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Assessment date:

09/06/2014 (dd/mm/yyyy)

Country:

Nicaragua

ISIC:

C (Manufacturing) - 14 (Manufacture of wearing apparel)

Data Sets:

3891, 6617

Compliance Assessment Report


Kaltex Argus S.A
10/07/2014 (dd/mm/yyyy)

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Better Work
Compliance Assessment Report
Supplier Name:

Kaltex Argus S.A

Supplier Address:

Shell Guapinol 1.8 km al Norte.

GPS Coordinates:

N/A

Assessment date:

09/06/2014 (dd/mm/yyyy)

Previous assessment(s):
Total number of assessment
reports (including this one):

13/02/2013

(dd/mm/yyyy)

This compliance report includes information about this factorys compliance performance at the time of
the Better Work assessment. The key compliance results are explained in more detail on the following
pages.
The findings presented in this report provide indication of changes in the factorys level of compliance
since Better Works initial assessment of the facility.

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Page 2 of 25

Table of Contents

1. Summary of findings

2. Factory and visit information


3. Detailed findings
4. Annex 2 - Non-compliance rates
5. Annex 3 Better Work Assessment, Advisory and Training Process

1. Summary of findings

Table 1 Summary of findings

Compliance cluster
Contracts and Human
Resources

Compliance point

Issue

Dialogue, Discipline and


Disputes

Bullying, harassment or humiliating treatment of


workers

Occupational Safety and Chemicals and Hazardous Labelling of chemicals and hazardous substances
Health
Substances
Storage of chemicals and hazardous substances
Training workers who work with chemicals and
hazardous substances
Health Services and First Annual free health checks for workers who are
Aid
exposed to work-related hazards
First-aid training for workers

Working Time

Welfare Facilities

Workplace cleanliness

Worker Protection

Providing workers with personal protective clothing


and equipment

Working Environment

Workplace noise levels

Overtime

Limits on overtime hours worked

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Page 3 of 25

2. Factory and visit information


The following table includes general information on the factory and information on the assessment
process integrity.
Table 2 Factory and visit information
Q#
Q1

Question

Answer

Provide the titles of the management staff interviewed.


1. Maria Elena Bendana, Human Resources Manager
2. Ana Brown, OHS Manager.
3. Rosa Esteban Urbina Miranda, Environmental
Management.
4. Fabian Franklin Melendez Obando, Legal Advisor.
5. Abel Gomez Estrada, Payroll Assistant.
6. Fernando Gonzalez, OHS

Q2

Q3

Was the assessor's access to the enterprise unreasonably


restricted?

No

How many person days were spent on the assessment visit?


4

Q4

Were documents provided in a timely manner?


Yes

Q5

How many workers/ union leaders/ worker representatives


were interviewed?

A total of 30 workers were interviewed:


10 Union Leaders
8 Pregnant Workers
12 Workers

Q6

Describe any significant concerns about process integrity.


None

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or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
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Page 4 of 25

Q#
Q7

Question

Answer

Key strengths
The factory implements good practices, and grants extra
benefits to workers. The most important of these being:
1. There is a Cooperative offering access to benefits for workers
and their dependents (featuring items such as: an interest-free
loan plan available to all members of the cooperative, school
supplies for children with favorable prices and payment terms,
among others).
2. The factory complies with the Free Zone Tripartite Agreement
regarding the sale of subsidized basic food items to workers at
better rates than those available in the market in terms of price,
payment terms and products.
3. activities of health promotion eg: Health Week
4. Bonus for assistance
5. Access to a medical clinic inside the workplace.
6. Program to reduce the use of chemicals in the production
process
7. The employer implements an open door policy and workers
are able to communicate well with the Human Resources
department.
8. Financial aid if a worker dies or family.
9. Financing Medical exams that are not covered by Social
Security Institute.

Q8

Briefly describe the interviews with workers, union leaders, and


worker representatives.
A total of 30 workers were interviewed, including: 15 women /
15 men. Group: 3, Individual: 20. Responses were given
spontaneously. The interviews were conducted in the eating
area. The selection was made randomly from different areas of
the factory, taking into account job positions, risk, gender
equity, hierarchy and other inclusive criteria.

Q48

How many of the administrative staff are men?


95

Q49

Has the factory received any notices of non-compliance from


the labour ministry during last twelve months?

