The FLA uses Tracking Charts to provide the public with information about the compliance situation of individual factories - the specific problems that were found by monitors and the action taken by participating companies in response to the findings. These charts outline the series of events involved in the FLA independent external monitoring (IEM) process. This tracking chart reports on the Gear for Sports factory in Honduras where numerous violations were recorded by auditors on July 31-August 2, 2008

Fair Labour Association

English

The FLA uses Tracking Charts to provide the public with information about the compliance situation of individual factories - the specific problems that were found by monitors and the action taken by participating companies in response to the findings. These charts outline the series of events involved in the FLA independent external monitoring (IEM) process. This tracking chart reports on the Gear for Sports factory in Honduras where numerous violations were recorded by auditors on July 31-August 2, 2008.trackingchart2008_gearforsports_honduras.pdf: 50 downloads, before Oct. 1, 2020

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Tracking Chart 2008 Gear for Sports in Honduras

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FLA Audit Profile 
Factory Code  030329761G 
Country  Honduras 
FLA Affiliate  GFSI, VF, Nordstrom 
Monitor  ALGI 
Audit Date  July 31 – August 2, 2008 
Products  T‐Shirts & Sweatshirts 
Processes  Sewing, embroidery and Screen printing 
Number of Workers  1490 
 
 
 
 
 
 
 
 
 
 
 
FLA Comment: This report was submitted with a corresponding corrective action plan to 
the FLA and was reviewed by FLA staff.  In an effort to improve the effectiveness of 
remediation, the FLA has provided feedback and recommendations to the company, but 
those recommendations are not incorporated in this audit report. Therefore, the report is 
posted in its current state and will be updated once a finalized report has been received. 
 
 
 
 
Table of Findings: 
Wages, Benefits and Overtime Compensation: A. Holidays, Leave, Legal Benefits 
and Bonuses _______________________________________________________ 2 
Wages, Benefits and Overtime Compensation: F. Payment for Al _____________ 3 
Wages, Benefits and Overtime Compensation: I. Premium/Over ______________ 4 
Miscellaneous: A. Code Awareness _____________________________________ 5 
Health and Safety: Q. Ventilation/Electrical/Facility Installation and Maintenance 6 
Hours of Work: F. Time Recording System _______________________________ 7 
030329761G – Honduras: GFSI, VF, Nordstrom 
 
 2
 
Wages, Benefits and Overtime Compensation: A. Holidays, Leave, 
Legal Benefits and Bonuses  
 
WBOT.5 Employers shall provide all legally mandated holidays, leave, benefits and bonuses, such 
as official holidays, annual leave, sick leave, severance payments and 13th month payments, to all 
eligible workers within legally defined time periods. In addition, all leave and bonuses shall be 
calculated correctly. (S)  
 
Audit Date Audit Type  Audit Scope Auditor Score 
08/02/2008 External 
FLA 
Independent 
External 
Monitoring 
ALGI 1 (out of 5) 
 
Explanation: Vacation is provided collectively during the month of December (last 
vacation period was granted from Dec 17 to January 3rd, accumulating a 
total of 14 days of vacation). Employees with over 4 years of service are 
entitled to an additional day. These additional days were worked. Vacation 
is worked by employees who exceed 4 years of service. This is done to 
cooperate with the company needs and to generate additional income for 
the employees in question. Employee Interviews, Document Review Art 
348 mandates a non working period during vacation. 
Plan Of Action: Factory management has been requested to provide workers with more 
than 4 years of service additional vacation days as indicated in the local 
labor laws. The practice of not providing those days should be terminated. 
Workers should be allowed to take vacation days within the established 
period observing local labor laws. 
Deadline Date:   
Supplier CAP: Factory acknowledges the vacation days of all workers. Workers are able 
to take vacation days during the year as needed and also during the 
factory close down during Christmas and Holy Week. If an employee has 
more than 4 years of service they are allowed to take their vacation during 
times of low level production or they can choose to be compensated for 
their vacation days if they choose to work them. 
Supplier CAP Date:   
Action Taken:  
Plan Complete:  
Plan Complete Date:   
Action Verified:   
Action Verified Text:  
Action Verified Date:  
Comments:  
 
