Nordtex ETI 2011

Supplier name: Site country: Site name:
Hirdaramani Mercury Apparel (Pvt.) Ltd. Sri Lanka Nordtex (Pvt) Ltd.
Audit Company: SGS LANKA (PVT) LTD Report reference: CTS20110437 Date: 29/08/2011
Audit Company Name:
Client: Nordtex (Pvt) Ltd.

S000000043198 P 000000043198
Sedex Company Reference: Sedex Site Reference:
Audit Conducted By Commercial NGO Trade Union Multi-stakeholder Purchaser Retailer Brand Owner Combined Audit (delete all that dont apply)
Auditor Reference Number: (If applicable)
CTS20110437
SMETA Declaration
I declare that the audit underpinning the following report was conducted in accordance with SMETA best practice guidance. Any exceptions to this are recorded here: No. Auditor Name: Chamila Peiris and Kanthi Gamage Role: Lead auditor and team member Date: 29th August 2011
Audit Details
Audit Details Report #: Date of audit: Time in and time out: CTS 20110437 29 August 2011 Time in: 10.00 a.m. Time out:6.30 p.m. 2 days (2 auditors in one day) Full Initial Full Re-audit Partial Follow-Up Partial Other Define Announced Semi announced Unannounced Yes No If no, why not? Facility has not Registered the day of auditing N/A Full Initial Full Re-audit Partial Follow-Up Partial Other Define Chamila Peiris and Kanthi Gamage Lead auditor, team member Chamila Peiris Wasantha Nihal 7 Sep 2011 Hirdaramani Mercury Apparel (Pvt.) Ltd. Sri Lanka Nordtex (Pvt.) Ltd. Ms. Nilanthi Jayawickrama HR and Admin Manager No.117, Tissa mawatha, Ambaraluwa North, Weliweriya
th th
Number of Auditor Days Used Audit type:
Was the audit announced?
Was the Sedex SAQ reviewed?
Previous audit date: Previous audit type:
Auditor name(s) and role(s): Report written by: Report reviewed by: Report issue date: Supplier name: Site country: Site name: Site contact and job title: Site address:
Applicable business and other legally required licence numbers: for example, liability insurance Site phone: Site fax: Site e-mail: Products/Activities at site, for example, garment manufacture, electricals, toys, grower Audit results reviewed with site management? Who signed and agreed CAPR (Name and job title)
Business Registration PV 3608 and BOI registration 2349/24/04/2001
0094 34670462-07 0094 332258360 Scantex7@eureka.lk Garments
Yes Ms. Nilanthi Jayawickrama HR and Admin Manager
Audit Scope
Local Law (Please state legal requirement) Standard work week (total hours): Maximum allowed overtime hours (per day, week, month): 45.5 hours per week 3hrs overtime per day, 14.5 hours per week and 60 hours per month. Note that this will be applied only for female workers. For young workers 50 hours per month. 14 years LKR. 5830.00 150% for normal week days, 200% for weekly holiday, 300% for Mercantile holiday.
Minimum work age: Minimum wage for standard hours: Minimum overtime wage:
Audit Scope (Please select the code and additional requirements that were audited against during this audit) ETI Base Code (if partial audit, please detail which base code items were used): A: Entitlement to Work and Immigration
Additional Requirements B: Environment
Note: The main focus of this ethical audit is on the ETI Base Code and local law. The additional elements A,B,C,D 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 nonconformity) Rating (Currently only to be completed as a specific client requirement)
Issue
ETI Base Code
Local Law
Additional Elements
Management systems and code implementation Employment Freely Chosen Freedom of Association Safety and Hygienic Conditions Child Labour Wages and Benefits Working Hours Discrimination Regular Employment Sub-Contracting and Home working Harsh or Inhumane Treatment Entitlement to Work Environment
Acceptable
1 2 3 4 5 6 7 8 8A
Acceptable Acceptable Need improvements Acceptable Acceptable Need improvements Acceptable Acceptable Acceptable
9 A B
Acceptable Acceptable Acceptable
Audit Overview
Audit Overview Audit attendance Senior management Worker representatives/ Union representatives Yes Yes Yes No No No
Present at the opening meeting? Present at the audit? Present at the closing meeting? If Worker/Union Representatives not present please explain reasons why Site description: (Include size, location, age, structure, number of buildings)
Yes Yes Yes
No No No
The factory does not have a Union. Factory welfare Society representative were participated during the audit. The factory is16170 sq.feet in size and located at Weliweriya in Gampaha District of Western Province in Sri Lanka. It is one hour drive away from Colombo city. The factory production has been commenced in July 2001. The factory has been registered under BOI of Sri Lanka. The factory consists of Two main buildings and 1 building consists of where house Administrative Office, Cutting section, Sewing Floor, Packing section, 2 building consists of Canteen, first aid room, Training line and male & female Toilets, fabric store and acesseries stores. Steam boiler, Compressor and power generator room are adjoining to the main building. Factory minimum hiring age is 16 years.
nd st
Site function:
Agent Factory Processing/Manufacturer Finished Product Supplier Grower Homeworker Labour Provider Pack House Primary Producer Service Provider Sub-Contractor N/A
Month(s) of peak season: (if applicable)
Process overview: (Include products being produced, main operations, number of production lines, main equipment used)
The factory produces ladies pants. The main manufacturing operations are Cutting, Sewing, Finishing, and Packaging. There are 3 production lines in the factory.
Main equipment; Single needle, double needle, Over lock, Flat lock machines, button hole machines, Button attaching machines, Bar taking lockstitch, Side cutter machine, Kansai Special Machine, Single Bed Single Needle, Iron & Iron Table Band knife, Cutter machines, Fusing Machine, Metal Detector General - Boilers, Generator and compressor.
