Created with EO.Pdf for .NET trial version....

Auditee : Target Fine Wear Industries Ltd.

Audit Date From : 24/04/2019

Audit Date To : 25/04/2019

Expiry Date of the Audit : Please refer to the producer profile in the amfori BSCI platform

Auditing Company : Intertek

Auditor’s Name(s) : Sanzida Sultana Rasna(Lead), Md. Salah Uddin

Auditing Branch (if applicable) : Intertek Bangladesh

This is an extract of the on line Audit Report.The complete report is available in the amfori BSCI Platform. Access www.bsciplatform.org, for entitled users only.

All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted, in any form or by any, means electronic, mechanical, photocopying, recording or otherwise, be lent, re-sold, hired out or otherwise circulated without the amfori consent.

This is an extract of the amfori BSCI Audit Report, which is available in the amfori BSCI Platform. © amfori, 2018 - The English version is the legally binding One.

Created with EO.Pdf for .NET trial version. http://www.essentialobjects.com.

Producer : Target Fine Wear Industries Ltd.DBID : 21202 and Audit Id : 149552 Audit Date : 24/04/2019

Audit Type : Follow-up Audit

Page 1/21

Generated on:11/05/2019

Rating Definitions




Page 2/21


Main Auditee Information

Name of producer : Target Fine Wear Industries Ltd.

DBID number : 21202

Audit ID : 149552

Address : Outpara, Chandona Chowrasta, Gazipur

Province : Dhaka Country : Bangladesh

Management Representative : Mr. Shaikh Mohammad Batchu

Contact person: Mr. Shaikh Mohammad Batchu Sector : Non-Food

Industry Type : Textiles, clothing, leather Product group : Apparel

Product Type : Sweater items




Page 3/21


Audit Details

Audit Range : Full Audit Follow-up Audit

Audit Scope : Main Auditee Main Auditee & Farms

Audit Environment : Industrial Agricultural Small Producer

Audit Announcement : Fully-Announced Fully-Unannounced Semi-Announced

Random Unannounced Check (RUC) : No

Audit extent (if applicable) : none

Audit interferences or contingencies (if applicable) : none

Overall rating : C

Need of follow-up : Yes If YES, by : 25/04/2020

Rating per Performance Area (PA)

PA 1 PA 2 PA 3 PA 4 PA 5 PA 6 PA 7 PA 8 PA 9 PA 10 PA 11 PA 12 PA 13

C C A A B C D A A A A A A

Executive summary of audit report

Target Fine Wear Industries Ltd. is a 100% export oriented sweaters manufacturer located at Outpara, Chandona Chowrasta, Gazipur, Dhaka,Bangladesh. The facility premises consist of total 2 building. Total land area was approximate 15,176.304 square feet, production area was approximate86,800 square feet and warehouse area approximate 6,000 square feet.

This amfori BSCI Follow up audit was conducted by ITS Labtest Bangladesh Ltd. Two auditors (Md. Salah Uddin-APSCA- 21703297 & Sanzida SultanaRasna: APSCA-21702985) in day one (24 April 2019) and 1 auditor (Sanzida Sultana Rasna: APSCA-21702985) in 2nd day (25 April 2019) assessed andverified the facility’s operations against the amfori BSCI Code of Conduct and local legislation. Facility management was positive towards this audit andprovided full access to the auditors.

All employees were recruited permanently. 60% of the total employees (winding, knitting, Jacquard, linking, trimming, mending, washing, finishing &packing.) are piece rated and the rest 40% of the total employees are fixed rated. Both the fixed rated and piece rated employees receive wages bymonthly basis in local currency within 7th working day of the following month. The factory uses electronic time card for recording daily attendance.

Facility’s working hours are as follows: • There is 01 general shift which is from 08:00 am to 05:00 pm including 01-hour Interval for rest or meal from 01:00 pm to 02:00 pm. • Facility has 02 shifts (08:00 am to 05:00 pm and 8:00 pm to 05:00 am) in jacquard section with including 01-hour Interval for rest or meal in each shift. • Facility has 03 shifts (06:00 am to 02:00 pm, 02:00 pm to 10:00 pm and 10:00 pm to 06:00 am) in security section with including 01-hour Interval for restor meal in each shift. In general, the employee work for 06 days in a week (Saturday to Thursday) and Friday is weekly holiday. Security sections weeklyholiday provided as rotation basis. All employees were recruited permanently and receive wages by monthly basis in local currency within 7th working dayof the following month. working hour were analysis based on the tested months and samplings reviewed. The factory uses electronic time card forrecording daily attendance.

Auditors conducted opening meeting, site observation, workers, worker representatives, management interview, document review and closing meeting. Mr.Shaikh Mohammad Batchu (Manager- Admin, HR & Compliance) was responsible for implementation of social compliance system in the facility. Facilityhad appointed one medical officer and one medical assistants for continuous medical services to the workers.

Main product of the facility was sweaters and production capacity was 5, 00,000 pieces per month. Facility has started its operation since 2008. Mainproduction processes were winding, knitting, Jacquard, linking, trimming, mending, washing, finishing & packing. Based on management interview, theirmajor clients were from Europe and North America. On the audit day, total workforce strength was 2200 in the facility.

The facility premises consist of total 2 building. Detail description is given below: Building 01 (7 Storied): Ground floor: Security room, Generator room, RMS room, Substation room, Maintenance room, Jacquard section, Doctors room, yarn store, Windingsection, Boiler room, Chemical room. 1st floor: Office, Finished goods area, Hole button section, Sample Section. 2nd floor: Office, Packing area, Spot removing room, Finishing area, Light check area. 3rd floor: Mending section, Trimming section, Light Check area, iron section, Wash section, lab room. 4th floor: Trimming section, over lock, Linking section, Linking distribution section, Linking inspection. 5th floor: Knitting section, Distribution, Knitting inspection. 6th floor: Distribution, Inspection. 7th floor: Distribution, Inspection. Roof top: Fully vacant.