The factory has received 2 inspection inspections from the


Ministry of Labor (MITRAB) during the last twelve months.
1. The first inspection was on 14 March 2014, in order to
investigate the causes of the incident 12 and March 13, 2014 in
the area of small parts, where workers perceived an unpleasant
oil odor. According to the investigation, the root cause of the
incident was a fault in the welding of the inner pipe of the air
compressor.
2. The factory received a notice of non-compliance from the
Ministry of Labor (MITRAB) on January 21 2014 . The noncompliance points were:

workers receive training on electrical hazards.

The sound pressure level is not within normal


parameters

Documents checked: Special Inspection, Re-inspection


conducted from MITRAB during the last twelve months.

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or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
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Page 5 of 25

Q#
Q50

Q51

Question
Does the factory use subcontractors to complete all or part of
the production process?
Does the factory use contractors to provide services at the
factory that are not part of the production process?

Answer
The factory declared a printing subcontractors : IRENESA,S.A.

The factory declared two contractors: SECUR,S.A. which


provides security services and Comedor Claudia Maria which
provide catering service.
Documents checked: Contract for security services between
SECUR,S.A and Kaltex Argus, S.A

Q52

How many probationary workers are employed by the factory?


0

Q53

How many of the probationary workers are men?


0

Q54

How many total workers are employed by the factory?


1752

Q55

How many of the workers are men?


1025

Q56

How many administrative staff are employed by the factory?


117

Q57

How many of the total workforce are migrant workers?


0

Q58

How many of migrant workers are men?


0

Q59

How many temporary workers are employed by the factory?


0

Q60

How many of the temporary workers are men?


0

Q61

Q62

How many workers with disabilities are employed by the


factory?

50

How many of the workers with disabilities are men?


25

Q63

Does the factory have all required licenses?


1. CNZF (National Free Zone Commission): CNZF-161-01-14
2. DGI (Taxes Administration Register): The factory has a current
RUC-J310000108552
3. MITRAB (Ministry of Labor): The OSH license of the factory it
is in the process of being updated.
4. MARENA (Ministry of Environmental and Natural Resources):
The factoty has a document related to compliance with
environmental authorization number DGCA-HEU-C030-02-2010

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or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
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Page 6 of 25

Q#
Q85

Question
Does the factory employ the legally required proportion of
disabled workers?

Answer
The factory provided a list of 40 people with disabilities, defined
as such by the management's criteria. While the national
legislation requires a percentage of 2% of disabled workers
within workforces, this factory has 2.2% workers with
disabilities.
Workers with disabilities still do not have any certifications or
identification documents issued by the Ministry of Health, which
is the relevant authority for certifying disabilities and issuing
corresponding ID cards to identify workers with disabilities.
Document checked: Disabled workers list provided by the
factory.

Q86

Q153

Have all accommodations required by national law been made


for disabled persons?

The factory has made some accommodations required by


national law for people with disabilities.

For how long is each agreement in force?


The Collective Bargaining Agreement (CBA) is in force for two
years, from January 07, 2014 to January 07, 2016.

Q154

How many of the strikes were legal?


0

Q155

How many of these strikes resulted in some form of violence?


0

Q156

Q157

How many collective bargaining agreements are in effect in the


factory?

How many active unions are there in the factory?


5

Q158

How many strikes have there been since the last visit?
0

Q159

How many total days were workers on strike since the last visit?
0

Q160

How many person days were workers on strike?


0

Q161

Why did workers go on strike?


0

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or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
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Page 7 of 25

Q#
Q162

Q163

Question
For each active union, provide
the name of the union,
the number of union members,
the union's affiliation status (affiliated or non-affiliated with a
federation or confederation),
the name of the federation or confederation with which it is
affiliated, if applicable.

Answer

1.

Sindicato Carlos Fonseca Amador, 25 members


approximately. The Union is affiliated to the Central
Sandinista de Trabajadores (CST-ZF).

2.

Sindicato Cesar Augusto Sandino, 25 members


approximately. The Union is affiliated to the Central
Sandinista de Trabajadores (CST-ZF).

3.

Sindicato Ernesto Che Guevara, 25 members


approximately. The Union is affiliated to the Central
Sandinista de Trabajadores (CST-ZF).

4.

Autonomo, 150 members approximately. The Union is


affiliated to Central Sandinista de Trabajadores Jose
Benito Escobar (CST-JBE).

5.

Esfuerzo de todos, 100 members approximately. The


Union is affiliated to Confederacion de Unificacion
Sindical(CAUS).

