Report No : F_IAR_20354 City : - Audit Date : Jan 04, 2017 Country : Vietnam Last Audit : Oct 11, 2016 (54%) Auditors : Primary: Nguyen Phuong Assessment Stage : Follow up Secondary: None Overall Facility Score : 91% Service Provider: Intertek Schedule Type : Semi-Announced MOLAX VINA CO., LTD GENERAL INFORMATION 85-100% High Performance 71-84% Medium Performance 51-70% Low Performance 0-50% Very low Performance Assessment area Score results Number of non-compliances by rating Zero Tolerance Major Moderate Minor Notscored Overall 91% - - 4 2 - Labor 100% - - - - - Wages & Hours 64% - - 3 - - Health & Safety 95% - - 1 - - Management Systems 93% - - - 2 - Environment 100% - - - - - WORKPLACE PERFORMANCE INDEX AND SUMMARY Participating facilities: 23569 This message contains information, which is confidential and the copyright of Intertek. All rights reserved Page 1 of 21 Workplace Conditions Assessment Report Measured Results Improved Performance
Transcript
Report No : F_IAR_20354 City : -Audit Date : Jan 04, 2017 Country : VietnamLast Audit : Oct 11, 2016 (54%) Auditors : Primary: Nguyen PhuongAssessment Stage : Follow up Secondary: None
Overall Facility Score : 91%
Service Provider: IntertekSchedule Type : Semi-Announced
Facility Legal Name: Molax Vina Co., LtdAudit Location: B28/I -B29/I, Street 2B, Vinh Loc Industrial Park, Binh Hung Hoa B Ward, Binh Tan District.City: -Country: VietnamContact Name: Mr. Ryu Byoung KoneContact Title: General DirectorIndustry: Apparel
Facility Name: MOLAX VINA CO., LTDA. FACILITY PROFILEA1. FACILITY INFORMATION
Security systems inplace:
Yes 06 security guards are in charge of security in the facility 24 hours per day and seven (7) days per week rotating on three shifts with one person per shift. In order to register with the security guards, visitors are required to identify themselves by providing the purpose of the visit and the name of the contact person and the identity of visitor/ vehicle. Visitors are only allowed to access to the facility when authorization is obtained.
Building Description: One (1) 1-storey building with 2 mezzanines, in which one mezzanine used for office and other one for cutting area, the ground floor is used production area and warehouse. One (1) 1- storey building used for canteen and kitchen. The building materials are brick, steel, and cement. The total land area occupied by the facility is about 5,300 square meters.There was no dormitory for employees.Special building type: NA
Facility Legal Status: OtherYear facility began operations:
October 2002Located in special economic zone:
NoPerson responsible for overall social compliance issues:
Mrs. Ngo Hong Chi - Compliance staffValid certificatefor social compliance certification program:
NoneVendor Name: Hansae Co. Ltd.
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Subcontractor# : 1SubContractor Name: StichplusVietnam Co., Ltd Address: Binh Phuoc AZone, Binh Chuan Ward,Thuan An District, BinhDuong Province.Contact Name: Mr. HienTelephone: 06503788443Email Address: [email protected] Type: Subcontractor performs other subcontracting functions (i.e. printing, spraying, injection, dyeing, welding, washing, embroidery)Process subcontracted: EmbroiderySocial Audits performed: Yes Type of Social Audits: Client
A4. SUBCONTRACTOR INFORMATIONLanguages spoken in the facility:
VietnameseManagement and employees speak same language :
Yes
Female Employees: 472 Male Employees: 201 Mgmt Employees: 18 Production (Non-Management) Employees: 655 Local Employees: 670 Foreign/Migrant Employees: 3
A3. EMPLOYEE INFORMATIONRange of total number of employees at the facility:
501-1000 employeesUnion name: Trade Union of Molax Vina Co., LtdEmploys juvenileworkers:
None Employee nationalities/provinces:
Korean, VietnameseHires throughemployment agent:
No The facility does not hire employees through an agent.
A2. PRODUCTION INFORMATIONChemicals or hazardous materialson-site:
Yes Acetone, pull-out, machine oil
Time recordsystem(s) used:
Finger print
Current production/Services for client:
Yes
Products manufactured/Services provided:
KnitwearProduction process/Service elements:
Cutting, sewing, ironing, inspection and packingProduction capacity a week: 36000pcsTotal number of machines: 495Main machine types: Cutting machines, sewing machines, steamed irons, over-lock machines, boiler, air compressorShifts andOperating hours:
All employees work for 8 hours per day in six (6) days a week starting from From 7:30 am to 4:30 pm, break time from 11:30am to 12:30pm or 12:00nn to 1:00pm. Sunday is the designated rest day.