Building 02 (4 Storied):




Page 4/21


Ground floor: Wastage area, ETP 1st floor: Vacant. 2nd floor: Vacant. 3rd floor: vacant.

In opening and closing meeting Mr. Shaikh Mohammad Batchu – Manager (Amin, HR & Compliance), Mr. Md. Zahirul Islam – Sr. Compliance Officer, Mr.Md. Fazlul karim – Compliance officer, Mr. Md. Arif Rabbani – HR & Admin Officer, Mrs. Rubu Akter- Welfare Officer, Mr. Rakibul Haque – Environment Officer & Mr. Amdadul Haque-Vice President ofParticipating Committee were present. Auditor described the whole audit process, standards, scope, and explained the amfori BSCI code of conduct andlocal laws to what extent these are related to this audit in the opening meeting. Meanwhile, management assured the auditors to help throughout the audit.Required documents were provided in time, photocopy of the required documents was also given in time. Facility management provided a separate roomfor conducting employee’s interview. Besides, at the time of facility visit attitude of the facility management was good.

During site tour all areas of the facility such as winding, knitting, Jacquard, linking, trimming, mending, washing, finishing & packing etc. were coveredduring the audit.

Facility started its operation since 2008. All employees are permanent. 25 permanent employees were selected for interviews from different productionprocesses. Among them 08 were female and 17 were male. Facility provided payroll records from April 2018 to March 2019. On sample basis, payrollrecords and time cards for the month of March 2019 (current paid month), December 2018 (random off peak month) and May 2018 (random peak month)were reviewed. Moreover, attendance register, production records, garments inspection report, broken needle register and many other documents relevantto this audit were reviewed by the auditors.

Improvement areas were identified in Social Management System and Cascade Effect (PA 1), Workers Involvement and Protection (PA 2), (FairRemuneration (PA 5), Decent Working Hour (PA 6), Occupational Health and Safety (PA 7), No Precarious Employment (PA 10), Protection of theEnvironment (PA 12) and PA 13 (Ethical Business Behaviour)

Details of the findings are listed in respective section. Other areas were not rated as this is follow-up audit & those area were not under in audit scope.

A closing meeting was conducted at end of the audit. All the attendees of opening meeting were also present in closing meeting. Auditors communicated allthe findings in detail and discussed on the area of improvements to the auditees. The auditee was positive on the discussion and agreed on the area ofimprovements.




Page 5/21


Ratings Summary

Auditee's background information

Auditee's name : Target Fine Wear Industries Ltd. Legal status : Private Limited Company

Local Name : েনও্গে ন ই ওেেনা ইন্ডা ্ট্ Year in which the auditee was founded : 2008

Address : Outpara, Chandona Chowrasta, Contact person (please select) : Mr. Shaikh Mohammad Batchu

Province : Dhaka Contact's Email : [email protected]

City : Gazipur Auditee’s official language(s) for writtencommunications :

Bengali

Region : South Asia Other relevant languages for the auditee :

English

Country : Bangladesh Website of auditee (if applicable) : http://targetgroupbd.com/

GPS coordinates : Latitude: 23.990131 | Longitude:90.385467

Total turnover (in Euros) : 33679040.00

Sector : Non-Food Of which exports % : 100.00

Industry : Textiles, clothing, leather Of which domestic market % : 0.00

If other, please specify : None Production volume : 5,00,000 pieces per mont

Product Group : Apparel Production cost calculation : Yes

If other, please specify : None Lost time injury calculation cost : No

Product Type : Sweater items

Auditee's employment structure at the time of the audit

Total number of workers : 2200 Total number of workers in the production unit to be monitored (if applicable) : 0

MALE WORKERS FEMALE WORKERS

Permanent workers 1540 660

Temporary workers 0 0

In management positions 14 2

Apprentices 0 0

On probation 375 85

With disabilities 7 1

Migrants (national citizens) 0 0

Migrants (foreign citizens) 0 0

Workers on the permanent payroll 1540 660

Production based workers 935 388

With shifts at night 20 0

Unionised 0 0

Pregnant - 0

On maternity leave - 1




Page 6/21


Finding Report

Performance Area 1 : Social Management System and Cascade Effect

1- Followup Audit [Audit Id - 149552] Audit Date: 24/04/2019 PA Score: C Deadline date:25/06/2019

GOOD PRACTICES:None Observed.

AREAS OF IMPROVEMENT:Based on satisfactory evidence it was noted that the main auditee partially respects this principle as-

1.1 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Partially Corrected. In accordance with BSCI Performance Area (SocialManagement System and Cascade Effect) No. 1.1 (Is there satisfactory evidence that the auditee has set up an effective management system toimplement the BSCI Code of Conduct): Finding: During this follow-up audit it was found that still the established management system of thefacility needs some improvement in implementing amfori BSCI Code of Conduct in their business practice in few performance areas. Facilityneeds to implement the BSCI system manual for producers properly where improvement areas are identified. Note: The facility has othereffective system, policies and procedures in place to implement the BSCI COC in their business practice, so partial rating is given for thisquestionnaire.যঠেযট ্জরসরম জন বজযজে থম্ ব্দরু ভ ভরজ্বজর ্ু্ি িজঠদর ভ ভথজ রবমইরবঠব ্ভ থ্থআা েযজর রস য জন ভজসভজেঠবর ্যিম যট্ি ঠেজাবয ্ভ থ্থআা ্থঠিঠম ম জবমেজবআঠরজ জব জঠভ ভজসভজেঠবর ঠেজাব রঠেঠি ্যিম ্জরসরঠমন ্রেজেয

