WCA_STD_2-193701-20150130090510-F_IAR_47475

Report No : F_IAR_47475 City : Huzhou
Audit Date : Jan 22, 2015 Country : China
Last Audit : NA Auditors : Primary: Hank Wang
Assessment Stage : Initial Secondary: None
Overall Facility Score : 85%
Service Provider: IntertekSchedule Type : Announced
DE QING ZI LI SPUN WEAVING CO., LTD.
GENERAL INFORMATION
85-100%
High
Performance
71-84%
Medium
Performance
51-70%
Low
Performance
0-50%
Very low
Performance
Assessment
area
Score
results
Number of
non-compliances
by rating
ZeroTolerance
Major
Moderate
Minor
Notscored
Overall 85% - - 5 8 -
Labor 97% - - - 1 -
Wages & Hours 56% - - 4 - -
Health & Safety 97% - - - 2 -
Management Systems 86% - - - 4 -
Environment 67% - - 1 1 -
WORKPLACE PERFORMANCE INDEX AND SUMMARY Participating facilities: 15396
This message contains information, which is confidential and the copyright of Intertek. All rights reserved Page 1 of 17
Workplace Conditions Assessment Report
Measured Results —Improved Performance

Facility Legal Name: De Qing Zi Li Spun Weaving
Co., Ltd.
Audit Location: Shilin Development Zone,
Xinshi Town, Deqing County,
Huzhou City, Zhejiang
Province, China
City: Huzhou
Country: China
Contact Name: Ms. Li Yingying
Contact Title: Vice General Manager
Industry: Accessories
Facility Name: De Qing Zi Li Spun Weaving
Co., Ltd.
A. FACILITY PROFILE
A1. FACILITY INFORMATION
Security systems in
place:
Yes The security guards would
check and register the
identification cards of all
strangers access to the facility.
Building Description: The facility consists of one 2-storey building used as office and canteen, one 2-storey building
used as production building and warehouse and one flat building used as knitting
department. No dormitory is provided to employees by the facility.
Special building type: None
NA
Facility Legal Status: Joint venture
Year facility began
operations:
1997
Located in special
economic zone:
No
Person responsible
for overall social
compliance issues:
Mr. Li Yingying
Valid certificate
for social compliance
certification program:
None
Vendor Name: CHUNGHSIN INTERNATIONAL
TRADING GROUP CO., LTD.
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De Qing Zi Li Spun Weaving Co., Ltd.

A4. SUBCONTRACTOR INFORMATION
No subcontractor information given
Languages spoken in the
facility:
Mandarin
Management and employees
speak same language :
Yes
Female Employees: 30
Male Employees: 20
Mgmt Employees: 12
Production (Non-
Management) Employees:
38
Local Employees: 50
Foreign/Migrant Employees: 0
A3. EMPLOYEE INFORMATION
Range of total number of
employees at the facility:
0-100 employees
Union name: None
Employs juvenile
workers:
None
Employee nationalities/
provinces:
NA. All employees were local.
Hires through
employment agent:
No All employees were hired
directly.
A2. PRODUCTION INFORMATION
Chemicals or
hazardous
materials
on-site:
Yes Only some clean agent used in
the inspection and packing
workshop.
Time record
system(s) used:
Punch card system
Current production/
Services for client:
No
Products manufactured/
Services provided:
Scarf
Production process/
Service elements:
Knitting, Sewing, Pressing,
Inspection and Packing.
Production capacity a
week:
25000 pieces
Total number of
machines:
50
Main machine types: knitting machine, sewing
machine, pressing machine
and etc
Shifts and
Operating hours:
The general working hour was 5 days per week and the facility could arrange the overtime on
weekends. The employees in the knitting department work in 2 shifts and the first shift is
from 8:00 to 16:00, the second shift is from 16:00 to 24:00. The other employees work in one
shift and the normal working hour is from 8:00 to 17:00 with one hour lunch break from
11:30 to 12:30.
