Table of Content
1. Auditor Comments -------------------------------------------------------------------------------- 6
2. Child Labor
2.1 Current Child Labor/Historical Child Labor ------------------------------------------- 7
2.2 Child Labor section could not be verified --------------------------------------------------7
3. Health and Safety
3.1 Unsafe or unhealthy conditions---------------------------------------------------------------- 8
3.2 Blocked fire extinguishers------------------------------------------------------------------------8
3.3 Improperly placed fire extinguishers-----------------------------------------------------------8
3.4 Insufficient or malfunctioned fire services equipment---------------------------------------8
3.5 Each location point installing more than 5 Fire extinguishers------------------------------8
3.6 No cover for electrical wire --------------------------------------------------------------------- 9
3.7 No fire drills -----------------------------------------------------------------------------------------9
3.7A Improper/Insufficient fire drill exercise record -----------------------------------------------9
3.7B Fire drill was not conducted by all workers --------------------------------------------------9
3.7C Fire drill should be conducted twice a year -------------------------------------------------9
3.8 Blocked evacuation passages or exits---------------------------------------------------------9
3.9 Improper building design causing fire hazards --------------------------------------------10
3.10 Improper opening direction of evacuation doors --------------------------------------- --10
3.11 Evacuation passages of insufficient width ----------------------------------------------- --10
3.12 Not having two emergency exits ---------------------------------------------------------- --10
3.13 Lack of emergency light -------------------------------------------------------------------- --10
3.14 Lack of exit sign ---------------------------------------------------------------------------------10
3.15 Lack of first aid box ----------------------------------------------------------------------10
3.15.A Insufficient /Improper first aid items ------------------------------------------------------11
3.15.B No one was certified in first aid ----------------------------------------------------------------------11
3.16 Machines without protective devices ---------------------------------------------------------------11
3.17 Pressing machines without protective devices -------------------------------------------------- --11
3.17A Used one hand to operate the die-cut machine----------------------------------------------------11
3.18 No handrail for iron ladder ----------------------------------------------------------12
3.19 No guardrail for walking platforms --------------------------------------------------------12
3.20 Improper insulation or installation of cables extension sockets and electrical equipment-12
3.21 Inappropriate storage of chemical/dangerous goods storage --------------------------------12
3.22 Inappropriate handling of hazardous chemicals -----------------------------------------------12
3.23 Poor air quality caused by hazardous steam, gas and particle -------------------------------13
3.24 No PPE - from dirt, burns, abrasions, heat, toxins dust --------------------------------------13
3.25 No PPE / waterproof boots in wet areas -----------------------------------------------------------14
3.26 No PPE from hazardous steam, gas or particle -------------------------------------------------14
3.27 No PPE for excessive noise, light and heat --------------------------------------------------------14
3.28 Lack of training on PPE & first aid ----------------------------------------------------------------14
3.29 No appointment of safety & health officer --------------------------------------------------------14
3.30 Lack of workers¡¯ training and license in special operations -----------------------------------14
3.31 Lack of boiler registration & workers¡¯ training in boiler operations -----------------------15
3.32 Lack of boiler operator certificate ------------------------------------------------------------------15
3.33 Registration of lifting appliance (including elevators and cranes lift) ----------------------15
3.34 Poor toilet and factory hygiene ----------------------------------------------------------------------15
3.34A Lack of maintenance for toilets ---------------------------------------------------------------------15
3.34B No necessary item was provided such as soap, hand towels or dryers ----------------------16
3.34C No Door/Gender mark was equipped for toilets and bathrooms ----------------------------16
3.35 Insufficient number of toilets ---------------------------------------------------------16
3.36 No segregation of Male/Female toilets ----------------------------------------16
3.37 Lack of drinking water ------------------------------------------------------------16
3.38 Improper lighting in the warehouse ------------------------------------------------17
3.39 Dormitory located in the production building or warehouse -------------------17
3.40 Dormitory located in workshop or storeroom storing dangerous good-----------17
3.41 Insufficient number of emergency exits --------------------------------------------17
3.42 Lack of health certificate (for kitchen staff) -------------------------------------18
3.43 Lack of hygiene certificate (for kitchen) -------------------------------------------18
3.44 Insufficient living area per worker -------------------------------------------------18
3.45 No water was available in the dormitory ----------------------------------------------------------18
3.46 No personal cabin to store personal belongings --------------------------------------18
3.46A Denied Access to Dormitory ----------------------------------------------------------------18
3.47 Chemical was not labeled -----------------------------------------------------------------------------19
3.48 Chemicals in air were not properly monitored ------------------------------------19
3.49A Fireproof light ----------------------------------------------------------------------------19
3.49B Light installation in warehouse -------------------------------------------------------19
3.50 No ¡¡ãYou are here¡¡À sign was marked --------------------------------------19
3.51 Fire extinguishers incorrect/#1211 fire extinguisher could not be used ---------------------20
3.52 Poor living condition in workers¡¯ dormitory --------------------------------------------20
3.53 No fire alarm ---------------------------------------------------------------------------------------------20
3.54 Insufficient lights were available in the production area----------------------------------------20
4. Compliance with Law
4.1 No Health Check for Juvenile Workers ------------------------------------------------------------21
4.2 No Registration for Juvenile Workers -----------------------------------------------21
