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$: `=û e Àc{jä¸ :Ðdòð±²ÿO8'Ãd ¼å£Þ ËÙ ^Ì Ü ú J¹ýL Audit.pdf · Acetone, spot lifter 833, Maxitrate, Machine oil, roto inject fluid, Diesel. A2. PRODUCT INFORMATION$
Assesment Area Assessment Score

Compliant Minor Moderate Major Zero Tolerance

Overall 90% 167 - 6 - -

Business Ethics 100% 11 - - - -

Systems 95% 7 - 1 - -

Labor 98% 38 - 1 - -

Wages and Hours 100% 19 - - - -

Environmental Health and Safety 93% 92 - 4 - -

Breakdown of Results

PERFORMANCE SUMMARY

PERFORMANCE INDEX BARThe Performance Index Bar is used to measure and benchmark the facility score against the other population of the audit result in the database using common algorithm.

GENERAL INFORMATION

Country: Bangladesh Assessment Stage: Annual

Audit Date: 08-Apr-2019 Service Provider: Intertek

Last Audit: Schedule Type: Semi Announced

Report Number: A4717404 Site ID: F_IAR_38399

Auditor Primary: Mr. Mamunur Rahman Khan Auditor Secondary:Mr. Davit Tripura,Mr. Mohammad Salah Uddin

Facility Name: Masco Cottons Ltd.

OVERALL FACILITY SCORE 90%

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CSR Audit Report

Products Manufactured / Services Provided: All type of knited garment. Current Production/

Services for Client:

Yes, current production found during the audit day for the audited client.

Production processess at this location:

Cutting, Sewing, Finishing and Packing. Main machine types:

Sewing Machines, Cutting Machines, Plain machines, overlock, feed of the arm etc.

Production capacity a week: 350000 Total number of machines: 1013

Time record system(s) used: Punch card system Shifts and Operating hours: 1 shift

Chemicals or Hazardous materials on-site:

Acetone, spot lifter 833, Maxitrate, Machine oil, roto inject fluid, Diesel.

A2. PRODUCT INFORMATION

Special Building Type: None

Building Description:

The facility compound operates in 03 buildings and 02 sheds. Buildings are made of rod cement and concrete and sheds are made of brick and tin. The detail description is as follows: Building-1 Ground floor: Security room, Electric Substation, Left over storage, Child care room, Doctor’s room, Training room, Accessories inspection room, Fabric storage, Bonded warehouse and Office.1st floor: Dining, Canteen, Rest & Prayer room, General and Accessories store, Finished goods area and Chemical store.2nd floor: Sewing section, Finishing section, Packing section, Spot removing room and Maintenance room.3rd floor: Sewing section, Finishing section, Packing section, Needle room and Maintenance room.4th floor: Sewing section, Finishing section, Packing section, Spot removing room and Maintenance room.5th floor: Sewing section, Finishing section, Packing section, Needle room and Maintenance room.6th floor: Cutting section, Cut panel area, CAD room and Office.7th floor: Corporate office and Show room.Roof top: Fully vacant. Building-2 (1 storied): Maintenance room and LPG room.Building-3 (1 storied): Fire hydrant room. Shed-1: Generator, Compressor, Boiler and Security dressing room.Shed-2: Waste materials and leftover storage.There are 02 (two) lifts in the building and no commercial & residential space was found in the facility building and premise and no separate entry was found. The buildings and sheds are made for industrial purpose and approved by Tongi Porasava Engineering Department.

Facility Name: Masco Cottons Ltd. Industry: Apparel

Facility Legal Name: Masco Cottons Ltd. Vendor Name: Team Sourcing Co Ltd

Audit Location: Redwan Complex, 44, Gazipu, Tongi, Gazipur Contact Name: Mr. Muhammad Mainul Islam

City: Dhaka Contact Title: Senior General Manager of Human Resource, Admin and Compliance

Country: BangladeshPerson responsible for Overall Social Complaince Issues:

Yes

Year Facility Began Operations: 2011/07/17 Facility Legal Status: Private

Business Unit: Carter's Global Sourcing (CGS)

Security systems in place:

The premises security and the guards are posted at entrance and several points of the premises. Moreover, all security system have been controlled by CCTV.