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A5. GENERAL INFORMATION
1. The total land area occupied by the facility is about 5,000 square meters. 2. The facility management showed positive
attitude to this audit during the whole process. The documentation requested for the review was provided timely. Locked
areas encountered during the audit were unlocked timely. At the end of the audit, all the findings were accepted by the
facility management. 3. Most of interviewees were a little shy but comfortable during interview. All employees stated that
they worked overtime on voluntary basis and they were satisfied with the facility and no negative information was raised.
The employees do enjoy working in the facility. They are satisfied with the working condition and management system.
The facility gives everybody equal opportunity and salary is good in local area.
Emergency Preparedness Summary
1. The facility had established emergency preparedness procedure such as fire emergency etc, through document review
and employee interview, the facility had provided training such as first aid training etc for employees when they joined in
the facility. The facility conducted emergency evacuation drill four times per year. 2. The facility provided fire safety
equipment throughout the facility such as fire extinguishers, fire hydrant, fire alarms, smoke detectors, fire sprinklers,
emergency lights and exit signs, which were adequate for the nature of operations in terms of sufficient quantity, correct
type (type A, B, C) and valid, and were inspected regularly by an internal inspector. 3. Evacuation maps were also posted
in each floor with position of firefighting equipments, current location, emergency exits, and routes of evacuation. 4.
Emergency routes were clearly marked on the floors which could lead employees to emergency exits.
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A6. AUDIT PROCESS
Payroll and attendance records sampling
Period From To Peak Season Records Reviewed
Current Period 2014.11.01 2014.11.30 No 5
Period 1 2014.07.01 2014.07.31 No 3
Period 2 2014.03.01 2014.03.31 No 3
Total 11
Employee interview sampling
Individual 5
Group 0
Total interviewed 5 interview employees
including 2 males and 3
females.
Audit pay period provided for review
Records From To
12 Months Payroll 1 December
2013
30 November
2014
12 Months Attendance 1 December
2013
21 January 2015
Special Comments Not applicable
Personnel records Machine maintenance records
Security log book Production records
Non-Production records Employment contracts
Legal Permits Social insurance documentation
Employee leave register Infirmary logs
Health examination records
Other records reviewed
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B. KEY PERFORMANCE METRICS
B1. COMPARISON BENCHMARK
Current performance — Global average, China average, Accessories average
Labor Wages & Hours Health & Safety Management Systems Environment
Advancers DeclinerConstant
Section Name
Current
(22-Jan-2015)
Last
(Not Applicable)
First
(Not Applicable)
Change
(Current-Last)
Change
(Current-First)
Labor 97 Not Applicable Not Applicable Not Applicable Not Applicable
Wages & Hours 56 Not Applicable Not Applicable Not Applicable Not Applicable
Health & Safety 97 Not Applicable Not Applicable Not Applicable Not Applicable
Management Systems 86 Not Applicable Not Applicable Not Applicable Not Applicable
Environment 67 Not Applicable Not Applicable Not Applicable Not Applicable
Overall Score 85 Not Applicable Not Applicable Not Applicable Not Applicable
B2. PERFORMANCE TREND ANALYSIS
(22-Jan-2015) (Not Applicable) (Not Applicable)
PERFORMANCE RATING
Very Low (0% – 50%) Low (51% – 70%) High (85% – 100%)Medium (71% – 84%)
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International Standard: 60 China average: 52 Highest hours this facility: 56
Normal Work Hours Overtime Work Hours
B3. WORKING HOURS AND WAGES
56
Average total hours worked weekly
Average wages paid in local currency (RMB)
Special wage circumstances:
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Wages and hours summary: 1.13 months and 21 days (from December 1, 2013 to January 21, 2015) attendance records were
reviewed. 2. During employee interview, all 5 randomly selected employees stated that they worked
overtime on voluntary basis. 3. 12 months’ payroll records (December 2013 to November 2014) were
reviewed. 4. In this audit, the auditor noted that the facility used paper card attendance records
system to record employee attendance situation and all employees should punch their cards when
they came in/out of the facility. Some records such as daily production records, finished products
inspection records and material delivered records etc. had been reviewed, those records matched
with the attendance records, meanwhile through employee’s interview, no inconsistency was found.
