Fair Labor Association

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[Type text] 
 
 
 
 
  
2009 
FAIR LABOR ASSOCIATION  
INDEPENDENT EXTERNAL MONITORING REPORT   
 
For an explanation on how to read this report, please visit the FLA website here. 
 
COMPANY: SanMar 
COUNTRY: Vietnam 
FACTORY CODE: 650084139H 
MONITOR: Global Standards 
AUDIT DATE: August 26-27, 2009 
PRODUCTS: Apparel 
PROCESSES: Cutting, Sewing, Finishing 
NUMBER OF WORKERS: 1314 
 2 
 
 
CONTENTS:  
 
Freedom of Association: Right to Freely Associate___________________________________________ 3 
Code Awareness:_____________________________________________________________________ 4 
Health and Safety: Evacuation Requirements and Procedure __________________________________ 5 
Health and Safety: Ventilation/Electrical/Facility Installation and Maintenance____________________ 6 
Health and Safety: Machinery Maintenance and Worker Training ______________________________ 7 
Health and Safety: Other - Health and Safety _______________________________________________ 8 
 
  
 3 
 
 
Freedom of Association: Right to Freely Associate  
FOA.2 Workers, without distinction whatsoever, shall have the right to establish and, subject only to the 
rules of the organization concerned, to join organizations of their own choosing without previous 
authorization. The right to freedom of association begins at the time that a worker seeks employment, 
and continues through the course of employment, including eventual termination of employment, and 
is applicable as well to unemployed and retired workers. (S) 
 Noncompliance 
 
Explanation:  FLA comment: Vietnam has not ratified ILO Conventions 87 or 98. Under Vietnamese 
law, all unions are required to affiliate with the single trade union, the Vietnam General 
Confederation of Labor (VGCL), which is affiliated with the Communist Party. With 
respect to such union monopolies, the ILO Committee on Freedom of Association has 
stated that the rights of workers to establish organizations of their own choosing implies 
. . . the effective possibility of forming . . . [trade unions] independent both of those 
which exist already and of any political party. Vietnam's legal framework is therefore not 
compatible with the ILO Principles on Freedom of Association and, as such, all factories 
in Vietnam fail to comply with the FLA Code standard on Freedom of Association.  
Plan Of 
Action:  
SanMar acknowledges that labor relations in Vietnam do not meet core ILO standards. 
We have discussed the matter with factory management and respect that they follow 
the current local law and industrial practices of Vietnam concerning Freedom of 
Association and the establishment of employee unions. SanMar remains supportive of 
legal and program initiatives by global organizations such as the ILO, non-governmental 
organizations and other multi-stakeholder initiatives working to raise awareness of good 
labor practices in Vietnam. In addition, we have requested that factory management 
establish an independent worker committee to function as a grievance channel as well 
as to represent workers in other employment related matters. The committee 
representatives shall be elected by the workers without interference by management.  
Deadline 
Date:  
12/31/2009  
Action 
Taken:  
SanMar has started engagement with a partnership between the ILO and IFC working to 
improve standards based on ILO labor standards and the national laws of Vietnam. The 
meetings have been recent and introductory at this stage, and we are working on 
communications and other means to gain support for their work in Vietnam. Similarly, 
we encouraged all vendors to participate in recent FLA 3.0 meetings in Vietnam and 
approximately 9 vendors participated in initial meetings. We are following up in the next 
weeks with additional communications to vendors on both these programs to support 
engagement on the part of vendors.  
 4 
 
 
Plan 
Complete:  
 
Plan 
Complete 
Date:  
 
 
 
 
Code Awareness:  
GEN.2 Ensure that all Company factories as well as contractors and suppliers inform their employees 
about the workplace standards orally and through the posting of standards in a prominent place (in the 
local languages spoken by employees and managers) and undertake other efforts to educate employees 
about the standards on a regular basis. 
 Noncompliance 
 
Explanation:  It was noted that company codes were posted, but worker awareness of the codes and 
regulations on laws and union activity was generally low. Orientation training was 
conducted for all new workers on the 1st day of employment. The training contents 
include labor regulations, wages and benefits, code of conduct, HSE. There is no regular 
refresher training. The amount of time allowed for the review of code elements was 
short. A worker handbook was provided but few workers took the time to read it.   
Plan Of 
Action:  
In addition to orientation training currently provided by management, refresher training 
shall be provided to all existing employees at least annually. Such training will reinforce 
awareness of local laws, union, factory regulations and SanMar's Global Operation 
Principles, giving special attention to changes during the year. Training records shall be 
documented.  
Deadline 
Date:  
01/31/2010  
Action 
Taken:  
 
Plan 
Complete:  
 
Plan 
Complete 
Date:  
 
 
 5 
 
 
 
