workplace conditions assessment report

Report No : F_IAR_38399 City : Dhaka, BangladeshAudit Date : Aug 02, 2018 Country : BangladeshLast Audit : Sep 18, 2017 (98%) Auditors : Primary: Mohammad KashemAssessment Stage : Annual Secondary: Mamunur Khan, Mohammad Salah Uddin

Overall Facility Score : 92%

Service Provider: IntertekSchedule Type : Semi-Announced

MASCO COTTONS LTD.GENERAL INFORMATION

85-100%High Performance71-84%Medium Performance51-70%Low Performance0-50%Very low Performance

Assessmentarea Score results Number of non-compliances by rating

Zero Tolerance Major Moder

ate Minor Notscored

Overall 92% - - 3 2 -

Labor 100% - - - - -Wages & Hours 100% - - - - -Health & Safety 84% - - 3 - -Management Systems 93% - - - 2 -Environment 100% - - - - -

WORKPLACE PERFORMANCE INDEX AND SUMMARY Participating facilities: 28663

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Workplace Conditions Assessment ReportMeasured Results —Improved Performance

Facility Legal Name: Masco Cottons LimitedAudit Location: Redwan Complex, 44 No. Gazipura, Tongi, GazipurCity: Dhaka, BangladeshCountry: BangladeshContact Name: Mr. Tanver AhmedContact Title: Manager, HR, Admin & ComplianceIndustry: Apparel

Facility Name: Masco Cottons Ltd.A. FACILITY PROFILEA1. FACILITY INFORMATION

Security systems inplace:

Yes The premises security and the guards are posted at entrance and back side of the premises. However all security system have been controlled by CCTV. The total security guard was 26 working in 3 shifts.

Building Description: The facility compound operates in one 8 storied building and two 1 storied pre utility buildings. Building is made of rod cement and concrete and shed is made of brick and tin. The detail layout is as follows: Ground floor: Substation, left over storage, Child care, Doctor’room and office, prayer and rest room, , fire hydrant room, fabric storage.1st floor: Accessories and general storage, separate staff dining and employees dining. 2nd to 5th floor: Sewing, finishing and packing section. 6th floor has cutting and cut panel. 7th floor has corporate office. Roof top is fully vacant. Shed 1: Generator, compressor, and boiler.Shed-2: Waste materials storeThere are 2(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.Special building type: NA

Facility Legal Status: Privately ownedYear facility began operations:

2011Located in special economic zone:

NoPerson responsible for overall social compliance issues:

Mr. Tanver Ahmed- Manager, HR, Admin & ComplianceValid certificatefor social compliance certification program:

NoneVendor Name: Team Sourcing Co Ltd.


Workplace Conditions Assessment ReportNr. F_IAR_38399Masco Cottons Ltd.

Languages spoken in the facility:

Bangla as local language and English as official language.Management and employees speak same language :

Yes

Female Employees: 1315 Male Employees: 438 Mgmt Employees: 253 Production (Non-Management) Employees: 1500 Local Employees: 1753 Foreign/Migrant Employees: 0

A3. EMPLOYEE INFORMATIONRange of total number of employees at the facility:

1001-5000 employeesUnion name: None Employs juvenileworkers:

None Employee nationalities/provinces:

All are Bangladeshi.Hires throughemployment agent:

No Facility did not hire any employee through employment agent.

A2. PRODUCTION INFORMATIONChemicals or hazardous materialson-site:

Yes Acetone, spot lifter 833.