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 The workers interviews were conducted on the sample basis and the sample size was 26 of which there were 6 individual interviews and 4 group interviews, each group having 5 workers. All the interviews were conducted in confidential manner and free from factory management and supervisors. No negative comments highlighted during the workers interviews. Workers like to work in the factory due to the factory located in a village and most of the workers are coming to the work from their home. Attitude of managers: (Include attitude to audit, and audit process. Both positive and negative information should be included) The factory management participated to open and closing meeting and gave their extended support to complete the audit. CAP report was reviewed and signed by the factory manager. The total number of employees is 191 of which 156 belong to worker category and 35 belong to the staff category.
Summary of main findings: (positive and negative) Positive 1. With regard to child labour and confirming the hiring age, the workers confirmed that the factory checked their original ID cards, Birth certificates, school leaving certificates and village headman certificates to verify their age during recruitment and the copies of those documents are kept in personal files. Confirmed at the day of audit that the factory employ workers only higher than 16 years old. 2. Regarding forced labour, the workers confirmed that no any type of deposit was required and their original documents such as ID cards or any original certificates were not retained with the company. 3. Regarding discrimination, the workers wages were paid based on their positions, outputs and abilities. All interviewees confirmed that no discrimination occurred in the factory. 4. Regarding disciplinary practice, the interviewees said they would be warned in writing, if they break the factory rules. No fine was identified in the factory. 5. Regarding Health & safety, the workers were satisfied with the working condition. Workers confirmed that the
employees toilets are cleaned every day. The factory has a good medical room with a trained nurse. 6. The factory works on 5 days per week. Regular working hours for this industry is 45.5 hours per week and the factory works as same as local law. Overtime is voluntary confirmed by the employees during the workers interviews. 7. Workers confirmed that there is no any delay of paying the salary. Factory pays salary on monthly basis. 8. Regarding no inhuman treatment, the workers confirmed that no harsh or inhumane treatment has occurred and the management is kind and fair for all workers. 9. Workers can directly complain any issues to the management and there are suggestion boxes. Negative 1. It was noted that facility has not monitored third party records. Noted Security and Food supplier. Corrective Action: Facility has collected and monitored third party record. Including Security & Food suppliers NC Status Closed 2. Facility has not updated young worker register. Corrective Action: th Facility has updated the Young worker register and reviewed on 7 September 2011 NC Status Closed 3. It was noted that facility has not obtained Medical certificate for food handlers and PHI certificate for food preparation premises. 4. It was noted that facility has employed female workers for night work without obtaining night work approval from labour department. Corrective Action th Facility has obtained the Night work approval from the labour department and reviewed on 7 September 2011 NC Status Closed 5. It was noted that factory has employed workers more than 12 over time hours per week. Noted 2 out of 26 in July 2011and 3 out of 26 in June 2011. 6. It was noted that facility has employed female workers more than 12hrs per day. Noted 2 out of 26 in July 2011and 2 out of 26 in June 201.
Key Information
Key Information Do all workers (including migrant workers) have contracts of employment? Were appropriate records available to verify hours of work and wages? Were any inconsistencies found? (if yes describe nature) Yes No
Yes No Yes No Poor record keeping Isolated incident Repeated occurrence % % 100 %
For the lowest paid production worker, are wages paid for standard hours below or above the legal minimum? % of piece rate workers: (if applicable) Combined hours (regular and overtime) over 60 per week found? Are the correct overtime premiums paid? Is there any night production work at the site? % of workers living in site provided accommodation (if applicable): Age of youngest worker found: Workers under 18 subject to hazardous work assignments? What form of worker representation is there on site?
Below legal minimum Meet Above N/A
Yes No Yes No Yes No Accommodation is not provided.
16 years, 1 months Yes No Union (name) Worker Committee Other (specify) Sub-Contracting Homeworking Other External Process (detail) No.
Are there any External Processes?
NA
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Worker Analysis
Worker Analysis
Local
Migrant
Permanent Worker numbers Male Worker numbers female Total 67
Temporary
Agency Security 1
Permanent Nil
Temporary Nil
Agency Nil
Homeworkers Nil
Nil
Nil 124 Nil
Nil
Nil
Nil
Nil
191
Nil
01
Nil
Nil
Nil
Nil
Total Workers at this Site: 191 Number of Workers interviewed 26 Nil Nil Nil Nil Nil Nil
Migrant Workers:
Originating Locations/Countries: Work undertaken by migrant workers: Were migrant workers recruited through an agency? If yes, is there a contract with the agency? Provide details of agencies and contractual arrangements Percentage of migrant workers in company provided accommodation: N/A N/A
