Workplace Conditions Assessment Report - World Centric · 2018-07-17 · Workplace Conditions...

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

Redacted

GENERAL INFORMATION

Report No: FJAR_102381 Audit Date: Dec 08, 2017 Last Audit: NA

72%

City: Country: Auditors :

Redacted Taiwan Primary: Terry Kuo

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

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

WORKPLACE PERFORMANCE INDEX AND SUMMARY

85-100% High Performance

71-84% Medium Performance

51-70%Low Performance

= !! -

Average Countcv Score: 83%

Average Global Score: 78% Average Industry Score: 77%

Overall Facility Score : 72%.

Participating facilities: 26881

Overall 72% 1 11 3

0-50% Very low Performance

-

Labor

W,iges &Hoots

Management Systems

Environment

Si I I I SU

•.. , ..

73%

i'f&

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Total Quality. Assured.

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1 6

3 3

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Workplace Conditions Assessment Report Nr. FJAR_102381

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A. FACILITY PROFILE

Al. FACILI1Y INFORMATION

Facility Name:

Facility Legal Name:

Audit Location:

City:

Country:

Contact Name:

Contact Title:

Industry:

Building Description:

Special building type:

Redacted

Redacted

Taiwan

Nil

Redacted

Taiwan

Ms. Cindy Lin

Personal Use Items

Facility Legal Status:

Year facility began operations:

Located in special economic zone:

Person responsible for overall social compliance issues:

Valid certificate for social compliance certification program:

Vendor Name:

Security systems in place:

Privately owoed

1978

Yes

Ms. Cindy Lin

ISO: 9001:2015 Certification: TTQ01534-03, issue date: 24 November 2017, expiiy date: 23 November, 2022

Redcated

Yes There are three security guards in the facility directly for 8 hours. The security guard is just to guard the facility safety. The responsibilities of ,he securiiy guards are ,o protect the staff, visitors, and other authorized person from harassment, assault, intimidation or threat against them and maintenance of peace and order.

In view of the facilities, there are Two buildings in the facility. A-building has occupied one 4-storey building, which is used as office( 1F-4F) and B-building has occupied one 3-storey building, which is used as Warehouse, office and Canteen (lF), production and Packing used in (2F) and production which is used in (3F) , no dormitory was provided in the facility. The total land and floor area occupied by the facility is about 29,000 square meters and 29,000 square meters. The building material is included as cement, metal and concrete. However, no multi-stoiy building with a ground floor marketplace and commercial shop or shared with other facilities/ enterp1ises under separate ownership. Another, canteen is available for employees to use in the facility The No peak season in facility.

NA

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A2. PRODUCTION INFORMATION

Products manufactured/ PLA /PET food containers Services

Production process/ Service elements:

Production capacity a week:

Total number of machines:

Main machine types:

Raw material, Press, Forming, cutting and Packing.

907,500 KGS

22

10 Press machines, 21 Forming including Cutting machines

Time record system( s) used:

Chemicals or hazardous materials on-site:

Current production/ Services for client:

Swipe Card system

Yes Shell hent Transfer S2 oil, lsopropyl Alcohol, Ethanol

No

Shifts and Operating hours:

Employees work for 5 days a week from Monday to Friday. the day shift working hour is from 08:00 to 20:00 with 60 minutes lunch break from 12:00 to 13:00, the night shift working hour is from 20:00 to 8:00 with 60 minutes,break time from 23:00 to 24:00, the normal office worker working hour is from 8:00 to 17:00 with 60 minutes lunch time from 12:00 to 13:00.

A3. EMPLOYEE INFORMATION

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

Union name:

Employs juvenile workers:

Hires through employment agent:

Employee nationalities/ provinces:

None

None

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

There are 19 Vietnamese workers ,131 Taiwanese workers and 37 Thai in the facility.

Female Employees:

Male Employees:

Mgmt Employees:

Production (NonManagement) Employees:

Local Employees:

Foreign/Migrant Employees:

Languages spoken in the

Management and employees speak same language :

72

115

39

148

131

56

Taiwanese, Chinese, Thai and Vietnam

Yes

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

No subcontractor information given



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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 obvious peak season in the facility. At the end of the audit, a closiog meeting was held with the facility maoagement. All findings were discussed with Ms.Cindy Jin/ Supervisor , who agreed with the audit result.