The working hours and wages could be verified in current audit. 5. Based on the provided attendance
records and payroll records, production employees were only paid 100% of normal rate to piece rate
employees for their overtime work on rest days and holidays. 6. Based on provided attendance
records, working hours was analyzed as follow: 1) For November 2014 (current month), the average
weekly working hours were 56 hours and maximum weekly working hours were 56 hours (all 5
randomly selected employees). 2) For July 2014 (random month), the average weekly working hours
were 56 hours and maximum weekly working hours were 56 hours (all 3 randomly selected
employees). 3) For March 2014 (random month), the average weekly working hours were 56 hours
and maximum weekly working hours were 56 hours (all 3 randomly selected employees). 4) No
overtime arranged on normal working days. The monthly overtime hours exceeded the limit as
required by law in sample months. Through document review, auditor found that the monthly
overtime hours of all 5 randomly selected employees were 80 hours in November 2014 (Most current
month); monthly overtime hours of all 3 randomly selected employees were 64 hours in July 2014
(random month); monthly overtime hours of all 3 randomly selected employees were 80 hours in
March 2014 (random month).
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97%C1. Labor
Sub Section: Employment Contracts
Status Findings % Global freq of
compliance
Minor 98.00 : The facility does not maintain an employee roster which includes information on
current residence, contact information, form of employment and length of labor contract
Auditor's comment No employee roster was established. Through document review, auditor found
that the facility had 50 employees but did not establish employee roster for reference.
PRC Employment Contract Law article 7
An employer establishes an employment relationship with an employee from the date of
start to use the employee. It shall prepare a roster of employees for reference.
Regulations on Implementation of the PRC Employment Contract Law article 8
The staff roster as mentioned in Article 7 of the PRC Employment Contract Law should
contain such employee information including name, sex, identity card number,
registered permanent residence and current residence, contact information, form of
employment, starting time of employment and length of labor contract.
95%
C. PERFORMANCE DETAILS
Current (22-Jan-2015)
PERFORMANCE RATING
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56%C2. Wages & Hours
Sub Section: Working Hours
compliance
Moderate 120.00 : Total overtime hours exceeds allowable limits under applicable law or
agreement.
Auditor's comment Overtime hours exceeded the legal requirement. Through document review,
auditor found that the monthly overtime hours of all 5 randomly selected employees were 80
hours in November 2014 (Most current month); monthly overtime hours of all 3 randomly
selected employees were 64 hours in July 2014 (random month); monthly overtime hours of all 3
randomly selected employees were 80 hours in March 2014 (random month).
People’s Republic of China Labor Law Article 41
The employing unit may extend working hours due to the requirements of its production
or business after consultation with the trade union and laborers, but the extended
working hour for a day shall generally not exceed one hour; if such extension is called for
due to special reasons, the extended hours shall not exceed three hours a day under the
condition that the health of laborers is guaranteed. However, the total extension in
month shall not exceed 36 hours.
54%
Moderate 125.00 : Employees are not provided with at least one day off in seven (7) in accordance
with local law.
Auditor's comment No at least one day off per week was provided for employees. Through
document review, auditor found that all 5 randomly selected employees worked for 30 consecutive
days without 1 day off in November 2014 (most current month). All 3 randomly selected
employees worked for 10 and 19 consecutive days without 1 day off in July 2014 (random month).
All 3 randomly selected employees worked for 28 consecutive days without 1 day off in March
2014 (random month).
The employing unit shall guarantee that its staff and workers have at least one day off in
a week.
73%
PERFORMANCE RATING
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Sub Section: Working Hours
compliance
Moderate 126.00 : Employees are not provided with at least one day off following six consecutive
days worked.
