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Friday, February 15, 2013

Social Compliance in Apparel Industry


To implement social compliance in an apparel industry needs to follow couple of rules which are:

a.      Licenses & Permissions: Following licenses and permission must be available in the factory:

Ø  Valid factory license.
Ø  Approved Building plan by the Government Authority.
Ø  Approved Building plan for extension of Building.
Ø  Fire License (Bangladesh Fire Service and Civil Defense Ordinance 1959).
Ø  Boiler License (The Boiler Act 1923, and The Boiler Rules 1928).
Ø  Boiler Attendant competency certificate.
Ø  Environment License.

b.      Documentation: Documents must be available at factory for verification are as follows:

Ø  Drinking water test report (Written safe drinking water).
Ø  Lab test report of waste water.
Ø  Personal file.
Ø  Attendance card.
Ø  Monthly salary/wages sheet (Including all payment).
Ø  Broken needle record procedure.
Ø  Maintenance/ Service Contract letter.
Ø  Maintenance records of all machines.
Ø   Maintenance records of Boiler, Compressor and Generator.
Ø  Accident record.
Ø  Daily medical treatment record.
Ø  First aid training record.
Ø  First aid team members list.
Ø  Fire fighting training record.
Ø  Fire fighting team list.
Ø  Fire drill record.
Ø  Personal Protective Equipment (P.P.E) training record.
Ø  M.S.D.S. training record.
Ø  Safety policy.
Ø  Company policy.

c.       Compliance Representative: The factory must engage or appoint one compliance manager or officer, who will regularly monitor current information on the changes of existing local and national laws and regulations, which will immediately incorporate into the facility by informing to the appropriate management.
He must be in charge of the implementation and maintenance of all matters concerning compliance and he must have no additional duty.

Ø  Recruitment procedure:
The management must totally discourage child labor, forced labor, any type of discrimination ( direct or indirect) against any person on the ground of race, culture, values, religion, color, nationality, age, gender and marital status in the aspect of recruitment and selection.  The management must use the following procedure at the time of selection and placement of new workers:
§  Advertising for the vacant position on notice board and/or in the newspaper.
§  Short listing of the candidates based on education, qualification, and experience.
§  Conducting interview and efficiency tests.
§  Interview rating and candidate selection.
§  Age verification form educational certificate/local administration/registered medical practitioner.
§  Issuance of appointment letter along with breakup of wages and entitled benefits and the written handbook on workers rights, privilege, benefits and obligation. All copies are provided with acknowledgement of receipt.
§  Collection of joining report.
§  Briefing about workers package entitlement and benefits
§  Issuance of job confirmation/extension letter depending of performance.
Establishment of personal file with the following necessary documents:
§  Bio-data with photo.
§  Age proof document.
§  Appointment or Contract letter with receiving copy by the worker.
§  Copy of instruction to worker about personal protective Equipment. (Form example mask, metal gloves, safety guard on sewing equipment etc).
§  Leave record.
In case initially a worker is employed with 3 months probation period and based on the performance in these 3 months, the worker is either confirmed or his/her probation may be extended for another 3 months or he/she may be terminated.

1.      No Forced Or Compulsory Labor:
The factory must not use any forced labor in the form of prison labor, indentured labor, and blended labor o otherwise which is prohibited as per law of the land.
Late payments of wages and overtime will be accounted as forced labor.

2.      No Child Labor:
The company must not appoint Child Labor in accordance with ILO Convention 138 & Recommendation 146 and also in accordance with Bangladesh labor law.
No person irrespective of male and female gender, who has not completed minimum 18 years of age are not allowed to be recruited and employed for nature of job.
The company must maintain documentation “Certificate of Fitness” for each worker to be employed, that verifies the workers age and fitness. The certificate must be issued by the registered doctor and maintained in the individual personal file accompanied with a photo.


3.      No Harassment Or Abuse:
The company will ensure that no employee shall be subjected to any physical, sexual, psychological or verbal harassment or abuse.
Example:-
Verbal abuse: Chronic shouting or use of insulting or offensive language.
Verbal harassment: Chronic use of implied or direct threats.
Psychological harassment: Humiliating or intimidating verbal or non-verbal behavior including throwing of objects
Sexual harassment: unwelcome sexual advances, request of sexual favors and all other verbal or physical conduct of a sexual nature.
Physical abuse: Includes any physical contact with the intent to injure or intimidate (including throwing of objects) and discomfort.


Over time and calculation:
Overtime hours have to be voluntarily and to be compensated with the following formula on top of the normal hour wages.

Overtime rate per hour= (Basic Salary/208) X 2

The company must ensure that deduction from wages are not made for disciplinary purposes, and shall ensure that wages and benefits composition are detailed clearly and regularly for workers have a guaranty the minimum wage.

The company also needs to follow couple of act which known as “Factory Act 1965”. The act which contains is:

1.      Definitions
2.      Health And Hygiene
3.      Safety
4.      Welfare
5.      Working Hours of Adults
6.      Leave And Holidays With Wages
7.      Special Provisions
8.      Penalties And Procedure
9.      Supplement