Time recordsystem(s) used:

Swipe Card system

Current production/Services for client:

Yes

Products manufactured/Services provided:

All types of knit itemsProduction process/Service elements:

Cutting, sewing , finishing and packing.Production capacity a week: 275,000 piecesTotal number of machines: 1996 setsMain machine types: Plain machines, overlock, feed of the arm, kansai, button stitch, button hole, flat lock, chain stitch, lock stitch, bartack, cloth cutter, needle detector, spreading, irons etc.Shifts andOperating hours:

The employees of the facility work in one shift from 8:00 am to 5:00 pm with 1 hour lunch break in two shifts from 12:45 pm to 1:45 pm and 1:15 pm to 2:15 pm . The employees work from Saturday to Thursday. Friday is their weekly holiday



Subcontractor# : 1SubContractor Name: Fair Design Printing Ltd Address: Chanpara, Bashon Sharok, GazipurContact Name: Mr. Sayed HossainTelephone: +88-01711530017Email Address: [email protected] Type: Subcontractor provides finished goodsProcess subcontracted: PrintingSocial Audits performed: Yes Type of Social Audits: WCAPrivate label items: No

Subcontractor# : 2SubContractor Name: ARK Washing Ltd Address: B-10, BSCIC Industrial Area, Tongi, GazipurContact Name: Mr. Zahidul HaqueTelephone: +88-01711530017Email Address: [email protected] Type: Subcontractor provides finished goodsProcess subcontracted: WashingSocial Audits performed: Yes Type of Social Audits: WCAPrivate label items: No

A4. SUBCONTRACTOR INFORMATION



A5. GENERAL INFORMATIONThis is a annual audit at Masco Cottons Ltd. The facility is situated at Redowan complex, 44 no Gazipura, Tongi, Gazipur, Bangladesh and started its operation in March 2011. Total land area of the facility is about 43986 square feet and production area is 210188 square feet. The facility produces garments knit items. The total employee of the facility is 1753 with 1315 female employees and 438 male employees including 253 non-production employees. In practice and as per management interview, the facility uses this unit to produce garments knit items for different buyers. Currently, the facility’s production capacity is 1100000 pieces per month. The location of child care room of facility found at ground floor of the facility building. There is 1(one) eight storied building and two single storied prefabricated shed buildings in the premises. The building is concrete structured, floor details of it described under building description section. The employees work from Saturday to Thursday in a week. General working hour is 8:00 am to 5:00 pm with one hour with 1 hour lunch break was given in to two shifts ,from 12:45 pm to 1:45pm and from 1:15 pm to 2:15 pm. Employees’wages are calculated on a monthly basis. Based on facility tour, facility GM interview, delivery challan and production records review, it was noted that facility has no printing and embroidery, wash process within the facility premise. Currently the facility has production for client as 30% of their production volume. The facility management showed a positive attitude to this audit. All documentation requested for review was provided timely. Facility management was highly cooperative and agreed with the issues raised during the audit. Facility currently using two sub-contracting facilities for printing and washing purposesEmergency Preparedness SummaryBased on plant tour, documents review and management interview, overall emergency preparedness of the facility found as: Facility has 3 stairways for evacuation. Each room has two or more exits. At the time of 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. Facility has a valid hospital contract with nearest hospital for the emergency treatment of the employees. 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 08 June 2018. Facility conducts fire drill in every month. Last fire drill (evening) was taken place on 29 July 2018 with 1201 participants and took 3:25 minutes to evacuate all the employees. Last full fire drill was taken place on 07 June 2018 with 1838 participants and took 3:42 minutes to evacuate all the employees. Facility has 5 electricians, among them 5 are certified, who inspects the electrical wiring, DB board, bus bar in weekly basis. Facility has 386 trained fire fighters who are trained from Fire Service and Civil Defense Authority. Facility has 130 fire fighters with 16 first aid boxes. Facility has total 307 ABC type fire extinguisher, 90 CO2 type fire extinguisher, 2 foam type fire extinguisher, 24 hose reel cabinet, 125 blanket, 88 bucket, 34 bucket stand, 58 fire hook, 56 fire beater, 116 helmet, 130 gas mask, 130 hand gloves, 25 lock cutter, 29 water drum, 24 gong bell, 20 fire alarm, 272 smoke detector, 26 manila rope, 117 exit sign, 60 emergency light, 115 gum boot, 5 fire apron, 7 fire suit, 130 safety belt, 22 stretcher, 67 fire shovel, 23 hammer, 21 fog light, 33 emergency stair light, 21 visual fire alarm, 38 PA system, 2 breathing apparatus,12 flash light etc. Fire alarm switches were found near every exit and different areas of the manufacturing floor. Facility has water reservoir at roof top capacity 10000 litters. Facility has a system to check all electrical installation regularly by the designated electrical engineer of the facility.



