Professional Documents
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IND 2133 03 PT NItya Nandha Sedex Annual 03 FNL
IND 2133 03 PT NItya Nandha Sedex Annual 03 FNL
Audit Conducted By
Commercial Purchaser
NGO Retailer
SMETA Declaration
I declare that the audit underpinning the following report was conducted in accordance with
SMETA Best Practice Guidance and SMETA Measurement Criteria.
Any exceptions to this must be recorded here (e.g. different sample size): No Exception
2 Freedom of Association 0 0 0
4 Child Labour 0 0 0
6 Working Hours 0 0 0
7 Discrimination 0 0 0
8 Regular Employment 1 0 0
8A Sub–Contracting and 0 0 0
Homeworking
*Please note the table above records the total number of Non compliances (NC), Observations (Obs) and Good
Examples (GE). This gives the reviewer an indication of problem areas but does not detail severities of each issue –
Reviewers need to check audit results by clause.
Site Summary :
- The facility obtained business license to operate in facility area with business license number
535.1/010.P/00002/BPMPTSP/2015 issued by authority valid from 30 March 2015 untill as long as the
facility run its operation.
- The facility consists of one (1) main building consists of one (1) floor with mezanine. Ground floor is used
for production while mezzanine is used for office.
- No canteen or dormitory is provided by the facility.
- The main business doing by the facility is garment woven manufacturer for all.
- A total of 284 employees including 231 female employees and 53 male employees are currently working for
the facility, of which 220 are production employees while the other 64 are staff level.
- The employees work for six (6) days a week in one (1) shift. The normal working hours/days are:
Mondays to Fridays: 7:30am – 3:30pm with break given at 11:30am – 12:30pm
Saturdays: 7:30am – 12:30pm without break.
- Wages of employees are calculated on monthly basis. Payday is made monthly in fifth of next month cut off
period from first to end of month. Pay by bank transfer to employees account via local bank called Bank of
India
- The minimum wage of Kabupaten Bogor area is IDR. 2,655,000 per month for year 2015. However, the
facility had approval from Governor to pay employees with waiver IDR. 2,242,240 per month for year 2015.
The waiver is issued by the Governor considering the living cost in area where the facility located.
- Two sub-contractors are used by the facility for printing and embroidery process however they are already
approved by vendor/supplier.
- Three months payroll and time attendance records each 26 selected employees for period of September
2015 (current month), August 2015 (peak month) and February 2015 (non-peak month) are reviewed.
- A total 26 selected employees consisting of 20 female employee and six (6) male employees were chosen
as a sample of which six (6) of them were individually interviewed and the remaining 20 were interviewed in
4 groups of 5.
- Maximum overtime hours in sample was
1-2.5 hours per day, 7-11 hours per week on September 2015 (current month)
1-2.5 hours per day, 7-12 hours per week on August 20115 (peak month)
1-2.5 hours per day, 7-11 hours per week on February 20115 (non-peak month)
A: Report #: IND-2133-03
B: Time in and time out Day 1 Time in: Day 2 Time in: NA Day 2 Time in: NA
(SMETA Best Practice Guidance and 10:00am Day 2 Time out: NA Day 2 Time out: NA
Measurement Criteria recommends 9.00–17.00 Day 1 Time out: 5:00
hrs. if any different please state why in the pm
SMETA declaration )
C: Number of Auditor Days Used: Three auditors in one (1) day (2.7 man-days)
(number of auditor x number of days)
If No, why not? NA as the facility provided the sedex SAQ to be reviewed
(Examples would be, site has not completed
SAQ, site has not been asked to complete the
SAQ.)
P: Site address: Kp Cimanggu Rt 02/01. Desa Dayeuh, Cileungsi, Bogor 16820, Jawa
(Please include full address) Barat, Indonesia.
Q: Applicable business and other legally Business license number 535.1/010.P/00002/BPMPTSP/2015 issued
required licence numbers: by authority valid from 30 March 2015 untill as long as the facility run
for example, business license no, and its operation.
liability insurance
Full Initial
Periodic
Full Follow–Up
Audit
Partial Follow–
Up
Partial Other*
A: Standard/Contracted work hours: Legal maximum: 2.5 hours per day Yes
(Maximum legal and actual required working hours excluding Seven hours per and 52 hours per No
overtime, please state if possible per day, week and month) day and 40 hours week Not applicable
per week since no CBA in
facility
B: Legal Overtime hours: Legal maximum: 2.5 hours per day Yes
(Maximum legal and actual overtime hours, please state if Not exceeding and 52 hours per No
possible per day, week and month) three (3) hours week Not applicable
per day and 14 since no CBA in
hours facility
D: Legal minimum wage for standard/contracted hours: Legal minimum: IDR. 2,242,240 Yes
(Minimum legal and actual minimum wage at site, please state The minimum 3per month for No
if possible per hr, day, week and month) wage of year 2015 up to Not applicable
Kabupaten Bogor IDR. 2,242,280 since no CBA in
area is IDR. per month for facility
2,655,000 per year 2015
month for year
2015. However,
the facility had
approval from
Governor to pay
employees with
waiver Rp.
2,242,240 per
month for year
2015. The waiver
is issued by the
Governor
considering the
living cost in area
where the facility
located
Audit Scope
(Please select the code and additional requirements that were audited against during this audit)
2–Pillar Audit
All groups of workers are included in the scope of this audit such as; Direct employees, Casual
and agency workers, Workers employed by service providers such as security and catering staff
as well as workers supplied by other contractors.
Note: The main focus of this ethical audit is on the ETI Base Code and local law. The additional elements 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.
D: If Worker Representatives were not Not applicable since Mr. Ian as HRM as employee representative is
present please explain reasons why present during opeting and closing meeting.