 
 
 
 
 
 
 
 
 
 
  
 
030329761G – Honduras: GFSI, VF, Nordstrom 
  
Wages, Benefits and Overtime Compensation: F. Payment for All 
Hours Worked  
 
WBOT.7 Workers shall be paid for all hours worked in a workweek. Calculation of hours worked 
must include all time that the employer allows or requires the worker to work. (S)  
 
Audit Date Audit Type  Audit Scope Auditor Score 
08/02/2008 External 
FLA 
Independent 
External 
Monitoring 
ALGI 1 (out of 5) 
 
Explanation: 1) Mechanics work for two hours (day-off) and prior to the beginning of 
their shift to ensure that machines are operable. These times are not 
computed as time worked. Calculated in payroll.  
2) Unit 700 (Production floor) arrives 10 to 15 minutes prior to the 
beginning of their shift in order to reach production levels that generate 
bonuses. This time is not calculated in payroll.  
3) Three employees were observed working during the last 10 minutes of 
the lunch period. This time is not recorded in any system and it is not 
calculated in payroll. Factory does not ask workers to do this. They do it 
voluntarily to catch up or reach production goals. Mechanics customarily 
perform this kind of activities with no complaints because of their higher 
salary compared to the rest of the workforce. Production Employees: they 
perform voluntary work during their breaks and prior to their shift in order 
to achieve production levels that guarantee additional income. Employee 
Interviews, Document Review Art 326 mandates a rest period of a 
minimum of 30 minutes between shifts. 
Plan Of Action: Factory management has been requested to record and pay all work hours 
in accordance with the local labor law. Factory has been requested to 
ensure a policy in place is enforced for workers to be paid for all hours 
worked. 
Deadline Date:   
Supplier CAP: The factory determined this was happening due to the rotation schedule of 
the factory workers and the scheduling of the mechanics. The rotation of 
all workers and mechanics has been reassessed and this has corrected the 
problem. Workers and mechanics are now only working 4 days per week. 
Factory has a policy not to work anytime before or after the scheduled 
work shift to ensure workers are paid for all hours worked. 
Supplier CAP Date:   
Action Taken:  
Plan Complete:  
Plan Complete Date:   
Action Verified:   
Action Verified Text:  
Action Verified Date:  
 3
Comments:   
 
 
 
 
 
 
 
 
 
  
030329761G – Honduras: GFSI, VF, Nordstrom 
  
  
Wages, Benefits and Overtime Compensation: I. Premium/Overtime 
Compensation  
 
WBOT.10 The factory shall comply with all applicable laws, regulations and procedures governing 
the payment of premium rates for work on holidays, rest days, and overtime. (S) 
t Date Audit Type  Audit Scope Auditor Score 
 External 
FLA 
Independent 
External 
Monitoring 
ALGI 1 (out of 5) 
in an inventory task and approximately 40 employees worked on that day. 
alc ys b e in 
the same way. Facility was not aware of the proper calculation as required 
by law. Employee Intervi ws, D iew Art 339 (Holidays): 
 b sated e e of reg
overtime earned during the im ceding week. Art. 340 states 
at if a holiday is worked, the ust be at 200% over the regular 
Plan Of Action: 
Deadline Date:  
Supplier CAP: 
or 
Supplier CAP Date:  
Action Taken: 
Plan Complete Date: 
 
Audi
08/02/2008
 
Explanation: At least on one occasion, (May 1st 2008, Labor Day) Facility was engaged 
Approximately 20 were hourly employees and their compensation 
consisted in double payment over the regular wage, contrary to the labor 
regulations that mandates averaging the regular and overtime wages 
earned. The c ulation of holiday overtime pay has alwa een don
e
e compen
ocument Rev
 computing th
mediate pre
 payment m
Holidays must averag ular plus 
th
rate and must receive an additional day off. 
Factory has been requested to implement labor law article #339 regarding 
payment of holiday work and to be included in the factory's payroll 
system. 
 