A6. AUDIT PROCESS

Payroll and attendance records sampling

Period From To Peak Season Records ReviewedCurrent Period 01-06-2018 30-06-2018 No 30 Period 1 01-03-2018 31-03-2018 No 10 Period 2 01-12-2017 31-12-2017 No 10 Total 50

Employee interview samplingIndividual 30Group 2 groups of 5 membersTotal interviewed 40Audit pay period provided for review

Records From To12 Months Payroll 01-07-2017 30-06-201812 Months Attendance 01-07-2017 30-06-2018Special Comments Not applicable

Personnel records Machine maintenance recordsSecurity log book Production recordsNon-Production records Employment contractsLegal Permits Social insurance documentationEmployee leave register Infirmary logsHealth examination records

Other records reviewed

Other : All policy



B. KEY PERFORMANCE METRICSB1. COMPARISON BENCHMARKCurrent performance —Global average, Bangladesh average, Apparel average

Labor Wages & Hours Health & Safety Management Systems Environment

Advancers DeclinerConstant

Section NameCurrent

(02-Aug-2018)

Last (18-Sep-2017)

First (12-Jun-2014)

Change(Current-Last)

Change(Current-First)Labor 100 96 93 4 % 7 %Wages & Hours 100 100 50 0 % 100 %Health & Safety 84 100 47 -16 % 78 %Management Systems 93 93 57 0 % 63 %Environment 100 100 54 0 % 85 %

Overall Score 92 98 56 -6 % 64 %

B2. PERFORMANCE TREND ANALYSIS

(02-Aug-2018) (18-Sep-2017) (12-Jun-2014)


PERFORMANCE RATING

Very Low (0% –50%) Low (51% –70%) High (85% –100%)Medium (71% –84%)


International Standard: 60 Bangladesh average: 55 Highest hours this facility: 55 Last Audit average: 52

Normal Work Hours Overtime Work Hours B3. WORKING HOURS AND WAGES

55

Average total hours worked weekly

Average wages paid in local currency (B D T (Bangladeshi Taka))



Special wage circumstances: As per Bangladesh Government Gazette 2013, December, 5Grade-1Pattern Master: Basic salary- Tk. 8500, House rent- Tk. 3400, Medical- Tk. 250, Conveyance allowance 200, food allowance 650 Total- Tk. 13000.00Grade-2 Senior Mechanic: Basic salary- Tk. 7000, House rent- Tk.2800, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.10900.00 Grade-3 Sample Machinist: Basic salary- Tk. 4075, House rent- Tk.1630, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.6805 Grade-4 Sewing machine operator: Basic salary- Tk. 3800, House rent- Tk. 1520, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.6420.00Grade-5 Junior Sewing machine operator: Basic salary- Tk. 3530, House rent- Tk.1412, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.6042.00Grade-6 General sewing machine operator: Basic salary- Tk. 3270, House rent- Tk.1308, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.5678.00Grade-7 Assistant sewing machine operator: Basic salary- Tk.3000, House rent- Tk. 1200, Medical- Tk. 250, Conveyance allowance 200, food allowance 650, Total- Tk.5300.00Wages and hours summary: Based on employee’s time card, salary sheet review and employees & management interview, it was noted that:a. General working hour is 08.00 am to 05.00 pm with one hour lunch break 12:45 pm to 1:45 pm and 01:15 pm to 02:15 pm.b. The facility remains open on Saturday to Thursday and Friday is weekly holiday for employees. c. Employee’s wages are calculated on a monthly basis.d. Electronic swipe card is used for time recording system.e. All the employees have fixed rated wages.f. Facility has working hour policy and social benefits policy where facility mentioned working hours should be maintain as per local law. Note as per government gazette notification regarding working hours a facility can do 4 hours overtime in a day and 24 hours overtime in a week with the consent of employees which is valid till 17 October 2018. h. Facility has working hour policy and social benefits policy where facility mentioned working hours should be maintained as per local law.i. Facility provided yearly increment, maternity benefit, service benefit, annual leave encashment to eligible employees j. Weekly average general working hour found 32.20, 46.40 & 43.80 hours in the sample 3 Months of June 2018, March 2018 and December 2017 respectively.m. Weekly average overtime was found 4.60, 9.40 & 9.60 hours in the sample 3 Months of June 2018, March 2018 and December 2017 respectively.n. Facility deducted for unauthorized absent from their basic wages. o. Employees were given attendance bonus as best practice of the p. The payment cycle is from 1 to 30/31 of a month and salary is paid within 7 working days of the following month. Last salary was paid on 5 July 2018 for the month of June 2018.



