Académique Documents
Professionnel Documents
Culture Documents
09/06/2014 (dd/mm/yyyy)
Country:
Nicaragua
ISIC:
Data Sets:
3891, 6617
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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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Better Work
Compliance Assessment Report
Supplier Name:
Supplier Address:
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
1. Summary of findings
Compliance cluster
Contracts and Human
Resources
Compliance point
Issue
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
Working Environment
Overtime
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Page 3 of 25
Question
Answer
Q2
Q3
No
Q4
Q5
Q6
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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
Q48
Q49
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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.
Q52
Q53
Q54
Q55
Q56
Q57
Q58
Q59
Q60
Q61
Q62
50
Q63
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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
Q154
Q155
Q156
Q157
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
Q161
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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.
2.
3.
4.
5.
Q164
Q165
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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
No
Q200
Q201
Copyright Better Work on date of publication This publication contains confidential, proprietary and privileged information intended solely for the use, in whole
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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
Q70
Management
Union
Worker
Other
Documentation
Finding
Interview
Observation
Supporting Information
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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 10 of 25
Q203
Supporting Information
Q204
Supporting Information
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
Union
Management
Legal C170; Ministerial Standard on OSH in the Garment FTZ Arts. 108, 109,
Reference 110, 123
Documentation
Interview
Observation
Finding
Other
Worker
Union
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
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Page 11 of 25
Q218
Issue Annual free health checks for workers who are exposed to work-related
hazards
Other
Worker
Union
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
Q223
Supporting Information
Union
Worker
Other
Management
Documentation
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
Supporting Information
Other
Worker
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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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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
Worker Protection
Q245
Other
Worker
Union
Documents checked: List of PPE provided to workers during the last two
months, purchase order of PPE.
Management
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
Supporting Information
Other
Worker
Union
Management
Documentation
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
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
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Page 13 of 25
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
Method of Payment
Q17
Supporting Information
Interview
Worker
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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
Union
Management
Documents checked: Pre- payroll for July 2013 and January 2014, Payroll
for April July 2013 and January, April 2014
Documentation
Observation
Finding
Page 14 of 25
Compensation
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
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
Q46
Question Does the employer keep only one accurate payroll record?
Supporting Information
Interview
Management
Union
Worker
Other
Documentation
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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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 15 of 25
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
Union
Management
Documentation
All workers who work for the factory have an individual work contract.
Interview
Observation
Finding
Supporting Information
Q210
Supporting Information
Interview
Q214
Question Are emergency exits and escape routes clearly marked and posted in the
workplace?
Interview
Other
Emergency Preparedness
Worker
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
Documentation
Yes. One of the hand sanding routes had a temporary signalization due to
remodelation.
Supporting Information
Observation
Finding
Other
Emergency Preparedness
Worker
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
Documentation
Yes. The hand sanding department was not updated due to remodelation.
Observation
Finding
Q217
Supporting Information
Interview
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authenticity of the report if received through any other means.
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
Documentation
The employer has conducted two evacuation drills in the last twelve
months.
Observation
Finding
Page 16 of 25
Q226
Question Has the employer done an initial industrial hygiene risk assessment, a risk
map, and annual risk assessments?
Management
Union
Worker
Other
Documentation
Interview
Observation
Finding
Supporting Information
Q233
Question Does the employer investigate work-related accidents and indicate the
technical recommendations necessary to prevent them?
Other
Union
Worker
Management
Documentation
Interview
Observation
Finding
Supporting Information
Legal Law 618 on OSH Art. 30; Ministerial Standard on OSH in the Garment FTZ
Reference Art. 29
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
Documentation
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
Supporting Information
Observation
Finding
Other
Overtime
Worker
Working Time
Union
Management
Documentation
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
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authenticity of the report if received through any other means.
Other
Management
Documentation
Interview
Observation
Finding
Supporting Information
Page 18 of 25
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authenticity of the report if received through any other means.
Page 19 of 25
Working Conditions
Child Labour
1. Child Labourers
2. Unconditional Worst Forms
3. Hazardous Work
4. Documentation and Protection of Young Workers
2.
Discrimination
3.
Forced Labour
9. Coercion
10. Bonded Labour
11. Forced Labour and Overtime
12. Prison Labour
4.
Freedom of Association
and Collective Bargaining
5.
Compensation
6.
7.
8.
Working Time
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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.
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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%
0%
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Page 22 of 25
Cluster
# of NC
compliance
points
Total # of
compliance Non-compliance
points
rate
Compensation
0%
25%
63%
Working Time
33%
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Page 23 of 25
Date of previous
assessment
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%
1/4
25.00%
2/4
50.00%
28.70%
5/8
62.50%
6/8
75.00%
76.85%
Working Time
1/3
33.33%
0/3
0.00%
35.80%
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Page 24 of 25
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