A1. FACILITY INFORMATION

A. FACILITY PROFILE


Carter's CSR Audit Report, Masco Cottons Ltd.

Subcontractor Name: Fair Design Printing Ltd.

Contact Name: Mr. Mohan

Telephone Nr: +8801611612949

Address: Shi/140-1, Chanpara, Bashon Sharok, Gazipur.

Description: Printing

Contacts Email: [email protected]

Private Label items: No

Social Audits Performed: Yes

Type of social audit: WCA initial audit on 14/03/2019

Process subcontracted:

Other: print, spray, injection, dye, weld, wash, etc.

Subcontractor Name: Shinest washing

Contact Name: Mr. Enamul

Telephone Nr: 01701693170

Description: Washing and Embroidery

Private Label items: No

Social Audits Performed: Yes

Process subcontracted:

Other: print, spray, injection, dye, weld, wash, etc.

A4. SUBCONTRACTOR INFORMATION

A5. GENERAL INFORMATION

Employee nationalities/ provinces: All employees are Bangladeshi.

Union Name:

There is no Union in the facility and it is also not mandatory by Law. However, the facility has a participation committee through election procedure. The election date was 25/10/2017.

Languages spoken in the facility: Bangla and English.

Third Party Agency: NoneFacility management speaks same language as the employees:

Yes

Permanent Temporary Agency Total

Local 1873(100%) 0 0 1873(100%)

Migrant 0 0 0 0

Foreign 0 0 0 0

Total 1873(100%) 0 0 1873

Range Actual Total Female Male Homeworkers Juveniles

1001-2000 1873(100%) 1288(69%) 585(31%) 0(0%) 0(0%)

EMPLOYEE BREAKDOWN

A3. EMPLOYEE INFORMATION



Period From To Peak Season Records Reviewed

Current Period 01-Mar-2019 31-Mar-2019 No 30

Period 2 01-Dec-2018 31-Dec-2018 No 10

Period 3 01-May-2018 31-May-2018 No 10Total 50

PAYROLL AND ATTENDANCE RECORDS SAMPLING

Non-Production records Security log book

Employee leave register Production records

Social insurance documentation Personnel recordsInfirmary logs Legal Permits

Machine maintenance records Employment contractsHealth examination records

Records From ToPayroll 12 01-Apr-2018 31-Mar-2019

Attendance 12 01-Apr-2018 31-Mar-2019

AUDIT PAY PERIOD PROVIDED FOR REVIEW

Individual 30

Group 2 groups of 5 members

Total Interviewed 40

EMPLOYEE INTERVIEW SAMPLING

The facility management showed a positive attitude to this audit. Facility management was highly cooperative and agreed with the issues raised during the audit. During the facility tour, it was also observed that the employees were also positive towards their workplace and seemed happy with the working conditions of this facility. No suspicious activity was noted. Note that the facility was a cut to pack facility with the production process is only cutting, sewing, finishing and packing. The facility has an industry practice to provide attendance bonus to its worker-level employees.