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dyeing, welding, washing, embroidery)Process subcontracted: PrintingSocial Audits performed: Yes Type of Social Audits: ClientPrivate label items: Yes
Subcontractor# : 6SubContractor Name: Nhat Phuong Co., Ltd Address: 18/26A Ma Lo Street, Binh Hung Hoa A Ward, Binh Tan District, HCMCContact Name: Mr. Kim Sung OkTelephone: 84 61 37503117Email Address: [email protected] Type: Subcontractor performs other subcontracting functions (i.e. printing, spraying, injection, dyeing, welding, washing, embroidery)Process subcontracted: PrintingSocial Audits performed: Yes Type of Social Audits: ClientPrivate label items: Yes
Subcontractor# : 7SubContractor Name: I.S Vietnam Co., Ltd Address: Lot A2-6 Tay Bac Cu Chi Industrial Park, Cu Chi District, HCMCContact Name: Mr. Park Jin MinTelephone: 84 838924947Email Address: [email protected] Type: Subcontractor performs other subcontracting functions (i.e. printing, spraying, injection, dyeing, welding, washing, embroidery)Process subcontracted: Printing and EmbroiderySocial Audits performed: Yes Type of Social Audits: ClientPrivate label items: Yes
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A5. GENERAL INFORMATIONThe annual audit conducted on October 11, 2016.Molax Vina Co., Ltd is a 100% foreign investment company. It is located at B28/I -B29/I, Street 2B, Vinh Loc Industrial Park, Binh Hung Hoa B Ward, Binh Chanh District, Ho Chi Minh City, Vietnam. Total land area occupied by the facility is 5,300 square meters. They have operated at this location since October 2002. The main products manufactured by the facility are knitwear. Peak season was from June to August. Auditor arrived at 9:00am on October 11, 2016. During opening meeting, auditor explained to the facility representatives about the social compliance audit. The audit was accepted by the facility representatives. The management was well supportive. Documents were provided in timely manner. During employee interview, all employees felt comfort to express their ideas. Employees did satisfy with salary and working conditions. The facility have 7 sub-contractors for printing, embroidery, these subcontractors has been approved by Client. These subcontractors are currently producing for this Client.The follow up audit conducted on January 4, 2017.Molax Vina Co., Ltd is a 100% foreign investment company. It is located at B28/I -B29/I, Street 2B, Vinh Loc Industrial Park, Binh Hung Hoa B Ward, Binh Chanh District, Ho Chi Minh City, Vietnam. Total land area occupied by the facility is 5,300 square meters. They have operated at this location since October 2002. The main products manufactured by the facility are knitwear. Peak season was from June to August. Auditor arrived at 9:00am on January 4, 2017. During opening meeting, auditor explained to the facility representatives about the social compliance audit. The audit was accepted by the facility representatives. The management was well supportive. Documents were provided in timely manner. During employee interview, all employees felt comfort to express their ideas. Employees did satisfy with salary and working conditions. The facility have 7 sub-contractors for printing, embroidery, these subcontractors has been approved by Client. These subcontractors are currently producing for this Client.Emergency Preparedness SummaryThe annual audit conducted on October 11, 2016.The emergency preparedness is set up to implement. The internal fire evacuation drill was conducted in March, 2016 , June, 2016 and September, 2016 for all employees. Facility conducted fire drill with fire fighting police on November 13, 2015. The fire fighting and prevention team of the facility including 25 employees were trained from January 7 to 10, 2016 by fire fighting police. The fire extinguishers were properly equipped and inspected with validity label by authorized agency. There are 136 fire extinguishers in this facility, 4 fire hoses and 2 fire water pumps also available in the facility. The fire fighting condition was inspected regularly by fire policemen in July 1, 2016 with acceptable result. Evacuation plans are posted in the production areas. Exit sign was provided at all exit doors of production workshops. Smoking is prohibit in the facility compound and warning sign of "No smoking”was post throughout the facility. First aid training was provided to 25 employees on May 28, 2016 by the Standby Medical Centre. Facility also signed medical contract with nearby hospital to take care employees health in emergency cases. However, this contract was expired in August 2016.The follow up audit conducted on January 4, 2017.The facility conducted fire drill with fire fighting police on November 18, 2016.