The factory has corrected the issue in the payroll system. In order to 
ensure that this issue does not happen again, they now have an audit
from the government office auditing their payroll. 
 
 
Plan Complete:  
  
 Action Verified:  
ext: 
 Date:
Action Verified T  
Action Verified   
 
 
 4
Comments:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
030329761G – Honduras: GFSI, VF, Nordstrom 
  
Miscellaneous: A. Code Awareness  
 
GEN.2 Ensure that all C mpany factories as well as contractors and suppliers inform their 
employees about the w rkplace standards orally and through the posting of standards in a 
prominent place (in the ocal languages spoken by employees and managers) and undertake other 
efforts to educate emp yees about the standards on a regular basis. 
 
t Date Audit Type  Audit Scope Auditor Score 
08/02/2008 External 
FLA 
Independent 
External 
Monitoring 
ALGI 1 (out of 5) 
factory 
ed of 
eneral code to workers, 
which t ory has by combining 
s c s de of ds in 
their facility. We encourage the factory to develop their own internal 
d e . 
Deadline Date:   
Supplier CAP: he code of conduct is now part of ployee orientation. The factory 
Supplier CAP Date:  
Plan Complete: 
Plan Complete Date: 
o
o
 l
lo
Audi
 
Explanation: PC has communicated Code of obligations to the management. But 
has not communicated this to the workforce. Workers are not inform
the Code at the time of orientation. 
Plan Of Action: Our expectation is for the factory to discuss a g
he fact
various brand
 compiled. 
odes of condu
This will be don
ct or using the 
e either 
trictest co  all bran
regulations an communicat this to workers
new emT
discusses each company code of conduct, as well as WRAP principles and 
FLA Benchmarks. 
 
Action Taken:  
 
  
 Action Verified:  
ext: 
 Date:
Action Verified T  
Action Verified   
 Comments:   
  
a secure communications channel, in a manner appropriate to the culture and 
le Co pany employees and employees of contractors and suppliers to report to 
pliance with the workplace standards, with security that they shall not be 
oing so. 
t Date Audit Type  Audit Scope Auditor Score 
 External 
FLA 
Independent 
External 
Monitoring 
ALGI 1 (out of 5) 
 
ort 
 involved in 3.0 and will continue to improve their grievance 
systems th gh that pro
s a a  whe ers 
can contact GFSI directly. 
te:  
Supplier CAP: e factory has established an ess and hotline that only the HR 
anager and the President have  where employees can voice 
 5
 
situation, to enab
GEN.3 Develop 
m
the Company on nonco
iced for d
m
punished or prejud
 
Audi
08/02/2008
Explanation: There is no secure communications channel to enable employees to rep
to the PC about noncompliance at the workplace. 
Plan Of Action: We encourage the factory to develop its own internal grievance systems. 
This factory is
rou
and it include
cess. 
 local phone n
Our code of conduct
umber and e-m
 is posted in 
il address
the factory 
re work
Deadline Da  
Th
M
 e-mail addr
access to
030329761G – Honduras: GFSI, VF, Nordstrom 
concerns. Any concerns are addressed by management within 24 hours. 
Every 2 years an internal opinion survey is administered to employees. If 
 
te:  
Plan Complete: 
Plan Complete Date: 
the results of the indicators fall below 70%, the survey is conducted every
6 months. The last survey was conducted in 2008. Concerns received are 
published to all employees by a round table system so they can also 
advise if they have the same concern. GFSI's Code of Conduct has a local 
contact number and e-mail address for workers to contact the company 
ectly. dir
Supplier CAP D
Action Taken: 
a  
 
 
  
 
 