OTHER RECORDS REVIEWED

A6. AUDIT PROCESS

EMERGENCY PREPAREDNESS SUMMARYBased on plant tour, documents review and management interview, overall emergency preparedness of the facility found as: Facility has 03 stairways for evacuation. Each room has two or more exits. At the time of the facility visit, all the doors were found open and these are kept open as per interviewed employees. Industrial emergency light, IPS supported battery backup light were found in the exit point and production floor. Evacuation plan, emergency numbers were found posted in facility production floor and premises. The facility has a valid hospital contract with the nearest hospital for the emergency treatment of the employees. The facility has a designated fire officer Mr. AKM Zamshad Rana - Deputy Manager (Fire & Safety) to look after the fire safety of the facility and conduct fire safety training. Facility assembly point was located in front of the facility building. Beside these, facility has a health and safety committee including 10 members who sits to discuss the safety issues of the facility including emergency preparedness system of the facility. Last meeting was held on 10 February 2019. Facility conducts fire drill in every month. Last fire drill was taken place on 04 April 2019 with 1982 participants and took 04:40 minutes to evacuate all the employees. Last fire drill (evening) was taken place on 29 July 2018 with 1201 participants and took 03:25 minutes to evacuate all the employees. Facility has 07 electricians, among them all are certified, who inspects the electrical wiring, Electric DB, bus bar in weekly basis. Facility has 337 trained members in firefighting team who are trained from Fire Service and Civil Defense Authority. Facility has 117 fire fighters with 17 first aid boxes. Facility has total 307 ABC type fire extinguisher, 90 CO2 type fire extinguisher, 03 foam type fire extinguisher, 24 hose reel cabinet, 125 blanket, 88 bucket, 88 bucket, 58 fire hook, 56 fire beater, 116 helmet, 130 gas mask, 130 hand gloves, 25 lock cutter, 29 water drum, 24 gong bell, 90 fire alarm, 272 smoke detector, 26 manila rope, 117 exit sign, 60 emergency light, 115 gumboot, 07 fire suit, 130 safety belt, 22 stretcher, 67 fire belcha, 23 hammer, 21 fog light, 33 emergency stair light, 21 visual fire alarm, 38 Public Address System, 02 breathing apparatus, 12 torchlight etc. Fire alarm switches were found near every exit and different areas of the manufacturing floor. The facility has a system to check all electrical installation regularly by the designated electrical engineer of the facility.



B. KEY PERFORMANCE METRICSB1. COMPARISON BENCHMARK

CURRENT PERFORMANCE

0-50% Very Low Performance

71-84% Medium Performance

85-100% High Performance

51-70% Low Performance

Business Ethics Systems Labor Wages and Hours Environmental Health and Safety

B2. PERFORMANCE TREND ANALYSIS

Section Name Current08-Apr-2019

LastN/A

FirstN/A

Change Current vs Last

Change Current vs First

Business Ethics 100 0 0 0% 0%

Systems 95 0 0 0% 0%

Labor 98 0 0 0% 0%

Wages and Hours 100 0 0 0% 0%

Environmental Health and Safety 93 0 0 0% 0%

OVERALL SCORE 90 0 0 0% 0%



Current Audit

Transparency and Business Integrity 100

Subcontracting and Homework 100

RATING Minor Moderate Major Zero Tolerance Total

NEW NON- COMPLIANCES 0 0 0 0 0

BUSINESS ETHICS NA

BUSINESS ETHICSC. RESULT DETAILS



Current Audit

Management Systems 95



SYSTEMS 95%

SYSTEMS

Management Systems

New Non- CompliancesID #O0106

FindingThe facility does not conduct regular management review (at least annually) of the social compliance system. The written records from management review meeting are available for review.

RatingModerate

% of occurrence at other facilities3 %

Past occurrences at this facility0 time

Auditor CommentsBased on document review and management interview it was noted that facility has no written record of management review meeting on social compliance system.



Current Audit

Child Labor 100

Forced or Compulsory Labor 100

Foreign Migrant Labor 100

Non-Discrimination 100

Disciplinary Practices 95

Harassment or Abuse 100

Freedom of Association and Collective Bargaining 100



LABOR 98%

LABOR

Disciplinary Practices


FindingThe facility management does not document and communicate to all workers a progressive disciplinary policy e.g., escalating discipline action steps such as verbal warning, written warning, suspension, and termination. Any exceptions to this rule e.g., immediate termination for theft or assault, are not in writing and clearly communicated to workers.