What percentage of workers are union members?


34%

Q164

Who are the parties to each agreement?


The parties are:
For the employer:
1. Manolo Guerra Raven - Chief Financial Officer, Kaltex Argus,
S.A.
2. Roberto Bequillar Elizonso - Executive Director, Kaltex Argus,
S.A.
3. Franklin Melendez Obando - Legal Adviser, Kaltex Argus, S.A.
For the workers:
1. Lorenzo Lopez Bojorge- General Secretary of Union Ernesto
Che Guevara (CST)
2. Victor Raul Gutierrez Gutierrez- Organization Secretary of
Union Ernesto Che Guevara (CST).
3. Jose Luis Bonilla, General Secretary of Union Augusto C.
Sandino (CST).
4. Rigoberto Ramirez Obando- General Secretary of Union Carlos
Fonseca Amador (CST).
Document checked: Agreemento in force from April 07, 2012 to
April 07, 2014.

Q165

What percentage of the workforce is covered by each collective


agreement?
100%

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or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
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Page 8 of 25

Q#
Q197

Question
How many work-related accidents have there been in the
factory in the last 12 months?

Answer
The employer reported 155 work-related accidents between
March 2013 and April 2014. 87 of these occurred in the
workplace, while the other 68 were commuting accidents. Most
of the work-related accidents at the workplace were caused by
sharp tools and unsafe use of machines.
Documents: Checked: Accident Record from May 2013 to May
2014.

Q198

Q199

Does the employer provide overnight accommodation for


workers?

No

Do workers use the machines and equipment safely?


Yes

Q200

Q201

Do workers use the personal protective equipment that is


provided?

Most of the workers in the factory use the protective personnel


equipment (PPE) provided to them.

Does the factory have a written Occupational Safety and Health


(OSH) policy?
The factory does not have a written OSH policy.

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Page 9 of 25

3. Detailed findings
The following section presents the checklist items for which Enterprise Advisors have recorded
comments. It includes all non-compliance findings as well as compliance findings that have comments.
The non-compliance findings are identified by the orange column on the lefthand side.
i) Non-compliance findings
Contracts and Human Resources

Dialogue, Discipline and Disputes

Q70

Issue Bullying, harassment or humiliating treatment of workers

Management

Union

Worker

Other

During the assessment, the assessors obtained information from different


sources about verbal abuse to which workers from the finished product
department are subject to. The complaints and comments include 4
technical supervisors and two heads from the same department. The
verbal abuse consists of shouting at workers in public in a degrading
manner. Management is already taking actions on this matter.

Documentation

Finding

Interview
Observation

Question Have any workers been bullied, harassed, or subjected to humiliating


treatment?

Supporting Information

Legal Constitution Arts. 26, 36; Labor Code Art. 17


Reference

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Page 10 of 25

Occupational Safety and Health

Chemicals and Hazardous Substances

Q203

Issue Labelling of chemicals and hazardous substances

Supporting Information

Question Are chemicals and hazardous substances properly labelled?

Q204

Issue Storage of chemicals and hazardous substances

Supporting Information

Question Are chemicals and hazardous substances properly stored?

Other

Interview
Other

Worker

Union

Management

Documentation

Two workers from chemical warehouse who handle chemicals have not
had training on safe storage, handling, use and disposal of, chemicals and
hazardous substances in the workplace.

Supporting Information

Observation

Finding

Q208

Issue Training workers who work with chemicals and hazardous substances
Question Has the employer effectively trained workers who work with chemicals
and hazardous substances?

Worker

Chemicals and Hazardous Substances

Union

Occupational Safety and Health

Management

Legal C170; Ministerial Standard on OSH in the Garment FTZ Arts. 108, 109,
Reference 110, 123

Documentation

In one of the racks of the laundry department, small containers of diesel,


thinner and oil used to give maintenance to the racks of this department
were found.

Interview
Observation

Finding

Other

Worker

Chemicals and Hazardous Substances

Union

Occupational Safety and Health

Management

Legal C170; Law 618 on OSH Arts. 37, 111, 147; Ministerial Standard on OSH in
Reference the Garment FTZ, Art 151; OSH Regulation Art. 11 (b); Ministerial
Statement Hygiene and Safety Work on Prevention and Fire fighting in
the Workplace Art. 36, 37

Documentation

Two containers of aproximately one liter each with ink used by the by
numerators of the cutting department were not properly labeled during
the assessment.