1.3 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Partially Corrected. In accordance with BSCI Performance Area (SocialManagement System and Cascade Effect) No. 1.3 (Is there satisfactory evidence that the auditee has a good overview of the significant businesspartners and their level of alignment with the BSCI Code of Conduct?): Finding: Facility management has not communicated BSCI Code ofConduct with business partners yet. However, facility management has shared BSCI Terms of Implementation with business partners. Note: Thefacility is keeping record of their suppliers, so partial rating is given in this section.যজরখজবজর যিএর্ ্ভ থ্থআা েযজর রস য জন যজরখজবজর থযব ্যজদজরঠদর থজঠত েমজ়জঠমজ় যঠর ্বয

1.4 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Corrected. During this follow-up audit it was found that, facility management hasdeveloped actual and realistic capacity plan along with manpower allocation and working hour schedule to reduce excessive overtime work.্ভষেট থমজাজব যরজ হঠেঠিয

Remarks from Auditee:

Full Audit [Audit Id - 122485] Audit Date: 29/04/2018 PA Score: D Deadline date:31/03/2019Good practices

NilAreas of improvement

Based on satisfactory evidence the factory partially respects principles of this performance area. They have set a partial system to implementrequirements of BSCI Code of Conduct and senior management representative with decision making power was appointed to implement andmaintain company's Social Management System. On the other hand the facilitz did not share BSCI COC & TOI with their suppliers andsubcontractors and factory management provided production plan with mandatory overtime during the audit.

1.1 - Though the factory has developed a management system, they did not show full commitment towards integrating the BSCI Code into the auditeebusiness culture. Different policies and procedures have been developed, but gaps were noted in their implementation. Non-compliances wereidentified in following performance areas: Social Management System and Cascade Effect, Workers Involvement and Protection, FairRemuneration, Decent Working Hours, Occupational Health and Safety, No precarious employment, Protection of the Environment and EthicalBusiness Behaviour.

্ভ থ্থআা র ্ি ্ র থমতরব েদখজঠবজ হে বজায

1.3 - Noted that the factory has selected their current and future suppliers and started to monitor their social performance, but still, they did not shareBSCI CoC (Code of Conduct) and BSCI ToI (Terms of Implementation) with their suppliers to make sure their supplier's willingness to respect theamfori BSCI requirements.

্ভ থ্থআা আ র ্ভ্া ভ্ ভজসভজেব ইিরজভবর থরভরজহযজররঠদর থজঠত েইেজর যরজ হে বজায

1.4 - The facility showed improper production planning, where manpower allocation along with working hour schedule was absent. Literally, they setgeneral production plan based on 10 hours in a day, as a result, workers may do overtime on a regular basis. Further, some workers had workedmore than 10 hours daily in two sampled months.

যৎ্জদব ্্রযলবজ থ্য বজ যজরব, যজরখজবজর র্ি্রক যমরত জ যমজঠবজর াব ্ব ররঠমজ় ্ু্ি যরজ হে্বয

Remarks from Auditee

Nil




Page 7/21


Performance Area 2 : Workers Involvement and Protection




2.1 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Corrected. During this follow-up audit, randomly interviewed 25 general workersand out of 25 workers 04 were PC members, those were found aware about roles and responsibilities of Participation Committee.

্ভষেট থমজাজব যরজ হঠেঠিয

2.3 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Not corrected. In accordance with BSCI Performance Area (Workers Involvementand Protection) No. 2.3 (Is there satisfactory evidence that the auditee takes specific steps to make workers aware of their rights andresponsibilities?): Finding: It was noted through workers interview that 14 out of 25 interviewed workers were not aware about their rights andobligations (maternity benefit, resign benefit, leave status etc.), work contracts and job descriptions. Besides, piece rate workers were not awareof their production rates. Note: interviewed employees could tell about the rights regarding the health and safety, so partial rating is given in thissection.যজরখজবজর ্যিম প্ময় িজঠদর আাবি র্াযজর থমঠযর থঠ িব বেয


Full Audit [Audit Id - 122485] Audit Date: 29/04/2018 PA Score: C Deadline date:31/03/2019Good practices


Based on satisfactory evidence the factory partially respects principles of this performance area, because the management did not provide effectivetraining to the workers' representatives about their responsibilities and piece rated workers were not well informed about production rate. However,the management has formed different committees consisting of workers' representatives and management staff including participation committeeand grievance handling committee.

2.1 - The factory has formed a Participation Committee (PC), parallel mean of Workers Union consisting of workers and management representatives.Workers representatives were elected but general workers, as well as PC members, were not properly aware of the PC roles andresponsibilities. (As per Bangladesh Labor Law 2006, Section: 206)

ম্দও যজরখজবজে ্বভরজ ঠবর মজা ঠম যট ্জটর্থঠ্ইব য্মট- ্্্থ ় ব যরজ হঠেঠি; য্রে, থজাজর প্মঠযর ্জইজ্জ্ই ্্্থ থদথ ্্্থ ্মযজ ও দজ্েত থমঠযর রভ়ি ্িব বজয

2.3 - As per provided training records, the facility management provides training to the new workers and organizes trainings on workers rights andobligations periodically but approximately 25% of interviewed piece rate workers were not aware of their production rates.