100%C1. Labor

Sub Section: Freedom of AssociationStatus Findings % Global freq of

compliance

Corrected 86.00 : Previous Non-Compliance : Work representatives within the facility are not freely elected without management interferenceAuditor's comment Participation Committee was formed by election on 25 October 2017. Total PC member is 18 ( Management side 8 and Worker side 10 ). Last PC committee meeting was conducted on 01 August 2018.

96%

100%C2. Wages & Hours

C. PERFORMANCE DETAILSCurrent (02-Aug-2018) Last (18-Sep-2017)


PERFORMANCE RATING



84%C3. Health & Safety

Sub Section: Emergency PreparednessStatus Findings % Global freq of

compliance

Moderate 181.03 : Fire Hydrants or equivalent water source in the facility are not adequate for the nature of operations in terms of sufficient quantity, correct type and validAuditor's comment Based on site tour and management interview it was noted that the fire hydrant/hose reel was found non-functional throughout the facility due to installation of fire pump negative to positive suction is in progress.In accordance with Bangladesh Labor Rules 2015, Section 55(15)A water reservoir having the capacity of minimum 5000 liters has to be arranged in each institute and the reservoir must remain filled with water and it should remain attached with Hose Reel. Above all, the water reservoir should not put too much pressure upon the structure of the building:

91%

Sub Section: Machine SafetyStatus Findings % Global freq of

compliance

Moderate 223.00 : Points of operation and other potentially dangerous parts are not operated with proper machine safeguardsAuditor's comment Based on facility visit it was noted that Needle guards was found displaced with approximately 10% of sewing machines; eye guard with approximately 20% of over lock & flat lock machines in sewing section located 2nd floor of facility building.Bangladesh Labour Law 2006, Chapter VI, Safety, Section 63 (1)d 3 and Labor Rules 2015, Section 64(2)In every establishment the following shall be securely fenced by the safeguards of substantial construction which shall be kept in position while the part of machinery required to be fenced are in motion or in use, namely-d. Unless they are in such positions or of such construction as to be as safe to every person employed in the establishment as they would be if they ware securely fenced-iii) every dangerous part of any machinery. 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.

