PROGRESS REVIEW OF CORRECTIVE ACTION

PLAN
OF BSCI AUDIT
Chapter Subchapter CAP Responsible
Person
Overview Implementation CAP Status
B.1.
Management
Practice
B.1.2. B.1.2 Observed that no BSCI Code of Conduct Posted at
factory premises and not socialize to all employees ;
confirmed through employees interview, none of the workers
recognize The BSCI Code of Conduct Required by BSCI
Standard B.12 B.1.2 Recommendation; It's recommended to
management to ensure that all employees recognize the
BSCI Code of Conduct
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was observed that BSCI
Code of Conduct Posted at
factory premises and also
socialize to all employees.
Training record availbale for
review.
Corrected
B.1.5. There is no senior management representative has been
appointed to ensure that the BSCI requirements are applied
within the company Required by BSCI Standard B.1.5
Recommendation; It's recommended to management to
appointed a senior member of management who responsible
that all BSCI requirements are applies within company .
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that management
already appointed senior
manager which responsible for
BSCI requirement. The
appointment letter available for
review.
Corrected
B.1.7. Noted during document review, employees interview and
management discussion found there is no Bipartite Institution
Organization which has been approved by Labor office and
no evidence that two way-communication meeting take place
between management and workers conducted regularly
(minimum twice per year) Required by BSCI Standard B.1.8
and Manpower minister decree No. 255 / 2003, article 16:
Bipartite forum activity shall be reported periodically in every
6 (six) months to authorized body at City/Municipal
manpower area It is recommended that factory shall
establish The Bipartite Institution and keep the evidence of
two - way communication meeting between management and
workers regularly at least 2(two) times per year as required
by BSCI.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
As observed that facility
already have bipartite
cooperation institution and
approval letter from local labor
bureau available for review.
However, bipartite minutes of
meeting still not availbale for
review. As per Mr Max
Pangkey, the minutes of
meeting will be conducted
within 1 week (maximum 1
week of May 2014).
Partially
corrected
B.1.8. B.1.8 Noted during document review, employees interview
and management discussion found there is no satisfatory
evidence that factory has functioning and transparet system
in place that guarantee workers can address complaints in
confidential manner and receive a proper follow up within a
reasonable period time. Required by BSCI standard B.1.8
Recommended: It is recommended that factory shall
establish the functioning and transparent system in place
which guarantee workers can address complaints in
confidential manner and receive a proper follow up within a
reasonable period time.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
As observed that sms and
suggestion boxes already
available onsite as the method
of grievance way to
management. Grievance
procedure also available.
Corrected
B.1.9. Noted during document review and management discussion
found here is no satisfactory evidence that the company has
a functioning and transparent anti-corruption/ anti-bribery
system in place for all business activities. Required by: BSCI
Requirement B.1.9 Recommendation: it's recommended to
factory management to ensure that that the company has a
functioning and transparent anti-corruption/ anti-bribery
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
Based on document review, a
functioning and transparent
anti corruption or anti bribery
system already established
onsite and procedure also
available for review.
Corrected
B.2.
Documentation
B.2.1. Noted during document review Found : 1) 2 out of 3 forklifts
were not certified by labor office 2) Lightning instlallation has
not certified by labor office Required by BSCI Standard and
Labor Minister Regulation No. PER-05/MEN/1985, regarding
the use of freight / forklift, article 134 stated that the freight /
forklift usage is subjected to legalize by relevant authority.
Labor minister regulation Per.05/MEN/1985 regarding lifting
and carrying instrument article 4, stated that freight / forklift
must be operated with operator with ability and skill of freight
lift. Labor Minister Regulation No. PER.02/MEN/1989, Article:
50.2(c), stipulated: lightning protector installation shall be
checked and tested periodically every two year. Article 57.1,
stipulated: every lightning protector installation shall be
completed with certificate from the relative minister or other
appointed official. Recommended: It is recommended that
factory shall apply forklift certificate and lightning conductor
installation certificate to labor office.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
As observed that management
already submit inspection
request letter to local labor
bureau and certification letter
still on going process.