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Period From To Peak Season Records ReviewedCurrent Period 01/11/2016 30/11/2016 No 10 Period 1 01/10/2016 31/10/2016 Yes 3 Period 2 01/09/2016 30/09/2016 No 3 Total 16
Employee interview samplingIndividual 16Group NilTotal interviewed 16Audit pay period provided for review
Records From To3 Months Payroll 30/09/2016 30/11/20163 Months Attendance 30/09/2016 30/11/2016Special Comments This is the follow up audit.
Personnel records Machine maintenance recordsSecurity log book Production recordsNon-Production records Employment contractsLegal Permits Social insurance documentationEmployee leave register Infirmary logsHealth examination records
Other records reviewed
Other : Environment record
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Wages and hours summary: The annual audit conducted on October 11, 2016.A. Working Hours:1. The facility use finger print system to record working hours of all employees.2. Office working time: All employees work for 8 hours per day in six (6) days a week starting from 7:30 am to 4:30 pm, break time from 11:30am to 12:30pm or from 12:00nn to 1:00pm. Sunday is the designated rest day.3. Based on time records from October 2015 to September 2016, it was noted time and payroll record could not be verified due to inconsistence between time and payroll record provided by facility and other documents found during factory tour.B. Wages:1. Minimum wage for employee in this facility is VND 3,680,000/ month for employees effective from January 2016. This was in compliance with local requirements.2. Employees were paid at 150% of normal wage for regular overtime hours.4. It was noted that compulsory social insurance was contributed for 670 employees up to August 2016.5. Salary was paid in monthly basic. Payment is made in 10th every month by cash.6. Payroll record of September 2016 can not provided for review, it was lost.The follow up audit conducted on January 4, 2017.A. Working Hours:1. The facility use finger print system to record working hours of all employees.2. Office working time: All employees work for 8 hours per day in six (6) days a week starting from 7:30 am to 4:30 pm, break time from 11:30am to 12:30pm or from 12:00nn to 1:00pm. Sunday is the designated rest day.3. Based on time records from September 2016 to November 2016, it was noted time and payroll record:It was noted that:- 03 out of 03 selected employees at sewing section worked from 68.5 overtime hours to 77.5 overtime hours in September 2016.- 03 out of 03 selected employees at sewing section worked from 52.5 to 58 overtime hours in October 2016.- 08 out of 10 selected employees at sewing, cutting, ironing, finishing and folding section worked from 61.5 to 86.5 overtime hours in November 2016.It was noted that:- 08 out of 10 selected employees at sewing, cutting, ironing, finishing and folding section worked overtime from 4.5 hours to 4.68 hours per day (1 to 3 days) in November 2016.- 03 out of 03 selected employees at sewing section worked from 4.63 to 5.15 overtime hours per day from 01 to 02 days in September 2016.It was noted that:- 03 out of 03 selected employees at sewing section worked from 68.5 to 77.5 hours (normal working hours and overtime hours) from 1 week in September 2016.- 03 out of 03 selected employees at sewing section worked from 64.77 to 66.05 hours (normal working hours and overtime hours) from 1 to 2 weeks in October 2016.- 08 out of 10 selected employees at sewing, cutting, ironing, finishing and folding section worked from 63.73 to 66.56 hours (normal working hours and overtime hours) from 1 to 3 weeks in November 2016.B. Wages:1. Minimum wage for employee in this facility is VND 3,680,000/ month for employees effective from January 2016. This was in compliance with local requirements.2. Employees were paid at 150% of normal wage for regular overtime hours.4. It was noted that compulsory social insurance was contributed for 677 employees up to December 2016.5. Salary was paid in monthly basic. Payment is made in 10th every month by cash.