Observation

Finding

Interview

Documents Checked: Training Records during the last 12 months.


X

Legal Law 618 on OSH Arts. 19, 20, 21,22


Reference

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Page 11 of 25

Occupational Safety and Health

Health Services and First Aid

Q218

Issue Annual free health checks for workers who are exposed to work-related
hazards

Other

Worker

Union

Document checked: Summary of pathologies periodic medical conducted


on January and July 2013.

Management

The employer had medical check-ups for 160 workers in the last twelve
months, but not for all workers exposed to work-related hazards.

Documentation

Finding

Interview
Observation

Question Do workers who are exposed to work-related hazards receive annual free
health checks?

Supporting Information

Legal C148, R177, R156; Law 618 on OSH Arts. 23-25; Ministerial Standard on
Reference OSH in the Garment FTZ , Art. 13(7)
Occupational Safety and Health

Health Services and First Aid

Q223

Issue First-aid training for workers

Supporting Information

Question Has the employer provided first-aid training for workers?

Union

Worker

Other

Management

Documents checked: Training Records as follows: First Aid training for 20


workers during the last twelve months, 25 employment files.

Documentation

First-aid training was provided for under 2% (20/1090) of the total


workforce. Better Work Nicaragua recommends that first-aid training be
provided once per year, for at least the 10% of the total workforce,
including workers in charge of the first aid boxes and women and men
from all areas.

Observation

Finding

Interview

Legal R177; Law 618 on OSH Art. 21; Ministerial Standard on OSH in the
Reference Garment FTZ Art. 8(L)
Occupational Safety and Health

Welfare Facilities

Q240

Issue Workplace cleanliness

Supporting Information

Question Is the workplace clean and tidy?

Other

Worker

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Union

Management

Legal Law 618 on OSH Arts. 80, 81; Ministerial Standard on OSH in the Garment
Reference FTZ Arts. 72-75

Documentation

During the assessment it was observed that some areas such as cutting
and sewing area were not clean and were disorganized. The management
informed assessors that this situation is due to the re-adaptation of the
areas.

Observation

Finding

Interview

Page 12 of 25

Occupational Safety and Health

Worker Protection

Q245

Issue Providing workers with personal protective clothing and equipment

Other

Worker

Union

Documents checked: List of PPE provided to workers during the last two
months, purchase order of PPE.

Management

The employer provides workers with all necessary personal protective


clothing and equipment (PPE) in most areas, but workers who operate
the biomass boiler (2 workers per shift) do not have the proper protective
equipment, such as safety glasses, work clothes, vapor and smoke masks,
earplugs or earmuffs.

Documentation

Finding

Interview
Observation

Question Does the employer provide workers with all necessary personal
protective clothing and equipment?

Supporting Information

Legal Law 618 on OSH Arts. 134, 138; Ministerial Standard on OSH in the
Reference Garment FTZ Arts. 138-142
Occupational Safety and Health

Working Environment

Q257

Issue Workplace noise levels

Supporting Information

Question Are the noise levels acceptable?

Other

Worker

Union

Management

Documentation

During the assessment, assessors conducted measurements in different


areas of the factory using technical equipment. It was found that the
noise in some areas was higher than allowed by national legislation (85
db). These areas included: around the overlock sewing machines and the
ironing area. The employer has provided hearing protections for workers
from ironing area.

Observation

Finding

Interview

According to the law, when workers are exposed to noise that exceeds 85
Db, for more than 8 hours, they should use earplugs or earmuffs.
Legal C148; Law 618 on OSH Art. 121; Ministerial Standard on OSH in the
Reference Garment FTZ Arts. 96-98
Working Time

Overtime

Q266

Issue Limits on overtime hours worked

Supporting Information

Question Is overtime limited to three hours per day and nine hours per week?

Union

Worker

Other

Management

Documents checked: Documents checked: Payroll for April July 2013 and
January, April 2014, working time records for the last twelve months.

Documentation

Daily working hours are from 7:00 A.M. to 4:30 P.M. from Monday to
Friday. The assessors found that workers from finished products in July
and October 2013 worked more that 9 hours per week, which exceeds
the weekly legal limit.

Observation

Finding

Interview

Legal Labor Code Arts. 58, 59


Reference

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Page 13 of 25

ii) Additional factory specific information


Child Labour

Child Labourers

Q9

Question Have you found any workers under the age of 14?