4.3 Fees of Health Check -----------------------------------------------------------------------------------21
4.4 High workload for Juvenile Workers ------------------------------------------------21
4.5 Juvenile workers overtime limited ---------------------------------------------------21
4.6 Delay payment -------------------------------------------------------------------------------------------21
4.7 Unlawful fines --------------------------------------------------------------------------------------------22
4.8 Excessive deductions causing wages to fall below minimum wage ---------------22
4.9 Deduct one-extra-day wage ---------------------------------------------------------------------------22
4.10 Unlawful firing for being absent from work ------------------------------------------------------23
4.11 Deposit-----------------------------------------------------------------------------------------------------23
4.12 Labor Contracts should be signed before employment ----------------------------23
4.13 No signed labor contract ------------------------------------------------------------------------------24
4.14 Labor Contract had not been authenticated by labor bureau --------------------------------24
4.15 Not signing labor contract within 30 days after employment ---------------------------------24
4.16 Copy of labor contract not given to workers --------------------------------------24
4.17 Terms of Labor contract ---------------------------------------------------------------24
4.18 Withhold wages -----------------------------------------------------------------------25
4.19 Incorrect Business Registration Name ---------------------------------------25
4.20 Illegal employment terms were marked on the old registration forms/contracts ---------25
5. Discrimination
5.1 Wages not based on equal pay for equal work ---------------------------------------------------26
5.2 Sex discrimination --------------------------------------------------------------------------------------26
5.3 Age Discrimination ------------------------------------------------------------------------------------26
6. Environmental Compliance
6.1 Discharge of air pollutants not registered ---------------------------------------26
6.2 Excessive air pollutants containing hazardous or poisonous substances --------------------27
6.3 Factory discharging water pollutants not registered ----------------------------27
6.4 Discharge of prohibited liquid into rivers, lakes, reservoirs and water drainage system 27
6.5 Discharge of industrial and urban wastes into rivers, lakes, reservoirs and water drainage
6.6 Close down, leave unused or dismantle pollution facilities --------------------27
6.7 Storage of hazardous and non-hazardous wastes together ---------------------------28
7. Forced Labor
7.1 Workers were not allowed to leave factory at night ----------------------------28
7.2 Forced overtime work----------------------------------------------------------------------------------28
7.3 Workers¡¯ identification documents were withheld-----------------------------------------------28
8. Harassment or Abuse
8.1 Body searches --------------------------------------------------------------------------------------------28
8.2 Verbally or physically abused ------------------------------------------------------------------------29
8.3 No freedom to leave work station --------------------------------------------------------------------29
9. Notice and Record Keeping
9.1 Insufficient Payroll records -------------------------------------------------------------------------29
9.2 Insufficient Timecard records --------------------------------------------------------------29
9.3 No signature on workers¡¯ payroll --------------------------------------------------------30
9.4 No signature on attendance sheets ------------------------------------------------------------------30
9.5 Sears Holdings Corporation Code of Vendor Conduct poster not displayed -------------30
9.6 No ID card copy in personnel records -------------------------------------------------------------30
9.7 Manual attendance records with ¡¡ãtick¡¡À mark -----------------------------------30
9.8 No hire date was recorded in personnel records --------------------------------31
9.9 Illegal employment personnel record/contract ----------------------------------31
9.10 Access denied ---------------------------------------------------------------------------31
9.11 No broken needle record and/or daily production record were available to review-----31
9.12 No Pay stubs --------------------------------------------------------------------------------------------32
9.13 No fire inspection certificate ------------------------------------------------------------------------32
9.14 Protective measures of occupational diseases should indicate in contracts ---------------32
10. Wage and Benefits
Minimum Wage
10.1 Workers paid below minimum wages ------------------------------------------------------------32
10.2 No back up wage set for piece-rate while they cannot reach minimum wage -----------34
WRIP CASE Auditor Comments:
Minimum Wage increase as promised-------------------------------------------------------------34
Overtime wage increase as promised---------------------------------------------------------------34
Other Benefits
10.3 Stoppage of wage payment during downtimes China (in general) -------------------------35
10.4 No Child-bearing leave ------------------------------------------------------------------------------35
10.5 No Annual leave ---------------------------------------------------------------------------------------36
10.6 No Annual leave (only for Guangdong Province) ----------------------------------------------36
10.7 No payment on Public Holidays (only in Guangdong Province)----------------------------36
10.8 No payment on Public Holidays ------------------------------------------------------------------36
10.9 No granting of Public Holidays -------------------------------------------------------36
10.10 Workers did not understand the wage calculation method --------------------------------36
10.11 Miscalculation working hours and overtime hours -----------------------------------------37
10.12 10-minutes deduction for dinner break in the OT hours at night -----------37
Social insurance
10.13 Lack of employees¡¯ Insurance -----------------------------------------------------------37
Overtime Wage
10.14 Insufficient overtime wages ------------------------------------------------------------38
11. Working Hours/Overtime Hours
11.1 Excessive 60/72 total working hours per week ------------------------------------------------38
11.2 Insufficient rest days -----------------------------------------------------------------39
12. Subcontracting ------------------------------------------------------------------------------40
13. Falsified Records
13.1 Discrepancy and inconsistency found --------------------------------------------40