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Sub Section: Working HoursStatus Findings % Global freq of
compliance
Corrected 116.00 : Previous Non-Compliance : The provided time records are inaccurate and discrepancies are noted.Auditor's comment The annual audit conducted on October 11, 2016. The working hours and payroll record could not be verified due inconsistency between time and payroll record provided from facility and record from security guard room. Detail as follow: -Based on time record from October 2015 to September 2016, it was noted that employees did not work on rest day, they have at least 1 day off per week. - Based on facility sealing logbook, it was noted that employees worked on rest day (Sunday) of May 29, 2016, June 5&19, 2016 and July 3,17, 24, 2016. - Based on record of register in/out at packing area. It was noted that employees worked on rest day (Sunday) of May 29, 2016, June 5&19, 2016 and July 3,17, 24, 2016 and all rest day (Sunday) in August 2016 and September 2016. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday.
89%
Corrected 121.00 : Previous Non-Compliance : Auditor was unable to verify if the total normal working hours are within allowable limit under applicable law or agreement.Auditor's comment The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday. It could be verified the compliance on working hours and normal wage.
84%
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PERFORMANCE RATING
Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)
Sub Section: Working HoursStatus Findings % Global freq of
compliance
Moderate 122.00 : Total overtime hours exceeds allowable limits under applicable law or agreement.Auditor's comment It was noted that: - 03 out of 03 selected employees at sewing section worked from 68.5 overtime hours to 77.5 overtime hours in September 2016. - 03 out of 03 selected employees at sewing section worked from 52.5 to 58 overtime hours in October 2016. - 08 out of 10 selected employees at sewing, cutting, ironing, finishing and folding section worked from 61.5 to 86.5 overtime hours in November 2016. It was noted that: - 08 out of 10 selected employees at sewing, cutting, ironing, finishing and folding section worked overtime from 4.5 hours to 4.68 hours per day (1 to 3 days) in November 2016. - 03 out of 03 selected employees at sewing section worked from 4.63 to 5.15 overtime hours per day from 01 to 02 days in September 2016.Article 106 Point 2 Vietnam Labor Code (10/2012/QH13) (10/2012/QH13)To ensure that the overtime hours of the employee shall not exceed 50% of the normal working hours in 01 days, in case of application of working regulation on weekly basis, , the total normal working hours and the overtime hours shall not exceed 12 hours in a day, and less than 30 hours in 01 months and the total of not more than 200 hours in 01 year, except for some special cases stipulated by the Government for the overtime working but shall not be more than 300 hours in 01 years
50%
Moderate 123.00 : The total weekly working hours (normal & overtime) are over 60 but less than 72 hours.Auditor's comment It was noted that: - 03 out of 03 selected employees at sewing section worked from 68.5 to 77.5 hours (normal working hours and overtime hours) from 1 week in September 2016. - 03 out of 03 selected employees at sewing section worked from 64.77 to 66.05 hours (normal working hours and overtime hours) from 1 to 2 weeks in October 2016. - 08 out of 10 selected employees at sewing, cutting, ironing, finishing and folding section worked from 63.73 to 66.56 hours (normal working hours and overtime hours) from 1 to 3 weeks in November 2016.
74%
Corrected 125.00 : Previous Non-Compliance : The auditor was unable to verify if employees themselves record or acknowledge the recording of real working hours on regular basisAuditor's comment The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday. It could be verified the compliance on working hours and normal wage.
85%
Corrected 127.00 : Previous Non-Compliance : The auditor was unable to verify that employees are provided with at least one day off in seven (7) in accordance with local law.Auditor's comment The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday. It could be verified the compliance on working hours and normal wage.
77%
Corrected 128.00 : Previous Non-Compliance : The auditor was unable to verify that employees are provided with at least one day off following six consecutive days worked.Auditor's comment The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday. It could be verified the compliance on working hours and normal wage.
76%
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PERFORMANCE RATING
Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)
Sub Section: Wages and BenefitsStatus Findings % Global freq of
compliance
Corrected 134.00 : Previous Non-Compliance : The facility only keeps or provides partial requested payroll records of the employees.Auditor's comment The annual audit conducted on October 11, 2016. Based on confirmed from new HR management, the payroll record in September 2016 (current month) could not provided for review, due to they can't find out. The follow up audit conducted on January 4, 2017. The finding was corrected. The payrolls and time records from September 2016 to November 2016 were provided for review. The payment on the payrolls were complied with local law.
95%
Corrected 135.00 : Previous Non-Compliance : The provided payroll records are inaccurate and discrepancies are noted.Auditor's comment The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday. It could be verified the compliance on working hours and normal wage.
89%
Corrected 143.00 : Previous Non-Compliance : The auditor was unable to verify if regular hourly work paid to all employees meets at least the minimum wage/ agreed wage.Auditor's comment The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday. It could be verified the compliance on working hours and normal wage.