N/A
N/A
N/A
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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 and to their suppliers. 0.4 Suppliers should, where reasonably practicable, extend the principles of this ethical code through their supply chain.
Evidence of Compliance and Current Status 1. There is a manager appointed for Social Compliance and system implementation. 2. Factory has updated Laws and regulations. 3. Factory has displayed code of conducts and has communicated to all the employees; confirmed during employees interview. 4. Factory has implemented and maintained system that compliance to this code of conducts.
Non-compliance: Description of non-compliance: 01 1. It was noted that facility has not monitored the third party records. Noted with Security and Food supplier. Local law or ETI requirement: According to the ETI 0.4 Suppliers should, where reasonably practicable, extend the principles of this ethical code through their supply chain. Recommended corrective action: Facility shall monitor third party records. Corrective Action: Facility has collected and monitored third party record. Including Security & Food suppliers NC Status Closed Objective evidence observed: Document review
Observation Objective evidence observed: Nil
Description of observation: Nil
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Good Examples observed: Nil 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 1. The factory has prohibited use of any type of forced labour and factory management respects local and international laws regarding this issue. 2. Noted during the employees interviews that the employees are working at the facility voluntarily and the factory had not withheld any amount of money or original certificates (educational certificate, Birth certificate). 3. Facility has communicated their policy to all the supervisors, security personnel and managers regarding that the facility prohibits form of coercing employees in any way. 4. The factory does not provide loan for workers. 5. No physical or verbal abuse identified, confirmed through the employee interviews. 6. The employment contract complies with local laws and no force labour statement in the contract. 7. Workers can leave the factory after working hours and overtime is voluntary. 8. Facility recruits workers directly and they do not use any labour brokers/agents. 9. The factory does not use the prison labour confirmed through the workers and management interviewed. 10. Verified and confirmed that employees are free to leave from the company after giving reasonable notice to the management.
Non-compliance: Description of non-compliance: Nil Objective evidence observed: Nil
Local law or ETI requirement: N/A
Recommended corrective action: N/A
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Description of observation: Nil
Good Examples observed: Description of Good Example ( GE) : N/A Objective evidence observed: Nil
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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 1 2 3 4 Verified and found that the facility recognizes and respects the rights of employees to exercise their lawful rights of free association. There is no trade union in the facility but facility has the Welfare Society, verified with the representatives, but no meeting minutes are available for the latest meeting. The employees interviewed confirmed that the facility management respects the employees rights to collective bargaining. Verified and confirmed through records review and interview process that, the facility does not discriminate any of the employees.
Non-compliance: Description of non-compliance: Nil Objective evidence observed: Record review
Local law or ETI requirement: N/A Recommended corrective action: N/A
Description of observation N/A
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Name of union and union representative, if applicable: If no union what is parallel means of consultation with workers? The percentage of workers at the site covered by collective bargaining with one or more recognised trade unions The percentage of workers at the site covered by negotiation with workers representatives who are NOT members of one or more recognised trade unions Does the Collective Bargaining Agreement (CBA) include rates of pay
No any Trade Union. Workers Welfare Society.
N/A
N/A
Yes No N/A
Good Examples observed:
Description of Good Example ( GE) N/A
Objective evidence observed: Nil
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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 and 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 and safety to a senior management representative.
Evidence of Compliance and Current Status 1. Verified during the factory tour, workers interview and document reviewed that the facility has provided necessary safety guards such as needle guard, belt covering, and eye protection equipments. Also verified that the facility replaced the unsuitable safety guards. 2. The employees interviewed confirmed that the facility has provided personal protective equipment for employees free of charge and no any deposit from the workers. 3. The facility maintains the machines on a regular basis confirmed through the document reviewed and factory tour. 4. The factory has a trained fire fighting team, also noted that all the fire extinguishers have been inspected and renewed for the current period. The factory has installed adequate emergency lights in each section of the factory. 5 The factory has displayed the evacuation plan and adequate fire alarms and operating switches have been installed. 6 The factory conducts fire evacuation drills for all employees at least once in every 6 months. 7 The factory has obtained certificate for boilers and boiler operator competence certificate. 8 There is a medical centre with trained nurse, as well as there are first aid boxes in each section of the factory. 9 The facility has conducted the first aid training program and employees from every section had represented in that program confirmed through the employees interviews and document reviewed. 10 Confirmed through the employees interviewed that they understood the procedures and what to do in an emergency situation, since they have received adequate training. 11 Confirmed through the factory tour that canteen is clean and hygienic. 12 Confirmed through the employees interviewed and factory tour that the employees wash rooms are adequate, clean and hygienic. 13 Factory has marked pathways, exit signs and arrows in every section which shows direction to evacuation.