Corrected
B.2.3. Noted during document review, employees interview and
management discussion found: 1. All of daily casual workers
were not retain the copy of employment agreement. 2. The
employment agreements were not endorse to local labor
office 3. The length of periode of employment agreement for
daily casual workers up to 12 months instead of 20 days
Required by BSCI Standard B.2.3 and Labor Act No.13/2003,
regarding the Employment Relation, chapter IX article 54.3
stated that a work agreement shall be made in 2 (two)
counterparts which have the same legal force, 1 (one) copy
of which shall be kept by the entrepreneur and the other by
the worker/ labourer. The Decision of Minister of Labor
Indonesia No. Kep Men 100 / VI / 2004 article 13
Employment contract should be registered in local labor
office at least 7 (seven) days after its signed Manpower
MInister Decree No. 100/2004, article 10: (1) For certain work
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that daily casual
workers were retaining the
copy of employment
agreement.However, the
employment agreement still
not endorsed to local labor
bureau.
Partially
corrected
B.2.5. Found there is no satisfactory evidence such as training
materials, training attendance list, training schedule,
assignment of trainer, photo and date of training can be
provided during audit as evacaution training, fire fighting
training, chemicals handling training, first aid training and
PPE training has been conducted regularly in the factory.
Required by BSCI Standard clause B.11.2.1 and Found there
is no satisfactory evidence such as training materials,
training attendance list, training schedule, assignment of
trainer, photo and date of training can be provided during
audit as evacaution training, fire fighting training, chemicals
handling training, first aid training and PPE training has been
conducted regularly in the factory. Required by BSCI
Standard clause B.11.2.1 and Found there is no satisfactory
evidence such as training materials, training attendance list,
training schedule, assignment of trainer, photo and date of
training can be provided during audit as evacaution training,
fire fighting training, chemicals handling training, first aid
training and PPE training has been conducted regularly in the
factory. Required by BSCI Standard clause B.11.2.1 Found
there is no satisfactory evidence such as training materials,
training attendance list, training schedule, assignment of
trainer, photo and date of training can be provided during
audit as evacaution training, fire fighting training, chemicals
handling training, first aid training and PPE training has been
conducted regularly in the factory. Required by BSCI
Standard clause B.11.2.1 and Labor Minister Regulation No.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
Based on document review,
evacuation drill and fire drill
training had been conducted
by the facility. Complete
records also available for
review. However, chemicals
handling training, first aid
training and PPE training still
on going process. Maximum
1st week of May 2014 will be
conducted.
Partially
corrected
B.3. Working
Hours
B.3.2. Noted during time card record review found that regular
working hours of supervisor up to 45 hours per week instead
of maximum 40 hours per week as regulated. Required by
BSCI and Labor law No.13/2003 Article 77 (1) Every
entrepreneur is obliged to follow the working hours
regulation. (2) The working hours mentioned on subsection
(1) covers: a. 7 (seven) hours 1 (one) day and 40 (forty)
hours 1 (one) week for 6 (six) working days within 1 (one)
week; or b. 8 (eight) hours 1 (one) day and 40 (forty) hour 1
(one) week for 5 (five) working days within 1 (one) week.
Recommended: It is recommended that factory shall ensure
the regular working hours in the factory maximum 40 hours
per week
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that start from
May 2014 the regular working
hours fr supervisor is 40 hours
per week. This implementation
will be monitored by Mr Max
Pangkey.
Corrected
B.4.
Compensation
B.4.2. Noted during document review, employees interview and
management discussion found that contract employees were
not provided with , annual leave, and not paid during national
holiday and sick leave Required by BSCI and Labor Act No.