্্থ ের় যমারজ িজঠদর য ্জদব হজর থমঠযর থঠ িব ্িব বজয


Nil




Page 8/21


Performance Area 3 : The rights of Freedom of Association and Collective Bargaining

1- Followup Audit [Audit Id - 149552] Audit Date: 24/04/2019 PA Score: A Deadline date:

GOOD PRACTICES:This section is not rated as this is a follow-up audit.

AREAS OF IMPROVEMENT:This section is not rated as this is a follow-up audit.


Full Audit [Audit Id - 122485] Audit Date: 29/04/2018 PA Score: A Deadline date:Good practices


Based on satisfactory evidence it was noted that the factory was in compliance with principles of this performance area. The factory hasestablished policy and procedures on Freedom of Association to ensure workers' right to associate & organize collectively. Evidence also showsthat the factory has formed a formal ‘Workers Committee’ parallel means of worker association. As per management statement and companypolicy, workers are free to form the association as per law and are free to bargain. 3.3 was marked as N/A as no worker was found who is directlyinvolved with any trade union.


Nil

Performance Area 4 : No Discrimination







Based on satisfactory evidence it was noted that the factory met principles of this performance area. The overall observation shows that the factoryhas formed and followed non-discrimination policy and procedures. During the confidential interviews, none of the workers complained of any formof discrimination. All workers are treated equally in the factory.


Nil




Page 9/21


Performance Area 5 : Fair Remuneration

1- Followup Audit [Audit Id - 149552] Audit Date: 24/04/2019 PA Score: B Deadline date:25/06/2019



5.4 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Not Corrected. In accordance with BSCI Performance Area (Fair Remuneration)No. 5.4: (Is there satisfactory evidence that the auditee provides sufficient remuneration that allows workers to meet a decent standard of living?):Finding: During this follow up audit it was noted that, the factory management did not take initiative to achieve living wages for all employees,though they are ensuring minimum wage as per law. Noted that living wages of the region is BDT 11220 (approximate) and minimum wages forthe industry is BDT 8000. Note: As only 40% of the workforces did not meet their decent standard of living, so partial rating has been given in thissection.যজরখজবজর রঞঠবর াব ারভব াজরঠবর মাম্ র যজরখজবজ ভ ভরজ্য যজরজ ্ব্ রি বজ ভ্ ব বিম মাম্ র ও ারভব াজরঠবর মাম্ রর মঠা ্জতরয যমজঠবজ ্বঠে েযজব যঠদ জ় েবায

5.5 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Partially Corrected. In accordance with BSCI Performance Area (FairRemuneration) No. 5.5: (Is there satisfactory evidence that the auditee provides workers with the social benefits that are legally granted?) andBangladesh Labor Rules 2015, Rule 107(2) (Any worker can have cash money against the unspent Earned leave. However, more than the half ofthe Earned leave cannot be cashed out at the end of the year. This type of cashing can be done only once in a year.): Finding: Still facility did nothave the provision for providing earned annual leave or en-cash of un-availed annual leave after enactment of Bangladesh Labour Rules 2015.Besides, during interview 14 out of 25 workers were not aware about this provision of rules. However, facility management is providing paymentagainst annual leave and service benefit for resigned workers. Note: As facility has provided other social benefits properly, so partial rating isgiven in this section.প্মযঠদর র্ারি িমট ভজ র্ারি িমটর ়জযজ দজব যরজ ছ যঠর বজায


Full Audit [Audit Id - 122485] Audit Date: 29/04/2018 PA Score: B Deadline date:31/03/2019Good practices

The facility provides monthly attendance bonus to all workers and production bonus to all piece rated workers.Areas of improvement

Based on satisfactory evidence the factory partially respects principles of this performance area, because they did not provide earned leave orpayment against un-availed earned leave to the workers and did not take any action to provide the living wage to all workers. However, all workerswere provided with written and understandable information about their employment conditions with respect to wages before they enter into theemployment and about the particulars of their wages for each pay period.

5.4 - The auditee did not provide sufficient remuneration to all workers that allow workers to meet a decent standard of living. It was noted that possiblegaps existing between the actual remuneration and the fair remuneration figure for 40% workers. Calculated living wage for the region isBDT11220.

যজরখজবজর রঞঠবর াব ারভব াজরঠবর মাম্ র যজরখজবজ ভ ভরজ্য যজরজ ্ব্ রি বজ ভ্ ব বিম মাম্ র ও ারভব াজরঠবর মাম্ রর মঠা ্জতরয যমজঠবজ ্বঠে েযজব যঠদ জ় েবায

5.5 - The facility does not provide neither earned annual leave nor payment against earned annual leave to the workers, also the factory was unable toshow satisfactory evidence that they provide service benefit to the workers. (As per Bangladesh Labour Rule 2015, Rule- 107)

যর্ি্ প্মযঠদর র্ারি িমট ভজ র্ারি িমটর ়জযজ দজব যরজ ছ যঠর বজায


Nil




Page 10/21


Performance Area 6 : Decent Working Hours




6.2 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Corrected. During this follow-up audit, It was noted that, working hour found withinthe legal limit of the following sample months i.e. May 2018, December 2018 and March 2019. Highest working hour found 10 hours in a day and60 hours in a week.