83%
Corrected 144.00 : Previous Non-Compliance : The auditor was unable to verify if the wage calculation method is correct.Auditor's comment The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday. It could be verified the compliance on working hours and normal wage.
84%
Corrected 147.00 : Previous Non-Compliance : The auditor was unable to verify if overtime wage is calculated and paid at the premium rate as legally requiredAuditor's comment The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday. It could be verified the compliance on working hours and normal wage.
78%
Moderate 150.00 : The facility does not provide social security, pensions, healthcare and/ or other insurance to employees as per legal requirement.Auditor's comment The annual audit conducted on October 11, 2016. It was noted that the facility provided health check for all employees only once a year for 668 employees on June 30, 2015 instead of twice a year in 2015. The facility provided health check for all employees only once a year for 682 employees on July 30, 2016 instead of twice a year in 2016. The follow up audit conducted on January 4, 2017. The finding was not corrected. It was noted that the facility provided health check for all employees only once a year for 682 employees on July 30, 2016 instead of twice a year in 2016.Article 92, Clause 2 of Law on Compulsory Social InsuranceMonthly, employers shall make payments calculated on the funds of social insurance salaries and remuneration of laborers.
58%
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PERFORMANCE RATING
Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)
Sub Section: Wages and BenefitsStatus Findings % Global freq of
compliance
Corrected 152.00 : Previous Non-Compliance : The auditor was unable to verify if severance pay is paid correctlyAuditor's comment The annual audit conducted on October 11, 2016. Based on document review, it was noted that the payment record of severance allowance for 3 out of 3 selected samples was not available for review. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the document review, it was noted that the payment record of severance allowance of 05 out of 05 selected employees were provided for review. They were paid according to local law requirement.
94%
Corrected 153.00 : Previous Non-Compliance : The auditor was unable to verify if holiday work is accurately compensatedAuditor's comment The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour for checking production records, security logbooks, employee interview, payrolls and time records from September 2016 to November 2016, it was noted that there was no working on Sunday. It could be verified the compliance on working hours and normal wage.
80%
Corrected 154.00 : Previous Non-Compliance : Employees are not given sufficient legally mandated paid time offAuditor's comment The annual audit conducted on October 11, 2016. 1.In accordance with Government Decree No. 79/2014/ND-CP dated on July 31, 2014 providing guidance on the Vietnam Law of Firefighting and Prevention, Article 35: (point 3) Apart from receiving adequate salary and other allowances (if any), a Captain or a Vice captain of a part-time intramural firefighting team may receive a regular support paid by his supervisory organization. According to actual condition, the head of that organization shall provide every position with a support provided that it is not lower than 0.3 basic salary, and (point 4) member of an internal or professional firefighting team shall receive day offs, adequate salary and other allowances (if any), and a support of 0.5 day’s basic salary. Fire fighting team was not entitled to a monetary allowance in salary of 0.5 days on 3 days attending firefighting equipment and firefighting techniques training from 7 to 10 January 2016. 2. Based on document review, it was noted that the payment record of unused annual leave days in 2015 was not available for review. The follow up audit conducted on January 4, 2017. 1. The finding was corrected. Based on the document review and employees interview, it was noted that Fire fighting team was entitled to a monetary allowance in salary of 0.5 days on 3 days (from VND216,923 to VND 339,808) attending firefighting equipment and firefighting techniques training from 7 to 10 January 2016. 2. The finding was corrected. Based on the document review, it was noted that the payment record of unused annual leave days in 2015 was available for review. one unused annual leave day was paid with 300% of normal working day.
93%
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PERFORMANCE RATING
Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)
Sub Section: Emergency PreparednessStatus Findings % Global freq of
compliance
Corrected 183.00 : Previous Non-Compliance : Not all fire extinguishers are properly mounted or securely placed throughout the facilityAuditor's comment The annual audit conducted on October 11, 2016. Based on facility tour, it was noted that one fire extinguisher nearly cleaning area and one fire extinguisher nearly packing area were put directly on the floor. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour, it was noted that all fire extinguishers were hang on the wall as local law requirement, not placed on the floor.