13/2003 article 65 (4) The protection and employment
conditions provided to workers/ labourers at the other
enterprise as mentioned under subsection (2) shall at least
the same as the protection and employment conditions
provided at the enterprise that commissions the contract or in
accordance with the prevailing laws and regulations. Article
79.1 Entrepreneurs are under an obligation to allow their
workers to take a rest and leave. Article 93(4) stated wage
which be paid toward the employee/labor be not included job
in the same manner as mentioned at paragraph (2c) as like:
Employee/labor is marriage, paid for during 3 (three) days;
Married off his/her child, paid for during 2 (two) days;
Circumcise his child, paid for during 2 (two) days; Baptize
his/her child, paid for during 2 (two) days; Wife give birth or
miscarriage, paid for during 2 (two) days; Husband/wife,
parent/parent in law, or child or daughter in law is pass away,
paid for during 2 (two) days; and Family member in the 1
house is pass away, paid for during 1 (one) day. Labor Act
No.13/2003 regarding wages, paragraph 2 article 93.2 (a),
stated that Wage still have to be paid if the employee/labor is
sick. Article 93.3 stated Sick leave is paid as follow: for the
first 4 months paid 100% of salary; for the second 4 months
paid 75% of salary; for the third 4 months paid 50% of
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that contract
employees will be provided
with leave and paid during
national holiday start from May
2014
Not
Corrected
B.4.9. Noted during payroll record review employees interview and
management discussion found Factory overtime rate / hour :
65,000.00 x 0.15 = IDR 9,750.00 instead of from monthly
wages (basic salary + Fixed allowance) / 173 = IDR
1,900,000.00 / 173 = IDR 10,982.65. Required by BSCI and
Manpower Minister Decree No. 102/MEN/VI/2004. Article 11,
the calculation of overtime rate per hour work: Weekdays :
1st hour 150%, next succeeding hours 200% Rest days: 1st
hours up to 7th hour 200%, 8th hour 300%, next succeeding
hour 400% Holidays: 1st hours up to 7th hour 200%, 8th
hour 300%, next succeeding hour 400% The regular hourly
wage shall be calculated as follows: Monthly paid (basic
wage plus fixed allowance) employees x 1/173
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
As observed that start from
May 2014 overtime rate per
hour will be changed follow the
regulation as monthly wages
(basic salary + Fixed
allowance) / 173 = IDR
1,900,000.00 / 173 = IDR
10,982.65. This
implementation will be
monitored by Mr Max Pangkey.
Corrected
B.11.
Occupational
Health and
Safety (OHS)
B.11.1.1. Risk
Assessment
and Monitoring
There is no satisfactory evidence that risk assessment for
safe, healthy and hygienic working condition has been
properly carried out. Required by BSCI B.11.1.1
Recommendation; It's recommended to health and safety
team to create in written mechanism for risk assessment
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
The factory already have
Hazard identification and risk
assessment procedure in
place.
Corrected
B.11.1.2. Risk
Assessment
and Monitoring
Noted there is no risk assessment mechanism for pregnant
woman and particularly vulnerable employees establish in
the factory. Required by BSCI Standard B.11.1.2
Recommendation; It's recommended to the factory to ensure
that risk assessment for pregnant woman and vulnerable
employees establish.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that protection of
pregnant employees and
assessment procedure already
available for review.
Corrected
B.11.1.3. Risk
Assessment
and Monitoring
Found there is no satisfactory evidence that transmittable
and non-transmittable diseases are particularly regarded in
the risk assessment. Required by BSCI Standard B.11.1.3
Recommendation: It's recommended to management to
create and monitor the implementation of their risk
assessment.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
Currently, the facility already
have hazard identification risk
assessment procedure. The
procedure including
transmittable and non-
transmittable diseases
Corrected
B.11.1.4. Risk
Assessment
and Monitoring
Found there is no evidence that factory takes serious
measures to avoid endangering workers health by work
processes or the working environment. Required by BSCI
Standard B.11.1.4 Recommended : It is recommended that
factory shall provide strong evidence that factory has already
taken serious measures to avoid endangering workers health
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
The factory already have
Hazard identification and risk
assessment procedure in
place.
Corrected
B.11.1.5. Risk
Assessment
and Monitoring
B.11.2.1.
Training
Found there is no satisfactory evidence such as training
materials, training attendance list, training schedule,
assignment of trainer, photo and date of training can be
provided during audit as evacaution training, fire fighting
training, chemicals handling training, first aid training and
PPE training has been conducted regularly in the factory.