RatingModerate

% of occurrence at other facilities


Auditor CommentsFinding:Based on documents review and management interview that facility management has not taken disciplinary action as per law. Though facility management has received a written misconduct, but it was not solved by following local law. Also, facility disciplinary action procedure was not updated as per law.Law Reference:If the owner or any officer authorized by him/her seeks any kind of explanation as per the item (b( of the subsection (1) of the section 24 for verifying whether any behavior of the worker is misconduct or not and the response of the worker is satisfactory.



Current Audit

Compensation and Benefits 100

Hours of Work 100



WAGES AND HOURS NA

Based on employee’s time card, salary sheet review and employees & management interview, it was noted that: • General working hour is 08.00 am to 05.00 pm with one hour interval for rest or meal by 02 shifts from 12:45 pm to 01:45 pm and 01:15 pm to 02:15 pm. • The facility remains open on Saturday to Thursday and Friday is weekly holiday for employees. • Employee’s wages are calculated on a monthly basis. • Electronic swipe card is used for time recording system. • All the employees have fixed rated wages. • Facility has working hour policy and social benefits policy where facility mentioned working hours should be maintain as per local law. Note as per Circular dated on 09 October, 2018 from Bangladesh Labor and Employment Ministry; Facility can do 4(four) hours over time in a day with the consent of the employees up to 6(six) months starting from 16 April 2019. • Facility has working hour policy and social benefits policy where facility mentioned working hours should be maintained as per local law. • Facility provided yearly increment, maternity benefit, service benefit, annual leave encashment to eligible employees. • Facility deducted for unauthorized absent from their basic wages. • Employees were given attendance bonus as best practice of the. • The payment cycle is followed by English calendar moth and salary is paid within 7 working days of the following month. Last salary was paid on 07 April 2019 for the month of March 2019. • Based on document review (salary sheet, employee appointment letter), facility ensured minimum wages to all employees as per their grade/job designation. Facility has followed garments gazette for garments section employees. Facility provides minimum wages for garments worker BDT 8000. • Facility deducted only for unauthorized absent from their basic wages and BDT 10 for revenue stamp. • Based on documents review it was noted that working hours, over time hours and consecutive working days were found under legal limits.

WAGES AND HOURS

Highest total hours Lowest total hours Average total hours Average overtime hours

60.0 40.0 46.0 10.0

Lowest Wage this facility Highest wage of this facility Average wage this facility Minimum Wage

8000.0 10882.0 9441.0 8000

AVERAGE TOTAL HOURS WORKED WEEKLY

AVERAGE WAGES PAID IN LOCAL CURRENCY

WAGE CALCULATION METHOD

Monthly



Current Audit

General 95

Building Safety 100

Machine Safety 95

Personal Protective Equipment (PPE) 95

Lighting and Ventilation 100

Sanitation 100

Electrical 100

Chemical Storage and Handling 100

Fire Safety 100

Emergency Preparedness 95

First Aid 100

Dormitory and Canteen 100

Environmental 100



ENVIRONMENTAL HEALTH AND SAFETY 93%

ENVIRONMENTAL HEALTH AND SAFETY

General


FindingThe facility does not have a written Healthy & Safety program that includes policies and procedures for health and safety and working conditions to ensure all are in compliance with national and local legal law.

RatingModerate

% of occurrence at other facilities0


Auditor CommentsFindings:Based on safety committee and management representative interview that, following events was not completed by the safety committee:- Safety Committee did not prepare a guideline or instruction book with details of own responsibilities of Health & Safety committee as per law.- The Safety Committee was not prepared progress monitoring related checklist and report form.- Safety Committee did not submit a report along with recommendation in a prescribed form to the owner or the manager in monthly or quarterly. Law Reference:Bangladesh Labour Rules 2015, Schedule-4(2)(a) and 4(4):Schedule-4(2)(a): Functions and responsibilities of the safety committee: (a) With the objective to duly comply with the special provisions and related rules as stated respectively in the sixth and seventh chapters of the act in factories or industrial firms, to prepare a guideline or instruction book with details of own responsibilities.Schedule-4: Preparing progress monitoring related checklist and report form: (a) To ensure implementation of matters specified in the professional health and safety guideline or instruction book and to identify risks harmful for life and health of workers according to factory or firm’s production process, nature and use of raw-material-chemical and services, the safety committee shall prepare a check list.