(only complete if no worker reps present)
E: If Union Representatives were not Not applicable since no labor union is established in the facility.
present please explain reasons why:
(only complete if no union reps present)
F: Site description: PT. Nitya Nandha. is located in Kp Cimanggu Rt 02/01 Desa Dayeuh
(Include size, location and age of site. Also Cileungsi Bogor 16820, Jawa Barat Indonesia.. The total land area
include structure and number of buildings) occupied was approximately 1,582 square meters. Total building area
was approximately 900 square meters The facility has operated in the
existing location since January 2005.
The facility consists of one (1) main building sith mezzanine with ground
floor is used for raw material, cutting, sewing, finishing, packing while
mezzanine is used for office. No canteen or dormitory is provided by the
facility.
The employees work for six (6) days a week in one shift. The normal
working hour is from 7:30 to 15:30 with one (1) hour for lunchtime from
11:30 to 12:30 for Mondays to Fridays while for Saturdays the normal
working hour is from 7:30 to 12:30 without break given. Employees’
wages are calculated on monthly basis and paid on fifth of next month
with cutt off period from first to end of month. The peak season in this
facility is in March-August per year.
Two sub-contractors are used by the facility for printing and embroidery
I: Process overview:
(Include products being produced, main operations, number of production lines, main equipment used)
The products manufactured in this unit is woven garment for all ages and genders.
The main production processes include raw material, cutting, sewing, finishing and packing. There are five lines and
main equipment was 133 sewing machines, 11 cutting machines and 8 ironing machines.
J: 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
Twenty six selected employees of which six (6) are men and 20 are female were selected from various production
departments for interview. Six employees were individually interviewed while remaining 20 employees were
interviewed in 4 group of 5 employees. The interviewees affirmed enjoying working for the facility and were satisfied
with the working condition, benefits, and management system and no complaints or negative information were called
out by them. No indication that the employees were being coached prior to the employees’ interview. No negative
information was called out during the interview.
Interviews with the bipartite committee members revealed that managers do not always act on requests. As an
example, there is a request to provide hydrant however so far such installment had not been done. The employees
committee representative were happy with the working conditions, and he/she stated that they could give suggestions
on all parts of the site’s practices.
L: Attitude of managers:
(Include attitude to audit, and audit process. Both positive and negative information should be included)
The management representatives were kind and cooperative during the audit. Auditors were given full access to
conduct facility tour, documentation review as well as employees’ interviews in a private manner. All information
questioned to the management was answered clearly and undertood by the auditors. During closing meeting, the
auditors communicated all the findings clearly to the management representative and they agreed with all the findings
and signed the CAPR.
E: For the lowest paid production workers, Wages found: Please indicate the breakdown of workforce
are wages paid for standard/contracted according to earnings:
hours (excluding overtime) below or above
the legal minimum? Below legal ____% of workforce earning under min wage
(Go to clause 5 – Living Wage) min __100__% of workforce earning min wage
Meet ____% of workforce earning above min wage
Above
F: % of piece rate workers: Not applicable since no piece rate employees are employed in the
(if applicable) facility.
H: If yes, what are the standard/contracted NA hrs/week Approx. NA % of ALL workers on these contacted
hours per week as stated in the hours
contract/employment agreement?
(Go to clause 6 – Working hours)
L: Please state what actual OT is paid. Please give details of overtime premium as a % of standard wages:
(As a percentage of the workers standard rate) 0%
(Go to Working Hours Analysis) 1% – 115%
116% – 124%
125% – 199%
200%+
Please give details:
If overtime is performed on regular work days for the first hour of
overtime, the overtime wage is 150% times the hourly wage. For the
succeeding hours of overtime the rate per hour is 200% times the
hourly wage.
O: Age of youngest worker found: 18 years old as she/he was born on 13 June 1993 and employed on 30
(Go to clause 4 – Child labour) June 2011
I: If Yes, is there evidence (an indication) of 1. Based on facility tour, the youngest age of selected employee is 18
effective implementation? Please give years old as he/she was born on 13 June 1993 and employed on 30
details. June 2011.
2. Based on employees’ interview, no deposit is required for hiring,
training, promotion nor placement are practiced in facility.
3. The employees never been a subject to a harrasment or abuse by
K: If Yes, is there evidence (an indication) All selected employees are cooperative when the social compliance
that training has been effective e.g. training implemented and they are aware of social compliance policy. The last
records etc.? Please give details training was conducted by HRD attended by all empoyees on 19
September 2015.
M: If Yes, are workers aware of these All selected employees know what to do in case of danger and/or
channels? Please give details. human rights abuse practiced
O: If Yes, has effective action been taken to Yes. The facility has made corrective action for no time in and time out
reduce or eliminate these risks? in employees time attendance issue. Currently all employees were
provided with detailed time in and time out.
R: Does the site have all required land rights The facility obtained a building construction permit (IMB) and land
licenses and permissions (see SMETA rights from authority as an industrial building.
Measurement Criteria)?
Worker Analysis
Worker Analysis
Local Migrant
Total
Home
Permanent Temporary Agency Permanent Temporary Agency
workers
Worker numbers – 0 0 0 0 0
28 25 53
male
Worker numbers – 0 0 0 0 0
131 100 231
female
Number of Workers 0 0 0 0 0
5 21 26
interviewed
Contractors:
(Individuals supplying workers to site with the workers paid by contractors, not by site)
Yes
A: Any contractors on site?
No
Yes
C: Are all contractor workers paid according
No
to law?
Not applicable, since no employees are supplied by agency.
E: Type of work undertaken by Not applicable since no migrant employees nor expatriates work for the facility.
migrant workers :
If Yes, is there a contract with Not applicable since no migrant employees nor expatriates work for the facility.
the agency? Provide details of
agencies and contractual
arrangements including any fees
lodged during the recruitment
process.
H: Percentage of migrant Not applicable since no migrant employees nor expatriates work for the facility.
workers in company provided
accommodation:
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.
0.4 Suppliers should communicate this code to their own suppliers and, where reasonably practicable, extend the
principles of this Ethical Code through their supply chain.
Current systems:
1. The facility appoints Ms. Dina Marisa as HRD to be responsible for compliance with the Code.
2. The facility communicates the code to all employees by posting the Code in local language on announcement
board.