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Non-compliance: Description of non-compliance: 01 1. It was noted that facility has not obtained the Medical certificates for food handlers and PHI certificate for food preparation premises. Local law or ETI requirement: 3.3 Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage shall be provided. Recommended corrective action: The factory shall obtained Medical certificate for food handlers and PHI certificate for food preparation premises. Objective evidence observed: Factory tour and workers interview
Description of Good Example ( GE) Free medical facility and free breakfast is provided by the factory.
Objective Evidence Observed: During employees interview.
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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.
Evidence of Compliance and Current Status Verified that the facility properly checked the applicants age through the valid documents such as Birth Certificate, National Identity Card, School leaving certificates and Village headmen documents. 2 Confirmed through reviewed of last 12 months hiring and termination records that there are young workers within the facility. 3 Reviewed the Facilitys communications made to all facility employees regarding child labour policies and procedures and communication address on each of the following facility requirements: a. Obtain proof of age documentation from all potential workers prior to hiring. b. Critically examine the authenticity of age documentation. c. Question the authenticity of age documentation which not conforming to facility practices. d. Age documentation retained in employee personnel files. e. Interviews with all prospective employees. 4 The factory does not employ workers below the age of 16 years. This was confirmed through 26 age records reviewed and employee interviews. Also noted each personal file has equipped with the age verification documents such as copy of birth certificate or national identity card. 1
Non-compliance: Description of non-compliance: 01 Facility has not updated young worker register up to the day of auditing. Local law or ETI requirement: According to the Employment of Women, Young persons and children Act, No. 47 0f 1956 The employer in a public and private industrial undertaking shall keep a register of the names and dates of birth of all women and young persons employed in the undertaking. Recommended corrective action: Facility shall have and update young worker register as per the law. Corrective Action: th Facility has updated the Young worker register and reviewed on 7 September 2011. NC Status Closed Objective evidence observed: Document review.
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Description of observation : N/A
Objective Evidence Observed: Nil
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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 of 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.
Evidence of Compliance and Current Status 1. Wages are paid directly on time and the pay sheets are in English, but employees can understand it. 2. The factory had displayed legal minimum wages on factory notice board and workers had been educated for wages calculations methods such as overtime calculations, holiday earning calculations.
Non-compliance: Description of non-compliance: Nil Objective evidence observed:
Local law or ETI requirement: N/A Recommended corrective action: N/A
Description of observation: N/A
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Description of Good Example ( GE) Free Breakfast and transport facility has given to the all employees. Light works are given to pregnant employees.
Objective Evidence Observed: Employees interview
Wages analysis: Sample size (number of wages checked and which weeks or months): Total number of sample 26. Wage records for 20 employees in, December 2010 and January to July 2011. Wage records for 6 employees in December 2010 and February, March, April, June and July 2011. LKR. 5830.00 per month
Legal minimum wage for standard time: What deductions are required by law, and have all of these been made: Industry norm for this region: Legal overtime premium for weekdays: Legal overtime premium for rest days: Legal overtime premium for holidays: Were collective bargaining agreements reached on the wages stated below?
Social Insurance such as Employee Provident Fund. - 8% from employee total earning. Yes LKR. 5830.00 150%
200%
300%
Yes No No collective bargaining agreement.
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Worker Type
Process Operator (Highest paid)
Process Operator (Average paid)
Process Operator (Lowest paid)