93%
Corrected 187.00 : Previous Non-Compliance : The facility emergency evacuation exit doors are not clearly markedAuditor's comment The annual audit conducted on October 11, 2016. Based on facility tour, it was noted that one out of 2 exit sign on the garret at cutting area did not work during tested. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour, it was noted that 02 out of 2 exit sign on the garret at cutting area did work during being tested and working hours. All exit signs were illuminated while working hours.
84%
Corrected 188.00 : Previous Non-Compliance : One or more facility emergency evacuation exits are blockedAuditor's comment The annual audit conducted on October 11, 2016. It was noted that 1 out of 2 emergency exit door at material warehouse was partially obstructed by machines. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour, it was noted that 02 out of 2 emergency exit door at material warehouse were unobstructed while working hours.
97%
Corrected 193.00 : Previous Non-Compliance : Access to aisles, stairs and passageways are not kept clear at all timesAuditor's comment The annual audit conducted on October 11, 2016. It was noted that 3 out of 10 exit aisles at sewing workshop were partially obstructed by fabrics, goods and table. The follow up audit conducted on January 4, 2017. Based on the facility tour, it was noted that all exit routes were unobstructed during the working hours.
93%
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PERFORMANCE RATING
Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)
Sub Section: Emergency PreparednessStatus Findings % Global freq of
compliance
Corrected 194.00 : Previous Non-Compliance : There is no and/or missing emergency lighting throughout all the emergency exits and routesAuditor's comment The annual audit conducted on October 11, 2016. Based on facility tour, it was noted that one out of 2 emergency light on the garret at cutting area did not work during tested. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour, it was noted that 02 out of 2 emergency lights on the garret at cutting area did work during tested and while working hours. All emergency light were operated well while working hours.
85%
Sub Section: Occupational InjuryStatus Findings % Global freq of
compliance
Corrected 210.00 : Previous Non-Compliance : The facility does not have a process in place to provide medical treatment for injured or ill employeesAuditor's comment The annual audit conducted on October 11, 2016. Based on document review, it was noted that the medical emergency contract with Tan Tru Hospital is expired in August 2016. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the document review, it was noted that the medical emergency contract with Tan Tru Hospital was renewed on October 15, 2016 and valid until October 15, 2017.
96%
Sub Section: Machine SafetyStatus Findings % Global freq of
compliance
Corrected 223.00 : Previous Non-Compliance : Points of operation and other potentially dangerous parts are not operated with proper machine safeguardsAuditor's comment The annual audit conducted on October 11, 2016. It was noted that 10% of sewing machines did not have needle guards. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour, it was noted that 100% of sewing machines were installed with needle guards.
85%
Sub Section: Safety HazardsStatus Findings % Global freq of
compliance
Corrected 235.00 : Previous Non-Compliance : Not all special equipment operators (forklift, cargo lift, boiler operator, electrician, hot work e.g. boring and welding, confined space work, energy isolation, line opening etc) are licensed where applicableAuditor's comment The annual audit conducted on October 11, 2016. Based on document review, it was noted that the boiler operator's certificate was not available for review. As confirmed with management, due to the person who have duty with this job is leaved from this facility. so this record also was lost. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the facility tour, it was noted that 01 out of 01 boiler operator's certificate was available for review. The certificate would be valid until March 20, 2020.
77%
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PERFORMANCE RATING
Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)
Sub Section: Safety HazardsStatus Findings % Global freq of
compliance
Moderate 237.00 : The facility does not monitor the employees to ensure the personal protective equipment (PPE) required to control safety hazards is correctly usedAuditor's comment The annual audit conducted on October 11, 2016. Based on facility tour, it was noted that 10% of employees in sewing section did not use cotton mask during working time, although facility provided with free of charge and also provided training to them. The follow up audit conducted on January 4, 2017. The finding was not corrected. Based on facility tour, it was noted that 10% of employees in sewing section did not use cotton mask during working time, although facility provided with free of charge and also provided training to them.Article 138 point 1 of Vietnam Labor Code (10/2012/QH13)The employer must ensure that personal protective devices and protective clothing meet the standards of quality and design stipulated by the laws.
97%
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PERFORMANCE RATING
Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)
Sub Section: Management SystemsStatus Findings % Global freq of
compliance
Corrected 293.02 : Previous Non-Compliance : The facility's written social compliance policy does not provide a clear framework for setting social compliance objectives and targetsAuditor's comment The annual audit conducted on October 11, 2016. It was noted that the facility did not have a clear framework for setting social compliance objectives and targets. The follow up audit conducted on January 4, 2017. The finding was corrected. Based on the document review, it was noted that the facility did have a clear framework for setting social compliance objectives and targets. It set up on December 30, 2016.