3. The facility communicates this code to their own suppliers and supply chain via email.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Appointment letter of the Code representative issued on 2 January 2013 valid as long as the employee still works
for facility.
2. The Code in local language is posted on announcement board since 2 January 2013.
3. The facility communicates this code to their own suppliers and supply chain via email since 2 January 2013.
Non–compliance:
Observation:
Comments:
Not applicable
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.
Current systems:
1. The facility has a policy which prohibits forced labour and this is available for review.
2. There is a non-formalised application procedure which states that employees must present their ID’s for proof of
age but that only copies must be kept in the personnel files and the original is given back to the employees.
3. The employee handbook – given to all employees on joining day, states that the employees can resign from the
facility with one month’s prior written notice, given to their supervisor or HR staff. The handbook also states that
they will be given their full wages on their last day of work.
4. The terms and conditions of employment states that the employees are free to leave the workplace once their
working shift ends.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Twenty six selected employees personnel files
2. Resignation records
3. Facility policy about anti-forced labor number Kep.861/91/PP/2015 on 15 May 2015 valid until 15 May 2017
4. Employee handbook
Non–compliance:
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.
Current systems:
1. There is no union at the site however the facility established a freedom of association policy according to law
with document number Kep.861/91/PP/2015 on 15 May 2015 valid until 15 May 2017.
2. The facility and employees established a bipartite institution as a communication forum between employees
and management representatives consists of five (5) employees representatives and five (5) management
representatives, endorsed by local labor bureau on 23 April 2015 valid as long as no member change
3. The bipartite activity report is submitted to local labor bi-annualy. The last report submitted to local labor was
for period January 2015 to June 2015 on 15 July 2015
4. The last meeting is about social compliance attended by five (5) employees representatives and five (5)
management representatives on 15 June 2015.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Site policy on freedom of association
2. Bipartite establishment endorsed by local labor bureau with document number Kep.861/91/PP/2015 on 15
May 2015 valid until 15 May 2017
3. Bipartite activity report submitted to local labor bureau for period of January 2015 to June 2015 on 15 July
2015.
4. Minutes of bipartite committee meeting on 15 June 2015.
Non–compliance:
Observation:
Comments:
Not applicable
A: Name of union and union Not applicable since no union in Is there evidence of free elections?
representative, if applicable: facility Yes No N/A
B: If no union what is parallel means of Bipartite committee as a Is there evidence of free elections?
consultation with workers e.g. worker communication channel between Yes No N/A
committees? facility management and
employee representatives
D: State any evidence that Yes. The last meeting is about social compliance attended by five (5)
union/workers committee is effective? employees representatives and five (5) management representatives on
Specify date of last meeting; topics covered; 15 June 2015. The meeting minutes is posted on announcement board
how minutes were communicated etc.
F: If Yes what percentage by trade __ NA __% workers covered by __NA__% workers covered by
Union/worker representation Union CBA worker rep CBA
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 & 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 & Safety to a senior management
representative.
Current systems:
1.General Health and Safety management
- Mr Ian Rufiansyah as HRM is appointed as Health and Safety Manager for the site.
- Potable water is freely available in all areas and test certificates are up-to-date. The last testing was conducted by
local laboratory on 31 September 2015
- Twelve toilets for 284 employees provided by facility were observed in clean condiction segregated by gender and
are available at all times to employees
- The facility established a health and safety committee consist of nine (9) management representatives and nine
(9) employees representatives, endorsed by local labor bureau on 10 February 2014 valid as long as no member
change. The last health and safety committee quarterly report submitted to local labor bureau was for period of July
2015 to September 2015 in October 2015.
2. Fire Safety
- There are at least two (2) exits in each work area and these were clearly marked.
- Thirteen fire extinguishers are provided to cover 900 square meters facility building size and the said fire
extinguishers are regularly checked. The last internal monitoring was conducted by mechanic on 29 September
2015, the last external monitoring was conducted by fire extinguisher supplier on 22 November 2014 the next
inspection would be on 22 November 2015
- Evacuation layout is posted in all areas and understood by all employees interviewed.
- Fire drills are performed and recorded every six (6) months The last fire fighting equipment training and
evacuation training was conducted by fire department attended by all employees on 27 August 2015.
- Four smoke detectors are provided throughout production areas.
3. Electrical safety
- All electrical equipments are maintained in good condition such as sockets, plugs, switches and main fuse
boards.
- Rubber mats are provided below all electrical control panels.
4. Chemical safety
- All chemicals are provided with labels and signs.
- Material Safety Data Sheets are available and there are hazard diagrams on any chemicals which needed careful
handling.
- Employees in the chemical storage confirmed that they had been trained on correct handling procedures as well
as what to do in an emergency.
- The last chemical and PPE’s training was conducted by HRM on 7 October 2015.
- Eye wash station is provided near chemical storage.
- Chemical used are white oil for machineries and diesel for diesel machine
5. Medical services
- First aid kits are provided throughout production areas and they are stocked 21 items as per law.
One first aider as on-site paramedic certified on hyperkes by authority stands by during working hours. The onsite-
paramedic is identified by nurse suit. Four first aid kit box are provided throughout facility area
- One first aid room is provided at no cost to provide first aid treatment for ill or injured employees.
- The hyperkes number 22.412/PM-1/12 on behalf of Ms. Via Esti
- The last first aid training was conducted by anggi clinic attended by 10 employees representing all
departments on 6 October 2015
6. Machine safety
- 1 out of 1 boiler machine is provided by facility to support production. The boiler was inspected by local labor
bureau on 17 April 2015 and the next inspection would be on 17 April 2016. One certified boiler operator by local
labor bureau on behalf of Mr. Memed is valid until 26 September 2017
- 1 out of 1 lightning installation was endorsed and inspected by local labor bureau regularly. The last inspection
was on 17 April 2015 and the next inspection would be on 17 April 2016
- 1 out of 1 diesel machine was endorsed and inspected by local labor bureau regularly. The last inspection was on
17 June 2015 and the next inspection would be on 17 June 2016
- 1 out of 1 compressor machine was endorsed and inspected by local labor bureau regularly. The last inspection
was on 10 May 2015 and the next inspection would be on 10 May 2017.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Health and safety policy
2. Health and safety training records and certificates
3. Fire equipment maintenance records
4. Hyperkes certificate
5. Accident reports
6. Chemical list and MSDS for each chemical
7. Machineries and operator certificates
8. Appointment letter for Mr. Ian as Health and Safety Manager
9. Drinking water testing by local laboratory report
10. Health and safety committee
11. Health and safety minutes meeting
12. Machinery permits and inspections
In addition in accordance with ETI Code # 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.