Emergency Preparedness Summary

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

Based on facility tour and document review, the summary description of the existing fire equipment at the facility as below: 1. Fire alarms: 23 pieces.2. Fire Extinguishers: 77 pieces.3. Emergency exit lights: 21 pieces.4. Emergency lights: 171 pieces.5. Fire detector central control: 1 piece.6. Smoke detector: 165 pieces.7. Emergency directed light: 32 pieces.8. Fire Hose Reels: 4 pieces.9. Fire Hydrants: 23 pieces.Based on document review the last two evacuation drills have conducted on 12 June, 2017 and 29 November, 2017.



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A6. AUDIT PROCESS

Audit pay period provided for review Employee interview sampling

Records

12 Months

From

01-12- 2016

12 Months Attendance 01-12- 2016

To

30-11- 2017

30-11- 2017

Individual

Group

Total interviewed

Payroll and attendance records sampling

Period

Current Period

Period 1

Period 2

Total

From

01-11-2017

01-07-2017

01-03-2017

Other records reviewed

Personnel records

Production records

Employment contracts

Social insurance documentation

Infirmary logs

To

30-11-2017

31-07-2017

31-03-2017

Peak Season

No

No

No

Machine maintenance records

Non-Production records

Legal Permits

Employee leave register

Health examination records

10 employees

0

10 employees were interviewed.

Records Reviewed

10

3

3

16

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B. KEY PERFORMANCE METRICS

BL COMPARISON BENCHMARK

Current performance Global average, Taiwan average, Personal Use Items average

Labor Wages & Hours Health & Safety Management Systems

100%

80%

60%

20%

0%

i \:if 'Lf 96 96

llliiiii==

•••• ••••----

iiii I I• •

i i LJ

H9

71.

•-

i

66

,.,• • I I l:',':',':','I

! ! LJ

7R

•-

i i

B2. PERFORMANCE TREND ANALYSIS

Current Last First Section Name

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

Labor 100 Not Applicable Not Applicable

Wages & Hours 73 Not Applicable Not Applicable

Health & Safety 64 Not Applicable Not Applicable

Management Systems 48 Not Applicable Not Applicable

Environment 100 Not Applicable Not Applicable

Overall Score 72 Not Applicahle Not Applicable

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

PERFORMANCE RATING

-·,!i

71:i

Change

!!!

• -

i

(Current-Last)

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Environment

f]() 82 IS

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

20

01-11-2017

30·11·2017Average

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

277'14

25

01-07-2017

:n-o?-2017Average

01-03-2017

:n-03-2017Average

Highest hours this faciliry: 67

32401

26472

This Facifit;y Minimum Wuge Province Average Country Average

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



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

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

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

2. Maximum daily overtime hours are 4 hour; and maximum monthly overtime hours are 126 hoursin November 2017. this is issue finding in report.[46hours a month]

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



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C. PERFORMANCE DETAILS

Current (08-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

Moderate

122.00 : Total overtime hours exceeds allowable limits uuder applicable law or agreement. Auditor's comment Based on time record review it was noted that 10 out of 10 employees had worked 64 -104 hours of overtime a month in November 2017; 3 out of 3 employees had worked 61-126 hours of overtime a month in July 2017 and 3 out of 3 employees had worked 106-ll 7hours ofovertime a month in March 2017Labor Standards Act: Chapter 4, Article 32\!\Then an employer has a necessity to have his (or her) employee to perform the work besidesregular working hours, he [or she), with the consent of a labor union, or if there is no labor unionexists in a business entity, with the approval of a labor-management conference, may extend theworking hours. The extension of working hours referred to in the preceding paragraph, combinedwith the regular working hours, shall not exceed twelve hours a day. The total number of overtimeshall not exceed forty�six hours a month. Due to the occurrence of an act of God, an accident, or anunexpected matter and when an employer has a necessity to have his (or her) employee toperform the work besides regular working hours, may extend the working hours. However, theemployer shall notify the labor union within twenty-four hours after the beginning of theextension. If there is no labor union exists, shall report to the local competent authority forregistration. Subsequent to the over time, the employer shall offer worker suitable time off.

12J,PP. :.The total.weeWy worki1lg ho1u:s.(1lormaJ&.ove1tim�) am over60 but\esnha1l 72 hours. Auditor's wmment Based on time wcotd teview ltwas nowd that 4 outof 10 ,,mployees had worked.6lc,66.hours.oftotalweekly.working.hours. (normal.& overtime) .in.November 2017.,.2 out of 3 employees had worked 67.75-71.5 hours of total weekly working hours [normal & overtime) in July 2017 and 3 outof3 employees had worked 66.5-69.25 hours of total weekly working hours (normal & overtime] in March 2017.