Required by BSCI Standard clause B.11.2.1 and Found there
is no satisfactory evidence such as training materials,
training attendance list, training schedule, assignment of
trainer, photo and date of training can be provided during
audit as evacaution training, fire fighting training, chemicals
handling training, first aid training and PPE training has been
conducted regularly in the factory. Required by BSCI
Standard clause B.11.2.1 and Found there is no satisfactory
evidence such as training materials, training attendance list,
training schedule, assignment of trainer, photo and date of
training can be provided during audit as evacaution training,
fire fighting training, chemicals handling training, first aid
training and PPE training has been conducted regularly in the
factory. Required by BSCI Standard clause B.11.2.1 Found
there is no satisfactory evidence such as training materials,
training attendance list, training schedule, assignment of
trainer, photo and date of training can be provided during
audit as evacaution training, fire fighting training, chemicals
handling training, first aid training and PPE training has been
conducted regularly in the factory. Required by BSCI
Standard clause B.11.2.1 and Labor Minister Regulation No.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
Based on document review,
evacuation drill and fire drill
training had been conducted
by the facility. Complete
records also available for
review. However, chemicals
handling training, first aid
training and PPE training still
on going process. Maximum
1st week of May 2014 will be
conducted.
Partially
corrected
B.11.2.2.
Training
Found there os no satisfactory evidence that PPE (Personal
Protective Equipment training has been delivered to
employees who work with hazardous substance. Required by
BSCI Standard B.11.2.3 Recommended: It is recommended
thatf actory shall ensure that PPE (Personal Protective
Equipment ) training delivered to related employees.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that personal
protective training still not
conducted. Training materials
already available for training
preparation. The PPE training
will be conducted maximum
Not
Corrected
B.11.2.3.
Training
There is no satisfactory evidence that PPE training has been
delivered to workers Required by BSCI B.11.2.2
Recommendation; it's recommended factory to ensure that
PPE's training are provide to workers.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that personal
protective training still not
conducted. Training materials
already available for training
preparation. The PPE training
will be conducted maximum
1st week of May 2014.
Not
Corrected
B.11.4.4.
Chemicals
Observe during factory tour found that diesel fuel was stored
without secondary containment and provide spills response
tools Required by BSCI Standard B.11.4.5 recommended: It
is recommended that factory shall provide secondary
containment for diesel fuel storage to ensure that diesel fuel
doesn't leak in to the ground.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that diesel fuel
was stored without secondary
containment and provide spills
response tools.
Not
Corrected
B.11.5.4.
Accident and
Emergency
Procedures
Found there is no sufficient evidence as proof that factory
has conducted corrective action to prevent recurrence of
work related accidents Required by BSCI Standard B.11.5.5
Recommendation: It is recommended to factory to conducted
corrective action to prevent recurrence of work related
accidents and maintain the documentation of it as written
evidence
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that there was
sufficient evidence as proof
that factory has conducted
corrective action to prevent
recurrence of work related
accidents. The corrective
action documents maintained
Corrected
B.11.8.1.
Escape Routes
and
Emergency
Exits
Observe during factory tour found there is no evacuation
Plan posted at all production area with actual position of
viewer and no visible evacuation line with arrow sign as
direction to emergency exit doors at finished goods
warehouse. Required By BSCI Standard B.11.8.2
Recommended: It is recommended that factory shall posted
the evaucation map at each production area with actual
postition of viewer and provide visible evacuation line with
arrow signed as direction to emergency exit doors.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
It was noted that no evacuation
Plan posted at all production
area with actual position of
viewer and no visible
evacuation line with arrow sign
as direction to emergency exit
doors at finished goods
warehouse.
Not
Corrected
B.11.8.2.
Escape Routes
and
Emergency
Exits
Observe during factory tour found there is no evacuation
plans with actual position of viewer posted at each production
area. Required by BSCI Standard Recommended : It is
recommended that factory shall posted the evacuation plan
with actual position of viewer at production floor
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
As observed that still no
evacuation plans with actual
position of viewer posted at
each production area.
Not
Corrected
B.11.8.3.
Escape Routes
and
Emergency
Exits
Observe during factory tour found that stairways and some of
emergency exit doors at production area were not equipped
with illuminate exit sign and emergency light (i.e ;Carton and
Can storage, Changing room (male & Female), Laboratory,
Pre - Cooking, Brain process, Fish meal, workshops )
Required by BSCI Standard B.11.8.3 Recommended : It is
recommended that factory shall ensure that illuminate exit
sign and emergency lights were installed at each emergency
exit doors and stairways. As observed that emergency light
and illuminated exits sign still not installed in packing area.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
Observe during factory tour
found that stairways and some
of emergency exit doors at
production area were equipped
with illuminate exit sign.