2. Description of non–compliance:
NC against ETI NC against Local Law
It was noted that the facility had not obtained building acceptance certificate (SLF)
from authority. However no crack is observed of facility floor, wall or roof. And the
facility obtained building construction permit from authority on year 2005. This is an
isolated incident.
In addition in accordance with ETI Code # 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.
Observation:
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.
Current systems:
1. 18 years old as she/he was born on 13 June 1993 and employed on 30 June 2011
2. Based on the review of 26 out of 26 personnel files of selected employees and facility tour, no child labour
issue raised in the facility.
3. Child labour policy is written in company regulation article 16 stating that admittance age of employment is 18
years or older.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Personnel files of all selected employees
2. Latest list of employees
Non–compliance:
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 to 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.
Current systems:
1. The minimum wage of Kabupaten Bogor area is IDR. 2,655,000 per month for year 2015. However, the facility
had approval from Governor to pay employees with Governor waiver Rp. 2,242,240 per month for year 2015.
The waiver is issued by the Governor considering the living cost in area where the facility is located
2. All employees wages are calculated by monthly rate with cutt of period from first to end of month paid every
fifth date of next month with transfer method via local Bank called Bank of India and pay slip is signed by the
employees. No hourly, daily nor piece rate employees in facility
3. All employees are provided with written and understandable information about their employment conditions in
respect to wages before they enter employment and about the particulars of their wages for the pay period
concerned each time that they are paid.
4. Health care service payment showed that only 50 employees instead of all employees covered with health
care service which is administered by BPJS Kesehatan, a state company. Currently the facility appoints Anggi
Clinic to cover employees and his/her legal spouse and up to maximum of three (3) children health care
service. The last payment for period of October 2015 paid on 10 October 2015
5. Sample of employees who take annual, sick, marital, maternity leave were reviewed and the said employees
received their compensation as well.
6. Sample of severance payment from production was reviewed and the said employee received his/her
compensation as well.
7. The last social security payment covering all employees is paid to authority for period of September 2015 on
10/10/15.
8. The highest wage of selected employees is IDR 2,292,280 and the lowest wage of selected employees is IDR
2,292,240.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Governor legal minimum wage waiver
2. Payroll records
3. Payslip
4. Health care service payment
5. Legal leave form
Non–compliance:
In addition in accordance with ETI Code # 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.
Observation:
A: Sample Size Checked Twenty six selected employees for period of September 2015
(State number of worker records checked and from (current month)
which weeks/months – should be current, peak and Twenty six selected employees for period of August 2015 (peak
random/low. Please see SMETA Best Practice month)
Guidance and Measurement Criteria) Twenty six selected employees for period of February 2015 (non
peak month)
B: Are there different legal minimum wage Yes If Yes, please give details:
grades? If Yes, please specify all. No The minimum wage applies only to employees
who have a work period of less than one (1)
year.
C: If there are different legal minimum grades, Yes If No, please give details:
are all workers graded correctly? No The employees who have a work period of more
N/A than one (1) year earn legal minimum wage plus
fixed allowance between IDR. 20.00 to IDR
40.00.
D: What deductions are required by law e.g. Social security scheme (BPJS Ketenagakerjaan), health care
social insurance? Please state all types: security scheme (BPJS Kesehatan)
E: Have all of these deductions been made? Yes If Yes, Please list all deductions that have been
Please list all deductions that have/have not No made:
been made.
If No, please give details on any deductions
which have not been made:
Only 50 employees instead of all employees are
deducted for health care service (BPJS
kesehatan) since only 50 employees instead of
all employees are covered with health care
service (BPJS kesehatan).
F: Industry norm for this region: The minimum wage of Kabupaten Bogor area is IDR. 2,655,000
(please include time period e.g. hour/week/month) per month for year 2015. However, the facility had approval from
Governor to pay employees with Governor waiver Rp. 2,242,240
per month for year 2015. The waiver is issued by the Governor
considering the living cost in area where the facility is located.
Select from individual worker records one worker from, lowest, average and highest wages and populate the
boxes. Ensure comparison is made for same pay period and only uses full–time workers. See SMETA Best
Practice Guidance and Measurement Criteria for completing this:
A: Pay period: September 2015 (current September 2015 (current September 2015 (current
(State month selected) month) month) month)
B: Anonymous Employee Employee A from sewing Employee B from cutting Employee C from
Reference/Dept. finishing
D: Contracted/Standard Seven hours per day and Seven hours per day and Seven hours per day and
working hours: 40 hours per week per 40 hours per week per 40 hours per week per
(excluding OT – please include September 2015 (current September 2015 (current September 2015 (current
time period e.g. month) month) month)
hour/week/month)
E: Contracted /Standard IDR 2,242,260 per IDR 2,242,260 per IDR 2,242,260 per
work pay rate: September 2015 (current September 2015 (current September 2015 (current
(excluding OT – please include month) month) month)
time period e.g.