6.4 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Not Corrected. In accordance with BSCI Performance Area (Decent WorkingHours) No. 6.4 (Is there satisfactory evidence that the auditee grants workers the right to at least one day off in every seven days?) andBangladesh Labour Law 2006, section 103: (An adult worker employed in an establishment- Which is a shop or commercial establishment, orindustrial establishment, shall be allowed in each week one and half days holiday and in factory and establishment one day in a week; Which is arecord transport service, shall be allowed in each week one days holiday of twenty four consecutive hours; and no deduction on account of suchholidays shall be made from the wages of any such worker.): Finding: During this follow-up audit it was noted that, during the month of March2019 (current month), 18 out of 25 sampled workers of the factory has worked in weekly holidays, dated on 8 and 15 March 2019 and workedhighest 20 consecutive days of work in a row without a day off . b. In the month of December 2018 (Off Peak month), 13 out of 25 sampledworkers of the factory has worked in weekly holidays, dated on 7 and 14 December 2018 and worked highest 15 consecutive days of work in arow without a day off. c. In the month of May 2018 (Peak month), 14 out of 25 sampled workers of the factory has worked in weekly holidays,dated on 4, 11 and 18 May 2018 and worked 22 consecutive days of work in a row without a day off. However, facility management has paidovertime payment for weekly worked. Note: In other two sample months working time record, no work found on weekly holidays. So partial ratingis given in this section.

যজরখজবজর ্যিম প্ময থজসজ্হয িমটর ্দব যজা যঠরঠি য


Full Audit [Audit Id - 122485] Audit Date: 29/04/2018 PA Score: D Deadline date:31/03/2019Good practices


Based on satisfactory evidence it was noted that the factory partially respects principles of this performance area, because workers had to work onweekly off days and excessive working hours that exceeded the legal limits. Working hours policy was posted in all prominent places on thepremises. As per records provided by the factory, the factory uses manual timekeeping system to track the workers daily in and out times. As perworking hour policy, the highest working hours are 10 hours per day including 2 hours of overtime and 60 hours per week.

6.2 - a) Noted that in selected periods of September 21 - October 20, 2017 and April 21 to May 20, 2017 workers had worked extra overtime (sampledperiods were March 21 - April 20, 2018, September 21 - October 20, 2017 and April 21 - May 20, 2017). In the period of September 21 - October20, 2017, 9 out of 33 workers had worked extra overtime, their daily overtime was found 5 hours instead of 4 hours and in the period of April 21, -May 20, 2017, 6 out of 25 workers had worked extra overtime, their daily overtime was found 5 hours instead of 4 hours. There was no workinghour violation found in the period of March 21 - April 20, 2018. (As per Bangladesh Labor Law 2006, Section 100 & periodically revised notificationfrom Ministry of Labor and Employment on April 05, 2018)

b) Jacquard section workers are imposed to do mandatory overtimes. Noted that they have to work minimum 10 hours in a day. (As perBangladesh Labour Rule 2015, Rule- 99)

র্ি্রক যজা যরজঠবজ হেয

6.4 - Three periods (March 21 - April 20, 2018, September 21 - October 20, 2017 and April 21 - May 20, 2017) working hours and payroll records werechecked and it was found that workers were required to work on weekly off days. In the period of March 21 - April 20, 2018, workers were requiredto work on 4 weekly days off, in the period of September 21 - October 20, 2017, workers were required to work on 3 weekly days off and in theperiod of April 21 - May 20, 2017, workers were required to work on 1 weekly day off. Noted that work on all mentioned weekly days off wasconsidered as overtime and overtime payment was provided. (As per Bangladesh Labour Rule 2015, Rule- 101)

ভঠএর ্দঠব যজা যরজঠবজ হেয


Nil




Page 11/21


Performance Area 7 : Occupational Health and Safety

1- Followup Audit [Audit Id - 149552] Audit Date: 24/04/2019 PA Score: D Deadline date:25/06/2019



7.1 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Not Corrected. In accordance with BSCI Performance Area (Occupational Health &Safety) No. 7.1 (Is there satisfactory evidence that the auditee observes occupational health and safety regulations applicable for its activities?)and a) Bangladesh Labor Law, 2006, section 79(C) (providing for the periodical medical examination of persons employed in the operation andprohibiting the employment of persons not certified as fit for such employment) b)(Bangladesh Labor Law 2006, section 94 (2)and (7) Suchrooms shall provide adequate accommodation, adequately lighted and ventilated and maintained in a clean and sanitary condition and shall beunder the charge of woman trained or experienced in the care of children and infants. Such rooms shall be adequately furnished and equippedand in particular there shall be one suitable cot or cradle with necessary bedding for each child, at least one chair or equivalent seatingaccommodation for the use of each mother while she is feeding or attending to her child and a sufficient supply of suitable toys for the olderchildren.: Finding: The facility did not conduct health check-up for workers with potential exposure to chemicals and workers exposed to highnoise level yet. Besides, adequate accommodation, furniture, separate and screen covered area for the breastfeeding has not been ensured forchildcare room. Moreover, no one has been assigned to take care of children yet. Note: As facility has arranged a childcare room, so partialrating is given in this section.য) সজর ্রর জ যরজ হে বজয খ) ্ই ্্র মরজ েযি যজমরযর ্িব বজয

7.3 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Corrected. During this follow-up audit it was noted that, facility management hasrecognized potential deficiencies for disabled workers by conducting OHS risk assessments periodically. Last risk assessment was conducted on01 June 2018.্ভষেট থমজাজব যরজ হঠেঠিয

7.6 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Corrected. During this follow-up audit it was found that, appropriate PPE was usedby all employees of all section during facility visit.্ভষেট থমজাজব যরজ হঠেঠিয

7.11 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Not Corrected and New finding. In accordance with BSCI Performance Area(Occupational Health and Safety) No. 7.11 (Is there satisfactory evidence that the auditee confirms that the equipment and buildings used forproduction are stable and safe?) and a) Building Constructions Rules 1996, Section- 25 (For seven or more than seven storied building- a)Should be the facility of elevator for ascending and descending.) b) Boiler Act 1923, Section-8 (A certificate authorizing the use of a boiler shallcease to be in force: a. On the expiry of the period for which it was granted;): Finding: Facility did not install any elevator or lift for the eight-storiedbuilding yet. New finding: 02 out of 03 boiler license of the facility has been expired on 29 March 2019. However, facility management has appliedfor the renewal of the license to the concern authority on 10 March 2019. Note: As facility management maintained all other updated licenses andpermissions as per requirement, so partial marking has given in this area.্বস় ্িব বজয ভেবজর বজাঠথন র েমেজদ যার র হঠে ে়ঠি

7.13 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Corrected. During this follow-up audit, all 04 electricians of the factory found havecompetency certificate (ABC certificate) from the concerned authority.