PERFORMANCE RATING

73%

48%

74%


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

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

Sub Section: Emergency Preparedness

Moderate

Moderate

a:- Major

184.00 : Not all fire fighting equipment is marked aud equipped with operational instruction in a language understood by all employees Auditor's comment Based on facility tour, it was noted that the fighting equipment are in Chinese / English versions only. The versions of Vietnamese and Thai , was not available in lF of facility. Installation Standards ofFire-Protection Equipment for All locations: Volume 3, Chapter 1, Article 31

[Fire Extinguishers] should be placed in an visible and convenient location. A red indicator mark with FIRE EXTINGUISHER in white, which is no less than 24 cm x 8 cm, should be posted.

187.00 .:. The facility emergency evacuation exit doors are.not clearly marked Auditor

1

s comment Based on facility tour, it was observed that the emergency exit signagewas missing in the Canteen at 1F. Installation Standards offire•Protection Equipment for All locations: Volume 3, Chapter 3,

Artlde 147 The exit indicator should be installed, no less than 1.5 m above the floor surface, in the upper left side of a exit. [1) Fire door to outside (2) Fire doorto emergency ladder or smoke-ejecting room (3) Fire door to another fire division ( 4) Exit from room to corridor or aisle.

188.00 : One or more facility emergency evacuation exits are blocked Auditor's comment Based on facility tour, it was observed that one personnel cabinet blocked the emergency exit door in cleaning room at 1 F. Labor Safety and Health Facility Regulation: Chapter 2, Section 1, Article 27 Exit door and ladder, which are installed by the employer, shall keep unlocked during work hours. No goods shall be placed in aisles of exit door and ladder.

PERFORMANCE RATING

C'.:;,-:�-�·-1

96%

83%

97%




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Sub Section: Occupational Injury

Moderate

Moderate

205.00 : First aid kits are not f ully stocked with supplies 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 2. Material: Temperature measurement, a blood pressure monitor, elastic yarn stretch or elastic bandage Qarge, medium and small), bandage, sterile gloves, forceps without teeth, swab [large, medium and small), gauze, paper, plastic, tourniquet, scissors, safety pins, spatula, articulator, surgical masks and other essential equipment. Finding: Based on facility tour, it was noted that all of first aid kit lacked some of medicine and equipment. 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.

2 06; 00 : The facility does not have first aider( s) in place 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 oflabor of the workplace, prepare sufficient first-aid medicine, equipment and qualified first-aid personnel for first�aid assisting, Each shift shall have at least one first�aid personneL When the number oflabor is more than 50, one more first-aid personnel shall be added per every 1:,•xtra 50 labors. There are 4 qualified first-aid person in day shifi. Finding: It was noted that no qualified first-aid person in night shift. Labor Health Protection Rule: Article 6

J!11te_rp_rise_ sl113U.,_bflS!Jci !Jll t�� ize_,_all()C(ltior1� �a.za_rd_ 13n{i_JlUJlll}e� ()fl�b()� CJf tll� lAfO_rkpla_ce

.,

p tepate sufficie111·mst'aid ,neditihe, equip11ient·and qUalified·fitstcaid perso1inel forfitstcaid assisting. Each shift shall have at least one first-aid personnel. When the number oflabor Is more than 50, one more first-aid personnel shall be added per every extrn 50 labors.

Sub Section: Chemical and Hazardous Materials

.... Moderate 248.00 : Material safety data sheets (MSDS) are not in a language(s) understood by the employees, and/or not retained by facility for all chemical(s) in use, and/or not readily availabl e for users at all times Auditor's comment Baesd on SDS review, it was noted that missing Vietnam, Thai and Chinese language version in some of SOS, Regulations of Hazard Communication on Dangerous and Harmful Materials: Chapter 2, Article 5

Employer shall prominently label the following items on those containers containing hazardous materials in accordance with the classification and hazard symbols. Supplement information in foreign languages if necessary: 1. Hazard symbols 2. The following information: (1) Name (2) Main hazardous ingredients (3) Hazard warning statement ( 4) Hazard precautionary measures (5) Name, address and telephone number of the manufacturer or supplier If the hazardous material is a mixture, the main hazardous ingredients that shall be labeled as prescribed in the preceding Paragraph are the top three hazardous components with concentrations of 1 % (by weight) or greater.

PERFORMANCE RATING

95%

94%

....... . .......... .....

