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Li & Fung Training Visit report

Sang's comment Sang

Violations Labor
Lack of recruitment policy and procedures to prevent the employment of trafficked victims HR personnel not trained on recruitment procedures Inadequate training of new employees on grievance policy/procedures/channels Social benefits violate local law Severance payment of the maternity leave was not paid to terminated workers. (Refer Labor Law No. 10/2012/QH13. Art.48, point 2) Paying below mandatory OT wage It was unable to verify the OT wage as inconsistent records were found. Noted that Sunday work on December 15, 2013 was found in temporary attendance record of security guard. But this working day was not recorded on the time record system of these temporary workers. Social benefits violate local law 1. Insufficient unused annual leave of terminated workers during the period from October 2013 to December 2013. 2. Workers were not paid the equivalent payment of social insurance, health insurance and unemployment insurance directly on their salary during probation period. (Refer Labor Law No. 10/2012/QH13.Art.186, point 3) Illegal temporary employment Temporary workers were hired through a contractors foreman (Subcontractor). No contract was provided to each workers. Over 60 hours/week It was unable to verify the number of overtime hours due to inconsistent record were found. Noted that Sunday work on December 15, 2013 was found in temporary attendance record of security guard. But this working day was not recorded on the time record system of these temporary workers. Inadequate time-keeping system

Audit Date

Root causes
This is a new requirement of L&F

Target Date
18-Jan-14 18-Jan-14 18-Jan-14

Remark
minor minor

1/13/2014 This is no meaning because f'ty should not training 1/13/2014 everything to employees. 1/13/2014 F'ty have never paid serverance of the maternity leave to terminated worker (for example: after meternity leave(6 months) worker 1/13/2014 stop working should get serverance payment) F'ty has cleaned all section and machines so mechenic and leaning team worked on this day. Female Security team control at all exit doors and they wrote this date on a book(F'ty paid 200%) 1/13/2014 1] Mrs Ngan (Fake doc) who set up the incorrect calculation method unintentionally so it caused the finding 2] fty signs a training contract but not probational contract and pay 100% of basic salary for this period and 1/13/2014 f'ty don't need to pay 21% insurance benefits for worker The female security(Mrs Hanh) control document of temporary workers and then auditor interview with checking her document and called out the finding. 1/13/2014 (Mrs Hanh should submit all HR document right after (As Li & Fung's actual finding & calculation: Normal hours=48 hours; 5OT hours; 8 Sunday hours =Total 61 hours ) - As actual f'ty regulation, we just work total =53 hours/week - For Sunday work was recorded on security book then 1/13/2014 she wrote many things including attendance hours of f'ty ? 18-Jan-14

18-Jan-14

18-Jan-14

Inconsistent record were found. Noted that Sunday work on December 15, 2013 was found in temporary attendance record of security guard. But this working day was not recorded on the time record system of these temporary workers. Lack of policy prohibiting subcontracting and home working with employee training on and internal monitoring of the policy

1/13/2014 This is a new requirement of L&F 1/13/2014 1/13/2014 This is a new requirement of L&F Some cutting workers don't want to use metal gloves while cutting because it 's difficult while operating 1/13/2014 1] Finger guard is not installed well(not strong enough, weak) so workers can easy turn it 2] Eyes shields: made from weak & unclear material so it is easy broken 1/13/2014 This is a new requirement of L&F 1/13/2014

Health & safety


EHS risk assessment not conducted. PPE for hazardous and high risk work are not provided Some cutting workers did not use metal gloves while operating cutting machines. Lack of or inadequate assessment of equipment/machine safety risks and safety measures required. 50% of workers did not use needle guards while operating sewing machines. 30% of workers did not use proper eye shields of their over-lock and bar-tack machines. Emergency Response Plan does not clearly identify an emergency response team, with names and responsibilities of team members. Inadequate and/or malfunctioning emergency exits No exit sign & emergency light was installed at 1 out of 2 exit doors of Carton box warehouse, one other emergency light was not functioning during the audit. Blocked or locked emergency exit(s) 1 out of 2 exit doors of Carton box warehouse was blocked and locked during the working time. 1 out of 3 exit doors in Fabric warehouse was blocked by rolls of fabric. Lack of legally-required automatic fire suppression system No automatic fire suppression system was installed in the gas storage. Obstructed or unsafe stairway(s) Blocked/obstructed emergency exit in Fabric warehouse, Sewing, Finishing, packing sections and finished goods warehouse. Inadequate and/or malfunctioning firefighting equipment Fire extinguishers in fabric warehouse were blocked by materials. Lack of or inadequate provision of eyewash facility and training

1/13/2014 1] The opposite door will be opened without obstruction

1/13/2014

1/13/2014 So many materials come this time, and sometime workers bring in & take out then cause the obstruction 1/13/2014 So many materials come this time, and sometime workers bring in & take out then cause the obstruction 1/13/2014

1/13/2014

Eyewash facility was not functioning once tested during the audit Inadequate electrical safety. The electrical wire of fan in finishing section was wrapped by normal plastic tapes. 1 electrical switch in Fabric warehouse was not equipped with safe cover Inadequate electrical safety No lockout-tagout systems was used for unused boiler. Some motorbikes were stored in unused boiler facility. Immediate fire hazard from unsafe electrical conditions No anti-explosion electrical equipment, such as lamp and switch was installed in gas storage. Lack of lockout-tagout program. Lack of program to identify, evaluate and minimize risks from physically demanding work. Lack of training on ergonomics awareness to employees. No soap and tissue was provided in worker's toilers.

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Environmental Protection
Lack of or inadequate treatment of industrial wastewater and sewage before discharge, as legally required. Air emission limits do not meet legal requirements. The facility did not conduct the monitoring of air emissions from operational processes of boiler. 1/13/2014

1/13/2014

Ngn (Fake doc)

Security/HR Ngn (Fake doc)

HR

HR