7.15 - Follow-up audit was conducted on 24 & 25 April 2019. Status: New finding. In accordance with BSCI Performance Area (Occupational Health andSafety) No. 7.15 (Is there satisfactory evidence that the auditee ensures that escape routes, aisles and emergency exits in the production site arenot blocked, easily accessible and clearly marked?) and Bangladesh Labour Law, 2006, section: 62(6) (A free passage-way giving access toeach means of escape in case of fire shall be maintained for the use of all workers in every room of the establishment.): Finding: Aisles foundpartially blocked by pillar, fire extinguisher, drinking water point, machine and semi goods basket in the following areas- 02 out of 06 Aisles at 7thfloor of building 01. The area of the floor is 11600 sft and approximately 250 employees were working in the area during the audit day. 02 out of06 Aisles at 6th floor of building 01. The area of the floor is 11600 sft and approximately 230 employees were working in the area during the auditday. 02 out of 05 Aisles at 5th floor of building 01. The area of the floor is 11600 sft and approximately 211 employees were working in the areaduring the audit day. 03 out of 07 Aisles at 4th floor of building 01. The area of the floor is 11600 sft and approximately 260 employees wereworking in the area during the audit day. Note: As all exits and staircases found obstacle free, so partial rating is given in this section.্যিম বজ ব র ্ত রভছু ্িব

7.21 - Follow-up audit was conducted on 24 & 25 April 2019. Status: New finding. In accordance with BSCI Performance Area (Occupational Health &Safety) No. 7.21 (Is there satisfactory evidence that the auditee provides workers with access to an appropriate, clean area for storing food,eating and/or cooking?) and Bangladesh Labour Act 2006, Section: 92 (1)(In an establishment where more than 100 (one hundred) workers areordinarily employed, adequate number of canteens shall be provided for their use.): Findings: The factory has no permanent setup for canteenfacility within the facility premises for workers to have light snacks Note: As facility has arranged a dining area for employees, so partial rating hasbeen given in this section.যজরখজবজর প্মযঠদর াব ্জমরজঠবজ য জ্জব থম্ ভাজ বজায


Full Audit [Audit Id - 122485] Audit Date: 29/04/2018 PA Score: A Deadline date:31/03/2019Good practices


Based on satisfactory evidence the factory partially respects principles of this performance area, because gaps were noted in providing healthcheck-up for workers, providing effective child care, conduct complete risk assessment and install lift facility. However, the factory is fully equipped




Page 12/21


with full range of firefighting equipment along with hydrant system, automatic fire alarm, and detection system. Evacuation plans were posted oneach floor. Fire drills were conducted once in a month. Aisles, exits and electrical panels were properly marked. First aid boxes were kept on eachfloor, also factory has ensured pure drinking water for the worker. Noted that 3 feeder aisles in knitting section was found with pillar inside theaisles, however, none of the workers in that area was found blocked or unabale to rescue since there were sufficient evacuation space observedbeside the pillar and less workers were observed in working. Further, the floor arrangement was approved by the concerned labor authority andalso by the ACCORD inspection body (monitoring body of the listed buyer's of the factory).

7.1 - a) The facility did not conduct health check-up for workers with potential exposure to chemicals and workers exposed to high noice level. (As perBangladesh Labour Rule 2015, Rule- 68-4)

b) The facility has no effective childcare room for the use of children under the age of six years. Adequate accommodation, ventilation has not beenmaintained, no one has been assigned to take care of children, adequate furniture has not been ensured, no separate and screen covered areawas found for the breastfeeding. (As per Bangladesh Labour Rule 2015, Rule- 94)

য) সজর ্রর জ যরজ হে বজয খ) ্ই ্্র মরজ েযি যজমরযর ্িব বজয

7.3 - The facility did not recognize potential deficiencies for disabled workers by conducting OHS risk assessments.

র ম প্মযঠদর ্রর ঠথথ যরজ হে বজায

7.6 - Overlock operators were not using face masks while working. (As per Bangladesh Labour Rule 2015, Rule- 67)

প্মযরজ ্্্্া ভ জভহজর যর্িব বজয

7.11 - The facility runs their production work in eight-storied building without any lift. (As per The Building Constructions Rules 1996, Section- 25)

্বস় ্িব বজয

7.13 - 04 out of 04 electricians of the factory did not have any competency certificate (ABC certificate) from the concerned authority which is the approvalby the government for the industrial electric operators. (As per Bangladesh Labour Rule 2015, Rule- 58)

য্মমক যিএর্ েতঠয িজঠদর া াব িজ্ািরর েযজব থ মিজ থজটর্সঠয় বজায


Nil

Performance Area 8 : No Child Labour







Based on satisfactory evidence as well as information gathered from employees and management interview it was noted that the factory met principles of this performance area. The factory has established a complete ‘Child Labor Policy’ and as per this ‘no child labor’ notice is postedinside the factory in prominent places. In addition, age verification certificate, national ID card, birth registration certificate or academic certificate (ifany) are well maintained in the respective personnel files. During hiring, a registered doctor checks workers age based on their age proof records(age certificate, national ID card, birth certificate etc.).