Supporting Information
Interview
Management

Union

Worker

Other

Documentation

Assessors did not find any workers under the age of 14 and reviewed
employment records showed that all workers in the factory are age 18 or
older.

Observation

Finding

Documents checked: 10 Employment files.


Legal C138; Constitution Art. 71; Convention on the Rights of the Child Art. 32
Reference (2); Labour Code Art. 131; Children and Adolescents Code Art. 73
Compensation

Method of Payment

Q17

Question Are workers' full wages paid in the manner required?

Supporting Information
Interview
Worker

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Other

Union

Legal Labor Code Art. 86


Reference

Management

Documents checked: Pre- payroll for July 2013 and January 2014, Payroll
for April July 2013 and January, April 2014

Documentation

Wages are paid in legal national currency, into individual personal


checking accounts, and ATMs are available at the workplace.

Observation

Finding

Page 14 of 25

Compensation

Minimum Wages/Piece Rate Wages

Q22

Question Does the employer pay piece rate workers correctly for regular hours of
work?

Other

Worker

Management

Union

Documentation

The employer pays piece rate wages correctly for regular hours of work.
Even if workers do not produce the required number of pieces in the
quota, they do receive the equivalent of the minimum wage. Payments
are made weekly and through bank deposits.

Interview
Observation

Finding

Supporting Information

Documents checked: Payroll for April July 2013 and January, April 2014
X

Legal Labor Code Art. 83; Free Trade Zone Tripartite Agreement, January 20,
Reference 2010

Compensation

Minimum Wages/Piece Rate Wages

Q24

Question Does the employer pay at least minimum wage for regular hours of work
to regular full time workers?

Management

Union

Worker

Other

Documentation

The employer pays the monthly legal minimum wage for ordinary
working hours to workers in all areas of the factory, which is C$3,708.91
(for 2013) and C$ 4004.64 for 2014, equivalent to approximately US$155.
The employer also pays an additional amount based on production.

Interview
Observation

Finding

Supporting Information

Documents checked: Payroll for April July 2013 and January, April 2014
Legal Labor Code Art. 82; Free Trade Zone Tripartite Agreement, January 20,
Reference 2010

Compensation

Wage Information, Use and Deduction

Q46

Question Does the employer keep only one accurate payroll record?

Supporting Information
Interview
Management

Union

Worker

Other

Documentation

The employer has a single payroll record that shows payments to


workers, who are provided with pay stubs. The payroll specifies: The
worker's code, production hours, regular hours, total hours, minimum
wage, overtime, total overtime, vacations, holidays, holidays worked,
bonuses, seventh days, payment adjustments, subsidies, accrued totals,
INSS (social security), INSS patronal (% employer pays to social security),
union deductions, meal deductions, others, deductions for the
cooperative, Total deductions, viaticum and Net pay.

Observation

Finding

Documents checked: Payroll for April July 2013 and January, April 2014
Legal Labor Code Arts. 17(l), 91
Reference

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Page 15 of 25

Contracts and Human Resources

Employment Contracts

Q74

Question Do all persons who perform work for the factory, both on the premises
and offsite, have a contract?

Other

Emergency Preparedness

Worker

Occupational Safety and Health

Union

Legal Labor Code Art. 23


Reference

Management

Documents checked: 10 Employment files

Documentation

All workers who work for the factory have an individual work contract.

Interview
Observation

Finding

Supporting Information

Q210

Question Has the employer elaborated and implemented an emergency plan?

Supporting Information
Interview

Q214

Question Are emergency exits and escape routes clearly marked and posted in the
workplace?

Interview
Other

Emergency Preparedness

Worker

Occupational Safety and Health

Union

Legal Law 618 on OSH Arts. 93, 185; Ministerial Standard on OSH in the
Reference Garment FTZ Art. 33; NTON 22 001-04 on Fire Protection Art. 10.2

Management

Documents checked: Evacuation Map, photo taken during the assessment


and lay-out.

Documentation

Yes. One of the hand sanding routes had a temporary signalization due to
remodelation.

Supporting Information

Observation

Finding

Other

Emergency Preparedness

Worker

Occupational Safety and Health

Union

Legal Law 618 on OSH Art. 74, 179; Ministerial Standard on OSH in the
Reference Garment FTZ Art. 31; NTON 22 001-04 on Fire Protection Art 4.1; NTON
22 003-10 on Fire Protection Emergency Plans Arts. 6 , 7

Management

Document checked: evacuation map.

