Hours, Recess and Holidays), when an employer has a necessity to have his (or her) employee to perform the work besides regular working hours, he [or she], with the consent of a labor union, or if there is no labor union exists in a business entity, with the approval of a labor-management conference, may extend the working hours. The extension of working hours referred to in the preceding paragraph, combined with the regular working hours, shall not exceed twelve hours a day. The total number of overtime shall not exceed forty-six hours a month. Finding: It was noted that 6 out of 30 employees had worked 52-67.5 hours ofovertime a month in November, 2017; 5 out of 5 employees had worked 52-77,5 hours ofovertime a month in October, 2017; 2 out of 5 employees had worked 46.5-70 hours of overtime a month in April, 2017. Labor Standards Act: Chapter 4, Article 32

When an employer has a necessity to have his (or her) employee to perform the work besides regular working hours, he (or she), with the consent of a labor union, or if there is no labor union exists in a business entity, with the approval of a labor�management conference, may extend the working hours. The extension of working hours referred to in the preceding paragraph, combined with the regular working hours, shall not exceed twelve hours a day. The total number of overtime shall not exceed forty-six hours a month. Due to the occurrence of an act of God, an accident, or an unexpected matter and when an employer has a necessity to have his (or her) employee to perform the work besides regular working hours, may extend the working hours. However, the employer shall notify the labor union within twenty�four hours after the beginning of the extension. If there is no labor union exists, shall report to the local competent authority for registration. Subsequent to the over time, the employer shall offer worker suitable time off.

PERFORMANCE RATING

48%


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C3. Health & Safety

NA NA NA NA NA NA

l:JlT:'JCt cu·1c-1:;·

L'i,:'i'_J L inu;.,,; J L >,,r,t(.;(J LM h(v_J L •;;,;y _J L '''.:::°

' _J L D,w'.n. 1.u: _,EC -

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

Sub Section: Emergency Preparedness

Moderate 192.00 : There are no and/or missing evacuation plans posted throughout the facility 86%

Auditor's comment In accordance with the Enforcement Rules of the Fire Safety Regulation, Atticle 15 [Fire control Plan), The fire protection plan referred in Atticle 13 of the Act shall include but not limited to the following details: 9. Map of the place, escape route map and layout Finding: It was noted no foreign workers language (Indonesia) of evacuation plan is posted anywhere in the facility. Enforcement Rules of the Fire Safety Regulation, Article 15 The fire protection plan referred in Article 13 of the Act shall include but not limited to the following details: 9. Map of the place, evacuation route map and layout

Sub Section: Occupational Injury

Moderate 205.00 : First aid kits are not fnlly stocked with supplies 95%

Auditor's comment In accordance with the Labor Health Protection Rule: Article 6 [Labor Health Protection), Enterprise shall, based on the size, allocation, hazard and number of labor of the workplace, prepare sufficient first-aid medicine, equipment and qualified first-aid personnel for first-aid assisting. In appendix 6, the first-aid medicine and equipment should including - 1. Medicines: Iodine swabs or liquid/ alcohol swabs or liquid and in accordance with workplace hazard characteristics prepare essential medicines which are recommended by physician of Article 3 or Article 4. 2. Material: Temperature measurement, a blood pressure monitor, elastic yarn stretch or elastic bandage (large, medium and small), bandage, sterile gloves, forceps without teeth, swab (large, medium and small), gauze, paper, plastic, tourniquet, scissors, safely pins, spatula, articulator, surgical masks and other essential equipment Finding: All of first aid kit lacked of sterile gloves, blood pressure monitor, sterile gloves [Dormitory). Labor Health Protection Rule: Article 6 Enterprise shall, based on the size, allocation, hazard and number of labor of the workplace, prepare sufficient first-aid medicine, equipment and qualified first-aid personnel for first-aid assisting.