Machine Safety


FindingNot all machineries have operational safety devices (safeguards systems that eliminate the possibility of the operator or another worker placing parts of their bodies near hazardous moving part).- No shield guards on grinding and buffing machines. - No needle guards and pulley guards on sewing machines.- No knife guards on cutting machines. - No blade guards on portable cutting machines and tables.

RatingModerate



Auditor CommentsBased on facility visit it was noted that, machine guard was found displaced from its position in sewing sections located at 2nd, 3rd, 4th and 5th floors of building-1 as follows:• Needle guard was found displaced with approximately 10% of sewing machine.• Eye guard was found displaced with approximately 35% of Flat lock & Over lock machine.LawsBangladesh Labour Rules 2015, Rule 64 (2):Effective machine guard or eye safety goggles must be installed/used in all cases where the possibility of having injuries in the eye is high.Bangladesh Labour Rules 2015, Rule 64 (1): Arrangement of appropriate goggles, hand shields/gloves, if needed, and black cloth or board curtain must be made effectively for the safety of the employed workers and the workers working nearby in places where the following works are done:a) Activities related with revolving wheel run by mechanical power or applying metallic substances in grinding activities in disks and rotational activities of iron and non-iron substances However, in cases where using curtain or eye-glasses becomes clumsy due to craft requirements, alternative arrangements instead of eye-glasses can be made, after ensuring adequate safety measures.b) Electrical welding, arc welding, oxyacetylene or metal welding using these processes or cutting the same or usage of chemical products;c) Cold rivet, cutting bolts or arranging them, slicing stones, hard-rocks or similar types of materials with hand machines or manually operated appliances, making sheets of metals, trimming the same, breaking or polishing them;

Personal Protective Equipment (PPE)


FindingThe facility does not ensure that workers are properly trained in the purpose and use of PPE associated with their job duties.

RatingModerate



Auditor CommentsBased on facility visit it was noted that, face mask (Personal Protective Equipment) was not used by approximately 10% employees of over lock machine in sewing sections located at 2nd, 3rd, 4th and 5th floors and approximately 10% employees in cutting section located at 6th floor of building-1.LawsBangladesh Labour Act 2006, Section 78 (a) (Amendment 2013, 25):(1) In an applicable case, an employer shall not engage any workers in work without providing and ensuring use of personal safety equipment, and in doing so, a record book shall be maintained as designated by the owner. (2) In spite of supply of personal safety equipment if those are not used by workers concerned, they are to be held liable thereof. (3) For ensuring professional health and safety for workers at workplace, each of workers shall have to be aware on the risk of the work through training.



Emergency Preparedness


FindingA diagram clearly indicating a safe evacuation route is not posted in the native language in all the key production areas in case of fire or other emergency. Diagram does not have a “you are here” label for reference.

RatingModerate



Auditor CommentsBased on facility visit and posted evacuation plan review it was noted that, evacuation plan was found mismatched in cutting section located at 6th floor of building-1. The posted evacuation plan shows 08 aisles way but in actual floor layout it was found 06 aisles way.LawsBangladesh Labour Rules 2015, Rule 55 (8):The arrangement should be made to show evacuation plan of exit in one or more places easily visible in each floor of each floor of the factory.



RATING CLASSESMINORTake action within 0-6 months to make necessary improvements.MODERATETake action within 0-3 months to make necessary improvements.MAJORTake action within 0-1 months to make necessary improvements.ZERO TOLERANCETake immediate action to make necessary improvements.

DEFINITIONSPERCENTAGE FREQUENCY OF OCCURRENCE AT OTHER FACILITIESRepresents how often this issue occurs at all other suppliers that have been evaluated globally.IDENTIFICATION NUMBERSRepresents the finding NC-ID associated with each checklist question.

ANNEX

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”). 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.



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