hour/week/month)
F: Standard day overtime – 2.5 hours per day per 2.5 hours per day per 2.5 hours per day per
hours: September 2015 (current September 2015 (current September 2015 (current
(please include time period e.g. month) month) month)
hour/week/month) 12 hours per week per 12 hours per week per 12 hours per week per
September 2015 (current September 2015 (current September 2015 (current
month) month) month)
G: Standard day overtime – IDR 12,960.92 per IDR 12,960.92 per IDR 12,960.92 per
wage: September 2015 (current September 2015 (current September 2015 (current
(please include time period e.g. month) month) month)
hour/week/month)
I: Rest day overtime – wage: IDR 25,921.84 per IDR 25,921.84 per IDR 25,921.84 per
(please include time period e.g. September 2015 (current September 2015 (current September 2015 (current
hour/week/month) month) month) month)
K: Statutory holiday OT – 0 0 0
wages:
(please include time period e.g.
hour/week/month)
L: Total overtime hours: 51 hours per month per 51 hours per month on 51 hours per month on
(please include time period e.g. September 2015 (current September 2015 (current September 2015 (current
hour/week/month) month) month) month)
M: Incentives/Bonus/ 0 0 0
Allowances etc.:
(please include time period e.g.
hour/week/month)
N: Gross wages: IDR. 3,428,192 per IDR. 3,428,192 per IDR. 3,428,192 per
(please include time period e.g. September 2015 (current September 2015 (current September 2015 (current
hour/week/month) month) month) month)
O: Social insurance and IDR. 44,485 per IDR. 44,485 per IDR. 44,485 per
other deductions; please list September 2015 (current September 2015 (current September 2015 (current
which and amount. month) month) month)
P: Actual wage paid after IDR. 3,383,347 per IDR. 3,383,347 per IDR. 3,383,347 per
deduction: September 2015 (current September 2015 (current September 2015 (current
(please include time period e.g. month) month) month)
hour/week/month)
Comments:
(Please state here any specific reasons/circumstances that explain the lowest and highest gross wages)
The minimum wage applies only to employees who have been working less than one (1) year for employee.
ETI
6.1 Working hours must comply with national laws, collective agreements, and the provisions of 6.2 to 6.6 below,
whichever affords the greater protection for workers. Sub–clauses 6.2 to 6.6 are based on international labour
standards.
6.2 Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48 hours per week.
6.3 All overtime shall be voluntary. Overtime shall be used responsibly, taking into account all the following: the
extent, frequency and hours worked by individual workers and the workforce as a whole. It shall not be used to
replace regular employment. Overtime shall always be compensated at a premium rate, which is recommended to
be not less than 125% of the regular rate of pay.
6.4 The total hours worked in any 7 day period shall not exceed 60 hours, except where covered by clause 6.5
below.
6.5 Working hours may exceed 60 hours in any 7 day period only in exceptional circumstances where all of the
following are met:
– this is allowed by national law;
– this is allowed by a collective agreement freely negotiated with a workers’ organisation representing a
significant portion of the workforce;
– appropriate safeguards are taken to protect the workers’ health and safety; and
– The employer can demonstrate that exceptional circumstances apply such as unexpected production
peaks, accidents or emergencies.
6.6 Workers shall be provided with at least one day off in every 7 day period or, where allowed by national law, 2
days off in every 14 day period.
Current systems:
1. Working hours policy stated that overtime is voluntary.
2. Time cards are completed automaticaly by employees with finger print system and then entered into the
electronic payroll system which calculate wages.
3. According to time records and employees’ interview normal working hours were seven (7) hours per day and 40
hours per week with no more than two 2.5 hours overtime per day, 12 hours overtime per week and no overtime on
rest days and all samples show that the selected employees were provided with at least one (1) day off per week.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Working hours policy number Kep.861/91/PP/2015 on 15 May 2015 valid until 15 May 2017
2. Time cards records for period of September 2015 (current month), August 2015 (peak month) and February
2015 (non peak month).
3. Quality and production records to cross check hours.
Observation:
B: Sample Size Checked Twenty six selected employees for period of September 2015 (current
(State number of worker records month)
checked and from which Twenty six selected employees for period of August 2015 (peak month)
weeks/months and type – should be Twenty six selected employees for period of February 2015 (non-peak
current, peak and random/low: See month)
C: Do ALL workers have Yes If NO, state which type of workers do NOT have
contracts/employment agreements? No contracts/employment agreements:
Not applicable
D: Are standard/contracted working Yes If NO, please state which type of workers do NOT have
hours defined in all No standard hours defined in contracts/employment
contracts/employment agreements? agreements.
Not applicable
E: Are there any other types of Yes If YES, Please complete as appropriate:
contracts/employment agreements No
used? 0 hrs Part time Variable hrs Other
Not applicable
F: Do standard/contracted standard Yes If YES give details and comparison (local law/48 hrs
hours ever exceed the law or 48 No week)
hours per week?
Not applicable
G: What are the actual Highest hours: Seven hours per day and 40 hours per week per
standard/contracted hours worked in September 2015 (current month)
sample (State per week/month)
Lowest hours: Seven hours per day and 40 hours per week per
September 2015 (current month)
Overtime Hours
I: Actual overtime hours worked in Highest OT 2.5 hours per day and 51 hours per week per September
sample (State per day/week/month) hours: 2015 (current month)
2.5 hours per day and 52 hours per week per August
2015 (peak month)
2.5 hours per day and 51 hours per week per February
2015 (non-peak month)
J: Range of overtime hours over all 1-2.5 hours per day, 7-11 hours per week on September 2015 (current
workers/or as large a sample as month)
possible. (State per week/month and
details) 1-2.5 hours per day, 7-12 hours per week on August 20115 (peak month)
1-2.5 hours per day, 7-11 hours per week on February 20115 (non-peak
month)
Overtime Premiums
M: Is overtime paid at a premium? Yes Please give details of normal day overtime premium as a
No % of standard wages:
Rest Days
Total Hours
P: Range of total hours: Highest total 2.5 hours per day and 51 hours per week per September
(Quote highest and lowest please include hours 2015 (current month)
time period e.g. hour/week/month) 2.5 hours per day and 52 hours per week per August
2015 (peak month)
2.5 hours per day and 51 hours per week per February
2015 (non-peak month)
Lowest total One hour per day and 47 hours per week per September
hours 2015 (current month)
One hour per day and 47 hours per week per August
2015 (peak month)
One hour per day and 47 hours per week per February
2015 (non-peak month)
Comments:
(please state here any specific reasons/circumstances that explain the highest working hours)
Please add details of examples where the site has demonstrated “exceptional circumstances”.