Auditor's comment No at least one day off per week was provided for employees. Through
document review, auditor found that all 5 randomly selected employees worked for 30 consecutive
days without 1 day off in November 2014 (most current month). All 3 randomly selected
employees worked for 10 and 19 consecutive days without 1 day off in July 2014 (random month).
All 3 randomly selected employees worked for 28 consecutive days without 1 day off in March
2014 (random month).
73%
Sub Section: Wages and Benefits
compliance
Moderate 145.00 : The overtime wage is not calculated and paid at the premium rate as legally
required
Auditor's comment Insufficient overtime wages for employees. Through document review, auditor
found that only 100% of normal rate wages were paid for overtime on weekend and holidays to all
production employees, whose wage were calculated based on piece-rate.
The employing unit shall, according to the following standards, pay labourers
remuneration higher than those for normal working hours under any of the following
circumstances: 1) to pay no less than 150%of the normal wages if the extension of
working hours is arranged; 2) to pay no less than 200% of the normal wages if the
extended hours are arranged on days of rest and no deferred rest can be taken; and 3) to
pay no less than 300% of the normal wages if the extended hours are arranged on
statutory holidays.
75%
PERFORMANCE RATING
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97%C3. Health & Safety
Sub Section: General Work Facility
compliance
Minor 169.00 : Noise level at the facility is not acceptable
Auditor's comment Testing result of occupational hazards factors exceeded standard. During
facility tour, auditor found that knitting workshop with high-level noise. During document review,
testing report indicated that the factors of occupational disease hazards (noise) in knitting
workshop exceeded the limit of national standard.
91%
Sub Section: Occupational Injury
compliance
Minor 211.00 : The facility does not apply for testing of factors of occupational hazards at least
once a year and the report kept for review
Auditor's comment Testing result of occupational hazards factors exceeded standard. During
facility tour, auditor found that knitting workshop with high-level noise. During document review,
testing report indicated that the factors of occupational disease hazards (noise) in knitting
workshop exceeded the limit of national standard.
Provisions on the Supervision and Administration of Workplace Occupational
Health Article 20
An employing entity with occupational hazards shall entrust an occupational health
technical service agency with corresponding qualification to conduct evaluation on
occupational hazard factors at least once every year. An employing entity with severe
occupational hazards shall, in addition to the above requirement, entrusts an
occupational health technical service agency with corresponding qualification to conduct
assessment on occupational hazard status at least once every three years. The results of
the evaluation and assessment shall be kept in archive, reported to local administration
department of work safety, and announced to the workers.
73%
PERFORMANCE RATING
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86%C4. Management Systems
Sub Section: Management Systems
compliance
Minor 294.03 : The facility has comprehensive employment practice processes and procedures
in a written manual that support adherence to social compliance requirements but they
are not all being properly implemented
Auditor's comment The facility has written employment practice procedures, but they are not
being properly implemented, for example, there was some finding about employee roster.
92%
Minor 294.04 : The facility has comprehensive working hour and wages management processes
and procedures in a written manual that support adherence to social compliance
requirements but they are not all being properly implemented
Auditor's comment The facility has written working hour and wage management procedures, but
they are not being properly implemented, for example, there was some finding about working hour
and wage.
76%
Minor 294.05 : The facility has comprehensive processes and procedures in the area of general
facility, dormitory (if any) and/ or canteen (if any) management (e.g. cleanliness,
ventilation, noise, lighting, toilets) in written manual that support adherence to social
compliance requirement but they are not all being properly implemented.
Auditor's comment The facility has written general facility procedures, but they are not being
properly implemented, for example, there was some finding about noise level.
83%
Minor 294.07 : The facility has comprehensive employee safety processes and procedures in a
written manual that support adherence to social compliance requirements but they are
not all being properly implemented
Auditor's comment The facility has written manual for processes and procedures includes such
procedure but they are not being properly implemented, For example, there was some finding
about occupational injury.