PERFORMANCE RATING


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C4. Management Systems

lOO

80

40

20 NA

0

Sub Section: Management Systems

• Minor 296.04: The facility has comprehensive working hour and wages management processes and procedures in a written manual that support adherence to social compliance requirements but they are not all being properly implemented Auditor's comment The facility established policies and procedures, the monitoring system may not be effective or policies are incomplete thus resulting to lapses of implementation with the finding: 1. It was noted that 6 out of 30 employees had worked 52-67.5 hours ofovertime a month in November, 2017; 5 out of 5 employees had worked 52-77.5 hours of overtime a month in October, 2017; 2 out of 5 employees had worked 46.5-70 hours of overtime a month in April, 2017. Labor Standards Law: Chapter 9, Article 70 An employer hiring more than thirty workers shall set up work rules in accordance with the nature of the business, and shall publicly display the rules after they have been submitted to the Component authority for approval and registration. The rules shall specify the following items: I. Work hours, time off, leave of absence, national holidays, special leave of absence, and methods for arranging shifts for doing continuous work 2. Wage rates, calculating formula and pay day. 3. Overtime work. 4. Allowances and bonuses .. 5. Disciplinary measures. 6. Rules for attendance, leave taking commending or penalizing, promotion and transfer. 7. Recruitment, discharge, separation, withdrawal of service and retirement 8. Compensation and pension for injury or disease caused by occupational accidents. 9. Welfare measures. 10. Safety and health regulations which employers and workers are obliged to observe. 11. Methods for the promotion of communication and cooperation between an employer and workers. 12. Miscellaneous.

e.Minor 296,06: The facility has comprehensive emergency preparedness processes and ...

procedL1res in a written manual that support adherence to social compliance ...

requirements but they are not all being properly implemented Auditor's comment The facility established policies and procedures, the monitoring system may not be effective or policies are incomplete thus resulting to lapses of implementation with the finding: 1. It was noted no foreign workers language (Indonesia) of evatuation plan is posted anywhere in the facility.

• Minor 296.07: The facility has comprehensive employee safety processes and procedures in a written manual that support adherence to social compliance requirements but they are not all being properly implemented Auditor's comment The facility established policies and procedures, the monitoring system may not be effective or policies are incomplete thus resulting to lapses of implementation with the finding: 1. All of first aid kit lacked of sterile gloves, blood pressure monitor, sterile gloves [Dormitory).

PERFORMANCE RATING

78%

51%

66%

54%

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


. ..


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Sub Section: Management Systems

Moderate

• Minor

300.00 : The facility does not conduct periodic assessments (including internal audit) of its management system in order to identify improverue11topportm1lties /lu,ditor's, (JD:nt1t1e:nt '.f11e:faqto:rY: c[id: nor qo11d,uqt pi2ri9djq �ss:es�rnt!tlts :(at: left St: a:n11µally) :of: its social compliance system,

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

Auditor's comment The factoty did not written records of a regular Management Review of the social compliance system.

CS. Environment

WO

80

60

40

20 NA

75%

66%

% Global FrequenLy of Compliance: Represents the implementation percentage performance ofall suppliers participating in the WCA Community glohally for each issue

Identification numbers: Represents the finding ID associated with each checklist question

RECOMMENDATION FOR IMPROVEMENT PLAN TIMELINE

• Minor Take action within O - 6 months to makenecessary improvements.

Moderate: Take action within O - 3 months to makenecessary improvements.

PERFORMANCE RATING

Low(51% 70}'.:)

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

• Zero Tolerance: Take immediate action to makenecessary improvements.

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



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D. STRENGTHS AND CHALLENGES

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The facllttyprovldes social security, pensions, healthcare and/ or other Insurance to employees as per legal Moderate requirement.

First aid kits are not fully stocked with supplies

There are no and/or missing evacuation plans posted throughout the facility

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

The facility has comprehensive emergency preparedness processes and procedures in a written manual that support adherence to social compliance requirements but they are not all being properly implemented

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

DISCLAIMER

Moderate

Moderate

Moderate

Minor

Minor

57%

95%

86%

75%

66%

66%

This report is for the exclusive use of the client oflntertek named in this report ("Client"] and is provided pursuant to an agreement for services between Intertek and Client ("Client agreement'} No other person may rely on the terms of this report. This report provides a summary of the findings and other applicable information found/ gathered during the audit conducted at the specified facilities on the specified date only. Therefore, this report does not cover, and Intertek accepts no responsibility for, other locations that may be used in the supply chain of the relevant product or service. Further, as the audit process used by lntertek is a sampling exercise only, lntertek accepts no responsibility for any non-compliant issues that may be revealed relating to the operations of the identified facility at any other date. Intertek' s responsibility and liability are also limited in accordance to the terms and conditions of the Client Agreement. Intertek assumes no liability to any party, for any loss, expense or damage occasioned by the use of this information other than to the Client and in accordance with the Client Agreement and these disclaimers. In case there is any conflict between the disclaimers stated herein and the applicable terms and conditions of Intertek incorporated into the Client Agreement, then these disclaimers shall prevail.

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