Not Applicable
Please give details of any appropriate safeguards in place at the time of the 60+ hours working.
Not Applicable
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.
Current systems:
1. Anti discrimination procedure on hiring, compensation, promotion and access to training article 34 established by
facility on 15 May 2015 with document number Kep.861/91/PP/2015
2. The provided payroll records show all employees share equal pay for equal job.
3. The provided personnel files and medical examination records show that none of all selected employees
undergo the hepatitis B and HIV virus testings prior to employment.
4. Based on visual observation, both female and male employees are well distributed working in all facility areas.
5. Based on overtime form, all employees share equal opportunity performing overtime work.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Anti discrimination procedure on hiring, compensation, promotion and access to training article 34 established by
facility on 15 May 2015 with document number Kep.861/91/PP/2015
2. Payroll records of all 26 selected employees in three (3) selected months for periof of September 2015 (current
month), August 2015 (peak month), February 2015 (non peak month)
3. Medical examination records for all employees for period of 2014.
4. Personnell file of all 26 selected employees.
5. Overtime form.
Observation:
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
home–working 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.
Current systems:
1. All employees were recruited by the facility directly. No labour agency was used to hire employees. No
apprenticeship schemes or home worker was identified by the auditors.
2. All selected employees received a copy of their contract agreement or appointment letter. Twenty six selected
employees consist of five (5) permanent and 21 contract employees.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. The hiring and termination practises
2. 26 out of 26 selected employees contract agreement and appointment letters.
Non–compliance:
Observation:
8A.1. There should be no sub–contracting unless previously agreed with the main client.
8A.2. Systems and processes should be in place to manage sub–contracting, homeworking and external
processing.
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.
Current systems:
1. A site tour showed that not all production processes were present in the unit
2. A supporting process for printing and embroidery are done outside facility. Please see list of subcontractor on
populated box below. However, the subcontractor is agreed with the main vendor/supplier. The facility obtained
written approval by client to use the said subcontractors for printing and embroidery on 19/10/15
4. The facility conduct internal audit to monitor the sub contract units for agreement with laws or the code.
5. The facility communicated the Code to its sub contractor via email since 01/01/14.
6. The subcontractors are agreed to use with supplier/vendor via email.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Internal audit to supplier
2. List of subcontractor provided by facility
3. Internal audit to subcontractor on June 2015
4. Communication of this code to subcontractor on June 2015
5. Approval from vendor/supplier on 19 October 2015
Observation:
D: What checks are in place to The facility conduct internal audit to visit the subcontract units on a regular
ensure no child labour is being used basis to both inform on the quality and conduct the social compliance audit.
and work is safe?
G: Number of homeworkers Male: Not applicable, Female: Not Total: Not applicable,
since no home working applicable, since no since no home working
is used by facility. home working is used is used by facility.
by facility.
I: If through agents, number of Not applicable, since no home working is used by facility.
agents
K: How does site ensure worker Not applicable, since no home working is used by facility.
hours and pay meet local laws for
homeworkers?
L: What processes are carried out by Not applicable, since no home working is used by facility.
homeworkers?
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.
Current systems:
1.The facility established a disciplinary procedure for employees misbehaviour which included oral warning, written
warning and finally termination with document number Kep.861/91/PP/2015 on 15 May 2015 valid until 15 May
2017
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Policy on prevention of harassment and abuse
Non–compliance:
Observation:
Additional Elements
10A1 Only workers with a legal right to work shall be employed or used by the supplier.
10A2 All workers, including employment agency staff, must be validated by the supplier for their legal right to work
by reviewing original documentation.
10A3 Employment agencies must only supply workers registered with them.
10A4 The supplier shall implement processes to enable adequate control over agencies with regards the above
points and related legislation.
Current systems:
1. Per employee list review, facility management representation and employees interview, all employees in facility
were Indonesian who come from various provinces in Indonesia
2. No agency staff or foreign employees was used by the factory.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Employee list
2. Personnel files
Non–compliance:
Note for auditors and readers. This environment section is intended to take not more than 0.25 auditor days. It is an
assessment only and the main requirement is to establish whether a site is meeting applicable environmental laws
and/or has any certifications or environmental management systems in place. Following this assessment the
client/supplier may decide a full environmental audit is required (see also best practice guidance/environment and
guidance for auditor)
Current systems:
1. The facility appointed HRD as personnel to in charge in environment areas.
2. Facility environment policy commit to follow law and customer requirements established on 15 May 2015
3. The facility did not used hazardous chemicals for manufacturing process
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Appointment letter of the Code representative issued on 2 January 2013 valid as long as the employee still
works for facility.
2. Environmental policy
3. Energy bills
4. Water bill
In addition in accordance with ETI Code # 10B4.1 Suppliers as a minimum must meet
the requirements of local and national laws related to environmental standards.
Observation:
A; Responsible for Environmental issues (Name and Mr. Ian Rufiansyah as HRM
Position):
Usage/Discharge analysis
Criteria Current year: Please state period: Previous Year: Please state period:
______________ ___________
Water Sources: One bore hole from water One bore hole from water
Please list all sources e.g. lake, river, drilling permitted by authority drilling permitted by authority
and local water authority. on 30/12/13 untill 30/12/16 on 30/12/13 untill 30/12/16
Note for auditors and readers. This Business Ethics section is intended to take not more than 0.25 auditor days. It
is an assessment not an audit and the main requirement is to gather information on the relevant Business Ethics
issues in a supply chain. All findings will be recorded as observations not Non– Compliances and the data collected
will allow the membership to define appropriate standards over time as part of a continuous review process.
Current systems:
1. The facility director is the designated person responsible for implementing standards concerning Business
Ethics, and that site practices are conducted without any corruption and/or bribery.