84%


PERFORMANCE RATING



Sub Section: Safety HazardsStatus Findings % Global freq of

compliance

Moderate 235.00 : Not all special equipment operators (forklift, cargo lift, boiler operator, electrician, hot work e.g. boring and welding, confined space work, energy isolation, line opening etc) are licensed where applicableAuditor's comment Based on documents review and management interview it was noted that the facility has no licensed boiler operators. Facility has one boiler operators who have applied to concern authority for boiler operator license on 01-07-2018.Bangladesh Labor Rules 2015, Section 58(9), The Boilers Act, 1923, Section-6, Factory Rules 1979, Section 46 (9)The duty of electric wiring and keeping the same cannot be given any other persons accept the person certified from the government or the company approved by the government. Save as otherwise expressly provided in this Act, no owner of a boiler shall use the boiler or permit it to be used—where the Govt. has made rules requiring that boilers shall be in charge of persons holding certificates of competency, unless the boiler is in charge of a person holding the certificate required by such rules. No person under 18 years of age and no person who is not sufficiently trained and reliable shall be employed as driver of a lifting machine whether driven by mechanical power or otherwise or to give signals to the driver.

79%


PERFORMANCE RATING



93%C4. Management Systems

Sub Section: Management SystemsStatus Findings % Global freq of

compliance

Corrected 292.00 : Previous Non-Compliance : A formal Health & Safety committee has not been established at the facilityAuditor's comment Facility has formed a safety Committee as per rules. 94%

Corrected 296.03 : Previous Non-Compliance : 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 implementedAuditor's comment Based on document review, facility visit, employee and management interview, the facility has comprehensive processes and procedures in a written manual to support the implementation of Employment practice

82%

Minor 296.06 : The facility has comprehensive emergency preparedness processes and procedures in a written manual that support adherence to social compliance requirements but they are not all being properly implementedAuditor's comment Based on document review, facility visit, employee and management interview, the facility has comprehensive processes and procedures in a written manual to support the implementation of the emergency preparedness procedures but all that not properly implemented as fire hydrant/hose reel was found non- functional throughout the facility.

65%

Minor 296.07 : 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 implementedAuditor's comment Based on document review, facility visit and management interview, the facility has comprehensive processes and procedures in a written manual to support the implementation of the employee safety procedure like occupational injury, machine safety and safety hazards but all that not properly implemented as approximately 10% of sewing machines; eye guard with approximately 20% of over lock & flat lock machines in sewing section located 2nd floor of facility building and facility has no licensed boiler operators.

53%


PERFORMANCE RATING



100%C5. Environment

% Global Frequency of Compliance: Represents the implementation percentage performance of all suppliers participating in the WCA Community globally for each issueIdentification numbers: Represents the finding ID associated with each checklist question

RECOMMENDATION FOR IMPROVEMENT PLAN TIMELINEMinor Take action within 0 ~ 6 months to make necessary improvements. Major : Take action within 0 ~ 1 month to make necessary improvements.Moderate: Take action within 0 ~ 3 months to make necessary improvements. Zero Tolerance: Take immediate action to make necessary improvements.


PERFORMANCE RATING



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

D. STRENGTHS AND CHALLENGES

Challenges: Facility performance ranks in the bottom percentile of the population Rating Global Freq. of Compliance%Fire Hydrants or equivalent water source in the facility are not adequate for the nature of operations in terms of sufficient quantity, correct type and valid Moderate

91%Points of operation and other potentially dangerous parts are not operated with proper machine safeguards Moderate84%Not all special equipment operators (forklift, cargo lift, boiler operator, electrician, hot work e.g. boring and welding, confined space work, energy isolation, line opening etc) are licensed where applicable Moderate79%The facility has comprehensive emergency preparedness processes and procedures in a written manual that support adherence to social compliance requirements but they are not all being properly implemented Minor65%

Facility Strengths: Facility performance ranks in the top percentile of the population and/or has implemented a best practice process

tiRatingng

Global Freq. of Compliance%Total overtime hours are within allowable limits under applicable law or agreement. Moderate 47%The facility has comprehensive working hour and wages management processes and procedures in a written manual that support adherence to social compliance requirements and are being properly implemented Minor 50%

The facility provides social security, pensions, healthcare and/ or other insurance to employees as per legal requirement. Moderate 57%

Total working hours during the period specified by the waiver are within allowable limits under the waiver. Moderate 58%



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