This is not so relevant in farms where most workers are paid the same, or are of the same Worker type. Also many farms in SA use a combination of piece and hourly rate which is impossible to capture on this form. Select one workers records from each Worker Type and populate the boxes: Pay period (pm/week) Employee identification/ Staff ID#/Dept Employee Gender Contract monthly/daily Regular working hours Regular work pay rate Regular day overtime (hour) Regular day overtime (wage) Rest day overtime (hour) Rest day overtime (wage) Statutory Holiday overtime (hour) Statutory holiday OT (wage) Total overtime hours Incentives/Bonus/ Allowances etc. Gross wages Social insurance and other deductions Actual wage paid after deduction Month Juy 2011
Ms.Anoma/MO/538
Month Juy 2011 Ms.Lalani /MO /22
Month Juy 2011 Ms.sriyani/MO/1722
Female Monthly 187.5 LKR. 42.5 57 hours
Female Monthly 179.5 LKR. 44.75 71.5 hours
Female Monthly 179.5 LKR. 39.25 66 hours
LKR.63.75
LKR.67.12
LKR.58.87
0.0hrs LKR. 85.00
0.0hrs LKR. 89.5
0.0hrs LKR. 78.50
00
00
00
LKR.127.50
LKR.134.75
LKR.117.75
57 hours LKR.5563.67
71.5 hours LKR.3000.0
66 hours LKR.2795.00
LKR. 17701.38 LKR. 810.00
LKR. 17553.44 LKR.1082.59
LKR. 14530.75 LKR. 1071.15
LKR. 16891.38
LKR. 16470.75
LKR. 13459.60
Comments: Actual wage paid difference due to over time amount, Basic Salary and insentives
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(Please state here any specific reasons/circumstances that explain the lowest and highest gross wages)
Is there a defined living wage:
Yes No (add notes into guidance for auditors) Please specify amount/time period: Minimum wage/month: LKR 5830.00 for unskilled trainees, Governed by the Law. Yes No Details: All the unskilled workers are recruited for the same wage and then increments are based on their skill, performance and efficiency. Cash Cheque BACS If not explain:
Is there evidence that equal rates are being paid for equal work:
How are workers paid:
1. Contracted overtime premium for Weekdays: Rest days: Holidays: 2. Actual overtime premium paid in sample for Weekdays: Rest days: Holidays: 3. Average wage paid to operators: 150% 200% 300% LKR 15607.24 150% 200% 300%
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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 seven 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.
Evidence of Compliance and Current Status 1. 2. 3. 4. Factory has a Punching card system to mark attendance. Factory has retained the time records for 5 years. Factory has complied with weekly and monthly over time hours. Factory provides one day off in every 7 days.
Non-compliance: Description of non-compliance: 01 It was noted that factory has employed workers more than 12 overtime hours per week. Noted 2 out of 26 in July 2011and 3 out of 26 in June 2011. Local law or ETI requirement: According to the ETI 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 seven 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. . Recommended corrective action: Facility shall not exceed 12over time hours per weeky. Workers interview and document review. Description of non-compliance: 02 It was noted that facility has employed female workers more than 12hrs per day. Noted 2 out of 26 in July 2011and 2 out of 26 in June 201. Local law or ETI requirement: Accordance the Employment of Women, Young Persons and Children, The factories and The shop and office Employees (Amendment) Act, No. 32 of 1984. Recommended corrective action: Factory shall not employee female workers more than 12hs. Per day. Objective evidence observed: Workers interview and document review.
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Workers interview and document review. Description of non-compliance: 03 It was noted that facility has employed female workers for night work without obtaining night work approval from labour department. Local law or ETI requirement: Accordance the Employment of Women, Young Persons and Children, The factories and The shop and office Employees (Amendment) Act, No. 32 of 1984. Recommended corrective action: Female workers shall not employee night work without having night work approval. Corrective Action Facility has obtained the Night work approval from the labour department and th reviewed on 7 September 2011 NC Status Closed
Description of observation : N/A
Description of Good Example ( GE)
Objective Evidence Observed:
Working hours analysis What timekeeping systems are used: time card etc. Sample size checked (number of workers): Legal standard work week (hours): Punching card system
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45.5
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1. Contracted standard work week this site (hours): 2. Actual standard work week averaged over sample (hours): 3. Lowest basic hours worked: 4. Highest basic hours worked:
45.5hrs
36.0hrs
0.0hrs ( whole one week leave) 45.5hrs 14.5 hours per week for female and young workers, 60 over time hours for female and 50 over time hours for young workers per month. Daily and monthly over time condition for adult male workers have not been mentioned in the Law. N/A
Legal permitted overtime hours:
Any local waivers for this site:
Comments: (Please state here any specific reasons/circumstances that explain the highest working hours)
1. Actual overtime hours: (averaged over sample) 2. Range of overtime hours over all workers: (quote highest and lowest) 3. Peak seasons:
45.17hours
Highest : 18 hours per week Lowest : 0 hours
Not provided
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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.