2. The facility established a business ethics policy which is communicated to employees through posters and
training. The last training was conducted by HRM attended by all employees on 15 October 2015.
3. The facility has received and read the Business Ethics policy of the auditor/audit company.
Evidence examined – to support system description (Documents examined & relevant comments. Include
renewal/expiry date where appropriate):
1. Appointment letter of business ethics
2. Business ethics policy
3. Auditor/audit company policy
I: What did the workers like the most The management is kind and no pressure when doing job
about working at this site?
K: Attitude of workers to hours Good, because the employees can take a rest and can leave when the shift
worked: end.
Agency Workers
None observed
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)
None observed
General facility
First aid kit contents, Eye wash stations Available drinking water station
No best practiced
No best practiced
Your feedback on your experience of the SMETA audit you have observed is extremely valuable.
It will help to make improvements to future versions.
You can leave feedback by following the appropriate link to our questionnaire:
Your feedback on your experience of the SMETA audit you have observed is extremely valuable.
It will help to make improvements to future versions.
You can leave feedback by following the appropriate link to our questionnaire:
DISCLAIMER:
"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”). 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
End of report.
',,ti:,-:r.rrr r.!'|)lt llll,.:l,ti Ptiiar,{Lrlrri: rcilllic,iti',,uf:iiait : 1.r-t 1.,,J,'1,. ... ' .'
Audit Conlent:
il I A SMETA aud t was conducted whrch nc uded some or all of Labour Standards, Health and Safety,
Env ronment and Bus ness eth cs. The SMETA Best Practice Gu dance Versior-r 5 December 2Ol5 was
app ied. The scope of workers included a types atthe s te e.g. drectempoyees, agency workers,
workers etlp oyed by service prov ders, and workers prov ded by other contractors Any dev at ons from
the SMETA Methodology are stated (w th reasons for deviation) in the SMETA Dec arat on
r:lr The aud t scoDe was against the fo low ng reference documents:
Please check appropriate SI,4ETA Audit Type n the above box:
2-Pillar SN,4ETA Aud t
" ETI Base Code
" S[,4ETA Additions
N4anagement systems and code rmplementatlon,
Entitlement to Work and mmigration,
Sub-Contract ng and Home work ng
4 Pi lar SMETA Aud t
2 Pi lar requirements p us
Addit onal Pillar assessment of Env ronment
Addit onal P I ar assessment of Business Eth cs
The new ET Worklng Hours C ause
ow inlegrated into th s atest SMFTA version.
Audit Conducted By
Commercial X Purchaser n
NGO ! Retailer n
Trade Union tr Brand Owner n
Multi-stakeholder n Combined Audit (select all that apply)
Audit Details
Audit Details
A: Report #: IND-2133-03
B: Time in and time out Day 1 Time in: Day 2 Time in: NA Day 3 Time in: NA
(SMETA BPG recommends 9.0A17.00 hrs. if 10:00am Day 2 Tlme out; NA Day 3 Time out: NA
any different please state why in the SMEIA - Day 1 Time out: 5:00
declaration ) pm
C: Number of Auditor Days Used: Three auditors in one (1) day (2,5 mandays)
(number of auditor x number of days)
T: Who signed and agreed CAPR (Name Mr. Deepak l\4elwani as Director
and job title)
V: Present at closing meeting (Please state '1 Mr. lan Rufiansyah as HR l\4anager
rame and posirion. including any 2 l\4r. Deepak as Director
workers/u nion reps/worker reps): 3 Mohamad Adhje Adriansyah - Lead Auditor
4. Dimas Will Sambaga - Team l\4ember
5. Gabrieila Lumowa - Team l\4ember
Full lnltial T n T
Periodic L] X !
Full Follow-Up n n n
SMETA Corrective Action PIan Report (CAPR) Mersion 8.0 Dec 201..i)
Audit
Partial Follow- n n n
Up
Partial Other* n n n
.lf other, please define: Nil
'""":"""""""""""
,-\
Audit company: lntertek Report reference ND-2133-03 Date: 19/10/'15 ( S)
\-r
SMETA Corrective Action Plan F:lepcfi (CAPF) iVcrrr*ri :r ll i)..::a..r .
Guidance:
The Corrective Action Plan Report summarlses the site audit findings and a corrective, and preventative action p an
that both the auditor and the site manager believe is reasonable to ensure conformity with the ETI Base Code,
Loca Laws and additional audited requirements. After the initial audit, the form is used to re-record actions taken
and to categorise the status of the non-com pliances.
N B observations and good practice examples should be pointed out at the closing meeting as well as discussing
non-com plrances and corrective actions.
To ensure that good practice examples aie highlighted to the supplier and to glve a more'balanced'audit a section
to record these has been provided on the CAPR document (see following pages) which will remaln with the
supplier They will be further confirmed on receipt of the audit report
Next Steps:
1 The site shall request, via Sedex, that the audit body upload the audit report, non-com pliances,
observations and good examples lf you have not already received instructions on how to do this then
please visit the web site www.sedexq lobal.com.
2. Sltes shall action its non-compliances and document its progress v a Sedex
3. Once the stte has effect vely progressed through ts actions then it shal request via Sedex that the audit
body verify its actions Please visit www.sedexoloba l.com web site for information on how to do this
4. The audit body shall verify corrective actions taken by the site by either a "Desk-Top" review process via
Sedex or by Follow-up Audit (see point 5).
5. Some non-compliances that cannot be closed off by "Desk-Top" review may need to be closed off via a "1
Day Follow Up Audit" charged at normal fee rates lf this is the case then the site wil be notified after its
submission of documentary evidence relating to that non-compl ance. Any follow-up audit must take place
within twelve months of the lnitial audit and the information from the initial audit must be avai ab e for sign
off of corrective act on.