92%
Minor 296.04 : The facility has comprehensive working hour and wages management processes and procedures in a written manual that support adherence to social compliance requirements but they are not all being properly implementedAuditor's comment The annual audit conducted on October 11, 2016. The facility has the procedure they are not all being properly implemented, time and payroll record of employees could not be verified due to inconsistency between time and payroll record provided from facility and other documents found during facility tour. The follow up audit conducted on January 4, 2017. The finding was not corrected. The facility established policies and procedures, the monitoring system may not be effective or policies are incomplete thus resulting to lapses of implementation with findings.
55%
Corrected 296.06 : Previous Non-Compliance : The facility has comprehensive emergency preparedness processes and procedures in a written manual that support adherence to social compliance requirements but they are not all being properly implementedAuditor's comment The annual audit conducted on October 11, 2016. The facility has the procedure they are not all being properly implemented, emergency lighting and exit sign did not work during tested. The follow up audit conducted on January 4, 2017. The finding was corrected
69%
Minor 296.07 : The facility has comprehensive employee safety processes and procedures in a written manual that support adherence to social compliance requirements but they are not all being properly implementedAuditor's comment The annual audit conducted on October 11, 2016. The facility has the procedure they are not all being properly implemented, , it was noted that the medical emergency contract with Tan Tru Hospital is expired in August 2016. The follow up audit conducted on January 4, 2017. The finding was not corrected. The facility established policies and procedures, the monitoring system may not be effective or policies are incomplete thus resulting to lapses of implementation with findings.
58%
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PERFORMANCE RATING
Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)
Sub Section: Management SystemsStatus Findings % Global freq of
compliance
Corrected 296.08 : Previous Non-Compliance : The facility's written manual for processes and procedures includes a machine safety procedure but they are not all being properly implementedAuditor's comment The annual audit conducted on October 11, 2016. The facility has the procedure they are not all being properly implemented, 10% of sewing machines did not have needle guards. The follow up audit conducted on January 4, 2017. The finding was corrected
78%
100%C5. Environment
% Global Frequency of Compliance: Represents the implementation percentage performance of all suppliers participating in the WCA Community globally for each issueIdentification numbers: Represents the finding ID associated with each checklist question
RECOMMENDATION FOR IMPROVEMENT PLAN TIMELINEMinor Take action within 0 ~ 6 months to make necessary improvements. Major : Take action within 0 ~ 1 month to make necessary improvements.Moderate: Take action within 0 ~ 3 months to make necessary improvements. Zero Tolerance: Take immediate action to make necessary improvements.
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PERFORMANCE RATING
Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)
This report is for the exclusive use of the client of Intertek named in this report (“Client”)and is provided pursuant to an agreement for services between Intertek and Client (“Client agreement”).No other person may rely on the terms of this report. This report provides a summary of the findings and other applicable information found/gathered during the audit conducted at the specified facilities on the specified date only. Therefore, this report does not cover, and Intertek accepts no responsibility for, other locations that may be used in the supply chain of the relevant product or service. Further, as the audit process used by Intertek is a sampling exercise only, Intertek accepts no responsibility for any non-compliant issues that may be revealed relating to the operations of the identified facility at any other date. Intertek's responsibility and liability are also limited in accordance to the terms and conditions of the Client Agreement. Intertek assumes no liability to any party, for any loss, expense or damage occasioned by the use of this information other than to the Client and in accordance with the Client Agreement and these disclaimers. In case there is any conflict between the disclaimers stated herein and the applicable terms and conditions of Intertek incorporated into the Client Agreement, then these disclaimers shall prevail.
DISCLAIMER
D. STRENGTHS AND CHALLENGES
Challenges: Facility performance ranks in the bottom percentile of the population Rating Global Freq. of Compliance%The facility does not monitor the employees to ensure the personal protective equipment (PPE) required to control safety hazards is correctly used Moderate
97%The total weekly working hours (normal & overtime) are over 60 but less than 72 hours. Moderate 74%
Facility Strengths: Facility performance ranks in the top percentile of the population and/or has implemented a best practice process
tiRatingng
Global Freq. of Compliance%
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