Evidence of Compliance and Current Status Current status: 1. The facilitys hiring procedure does not violate this principle. 2. The facility is located in an area where the main communities are Muslims and Sinhalese. Therefore, majority of employees are Muslims and Sinhalese. Also the documents reviewed and employees interviewed confirmed that the facility does not consider the applicants ethnic, social group, gender, cast and positioning when hiring the employees. There are Tamil employees also working in the facility. 3. The factory does not do any pregnancy or blood test before the recruitment; confirmed by the workers during the workers interviews. 4. Workers can complain any matter directly to the management, confirmed through the workers interviewed. 5. Factory management respects the human rights confirmed by the management interviewed. 6. Facility provides all the legal benefits to the employees properly. Verified through the employees interviewed and documents reviewed. (e.g. Mercantile Holidays, special religious holidays, and payable three month leaves for mothers with newly born child.) 7. The facility has no experience with related issues of discrimination for last ten months verified through the employee interviews. 8. Also, it was confirmed during the employees interviews, that the factory does not treat workers in discriminate manner. According to the factory hiring and promotional procedure, all workers have equal opportunity for employment and the promotion and employee grading is based on employee skills and experience.
Non-compliance: Description of non-compliance: Nil Local law or ETI requirement: N/A Recommended corrective action: N/A Objective evidence observed: Nil
Description of observation :N/A
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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 homeworking 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.
Evidence of Compliance and Current Status
Current status: 1. Verified through the employees interviewed that every employee has the original contract letter and they have a clear understanding about the contract letter; confirmed trough the workers interviewed. 2. After probation period, factory provides a letter of confirmation for workers those who completed the probation period. 3. No workers layoff system, confirmed through the employee interviews.
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8A: Sub-Contracting and Homeworking: 8a.1 There should be no sub-contracting unless previously agreed with the main client. 8a.2 Home-working should be properly managed. 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.
The factory does not practice sub-contracting and home working processes as confirmed through management interviews.
Non-compliance: Description of non-compliance: N/A Objective evidence observed: N/A
Observation Objective evidence observed: N/A
Objective Evidence Observed: N/A
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Summary of sub-contracting 1. Number of subcontractors/agents used 2. Is there a site policy on subcontracting? NA
Yes No If yes, summarise details: NA
3. What checks are in place to ensure no child labour is being used and work is safe? 4. What processes are subcontracted?
N/A
N/A
Summary of homeworking 1. Number of homeworkers 2. Are homeworkers employed direct or through agents? 3. If through agents, number of agents 4. Is there a site policy on homeworking? 5. How does site ensure worker hours and pay meet local laws for homeworkers? 6. What processes are carried out by homeworkers? 7. Are written agreements in place for homeworkers that include regular employment? 8. Are full records available at the site? Male: N/A Yes No N/A N/A Female: N/A Total: N/A
Yes No N/A
N/A
N/A Yes No N/A
Yes No N/A
33
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 shall be prohibited.
Evidence of Compliance and Current Status 1. 2. 3. 4. It was noted that the factory does not practice any form of psychological or verbal harassment or abuse. Verified that the facility disciplinary action and procedures comply with the local laws and regulations. Verified through the employees interviewed that the employees understood about the disciplinary action. Verified through the employees interviewed and document reviewed that no any complaints are made for the last one year about the inappropriate disciplinary action.
34
Other Issue areas: A: Entitlement to Work and Immigration Additional Retailer Specific Elements A1 Only workers with a legal right to work shall be employed or used by the supplier. A2 All workers, including employment agency staff, must be validated by the supplier for their legal right to work by reviewing original documentation. A3 Employment agencies must only supply workers registered with them. A4 The supplier shall implement processes to enable adequate control over agencies with regards to the above points and related legislation.
Evidence of Compliance and Current Status 1. No any migrant worker in the facility, confirmed through employee interviews and factory tour.
Non-compliance: Description of non-compliance: N/A Objective evidence observed: N/A
Observation Objective evidence observed: N/A
Good examples observed:
35
Objective Evidence Observed: N/A
Other issue areas B : Environment B.1 Suppliers shall seek to make continuous improvements in their environmental performance and, as a minimum, comply with the requirements of local and international laws and regulations. B.2 The supplier shall be aware of and comply with their end clients environmental requirements.
1. Factory does not produce hazardous industrial waste. 2. No official complaints or legal recommendations found for the past years. 3. The factory has obtained Environment Protection License from the Central Environment Authority for the current period. 4. Waste water discharge from the canteen is collected to a pit.
Non-compliance: Description of non-compliance: Nil Objective evidence observed: N/A
Local law or ETI requirement: Nil Recommended corrective action: Nil
36
Good examples observed:
37
Worker Interview Summary