Documentation

Yes. The hand sanding department was not updated due to remodelation.

Observation

Finding

Q217

Question Does the employer conduct periodic emergency drills?

Supporting Information
Interview

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Other

Worker

Union

Legal Law 618 on OSH Art. 21; Ministerial Standard on OSH in the Garment FTZ
Reference Art. 32; NTON 22 003-10 on Fire Protection Emergency Plans Art. 7.3

Management

Documents checked: Evacuation drill report of firefighters from


10/18/2013 and 04/05/2014

Documentation

The employer has conducted two evacuation drills in the last twelve
months.

Observation

Finding

Page 16 of 25

Occupational Safety and Health

OSH Management Systems

Q226

Question Has the employer done an initial industrial hygiene risk assessment, a risk
map, and annual risk assessments?

Management

Union

Worker

Other

Documentation

The factory carried out its industrial hygiene risk assessment.


However, the risk map needs to be published and disseminated to
all workers.

Interview
Observation

Finding

Supporting Information

Document checked: Initial industrial risk assessment in February


2013
Legal Law 618 on OSH Art. 18(4,5), 114, 115; Ministerial Standard on OSH in
Reference the Garment FTZ Art. 5

Occupational Safety and Health

OSH Management Systems

Q233

Question Does the employer investigate work-related accidents and indicate the
technical recommendations necessary to prevent them?

Other

Union

Worker

Management

Documents: Checked: Accident Record from May 2013 to May 2014

Documentation

Although the factory investigates work-related accidents, the Joint OSH


Committee is not collaborating in these investigations. In addition, most
of the technical recommendations only refer to disciplinary measures.
The main purpose of technical recommendations is to prevent the
accidents from occurring again, and as every accident is different, the
same recommendations will likely not serve to avoid them.

Interview
Observation

Finding

Supporting Information

Legal Law 618 on OSH Art. 30; Ministerial Standard on OSH in the Garment FTZ
Reference Art. 29

Occupational Safety and Health

OSH Management Systems

Q235

Question Does the factory require contractors and sub-contractors to comply with
OSH standards?

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or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Other

Worker

Union

Legal Law 816 on OSH Arts. 33, 35; Ministerial Standard on OSH in the Garment
Reference FTZ Arts. 8(,o), 10,11, 12

Management

Commitment letter from SECUR S.A. and Training Participation letter.

Documentation

Documents checked: Contract signed between Security Service SECUR,.


S.A. and the factory.

Interview
Observation

Finding

Supporting Information

Page 17 of 25

Working Time

Leave

Q259

Question Does the employer provide 15 days of annual leave to workers for every
six months of continuous service in the factory?

X
Q268

Question Does the employer obtain prior authorization to work overtime from the
Ministry of Labor when required?

Interview
Management

Union

Worker

Other

Documentation

There is an agreement between the 5 existing Unions and the Employer


of this Factory to work overtime. Management stated that it obtained
verbal authorization from the Ministry of Labor.

Supporting Information

Observation

Finding

Other

Overtime

Worker

Working Time

Union

Legal C132; Constitution Art. 82(5); Labor Code Art. 76


Reference

Management

Document checked: program of annual leave for Easter week 2014.

Documentation

Management programs annual leave according to production schedules.

Interview
Observation

Finding

Supporting Information

Documents checked: Payroll for April July 2013 and January, April 2014,
working time records for the last twelve months. Special Agreements
Legal Labor Code Arts. 58, 59
Reference
Working Time

Regular Hours

Q275

Question Does the employer provide a weekly rest day after six consecutive days of
work?

Union

Worker

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Other

Management

Legal Constitution Art. 85(5); Labor Code Art. 64


Reference

Documentation

Documents checked: Documents checked: Payroll for April July 2013


and January, April 2014, working time records for the last twelve
months.