6. For changes to wages and hours to be correctly verified it will normally require a follow up slte v s t.
Auditors will generally require to see a minimum of two months wages and hours records, showing new
rates in order to confirm changes (note some cllents may ask for a longer period, f n doubt please check
with the client).
avet (c)
0 New It was noted that during t is recommended 30 days Desktop l\,4r lan R as Upload documents to Open
Managements discuss on with
managernent that the facilrty H RI\,4 sedex system
system and HRM, the facility d d not implement should implement
Code and maintarn systems for and maintain
lmplernentahon deliver ng compliance lo this Code systems for
delivering
compliance lo thrs
Code
3 Working New It was noted that during facility tour 60 days Fo ow up I\,4r lan R as Provide hydrant Open
Conditions are wiih HRM, no hydrant nstalled rn
It is recommended HRM
facility that the facility
Hygienic should insta ed
hydrant
3 Work ng New t !1/as noted that d scussion with 90 days Desl.top l\,4r lan R as Upload buildlng Open
Cond tions are HRl,4, the facility had nol obtained It is recommended HR1\,l acceptance certificate
b!ilding acceptance certificate that the facll ty (SLF) from authority to
Hyqienic (SLF) frorn authority should obtained sedex system
buiding acceptance
certificate (SLF) from
authority
5: Livrng New It was noted that discussion with It is recommended 60 days Follow up I\,4r lan R as Provide all employees Open
Wages HR[,4, only
50 employees instead that the facility HRM with hea th care service
Paid of all employees covered with should covered all (BPJS kesehatan)
health care service (BPJS employees with
kesehatan) health care service
(BPJS kesehatan)
8: Regular New It was noted that discussion with 60 days Follow up I\,4r. lan R as Provide current contract Open
Employment ls HRM, approximately 44.O1ak ot It is recommended HRI\4 employees as
Provided 125 ot-)l of 284 of total employees that the facility permanent employees.
were contract employees doing should employ the
work that was not seasonal in current contract
employees as
permanent
employees.
10 Other {ssue New li wes noted that during It is recommended 60 days Desktop Mr lan R as Upload report of Open
areas 10841 management discussion with that the lacility HRM environmental
Environment HRM, the facility never reported should repo(ed rnanagement plan
4-Pillat environrnental management plan environmental (UKL) and
(UKL) and environmental managemeni plan environrnental
monitoring plan (UPL) to the (UKL) and monitoring plan (UPL)
environmental impact control environmental to the environmental
agency in every six (6) months that monitonng plan impact conkol agency in
on June and December (UPL) to the every six (6) months
environmental impact that on June and
control agency in Decernber to SEDEX
every six (6) months system
that on June and
Decernber
None observed
Good examples
Good example Details of qood example noted Any relevant Evidence and
Number Comments
numbet ot lhe nan
canpliance fran lhe
Discrimlnation Na 7
None obserued
Confirmation
Please sign this document confirming that the above findings have been discussed with and understood by you: (site management)
lf actual signatures are nof poss/b/e in electronic verslons, state the name of the signatory in applicable boxli, as indicating tie signature.
4/ease
A: Site Representative Signature:
Date: 1 9/10/1 5
.si-r,'-S ,fue"r €tq Title Auditors
E: Signed:
(lf anv entry in box D, please complete a Tgt ltAr{DflA
signature on this line) ulI .EOooR Date 19/1 0/1 5
lf a non-compliance is to be rectified by a corrective action which will also prevent the non-compliance
re-occurring, it is necessary to consider whether a system change is required.
Understanding the root cause of the non-compliance is essential if a site is to prevent the issue re-
occurring.
The root cause refers to the specific activity/ procedure or lack of activity /procedure whtch caused the
non-compliance to arise. Before a corrective action can rectify the situation it is important to find out the
real cause of the non-compliance and whether a system change is necessary to ensure the issue will not
arise again in the future.
Since this is a new addition, it is not a mandatory requirement to complete this column at this time. We
hope to encourage auditors and sites to think about Root Causes and where they are able to agree, this
column may be used to describe their discussion.
Example 1
Where excessive hours have been noted the real reason for these needs to be understood, whether due to
production p anning, bottle necks in the operation, insufficient kaining of operators, delays in recelving trims, etc.
Example 2
A non-compliance may be found where workers are not using PPE that has been provided to them This could be
the result of insufficient training for workers to understand the need for its use; a lack of follow-up by supervisors
aligned to a proper set of factory rules or the fact that workers feel their productivity (and thus potentlal earnings) is
affected by use of items such as metal gloves
Example 3
A site uses fines to control unacceptable behaviour of workers.
lnternational standards (and often local laws) may require that workers should not be fined for disciplinary reasons
It may be difficult to stop fines immediately as the site rules may have been in place for some time, but to prevent
the non-compliance re- occurrlng it will be necessary to make a system change
The symptom is fines, but the root cause is a management system which may break the law. To prevent the
problem re-occurring it will be necessary to make a system change for example the site could consider a systern
which rewards for good behaviour
Only by understanding the underlying cause can effective corrective actions be taken to ensure continuous
'compliance.
The site is encouraged to complete this section so as to indicate their understanding of the issues raised and the
act ons to be taken.
Your feedback on your experience of the SMETA audit you have observed is extremely valuable.
It will help to make improvements to future versions.
You can leave feedback by following the appropriate link to our questionnaire:
Disclaimer
Any proposed Corrective Actton Plan (CAP) cLosed utjlizing a Desktop Rev ew is imited by the evidential
documentation provided by the facility in order to correct the non conformance The intent of thjs service is to
provide assurance that the facil ty is on the correct path with its proposed or completed corrective actions. Intertek
cannot be heLd responsible for the falsifjcatlon of evidence or the effective implementation of the proposed
corrective actions, which rn many instances may only be truly validated by an onsite Audit v sit owing to the
Limitations of the desktop review process. The fac lltjes shall be whoLly respons ble for the correct and effectjve
lntertek nor any of its affi iates shall be held ljab e for any direct, indirect, threatened, consequential, special,
exemplary or other damages that may result includlng but not lim ted to economic loss, injury, illness, or death
tl
al
'*r