78%
PERFORMANCE RATING
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67%C5. Environment
Sub Section: Environment
compliance
Minor 320.00 : The facility does not have any environmental management system in place 67%
PERFORMANCE RATING
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Sub Section: Environment
compliance
Moderate 322.00 : The facility does not have all required environmental permits, licensees and / or
registrations
Auditor's comment 1. In accordance with the PRC Environmental Impact Assessment Law Article
16 and 22 No Environmental Impact Assessment (EIA) and approval for construction project.
During facility tour, auditor found that products in the facility are scarf, and the main processes are
knitting, cutting, sewing, pressing, inspection and packaging. However, the facility could not
provide EIA document and approval for review. 2. In accordance with the Measures for
Administration of Environmental Protection Acceptance Check upon Completion of Construction
Project article 17 No environmental protection acceptance checks report for completed
construction project. During facility tour, auditor found that products in the facility are scarf, and
the main processes are knitting, cutting, sewing, pressing, inspection and packaging. However,
during document review, the facility could not provide the environmental protection acceptance
check approval for their construction project for review.
The Measures for Administration of Environmental Protection Acceptance Check
upon Completion of Construction Project article 17
For construction units accord with the acceptance check conditions prescribed in Article
16, competent departments of environmental protection administration shall approve
the application report of environmental protection acceptance check, application form of
environmental protection acceptance check or registration card of environmental
protection acceptance check. For construction projects with a registration card of
environmental protection acceptance check upon completion of project completed,
competent departments of environmental protection administration shall, after
checking, give the opinions on the registration card of environmental protection
acceptance check and make approval decisions. Construction projects without official
approval on the application report, application form or registration card of
environmental protection acceptance check upon completion of projects shall not be put
into production or use.
71%
% Global Frequency of Compliance: Represents the implementation percentage performance of all suppliers participating
in the WCA Community globally for each issue
Identification numbers: Represents the finding ID associated with each checklist question
RECOMMENDATION FOR IMPROVEMENT PLAN TIMELINE
Minor Take action within 0 ~ 6 months to make
necessary improvements.
Major : Take action within 0 ~ 1 month to make
Moderate: Take action within 0 ~ 3 months to make
Zero Tolerance: Take immediate action to make
PERFORMANCE RATING
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D. STRENGTHS AND CHALLENGES
Challenges: Facility performance ranks in the bottom percentile of the population Rating
Global Freq. of
Compliance%
The facility does not maintain an employee roster which includes information on current residence, contact
information, form of employment and length of labor contract
Minor
95%
The facility has comprehensive employment practice processes and procedures in a written manual that
support adherence to social compliance requirements but they are not all being properly implemented
Minor
92%
Noise level at the facility is not acceptable
Minor
91%
The facility has comprehensive processes and procedures in the area of general facility, dormitory (if any)
and/ or canteen (if any) management (e.g. cleanliness, ventilation, noise, lighting, toilets) in written manual
that support adherence to social compliance requirement but they are not all being properly implemented.
Minor
83%
The facility has comprehensive employee safety processes and procedures in a written manual that
support adherence to social compliance requirements but they are not all being properly implemented
Minor
78%
The facility has comprehensive working hour and wages management processes and procedures in a
written manual that support adherence to social compliance requirements but they are not all being
properly implemented
Minor
76%
The overtime wage is not calculated and paid at the premium rate as legally required
Moderate
75%
Employees are not provided with at least one day off following six consecutive days worked.
Moderate
73%
Employees are not provided with at least one day off in seven (7) in accordance with local law.
Moderate
73%
The facility does not apply for testing of factors of occupational hazards at least once a year and the report
kept for review
Minor
73%
Facility Strengths: Facility performance ranks in the top percentile of the population
and/or has implemented a best practice process
tiRating
ng
Global Freq. of
Compliance%
There are written records (correspondence, report, meeting minutes, etc) of a regular management review
of the social compliance system
Minor 59%
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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.
DISCLAIMER
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WCA_STD_2-193701-20150130090510-F_IAR_47475

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