Interview
Observation

Finding

Supporting Information

Page 18 of 25

4. Annex 2 - Non-compliance rates


Better Work carries out factory assessments to monitor compliance with international core labour
standards and national labour law. Better Work highlights non-compliance findings and reports these
figures to help factories easily identify areas in need of improvement. Collecting and reporting these data
over time will help factories demonstrate their commitment to improving working conditions.
Better Work organizes reporting into eight areas, or clusters, of labour standards. Four of the clusters are
based on fundamental rights at work and four are based on national labour law
relating to working conditions.
Core labour standards: Adopted in 1998, the ILO Declaration on Fundamental Principles and Rights at
Work commits Member States to respect and promote principles and rights in four categories, whether
or not they have ratified the relevant Conventions. These categories are: freedom of association and the
effective recognition of the right to collective bargaining, the elimination of forced labour, the abolition
of child labour, and the elimination of discrimination in respect of employment and occupation. The
relevant ILO Conventions from which the 1998 Declaration derives29, 87, 98, 105, 100, 111, 138, and
182provide the framework for assessing non-compliance in the core labour standards clusters across
all Better Work country programmes.
National labour law: The four other clusters monitor compliance with standards primarily set by national
law, so they vary from country to country. This set consists of compensation, contracts and human
resources, occupational safety and health, and working time.
Each of the eight clusters is divided into its key components, known as compliance points. Each of
these compliance points contains specific questions that may vary from country to country. The detailed
list of compliance points appears in the table below. Table 3 presents all 38 compliance points that are
the basis for Better Work's assessment protocol. Depending on national labour law certain compliance
points may not be covered.

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Page 19 of 25

Working Conditions

Core Labour Standards

Table 3 Detailed list of all Better Work compliance points


Compliance Clusters
Compliance Points
1.

Child Labour

1. Child Labourers
2. Unconditional Worst Forms
3. Hazardous Work
4. Documentation and Protection of Young Workers

2.

Discrimination

5. Race and Origin


6. Religion and Political Opinion
7. Gender
8. Other Grounds

3.

Forced Labour

9. Coercion
10. Bonded Labour
11. Forced Labour and Overtime
12. Prison Labour

4.

Freedom of Association
and Collective Bargaining

13. Union Operations


14. Interference and Discrimination
15. Collective Bargaining
16. Strikes

5.

Compensation

17. Minimum wages


18. Overtime wages
19. Premium Pay
20. Method of Payment
21. Wage Information, Use and Deduction
22. Paid Leave
23. Social Security and Other Benefits

6.

Contracts and Human


Resources

24. Employment Contracts


25. Contracting Procedures
26. Termination
27. Discipline and Disputes

7.

Occupational Safety and


Health

28. OSH Management Systems


29. Chemicals and Hazardous Substances
30. Worker Protection
31. Working Environment
32. Health Services and First Aid
33. Welfare Facilities
34. Worker Accommodation
35. Emergency Preparedness

8.

Working Time

36. Regular Hours


37. Overtime
38. Leave

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Page 20 of 25

On the basis of this classification, Better Work calculates a factorys non-compliance rate, which consists
of the number of compliance points found to be violated by the factory at a given time, as a percentage of
the total number of compliance points within a cluster. A compliance point is found to be violated if even
one question is found in non-compliance. The non-compliance rate is useful for Better Work to aggregate
and compare data across countries.
The following two graphs present non-compliance rates for Core Labour Standards clusters and Working
Conditions clusters.

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Page 21 of 25

Current (as at 09/06/2014) non-compliance rates for core labour standards clusters:

Cluster

# of NC
compliance
points

Total # of
compliance Non-compliance
points
rate

Child Labour

0%

Discrimination

0%

Forced Labour

0%

Freedom of Association and Collective


Bargaining

0%

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Page 22 of 25

Current (as at 09/06/2014) non-compliance rates for working conditions clusters:

Cluster

# of NC
compliance
points

Total # of
compliance Non-compliance
points
rate

Compensation

0%

Contracts and Human Resources

25%

Occupational Safety and Health

63%

Working Time

33%

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Page 23 of 25

Table 4 Non-compliance counts and rates


Date of most recent
assessment

Date of previous
assessment

Programme industry rate,


as at:

10/07/14
(dd/mm/yyyy)

05/04/13
(dd/mm/yyyy)

10/07/2014
(dd/mm/yyyy)

Count/(total
CPs)

Rate

Count/(total
CPs)

Rate

Rate

Compensation

0/6

0.00%

0/6

0.00%

13.58%

Contracts and Human Resources

1/4

25.00%

2/4

50.00%

28.70%

Occupational Safety and Health

5/8

62.50%

6/8

75.00%

76.85%

Working Time

1/3

33.33%

0/3

0.00%

35.80%

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Page 24 of 25

5. Annex 3 Better Work Assessment, Advisory and Training Process

Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
or in part, of those with explicit written permission from Better Work. This report may only be distributed by Better Work. Better Work cannot guarantee the
authenticity of the report if received through any other means.

Page 25 of 25

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