Handout on Compliance Issues

 Handout on Compliance Issues

 

Prepared and Issued By: Md. Zahurul Islam

 

In recent days all buyers have become sensitive on Human Right Issues and issues related to Product safety. Therefore they recognize the different legal and cultural environments of the countries from where they buy goods and ensue that the Vendors comply with the local frame work.

 

The basic concern of the buyers is:

 

1.            Fair and respectable treatment to the workers.

2.            Healthy and safe work environment.

3.            Basic right of choice and freedom for associations for workers.

4.            The product manufactured must comply with local laws of the point of sale.

 

The compliance issues can be mainly divided into the following:

 

1.            Labor.

2.            Factory.

a)    Compliance.

b)   Work environment.

3.            Wages and hours of work.

4.            Environmental issues.

5.            Product safety.

 

1.           Labor.

 

a)            No discrimination on the basis of gender, race, creed or caste.

b)           No involuntary labor.

c)            No child labor.

d)           No Corporal punishment or physical abuse to labor.

e)            Maintain proper disciplinary procedure.

 

2.           Factory

 

a)    Compliance -: Compliance of the local laws regarding.

I)            Working conditions.

II)          Workers health

III)        Workers safety.

IV)         General safety.

V)           Sanitation.

VI)         Fire safety.

VII)       Risk protection.

VIII)     Electrical, mechanical and structural safety.

b)   Work environment:

I)            Lighting.

II)          Ventilation

III)        Wages.

IV)         Clean & sanitary toilets.

V)           Exits clear and well demarcated marks.

VI)         Personal protective equipment’s.

VII)       First aid Kit.

VIII)     Fire Extinguishers.

IX)         Fire Alarms.

X)           Evacuation Floor plan.

XI)         Machines with operators safety devices.

XII)       Storage of hazardous chemicals.

XIII)     General cleanliness of the factory.

 

c)    Wages and Hour of Work:

I)            Minimum wages.

II)          Determination f minimum wages ( components / break up of minimum wages)

III)        Fringe benefits.

IV)         Overtime.

V)           Number of working hours.

VI)         Overtime hours.

VII)       Holidays-weekly off/annual holidays/ statutory holidays.

VIII)     Method of wage payment.

 

d)   Environmental: Compliance by the company of the local environmental laws.

 

e)    Product safety : The products so manufactured by the vendors must  comply with the product safety laws and the product liability laws of the land and where they are to be sold.

 

Hence compliance with:

I)            No defective products to be shipped.

II)          Product must adhere to all child safety standards.

III)        Products and the product packaging must carry all statutory warnings.

IV)         There should be no machine or component broken left over in the product else it harm the user.

 

 

 

 

 

Requirements / issues involved in Compliance.

 

F       Display of the local employment laws in native language.

F    Understanding of the basic responsibilities by the workers and supervisors ( Job description and Job profiles)

F    Proof of age.

F    Personal file of employees.

F    Methodology of disciplinary procedure with documentary evidence of procedure being followed (Warning letter in employee file)

F    Minimum wages notification and evidence that factory pays the minimum legal wage.

F    Breakup of wages.

F    Break up of fringe benefits and statutory deductions ( P.F/ i.Tax. etc.)

F    Maximum hours of work – time office records.

F    Overtime hours – overtime register.

F    Payment of wages and overtime.

F    Holidays – list of holidays.

F    Method of wage payment – wage registers.

F    Working conditions:

F    Provisions of safe drinking water on all floors.

F    Clean toilets ( number of toilets male/female)

F    Lighting.

F    Ventilation

F    First aid kit on each floor ( number of people trained in first aid)

F    Crèche for infants and toddlers.

F     Fire safety:

F    Fire extinguishers ( per floor)

F    Water hose pipes.

F    Evacuation floor plan.

F    Unlocked exits and doors.

F    Clean and clear aisles, stairwells.

F    Marked exits and aisles.

F    Emergency lights and exit lights.

F    Fire safety drill and drill records.

F    Fire alarm

F    Smoke detector.

F    Trained fire fighters.

F    Storage of hazardous chemicals.

F    Clean and clear factory.

F    Periodic check of extinguishers.

F    Electrical, mechanical and structural safety:

F    Proper wiring.

F    All panels kept clean and clear.

F    Proper danger sign posted.

F    Proper storage of fuel, chemical etc.

F    Proper ventilation of generator and boiler room.

F    Periodic maintenance of machines, electrical wiring, boilers and generators and record keeping

F    Proper boiler certification.

F    Certification from local electrical and municipal authorities.

F    Environment:

F    Proper discharge of effluents.

F    Laundry discharge test on Traditional Parameter and metal test to be conducted regularly.

 

F    Product safety:

F    Needle control procedure.

F    Cutting blade control procedure.

F    Needle detection.

F    Button lock stitch check procedure.

F    Snap button safety procedure.

F    Button pull test procedure.

F    Checking of products for child safety.

F    Proper statutory warnings on the packing.

F    Pin control system.

F    Workers safety:

F    Personal protective equipment.

F    Masks for cutting people and over lock m/c operator.

F    Steel mesh gloves for cutters.

F    Finger guards for automatic welting machine.

F    Eye guard on all Lock stitch button stitch m/c, bar tack m/c, button hole m/c, over lock m/c.

F    All machines to have pulley guard.

F    Masks for washing man, spot remover, chemical mixers.

F    Rubber apron for chemical mixers, washing man,

F    Gum boot, rubber gloves and goggles for chemical mixers, washing man.

 

 

The Fair Labor Association

 

An association has been formed from the members of apparel and footwear industry know as FAIR LABOR ASSOCIATION (FLA) with the following big names as a member of FLA – ADIDAS-SOLOMON A.G., EDDIE BAUER, KATHIE LEE GIFFORD, LEVI STRAUSS, LIZ CLAIBORNE, GEAR SPORTS, NICOLE MILLER, NIKE, PATAGONIA, PHILLIPS VAN-HEUSEN and REEBOK.

 

The FLA is an organization of consumers groups, human rights and labor rights groups, apparel and footwear manufactures and retailers, U.S. colleges and universities. The key role of FLA will be to:

-                      To oversee independent Monitoring of Workplace ode of Conduct.

-                      To give consumers information about the conditions under which FLA members companies Products are made.

 

-                      FLA members have worked together to develop an FLA Workplace Code of Conduct for working conditions in apparel and footwear factories. This code of conduct is similar to any code of conducts of the member of FLA.

-                      FLA members have developed an Compliance monitoring process for the code of conduct. This process requires that independent, third-party monitors verify factory compliance with this code of conduct.

The independent Monitoring process:

 

        The FLA will accredit external organizations as independent monitors to

evaluate member’s suppliers facilities. There will be a number of approved

organizations that member can appoint as independent monitors for their contractors  facilities.

 

Independent monitors will assess member and the facilities of the contractor that member use for production. The assessment process will be similar as Members assessment.