Nil




Page 13/21


Performance Area 9 : Special protection for young workers







Based on the satisfactory evidence through documents review, facility walkthrough as well as gathering information from management & employeeinterview it was noted that the factory has completely met the principle. The factory has a policy and procedures on young workers which is postedin all prominent places in the premises, and communicated to the workers through training and awareness program. Further, from factory tour, nosuspected young worker was observed and none was noticed by the factory workers as well. Moreover, as per policy, the factory has writtenstandard procedures (as per local law and ILO standards) for special protection of the young workers found to be worked in the premises.Questions 9.2, 9.3, 9.4, 9.5 and 9.6 have been marked as 'Not Applicable' as no young working has been detected during the audit.


Nil




Page 14/21


Performance Area 10 : No Precarious Employment

1- Followup Audit [Audit Id - 149552] Audit Date: 24/04/2019 PA Score: A Deadline date:25/06/2019



10.2 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Not corrected. In accordance with BSCI Performance Area (No PrecariousEmployment) 10.2: Is there satisfactory evidence that the auditee engages workers based on recognized and documented employmentrelationships?) and Bangladesh Labor Rules 2015, rule 19 (4) (The worker should mention the following information in the letter of appointment ofthe worker under the section 5, such as: (a) Name of worker, (b) Father’s Name, (c) Mother’s Name, (d) Spouse Name, (e) Address: PresentPermanent (f) Designation, type of work, date of joining, (g) Class of worker, (h) Wages or pay scale (Wages or salary and the rate of theincrease of annual salary, if any), (i) Other payable financial facilities (house rent, medical, education, food, conveyance, festival and attendanceallowances and gratuity if any, and (j) It is to be mentioned hereby that all appointment conditions, existing service rules (if any), and labor act willbe complied with.): Finding: Provided appointment letter to the employees were not as per format prescribed by local law, as some informationlike type of work, rate of increment and labor act will be complied with were missing in the appointment letter. Note that approximately 2200employees were working in the facility during the audit day. Note: As facility has provided temporary ID card, so partial rating has been given inthis section.্বঠেজ় ্্ আ্ঠর় ্িব বজয

10.3 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Corrected. During this follow-up audit all 25 randomly sampled employees foundhas been provided ID card as per local law.




Based on the satisfactory evidence as well as providing information it was noted that the factory has met the principle partially because servicerules are not updated in appointment letter of workers. and did not ensure ID card to some newly recruited workers. Appointment letter, ID card,and service book are given to all the regular workers immediately upon joining. During the employees’ interview, all interviewed employees statedthat they sign labor contracts with the facility. These labor contracts were in the local language.

10.2 - Conditions of appointment and service of the workers that were written in appointment letter have not been updated as per the local law. (As perBangladesh Labour Rule 2015, Rule- 19)

্বঠেজ় ্্ আ্ঠর় ্িব বজয

10.3 - Approximately 15 workers were found working without having an ID card. (As per Bangladesh Labour Rule 2015, Rule- 19-5)

আা্র যজরর িজাজ জে রা াব যমা ্জওেজ ে়ঠিয


Nil




Page 15/21


Performance Area 11 : No Bonded Labour







Based on the satisfactory evidence as well as gathering information from the management & employee interview it was noted that the factory hascompletely met the principle. As per factory policy and practices, the employees are free to leave the factory when they resign from the services,with payment. There is no restriction on worker’s movement within the premises. The workers are not forced to stay back once they get authorizedleave from the management. 11.2 marked as N/A, though there is no migrant worker in the facility.


Nil




Page 16/21


Performance Area 12 : Protection of the Environment




12.3 - Follow-up audit was conducted on 24 & 25 April 2019. Status: New finding. In accordance with BSCI Performance Area (Protection ofenvironment) no. 12.3: (Is there satisfactory evidence of the auditee’s relevant environmental permits and licences?) and EnvironmentConservation Rules, 1997, Section 13 (For carrying out the purposes of clause (e) of sub-section (2) of section 20, the standard limits of thedischarge of liquid waste and gaseous emission shall be determined in accordance with the standards specified in Schedules 9, 10 & 11, and thestandards of the discharge or emission of wastes of various industrial units shall be determined in accordance with standards specified inSchedule -12.): Finding: During this follow-up audit, it was noted that, the waste water report of the facility has been expired on 20 March 2019.However, facility management has applied to the Department of Environment on 26 February 2019. Note: As facility has collected validEnvironmental clearance certificate, so partial rating is given in this section.যজরখজবজর িরব ভার র মজব ্রর জ ্রঠ্জ়র র েমেজদ যার র হঠে ে়ঠি

12.4 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Corrected. During this follow-up audit it was found that wastes were kept by itstype and hazard in the designated area.্ভষেট থমজাজব যরজ হঠেঠিয

12.5 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Corrected. During this follow-up audit it was found that, facility management hasestablished a mechanism to reduce water loss by reusing the waste water in washing section.্ভষেট থমজাজব যরজ হঠেঠিয




Based on the satisfactory evidence during facility walkthrough as well as gathering information from documented records and managementinterview it was noted that the factory has met the principle partially because waste management system of the factory was found not proper.However, the factory has developed a precise policy and procedure on environment management system. The waste collection and disposalrecord is properly maintained, also the factory has conducted environmental impact assessment (EIA) from an organization.

12.4 - The waste management system in the factory was not proper, wastes were kept without its type and hazard.