However, emergency light still
not properly installed (i.e
;Carton and Can storage,
Changing room (male &
Female), Laboratory, Pre -
Cooking, Brain process, Fish
meal, workshops )
Partially
corrected
B.11.8.4.
Escape Routes
and
Emergency
Exits
B.11.09.1.
Machine and
Vehicle Safety
Observe during factory tour found some of machines were
not equipped with belt cover for protection (I.e : Fish meal
machine, Ice crusher machine) Required by BSCI standard
and egulation of the Minister of Labor No.4/MEN/1985, article
4: All moving part and dangerous part of power equipment
and production machines shall be effectively guarded unless
so located as to prevent any person coming into contact with
them. Recommended: It is recommended that factory shall
ensure that all safety device were installed properly at all
machines.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
As observed that some of
machines had been equipped
with belt cover for protection
(I.e : Fish meal machine, Ice
crusher machine)
Corrected
B.11.09.2.
Machine and
Vehicle Safety
Noted during document review and management discussion
found : 1) 9 out of 9 Forklift operators were not retain forklift
operating license 2 out of 2) 5 out of 8 Boiler operating
license has been expired since January 2004 Required by
BSCi Standard B.11.09.3 and Labor minister regulation
Per.05/MEN/1985 regarding lifting and carrying instrument
article 4, stated that freight / lift must be operated with
operator with ability and skill of freight and lift. Labor Minister
Regulation PER-01/MEN/1988, chapter III regarding
qualifications, article 3(f) stated that operator for boiler shall
graduate the exams from local labor department cq. subunit
maintenance and control. Recommended: It is recommended
that factory shall ensure that all forklift and boiler operating
license were up to dated (Re- New)
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
As observed that management
already submit inspection
request letter to local labor
bureau and certification letter
still on going process.
Corrected
B.11.09.3.
Machine and
Vehicle Safety
Noted during document review Found : 1) 2 out of 3 forklifts
were not certified by labor office 2) Lightning installation has
not certified by labor office Required by BSCI Standard and
Labor Minister Regulation No. PER-05/MEN/1985, regarding
the use of freight / forklift, article 134 stated that the freight /
forklift usage is subjected to legalize by relevant authority.
Labor minister regulation Per.05/MEN/1985 regarding lifting
and carrying instrument article 4, stated that freight / forklift
must be operated with operator with ability and skill of freight
lift. Labor Minister Regulation No. PER.02/MEN/1989, Article:
50.2(c), stipulated: lightning protector installation shall be
checked and tested periodically every two year. Article 57.1,
stipulated: every lightning protector installation shall be
completed with certificate from the relative minister or other
appointed official. Recommended: It is recommended that
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
As observed that management
already submit inspection
request letter to local labor
bureau and certification letter
still on going process.
Corrected
During factory tour, observed that some of electrical panels
in production area (I,e fish skinning area), did not provide
with inner cover and rubber mats.
Law No. 1 of 1970, Article 3.Q: Safety condition shall be
prescribed to prevent shock by electric current.
It is recommended that factory install inner cover for all
electrical panels and provide rubber mats.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
New
Finding
It was noted that 1 fire extinguisher in front of receptionist in
office area was low pressure gauge.
Labor minister regulation PER-04/MEN/1980, regarding
Requirements for the Installation and Maintenance of Light
Fire Fighting Equipment, article 3.b: Safety condition shall be
prescribed by legislative regulation to prevent and reduce the
possibility of fire extinguishe.
It is recommended that all fire extinguisher must in good
condition.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
New
Finding
It was noted that some fire hydrant (ie, outside fish skinning
area) were locked.
Labor minister regulation PER-04/MEN/1980, regarding
Requirements for the Installation and Maintenance of Light
Fire Fighting Equipment, article 3.b: Safety condition shall be
prescribed by legislative regulation to prevent and reduce the
possibility of fire extinguishes.
It is recommended that all fire hydrant must unlocked at all
time.
Mrs. Ivonne S.
Peleh / QA
Manager & Mr.
Max Pangkey,
Msi / HRD
Manager
New
Finding