Action Verified:  
Action Verified Text: 
Action Verified Date:  
 Comments:   
  
afet : Q. Ventilation/Electrical/Facility Installation and 
ntilation, plumbing, electrical, noise and lighting services shall be installed 
m to applicable laws and in such a manner as to prevent or minimize 
rkers in the facility. (S) 
 
t Date Audit Type  Audit Scope Auditor Score 
08/02/2008 External 
FLA 
Independent 
ALGI 1 (out of 5) 
Ventilation was poor during the visit and the factory excessively hot during 
 fails to ventilate the entire facility properly. 
n p Fa our 
Plan Of Action: Factory management has been ested to conduct specific actions to 
measure and/or at in actory uld regularl
 and reduce heat here i eds indu
Deadline Date:  
 
tory 
Supplier CAP Date:  
Action Taken: 
Plan Complete Date: 
Health and S y
Maintenance  
 
H&S.17 All necessary v
and maintained to conf
e
or
hazardous conditions to wo
Audi
External 
Monitoring  
Explanation: 
the summer. Monitor measured the temperature of the work area. 
Management acknowledged the need to improve the air quality and has 
purchased a new air conditioning system to be installed in the coming 
months. The current system
The evaluatio erformed prior to the purchase was faulty. ctory T
 requ
 the factory. F
 in cases w
reduce he  sho
t exce
y 
strial limits. measure heat
 
Supplier CAP: Factory has serviced their existing air conditioning units. Air quality and 
temperature will continue to be monitored upon follow up visits. Fac
will have an outside party assess the temperature throughout the day. 
 
 
Plan Complete:  
  
 Action Verified:  
ext: 
 Date:
Action Verified T  
Action Verified   
 Comments:   
  
 6
030329761G – Honduras: GFSI, VF, Nordstrom 
 7
 Time Recording System  Hours of Work: F.
 
HOW.6 Time worked by
by time cards or other a
 al
c
l workers, regardless of compensation system, shall be fully documented 
curate and reliable recording systems such as electronic swipe cards. 
 from maintaining multiple time-keeping systems and/or false records for 
 reason, ch as to falsely demonstrate working hours. Time records maintained 
curate. (P) 
Audit Date Audit Type  Audit Scope Auditor Score 
dent 
ALGI 1 (out of 5) 
ery. These two hours are not accounted as time 
worked and are not tracked for computation purposes. 
a m e he m s and 
they arrive half an hour prior t  beginning of the next shift in order to 
have t uction era es urs are not t
.  
) Unit 700 (Production floor) to the 
ent 
Plan Of Action: 
y in place is enforced for workers to be paid for all hours 
Deadline Date:  
Supplier CAP:  of 
 
he 
. Workers and mechanics are now only working 4 days per week. 
Supplier CAP Date:  
 Date: 
Employers are prohibited
any fraudulent
uthentic and ac
 su
shall be a
 
08/02/2008 External 
FLA 
Indepen
External 
Monitoring  
ation: 1) Mechanics (4x4) come on the fifth day (their first day off) for two hours 
to personally inform the incoming mechanics (from the other shift) of the 
status of the machin
Explan
2) Whenever achine breaks down, employ es notify t echanic
o the
ble at 100%. Th
arrive 10 to 15 minutes prior 
he prod
accounted for computation
line op e ho racked or 
3
beginning of their shift in order to reach production levels that generate 
bonuses. These hours are not tracked or accounted for the computation of 
wages.  
 
1) As per management, mechanics are paid a higher salary and this has 
been a customary process in FTZ. 
2 & 3) As per management, this is done on a voluntary basis, but it is 
company policy not to work anytime after or before the scheduled work 
shift without permission from facility. Employee Interviews, Docum
Review 
Factory management has been requested to record and pay all work hours 
in accordance with the local labor law. Factory has been requested to 
nsure a police
worked. 
 
The factory determined this was happening due to the rotation schedule
the factory workers and the scheduling of the mechanics. The rotation of
all workers and mechanics has been reassessed and this has corrected t
problem
Factory has a policy not to work anytime before or after the scheduled 
work shift to ensure workers are paid for all hours worked. 
 
Action Taken: 
Plan Complete: 
 
 
Plan Complete   
 
 
Action Verified:  
Action Verified Text: 
Action Verified Date:  
Comments:    
   
 


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Tracking Chart 2008 Gear for Sports in Honduras

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