87%

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



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Sub Section: Chemical and Hazardous Materials

Moderate 254.00 : Preventative measures are not in place to prevent chemical leakage

Auditor'Scomli1entsased on facility to\fritwas riotedthatrio secoridaiJi coritai11er used to avoid le(lktJgtJs: in: th� c:hCJrnJ�als: st()rage:area:. Labor Safety and Health Facility Regulation: Chapter 8, Section 4, Article 196

Employer shall comply with the following regulations to chemical equipment and tubing to prevent explosion or fire against leaking of hazard materials or false operation. (1)Butt plate, Flange, Valve, Faucet on chemical equipment or its pipes shall use washer oc gasket to joint closely. 2)Valve, faucet, control switch, button mt chemlcal equipment or Jts pipes shall keep good function.Mark its direction of close and open. (3) To prevent hazard occurred from supply incorrectmaterials, notice which contains raw material, material, category, supply subject and othernecessary information shall be posted in a visible location to workers.

PERFORMANCE RATING

76%




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C4. Management Systems

lOO

80

40

20 NA

0

Sub Section: Management Systems

Moderate

• Minor

Moderate

• Minor

293.00 : The facility does not have a comprehensive written social compliance policy Auditor's comment There is no comprehensive written social policy in the facility.

299.00 : The facility has not implemented any internal accountability standards and procedures for migrant employees (domestically and/ or internationally) at the facility and within suppliers/ sub-contractors that evaluate and address the risks of human trafficking and slaveiy. Auditor

1

s comment Based on management interview and document review, indicated thatthe facility not evaluation to monitor its suppliers and subcontractors against human trafficking and slavery.

300.00 : The facility does not conduct periodic assessments (including internal audit) of its management system in order to identify improvement opportunities Auditor's comment Based on management interview and document review, the facility does not conducted periodic assessement in past one year.

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

, • • • • • • • • • • • • • • • 1 Auditor. rs·comment·B-ased:o:n:management:·interview;·it:was'notedthat·the·facillty:does'not implemented regular Management review oft he social compliance system.

• Minor

Moderate

305.00 : The facility does not provide appropriate training for managers on how to implement its social compliance policies and procedures. Auditor's comment Based on management interview, the facility did not conduct training for manager on how to implement its social compliance policies and procedures. Labor Safety and Health Education and Training Rule: Chapter 2, Article 3, Clause 1 to 3

he employer shall provide the Manager of Labor Safety and Health Affairs with Grade A Manager of Labor Safety and Health Affairs Educational Training when recruiting more than 100 labors; Grade B when recruiting between 30 to 100 labors; Grade C when recruiting less than 30 labors.

309.00 : The facility does not establish, maintain or document approp1iate procedures to

' ·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•·•· ,evaluate and selects11ppliers and/or subcontractors based on their performance and commitment towards social compliance Auditor's comment Based on document review, the facility does not establish, maintain, and document appropriate procedures to evaluate per year and select suppliers or subcontractors based on their performance and commitment towards social compliance.

PERFORMANCE RATING

80%

76%

75%

66%

71%

72%




redacted

CS. Environment

NA

i;uTh:;

Emi Hrnh:r:___J

% Global Frequency of Compliance: Represents the implementation percentage performance of all suppliers participating in the WCA Community globally for each issue

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

RECOMMENDATION FOR IMPROVEMENT PLAN TIMELINE

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

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

PERFORMANCE RATING

Low(51% 70}'.:)

Major : Take action within O - 1 month to make necessary improvements.

GI Zero Tolerance: Take immediate action to make necessary 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.

One or more facility emergency evacuation exits are blocked

Not all fire fighting equipment is marked and equipped with operational instruction in a language understood by all employees

First aid kits are not fully stocked with supplies

The facility does not have first a ider(s) in place

Material safety data sheets (MSDS) are not in a language(s) understood by the employees, and/or not retained by facility for all chemical(s) in use, and/or not readily available for users at all times

The facility emergency evacuation exit doors are not clearly marked

The facility does not have a comprehensive written social compliance policy

Preventative measures are not in place to prevent chemical leakage

The facility has not implemented any internal accountability standards and procedures for migrant employees ( domestically and/ or internationally) at the facility and within suppliers/ sub-contractors that evaluate and address the risks of human trafficking and slave1y.

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

DISCLAIMER

Major

Moderate

Moderate

Moderate

Moderate

Moderate

Moderate

Moderate

Minor

Moderate

57%

97%

96%

95%

94%

87%

83%

80%

76%

76%

75%

This report is for the exclusive use of the client oflnte1tek 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 tenns 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 nsed 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. 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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Transcript of Workplace Conditions Assessment Report - World Centric · 2018-07-17 · Workplace Conditions...