Worker Interview Summary Were workers aware of the audit? Yes No Yes No 4 (Each group consists of 5 members) Male: 2 Male: 4 Yes No Female: 4 Female: 22
Were workers aware of the code?
Number of group interviews Number of individual interviews Number of interviewed workers Interviews were done in private and the confidentiality of the interview process was communicated to the workers? In general, what was the attitude of the workers towards their workplace? What was the most common worker complaint? What did the workers like the most about working at this site?
Favourable Non-favourable Indifferent There were no any negative complaints
This factory is located in a rural area and employees are coming to work from their home. Factory is well established and salaries are complying with local law. No
Any additional comment(s) regarding interviews:
Agency Workers (workers sourced from a local agent who are not directly paid by the site) Number of agencies used (average): Were agency workers age/pay/hours included within scope of this audit
01 Security Yes No N/A
38
Other findings
Other Findings Outside the Scope of the Audit N/A
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)
39
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saving the document we recommend that you use Microsoft Paint to resize your photos. To do so please follow these instructions: 1) To start Microsoft Paint, click 'Start', 'Programs', 'Accessories', then 'Paint'. 2) Open the image file you wish to edit. 3) Click the 'Image' Menu at the top and select "Stretch/Skew Image. 4) Choose a percentage figure to resize the image: to avoid distortion, choose the same percentage for horizontal and vertical stretch. Click OK. 5) Once you have the desired size, click File > Save As(to prevent overwriting the original image). Save As jpeg (this provides compression to make the file smaller).
Factory name board
Factory View
Ladder in Stores
Cutting section
Using metal gloves
End Cutter
40
Sewing Floor
Finger guard
Eye Guard
Using Safety
Belt Guard
Ironing area
Packing Area
Ironers using rubber carpet
Finish goods stores
41
Fire Assembly Point
Exit Direction
Fire Extinguisher
Emergency Light
Evacuation Map
Fire Alarm
Electrical Safety
Notice Board
Time Recorder
42
Canteen
Drinking water
Medicine in First Aid Room
First Aid Box
Medical Room
Locker Facility
Female Toilet
Washing facility
Compressor
43
END OF REPORT
44