Health and Safety: Evacuation Requirements and Procedure  
H&S.9 All applicable legally required or recommended elements of safe evacuation (such as posting of 
evacuation plans, the installation and maintenance of an employee alarm and emergency lighting 
systems, ensuring aisles/exits are not blocked and that workers are not blocked within their 
workstations, employee education, evacuation procedures, etc.) shall be complied with. Workers shall 
be trained in evacuation procedures. Alarm systems shall be regularly tested and evacuation drills shall 
be undertaken at least annually. (S)  
 Noncompliance 
 
Explanation:  From walkthrough: The fire detectors in warehouses were not connected to a central 
alarm control panel. These smoke detectors were battery operated consumer units. 
During the interview with management, there was a low awareness of risks in the 
material storage area and fire safety standards.  
Law: National standards TCVN 5738:2000 Automatic fire alarm system technical 
requirements. The automatic fire alarm system must include, at least, control center, fire 
detectors, manual alarm buttons, connectors and power source.  
Plan Of 
Action:  
The factory has been asked to connect the smoke detectors to a central alarm control 
panel. A staff representative shall be assigned to inspect all fire fighting equipment, 
including smoke detectors, at least once a week to ensure they are functioning at all 
times. Inspection records shall be documented.  
Deadline 
Date:  
11/30/2009  
Action 
Taken:  
 
Plan 
Complete:  
 
Plan 
Complete 
Date:  
 
 
 
 
 
 6 
 
Health and Safety: Ventilation/Electrical/Facility Installation and Maintenance  
H&S.17 All necessary ventilation, plumbing, electrical, noise and lighting services shall be installed and 
maintained to conform to applicable laws and in such a manner as to prevent or minimize hazardous 
conditions to workers in the facility. (S) 
 Noncompliance 
 
Explanation:  According to document review, a test of ground connection and 0 connection of 
electrical equipment has not been conducted. During the interview with management, it 
was observed that there was low awareness of legal requirements on electrical safety, so 
factory did not conduct grounding test.  
Law: National standards TCVN 4756-89 Electrical equipment in dangerous areas is 
inspected 1 time per year.  
Plan Of 
Action:  
The factory has been asked to conduct the ground connection test of all electrical 
equipment at least once a year and maintain the test report, as per legal requirement.  
Deadline 
Date:  
12/31/2009  
Action 
Taken:  
 
Plan 
Complete:  
 
Plan 
Complete 
Date:  
 
 
 
 
 
 
 
 
 
 
 7 
 
Health and Safety: Machinery Maintenance and Worker Training  
H&S.18 All production machinery, equipment and tools shall be regularly maintained and properly 
guarded. Workers shall receive training in the proper use and safe operation of machinery, equipment 
and tools they use. Employers shall ensure safety instructions are either displayed/posted near all 
machinery or are readily accessible to the workers. (S)  
 Noncompliance 
 
Explanation:  From document review: The factory lacks a safety inspection permit for the electric 
forklift.  
From the factory walkthrough: The top shelves of the fabric warehouse were not safely 
accessible with a forklift. During the interview with management, it was observed that 
the management has low awareness of legal requirements. In addition, the management 
does not closely monitor forklift safety practices. From worker interviews, it was found 
that workers use the forklift to reach materials boxes on the top shelves and to maintain 
fire detectors.  
Law: Circular 04/2008/TT-BLDTBXH Machines, equipment and supplies subject to strict 
labor safety requirements must be registered and verified before being put into use.  
Plan Of 
Action:  
The factory is requested to register the electric forklift and maintain the safety 
inspection permit per legal requirement. Electric forklift safety operation awareness 
training shall be provided to the forklift operators to ensure all operational practices are 
strictly followed. Training records shall be documented. The factory shall assign a 
warehouse staff/manager to monitor the use of the electric forklift properly.  
Deadline 
Date:  
12/31/2009  
Action 
Taken:  
 
Plan 
Complete:  
 
Plan 
Complete 
Date:  
 
 
 
 
 
 
 8 
 
Health and Safety: Other - Health and Safety  
Other 
 Noncompliance 
 
Explanation:  External environmental monitoring is not conducted regularly, as required by law and 
mentioned in the Environmental Impact Assessment Report. From management 
interview, it was observed that there was low awareness of legal requirements, so the 
factory did not conduct external environmental monitoring regularly.  
Law: Law on environmental protection (52/2005/QH11)  
Plan Of 
Action:  
The factory has been asked to conduct external environmental monitoring at least once 
a year and to maintain the relevant monitoring report per legal requirement.  
Deadline 
Date:  
12/31/2009  
Action 
Taken:  
 
Plan 
Complete:  
 
Plan 
Complete 
Date:  
 
 
 
 
 
 
 
 


Tracking Report 2009 SanMar, Vietnam 650084139H

https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=3774&amp;context=globaldocs

Tracking Report 2009 SanMar, Vietnam 650084139H

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