যজরখজবজর ভার ম জঠবাঠমজ ্থঠিম থ্য ্জওেজ মজে্বয

12.5 - The factory did not establish any mechanism to reduce water loss in the premises.

যজরখজবজ তঠর ্জ্বর র্ ে যজথ যরজর েযজব ্নেজ রজ্ব যরজ হে্বয


Nil




Page 17/21


Performance Area 13 : Ethical Business Behaviour




13.2 - Follow-up audit was conducted on 24 & 25 April 2019. Status: Not corrected. In accordance with BSCI Performance Area (Ethical Behaviour) No.13.2 (Is there satisfactory evidence that the auditee keeps accurate information regarding its own activities, structure and performance?):Findings: Facility was maintaining manual time recording system for all 2200 employees where all in and out time were uniform (e.g. In 8:00 amand out 5:00 pm). However, facility provided sampled months payroll records and those were consistent with other documents and employeefeedback. Note that, working hour and wage payment found consistent with sample months according to the working hour record and wagerecord review and interview with the employees, still facility was recommended to develop a solid mechanism for filing, tracking and makingavailable information on workforce data to avoid potentiality of inconsistency. Note: As the facility has manual time recording system, so partialrating is given in this section.যমর জররঠদর াব ম জবমঠেব ়জাম েরয্রর্ ্থঠিম ্িব েমখজঠব থভ ছর থমে ভ্ ভজাঠর থমে য ্িব (যদজএ ছ থযজব 8:00 ভ্ ভজ্হর থএ জ 5:00 ) সঠব যমাঠদর যএি

ঠভই থমে ভ্ ভজ্হর হওেজর থমে থম্যরি িত থ্য জঠভ ভাজে বজায


Full Audit [Audit Id - 122485] Audit Date: 29/04/2018 PA Score: A Deadline date:31/03/2019Good practices


Based on the satisfactory evidence as well as providing information it was noted that the factory has met the principle partially because they areusing manual timekeeping system to track workers IN & Out time. However, the overall observations show that the factory has maintained a properrecord keeping system and was provided all necessary documents to the audit team for review. Factory has all legal licenses and permits tooperate facility approved by the concerned authority. Management was transparent during the entire period of audit and they showed a positiveattitude and was very supportive to the auditor during the site visit. They were very keen to maintain good business relations with all their businesspartners and were committed to fulfilling their expectations. Currently, the management has a policy on ‘business ethics and anti-corruption’ whichis posted in all prominent places on the premises and was communicated to the employees through awareness program and notice boards.

13.2 - Time keeping system in the factory was found manual. It has been maintained by time keeper. The IN-TIME and OUT-TIME of workers were foundsame every day. So accurate data on their worker's entry and exit has not been maintained. For example, Every day, IN-TIME of workers are 08:00am and OUT-TIME is 5:00 or 7:00 pm. No fraction of time is being maintained. (As per BSCI Manual 2014)

যজরখজবজে যজঠার থমে ় বজর ্থঠিম ম জবমেজবয ়জ থমে র য যজরজ ্্র জ্বি হঠেঠিয প্মযঠদর ঠভই থমে ভ্ ভজ্হর হওেজর থমে ্ি্দব যায িজা প্মযঠদর ঠভই থমে ভ্ভজ্হর হওেজর থমে থম্যরি িত থ্য জঠভ ভাজে বজায


Nil




Page 18/21


Summary

Audit Type Date Audit Id PA1 PA2 PA3 PA4 PA5 PA6 PA7 PA8 PA9 PA10 PA11 PA12 PA13 OverallRating

Follow-upAudit 24/04/2019 149552 C C A A B C D A A A A A A C

Full Audit 29/04/2018 122485 D C A A B D A A A B A B A C




Page 19/21


Producer Photos

External photo(s) of the production unit(s)Main Building.jpg

Photo of fire safety equipmentFire Control Panel.jpg

Photo of the inside of the main production hallKnitting Section.jpg

External photo(s) of the production unit(s)Main Gate.jpg

Photo of fire safety equipmentFire Equipment.jpg

Photo of the inside of the main production hallLinking Section.jpg

External photo(s) of the production unit(s)Name Plate.jpg

Photo of fire safety equipmentFire Extinguisher.jpg

Photo of the inside of the main production hallMending Section.jpg

External photo(s) of the production unit(s)Security.jpg

Photo of fire safety equipmentFire Pump.jpg

Photo of the inside of the main production hallSewing Section.jpg

Photo first aid facilitiesFirst Aid Box.jpg

Photo of fire safety equipmentHose Reel.jpg

Photo of the inside of the main production hallWashing Section.jpg




Page 20/21


Photo first aid facilitiesMedical Room.jpg

Photo of the canteen (if applicable)Dining Area..jpg

Photo of the nursery (if applicable)Child Care Room.jpg

Photo of chemical storage room (if applicable)Chemical Room.jpg

Photo of the code of conduct on displayamfori BSCI COC on Display.jpg

Photo of the personal protection equipments (if applicable)Employee Using PPE.jpg

Photo of fire safety equipmentExit Light.jpg

Photo of the inside of the main production hallETP.jpg

Photo of the sanitary facilitiesComplain Box.jpg

Photo of fire safety equipmentFire Alarm Switch.jpg

Photo of the inside of the main production hallIron Section.jpg

Photo of the sanitary facilitiesToilet Area.jpg

Photo of fire safety equipmentFire Alarm.jpg

Photo of the inside of the main production hallJacquard Section.jpg

Photo of non-conformityAisles found partially blocked by pillar.jpg




Page 21/21


Date post:	24-Oct-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Created with EO.Pdf for .NET trial version....

Documents