Nordtex ETI 2011

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Supplier name: Site country: Site name:

Audit Company Name:

Client: Nordtex (Pvt) Ltd.

Sedex Company Reference: Sedex Site Reference:

Auditor Reference Number: (If applicable)

Number of Auditor Days Used Audit type:

Was the audit announced?

Was the Sedex SAQ reviewed?

Previous audit date: Previous audit type:

Business Registration PV 3608 and BOI registration 2349/24/04/2001

0094 34670462-07 0094 332258360 Scantex7@eureka.lk Garments

Yes Ms. Nilanthi Jayawickrama HR and Admin Manager

Additional Requirements B: Environment

ETI Base Code

Acceptable Acceptable Acceptable

Yes Yes Yes

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

Below legal minimum Meet Above N/A

Yes No Yes No Yes No Accommodation is not provided.

Are there any External Processes?

Permanent Worker numbers Male Worker numbers female Total 67

Nil 124 Nil

Audit Results by Clause

Observation Objective evidence observed: Nil

Description of observation: Nil

Non-compliance: Description of non-compliance: Nil Objective evidence observed: Nil

Local law or ETI requirement: N/A

Recommended corrective action: N/A

Observation Objective evidence observed: Nil

Description of observation: Nil

Non-compliance: Description of non-compliance: Nil Objective evidence observed: Record review

Local law or ETI requirement: N/A Recommended corrective action: N/A

Observation Objective evidence observed: Nil

Description of observation N/A

No any Trade Union. Workers Welfare Society.

Good Examples observed:

Description of Good Example ( GE) N/A

Objective evidence observed: Nil

Observation Objective evidence observed: Nil

Description of observation N/A

Good Examples observed:

Objective Evidence Observed: During employees interview.

Observation Objective evidence observed: Nil

Description of observation : N/A

Good Examples observed:

Description of Good Example ( GE) N/A

Objective Evidence Observed: Nil

Non-compliance: Description of non-compliance: Nil Objective evidence observed:

Local law or ETI requirement: N/A Recommended corrective action: N/A

Observation Objective evidence observed: Nil

Description of observation: N/A

Good Examples observed:

Objective Evidence Observed: Employees interview

Yes No No collective bargaining agreement.

Process Operator (Highest paid)

Process Operator (Average paid)

Process Operator (Lowest paid)

Month Juy 2011 Ms.Lalani /MO /22

Month Juy 2011 Ms.sriyani/MO/1722

Female Monthly 187.5 LKR. 42.5 57 hours

Female Monthly 179.5 LKR. 44.75 71.5 hours

Female Monthly 179.5 LKR. 39.25 66 hours

0.0hrs LKR. 85.00